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As Governor Gavin Newsom unveiled his latest state budget proposal this week, Reform California Chairman and State Assemblyman Carl DeMaio is calling it out as a dishonest and disastrous mess — one that he says is driving California toward a fiscal cliff.
“Gavin Newsom is a liar who is utterly incapable of fixing the fiscal crisis he created,” says DeMaio. “This is not just a deficit — it’s a full-blown meltdown, and Californians are going to pay the price.”
DeMaio, a recognized national expert on budget reform, is sounding the alarm on Newsom’s failed leadership and has outlined five major failures driving California’s fiscal collapse:
Despite Newsom’s attempts to spin the numbers, DeMaio warns the state’s budget is in free fall. “The accounting gimmicks won’t save us,” DeMaio says. “This budget crisis rivals the Great Recession — and it’s entirely self-inflicted.”
Newsom’s latest budget plan attempts to paper over billions in shortfalls, while independent analyses suggest the true deficit is far worse than projected.
DeMaio blasted California Democrats for trying to shift blame to President Donald Trump instead of taking responsibility for their own reckless policies.
Since Newsom took office in 2019:
“This is what happens when you grow government without restraint and reward failure with taxpayer dollars,” says DeMaio.
According to DeMaio, the situation is likely to deteriorate further as the state faces ongoing revenue losses — fueled by illegal spending, job-killing regulations, and the exodus of working Californians.
“High earners are fleeing the state, and what we’re left with is a shrinking tax base and a bloated welfare state,” DeMaio warns. “Newsom’s policies are driving California into a death spiral.”
DeMaio slammed Newsom for cutting essential services while handing out political favors. He pointed to new tax breaks for Hollywood elites, a payroll tax increase on small businesses, a looming Gas Tax hike, and billions wasted on the failed High-Speed Rail project.
“Everyday Californians are being squeezed — while Newsom’s friends and special interests cash in,” DeMaio says.
While slashing funding for wildfire prevention and public safety, Newsom has continued to pour billions into benefits for illegal immigrants — including $9.5 billion in free healthcare, which DeMaio exposed earlier this year.
“He refuses to fund Prop 36, which voters overwhelmingly approved in November 2024 to crack down on crime,” says DeMaio. “But he’s happy to hand out your tax dollars to those who broke our immigration laws. The priorities in Sacramento are completely upside down.”
DeMaio has put forward a budget reform plan of his own — one that avoids tax hikes, fully funds core services, and eliminates waste, fraud, and abuse in state government. But Assembly Democrats have refused to even grant a hearing on the proposal.
“Instead of facing the problem, they’ve tried to silence me — even removing me from the Budget Committee for telling the truth,” DeMaio says. “But I won’t stop fighting to fix this state.”
Reform California is calling on voters to join the fight to hold Newsom and Sacramento Democrats accountable. One of the best ways to do this is by electing new, reform-minded candidates in 2026, flipping key target seats, and breaking the Democrat supermajority. Join the campaign below!
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