Skip to main content
We may receive compensation from affiliate partners for some links on this site. Read our full Disclosure here.

Hey Gavin, Where’s The Missing $24 BILLION?


Gavin Newsom is back in the news today, and this time it’s for $24 billion that’s “missing” as revealed by a brand new audit.

But hey, what’s $24 billion among friends?

Actually, that may be the real issue here as some believe the $24 billion was funneled to friends, donors and special interests supportive of Newsom:

His donors sure do keep getting richer, don’t they?

Some say the loss is far greater than $24 billion:

ADVERTISEMENT

Is it just “staggering incompetence” or something more like intentional laundering?

CalMatters had more details:

Gov. Gavin Newsom and legislative leaders wrapped themselves in a blanket of self-congratulatory statements Saturday as they announced a deal to close a multibillion-dollar state budget deficit.

They praised themselves for dealing with the $44.9 billion gap between income and outgo without making major reductions in the state’s array of social welfare, health care and education services.

“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Newsom said in a statement. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combating homelessness.

“I’m grateful for the partnership of our legislative leaders in meeting this challenge with balanced solutions that continue to make progress on California’s priorities.”

Setting aside the self-serving verbiage, there are two salient features of the $297.9 billion budget that Californians should keep in mind — the first being that the budget crisis was self-inflicted.

As the state’s economy emerged from a brief but severe recession during COVID-19 and federal relief funds were pumped into the state, revenues spiked to more than $200 billion. Based on that one-time event, in 2022, Newsom’s administration projected that revenues from the state’s three major sources — sales taxes and personal and corporate income taxes — would continue to generate more than $210 billion a year.

Newsom declared that the state enjoyed a $97.5 billion budget surplus and boasted, “No other state in American history has ever experienced a surplus as large as this.”

ADVERTISEMENT

It was a monumental error. In fact, revenues from the three biggest sources have been running well under $200 billion ever since, and are now estimated to remain below that level. As Newsom’s revised 2024-25 budget acknowledges, those revenues over a four-year period are now projected to be an incredible $165 billion less than originally expected two years ago.

The false revenue and surplus estimates fueled a sharp uptick in spending. As revenues failed to meet expectations, the budget experienced a structural gap between income and outgo. Had Newsom and others in the Capitol not convinced themselves that they had money to burn, there would have been no deficit.

The second thing that Californians should know about the budget deal: Despite the claims from politicians that it contains, in Newsom’s words, “balanced solutions,” in fact it is imbalanced by many billions of dollars. It contains an estimated $211 billion in general fund spending, but the state expects to raise only about $192 billion in general revenue during the 2024-25 fiscal year.

The gap will be filled largely by tapping the state’s reserves, meant to cushion the impact of an economic downturn, some minor tax increases and indirectly borrowing money that will have to be repaid later.

If you’re like me, this story immediately reminds you of a similar one…

Remember this?

WHERE’S THE MONEY BILL? NYC Mayor Bill DeBlasio’s Wife “Can’t Account For” $850 MILLION of Taxpayer Money

Gee, how does all this money keep going missing?

ADVERTISEMENT

It's almost like these people are absolutely incapable of running even a simple business and/or really good at funneling billions into their own pockets?

Patrick Bet-David and the Valuetainment Team had a great breakdown of the missing money:

FULL TRANSCRIPT:

So, this is the governor of California.
The great state of California, which he's destroyed
the last four years under his reign.

He's being asked what happened to this $24 billion
that you asked us taxpayers to fix homelessness.
What happened to that money? Here's the exchange.


Rob: Are we doing enough to determine whether the money that's being plowed into homelessness is being well spent?

One of the vexing issues that was highlighted in the audit was local and each city and county’s different strategies and approaches. We try to level-set that.

Reporter: I’m sorry, Governor, I didn’t hear responses to either of those questions.

Do you acknowledge whether the money—that the state isn't doing enough to ensure that the money is being well spent?

Governor Newsom: The audit did not surprise me.

The state has advanced unprecedented investments, you're correct, and unprecedented interventions, demanding more accountability with state money at the local level.


Tom: Yeah, what does that mean, buddy?

ADVERTISEMENT

Pat: Tom, what are your thoughts on how he’s been held accountable with the money and still doesn’t give any answers?

Tom: Well, guess what? The questions that are being asked publicly of Gavin Newsom are the ones that are being asked privately by people leaking information all over the place—just like they did about Kamala Harris.

What you saw in Kamala Harris’ campaign was this: you take a big stack of money, give it to bureaucrats and politicians, and they spend it on micro-programs and stuff. There's consultants, and there’s skimming all over it.

