The California state Capitol building in Sacramento. File photo courtesy of Sen. Toni Atkins’ office
The truly astonishing tax revenue numbers cited by Gov. Gavin Newsom last week as he unveiled a revised state budget bring to mind an old adage: “The bigger they are, the harder they fall.”
So much money is pouring into state coffers from personal and corporate income taxes and sales taxes that Newsom said the state will have nearly $100 billion more than it needs to finance ongoing spending, twice as much as his original budget, proposed in January, estimated.
“You’ve never seen a number like this,” Newsom told reporters.
True enough, and it poses a potential problem that could be just as monumental. Big budget surpluses generate big demands for new spending from the advocates of educational, social welfare and medical services. But if spent on new entitlements, they become liabilities when, inevitably,…