JD Lasica from Pleasanton, CA, US via Wikimedia Commons

Amid recall efforts, Gov. Gavin Newsom is trying to save his job with a wildly expensive state budget that is driven by a single-time surplus of coronavirus funds and tax revenue.  

The proposed plan would provide free health insurance for older illegal immigrants, pay off resident’s delinquent rent and utility bills, extend transitional kindergarten to every 4-year-old, and send another round of $1,100 stimulus to two-thirds of Californians.

Newsom touted the plan as “not just a comeback, but an extraordinary decade, arguably century, ahead,” at a press conference Friday.  

“We are trying to do things this state has talked about but never been able to accomplish because we’ve never had the resources to do it,” Newsom said. “This is not a budget that plays small ball. This is not a budget that plays in the margins.”

 But the budget largely relies on a one-time $100 billion surplus that includes $27 billion federal stimulus money stemming from the pandemic, and California had to borrow billions to pay an unprecedented amount of unemployment benefits. The unemployment trust is expected to reach $24.3 billion by the end of the year and Newsom’s plan only allocated $1.1 billion to pay down the debt.  

The unemployment “deficit is the biggest threat to all businesses in California,” remarked Rob Lapsley, president of the California Business Roundtable. “Without a significant investment from the state to address the massive UI Fund debt, businesses will be on the hook to pay for debt they didn’t create and cannot afford to pay back.”

Most of the deficit comes from fraud, in January, Julie Su, the secretary for the

California Labor and Workforce Development Agency admitted that $11.4 billion in claims were fraudulent and $20 billion in additional claims were flagged as potentially counterfeit.

“There is no sugar coating the reality, California did not have sufficient security measures in place to prevent this level of fraud,” Su said.

Rather than spending cash to beef up security, Newsom’s plan allocates $305 million to hire contractors to clear up the estimated 11 million in outstanding claims and to begin paying benefits through direct deposit to enhance access for foreign language speakers. 

The plan also includes $50 million to expand Medi-Cal insurance coverage to undocumented seniors, but the County Health Executives Association of California tweeted they are “deeply dismayed” that the budget didn’t include new money for county health programs. 

Newsom wants to spend $12 billion to battle the state’s escalating homelessness crisis, earmarking $3.5 billion to refurbish hotels to create housing. He intends to pay $300 million to wipe out traffic fines for low-income residents, and devote $5.2 billion to pay off delinquent rent and utility bills. 

The plan also allocates $4 billion dollars to address the behavioral health of all Californians under 25, $7 billion towards building a broadband network to increase service in rural and tribal areas, and $3.2 billion to expand the state’s zero-emission vehicle goals. 


    1. This ‘revelation’ should spark public ire against nepotism, or any other affiliations our government leaders are advantaged with. Our own city has the bulk of relatives and offspring of a former mayor entrenched within our public offices. Hillary would have been a sterling example of this trend. (W. Bush was certainly a contender, and AHNOLD, who was in bed with the Kennedy’s, clearly demonstrated why familial governments become royalty.

    2. Had to laugh when I saw his picture, since it looks like he has had a “do-over”….Hair looks like it was dyed and it also looked like there is some perm in his hair, since when has he ever been curly and dark-haired? but aside from that I would NOT put it past him to try and buy everybody off, so we won’t have a chance to get him out……

  1. It all makes sense in a really perverse, immoral way. Newsome and his Democrat colleages probably figure anyone who is corrupt enough to commit fraud to steal taxpayer money is no doubt likely to vote Democrat–even if they aren’t eligible to vote…or vote THAT many times.

    1. You’re onto something here. An old saw goes “Patriotism is the last refuge of a scoundrel.” There seems to be lots of ‘patriots’ operating at all levels of government, and we’re hearing more and more about the shady activities of these public officials. A theory was proposed that many government officials were placed into office under the threat of exposure for some past criminal behavior. (Mr. Epstein was mentioned prominently in that regard..) Newsom already had a Baker’s dozen of shenanigans amassed when he was Lieutenant Governor. I’ll bet he stored a few more skeletons in his political closet during his gubernatorial bid.

  2. Newsom can you sink any lower, all your crap plan does take from hard working tax payers, who are trying very hard to get back on their feet despite your communistic lockdown, this is on you no reasonable sane person or the other 49 states will back you, your toast just say good bye and leave before you really embarrass yourself, you got recalled Californians who signed that recall petition wants a loser who doesn’t give a flying fig about them OUT! And now you have the audacity to want them to pay for Illegal immigrants health insurance, seriously how fast can you get out you have truly crossed the I’m as stupid as they come line! Where do you think all that money you want comes from, the elite phony’s in Hollywood are they going to pony up that money for you! Here’s a start you Ca labor and workforce development agency too 31.4 billion in fraudulent claims from Ca get that money back, in the time you’ve been gov you did nothing for the homeless, now you want someone else to pay, get out of town!

  3. Newsom the clown thinks like his aunt. I think Pelosi is his aunt but they are related. They have the same liberal philosophy. Tax and spend and control–meaning pass many regulations that control us. Both are rich. I think Pelosi used her politics to enrich her family and her.

  4. Hard working california taxpayers once again footing the bill for this
    a h o l e ‘s pet project…to redistribute MY hard earned wealth to illegal aliens, lazy welfare recipients and anyone else who has their hand out. I’m sick of these disgusting socialist politicians! They want to give money away, they should give their own…leave mine alone!!!

  5. Nuisance Newsom obviously playing hard and fast with Taxpayers Money so they can push on their Socialist failure of a Government. The trouble with Socialism is that eventually you run out of other people’s money. He wants California to become the new Western Mexico. This dude is crazy. It’s a good thing Tesla moved to Texas. Anyone else not interested in getting taxed to death would do well to move as well.

  6. It’s not his personal money at risk, it’s just business’ and tax payers money…he’ll try and buy as many votes as he can to stay in office, cause it’s a lisence to steal if reelected,…and if not, so what?…A DEMOCRAT NEVER NEVER takes responsibility for their failures……he’ll still be rich, no matter what happens, and Auntie Pelosi will make sure he is never prosecuted for any malfisance in office.

  7. The elected politicians of California have made the state of California the biggest joke in America. This once great state has people fleeing at a record pace. They are tired of the “California Insanity”!

  8. Giving away all this money to people who don’t deserve it such a law breakers racking up traffic violations, or being here illegally, yet this piece cut all state employee’s pay by 10% claiming they needed to help because of the loss in tax revenue because of the plandemic he exacerbated with his stupid draconian lockdown policies (except for HIS businesses of course) and not a hint of returning those workers to their full pay.

  9. 😵‍💫Maybe, the Fed should sell Commie-fornia to the chi-com CCP❓Since they seem to ❤️ socialism, so much❗️

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