Newsom’s Budget Houdini Act: All Smoke, Mirrors, and Wishful Thinking

Gavin Newsom has once again pulled off a dazzling feat of financial gymnastics. In his May 14 revised budget for fiscal year 2026-27, California’s governor stood tall and declared victory: no deficit this year, no deficit next year, and the dreaded structural deficit magically erased through July 2028. With general fund spending at $246.6 billion and a...