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NewsTimes of San DiegoNovember 4, 2026San Diego County

Commentary: Incoming California Governor Xavier Becerra faces deep state budget deficits left by Gavin Newsom

Photo: Times of San Diego

Incoming California Governor Xavier Becerra must address a significant state budget deficit and billions in accumulated debt left by outgoing Governor Gavin Newsom. While Newsom regularly outspent state revenues during his tenure, Becerra has indicated a potential openness to raising taxes on high-income earners and corporations, implementing new employer fees, and taxing electric vehicle mileage to balance the budget.

Budget & AppropriationsTaxesEconomyState Government
Read the full story at Times of San Diego

Why It Matters

California residents face potential tax increases or public spending reductions as the state addresses a $29 billion and persistent structural deficits.

Key Facts

  • Incoming Governor Xavier Becerra must submit a new state budget to the Legislature days after his January inauguration.
  • Outgoing Governor Gavin Newsom leaves behind an estimated $29 billion wall of debt, according to legislative budget analyst Gabe Petek.
  • During Newsom's eight years in office, the state took in $1.4 trillion in general fund revenue while spending $1.7 trillion, averaging $37 billion in overspending annually.
  • Newsom's spending increased the state payroll by 100,000 positions.
  • Becerra has indicated potential interest in raising taxes on high-income Californians, closing corporate tax loopholes, taxing employers whose low-paid workers qualify for Medi-Cal, and implementing a mileage-based tax on electric vehicles.
  • Former Governor Jerry Brown faced a $35 billion wall of debt after the 2010 election, which he addressed through spending cuts and temporary sales and income tax increases.

Who's Mentioned

OrganizationKCRA-TV“Sacramento television station”PersonXavier Becerra“Former attorney general who won the governorship”PersonGabe Petek“Legislature's budget analyst”PersonJerry Brown“Former California Governor”locationCalifornia“State subject to the budget management discussion”PersonGavin Newsom“Outgoing California Governor”OrganizationCalMatters“Nonpartisan and nonprofit news organization that originally published the commen”PersonAshley Zavala“Reporter for KCRA-TV in Sacramento”