We saw it in the Harris campaign. Take the billion dollars in her campaign that disappeared, multiply it by 20 over a couple of years, and that’s what’s happened in California.

There are consultants in that, there’s waste. Individual cities each did things their own way, which was wasteful.

The whole point of a state government is to say, "We’re going to do it this way in every city," and you get some efficiencies like that.


Pat: If you run a business like that—Tom, you ran an incredibly successful, great nationwide insurance company—you had one playbook for sales.

Everybody was marching together, doing it. That’s not how it works here.

You could have a Republican city in Orange County; they get money.
You could have a Democrat city in Santa Barbara; they get money.
Then they do it themselves, pay their own consultants, and it’s waste, graft, and a lack of leadership.

That’s what he doesn’t want to own up to. "Oh, the audit didn’t surprise me."

You’re in charge, dude. You’re the governor. You’re the one who could put down these guardrails.


When there are wildfires in California, the governor declares a national disaster area, and you have full coordinated efforts. Why? Because there’s nothing to hide behind.

The flames don’t wait. You have to coordinate, show leadership, and get the fire out.

But with homelessness? "Well, we’ll do this. We’ll do this. We’ll do this."

Newsom has presided over something that’s 20 times more wasteful than Kamala Harris’ campaign.

And what’s the difference? Not much.


Vinnie: Um, well, Pat, as you know, I was in California recently for work.

First of all, it doesn’t surprise me at all. And, I don’t know if it was just my computer, but was it just me or did he look overly red?

Like, I thought he was in a satanic costume for Halloween or something.

I don’t know, his face was—he was playing the part very well.

But I was just in LA, Pat. The homeless situation, just driving around, I was like, “Oh my God.”

I’ve been in Florida for three years, and it’s gotten insane.


At what point are people going to say, “Enough is enough” and stop putting these types of people in power?

Because at the end of the day, I’m going to say, I don’t feel bad for you if you keep voting for these people.

“Oh, I’m a Democrat, so I have to go Democrat.”

It’s on you guys as well.

People keep hearing the phrase “taxpayer money, taxpayer money.”

No—say what it is. It’s your money, California.

Where is it going? Nothing is getting done. The streets are horrible. Homelessness is out of control. Crime is up.

But they keep pretending. "Hey, as long as you keep voting for us..."


Pat: Vinnie, it’s not their money. It’s our money. It’s the people of the United States and the future debt of the United States.

Because California received federal money on top of that for the homeless problem.

On one hand, they open the door, talk about being a "Sanctuary City, Sanctuary State," but then ask the federal government to help pay for it.

It’s the same thing happening in New York.


Eric Adams finally called it out, saying, “I don’t want any more. We have to put a stop to it.”

... (Transcript continues seamlessly)

... That was after he gave out ATM cards paid for by the American people—not just New Yorkers.


Tom: While you’re talking, Vinnie, I pulled up something.

Rob, I’m going to send this to you if you can pull it up. I went on the California Homeless Auditor website.

It’s auditor.ca.gov.

What I want to know is: this money that you asked from us—money we paid for—have you been able to slow down homelessness in California?

You cleaned up San Francisco for G when he came. If you could do that, why couldn’t you clean up the rest of the state?

Rob, if you can pull up this chart. It’s on the homepage. Look for Figure 1: “California’s Population of People Experiencing Homelessness.”


When did Newsom become governor? What year?

Okay, so from 2013 to 2015, homelessness went down.

Whoever was governor back then managed to decrease it by 3,000 people in two years.

Then it started rising again in 2017.

Newsom came in during 2018, and it skyrocketed from 131,000 to 181,000—even after receiving billions of dollars.


Vinnie: When did California get that $24 billion for homelessness?

Pat: According to CBS, California spent $24 billion on homelessness over five years, starting in 2019.

They didn’t consistently track outcomes, which is absurd.

If you, the taxpayers, gave us $24 billion to address homelessness, what’s the one thing you’d want from us?

A simple report showing whether homelessness is going up or down.


And you mean to tell me they didn’t track this?

$24 billion, and according to the audit, California didn’t consistently track whether public money improved the situation.


Tom: Thirty percent of all homeless people in the U.S. are in California.

The state’s population is 39 million, about 11% of the U.S. population, but they account for three times the national average of homelessness.

That’s a failing grade.


Pat: The reason this matters is because by 2028 or 2027, Newsom will be running for president—100%.

He’s got two years to clean up this resume before then.



 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Leave a comment
Thanks for sharing!