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.
Gavin Newsom 2023: Here is my new $15 BILLION plan to solve homelessness, with Accountability at the core
Audit: Hey, there is $24 BILLION missing
Gavin Newsom 2024: I’m vetoing this bill that audits my spending on homelessness pic.twitter.com/TUklDBR7Ph
— Kevin Dalton (@TheKevinDalton) July 15, 2024
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:
Year 16 of Newsom's 10 year plan to end homelessness & $24 BILLION dollars later.
Gavin Newsom's Homeless Industrial Complex has made his donors very rich.
According to a new state audit, California has failed to track the $$$ of its BILLION-DOLLAR spending on homelessness… pic.twitter.com/KzUVEKT4Xg
— Wall Street Mav (@WallStreetMav) April 20, 2024
His donors sure do keep getting richer, don’t they?
Some say the loss is far greater than $24 billion:
After a state audit/CALeg hearings found Newsom’s administration wasn’t tracking the effectiveness of $billions spent on homelessness, can Gov guarantee it will be able to show for the money sent to cities/counties moving forward?
“Jeff, why don’t you answer that question..” pic.twitter.com/Q7AaijXMdo
— Ashley Zavala (@ZavalaA) October 5, 2024
Is it just “staggering incompetence” or something more like intentional laundering?
Staggering, nearly inconceivable levels of cartoonish incompetence
Newsom *genuinely thought* that the gargantuan one-time flood of federal funds during the pandemic would continue forever
… and budgeted accordingly
Beyond satirehttps://t.co/YRDEn7YrZd pic.twitter.com/pvX9SuWV4o
— skepticalifornia (@skepticaliblog) June 26, 2024
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.”
ADVERTISEMENTIt 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?
Gee, how does all this money keep going missing?
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:
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