NewsCalifornia News

Actions

Despite surplus, analyst warns of California 'fiscal cliff'

Gavin Newsom
Posted

SACRAMENTO, Calif. (AP) — California's nonpartisan legislative analyst says the state could be headed toward a fiscal cliff despite a record-breaking budget surplus.

Gov. Gavin Newsom announced a $97.5 billion surplus on Friday.

The Legislative Analyst's Office said Monday that Newsom's proposal would leave the state about $25 billion over a constitutional spending limit next year.

The analyst said that could require budget cuts.

California Department of Finance spokesman H.D. Palmer noted Newsom's budget proposal leaves the state in a good position to handle the problem.

California would have billions of dollars in reserve. And he said the state could cut back on one-time spending if necessary.



,

Weather

Daily Forecast

View Hourly Forecast

Day

Conditions

HI / LO

Precip

Friday

05/09/2025

Sunny

98° / 67°

0%

Saturday

05/10/2025

Sunny

102° / 67°

0%

Sunday

05/11/2025

Mostly Sunny

92° / 58°

0%

Monday

05/12/2025

Mostly Sunny

78° / 54°

0%

Tuesday

05/13/2025

Partly Cloudy

73° / 54°

12%

Wednesday

05/14/2025

Sunny

81° / 58°

1%

Thursday

05/15/2025

Sunny

87° / 61°

0%

Friday

05/16/2025

Mostly Sunny

89° / 62°

0%