Gavin Newsom’s Silicon Valley sized ego is about to take a massive hit.
One massive economic reality is suddenly becoming apparent.
And California’s golden boy is about to get exactly what he has coming.
For the past year California Governor Gavin Newsom has spent most of his waking hours running for president while simultaneously pretending he has “subzero” interest in running for president.
But things were continuing to fall apart in California while Nancy Pelosi’s pretty boy nephew was running all over the country taking shots at Ron DeSantis but pretending he was running for a second term as governor of California.
Now years of making California one of the worst places in the world to live and do business is catching up with the arrogant politician who is constantly bragging about the “California way.”
A $22.5 billion hole
Of course, all that amounts to is endless spending in pursuit of fruitless leftist ventures (like billions to install electric car chargers in the ghetto) has resulted in what’s shaping up to be a massive financial pickle.
Now it looks like the Golden State is at least $22.5 billion in the hole.
For perspective, if you spent $1,000 every single day, it would take over 2,739 years to get to just 1 billion dollars.
So admission of that $22.5 billion dollar deficit coming out of the Governor’s Office is a balloon-popping event coming off of the state’s $100 billion budget surplus last year.
In spite of that record haul last year, the state has a mere $22.4 billion in its reserve after blowing a stunning $310 billion last year.
But Newsom has no plans to dip into that reserve.
Instead, he’ll cut payments that were supposed to go back to taxpayers to offset inflation.
Sensible, maybe even most, taxpayers might be encouraged that he’s dumping $6 billion of funding for a pie-in-the-sky, completely unrealistic climate agenda.
Unfortunately, there’s no word that he’s likely to entertain canceling the requirement that all new cars sold in the state by 2035 are electric.
As last summers’ heat wave proved, the state needs a massive electrical grid upgrade in order to even run the current supply of home A/C units and electrical cars at the same time.
“It’s an EKG and that sums up California’s tax structure,” Newsom said, trying to explain the current mess. “It sums up the boom-bust.”
But he failed to note that he and his leftist buddies acted as the driving force behind that “bust.”
He’s trying to blame the volatility of a system that relies on taxes paid by the ultra-rich.
But that only scratches at the surface of the problem.
The Left hopes everyone will blame Elon Musk for California’s budget woes
The ultra-rich, like Elon Musk, have certainly dropped their spending in California, but it’s not a simple stock market plunge like Newsom is claiming.
Thanks to completely unlivable blue state pandemic policies, Musk pulled Tesla’s headquarters out of California and numerous other Silicon Valley tech companies have followed him to Austin, Texas.
The same is true of countless families who had the means to make their escape from the dystopian blue state following insane lockdowns and mandates.
With a massive loss to California’s tax base, the only direction from here is straight down—and it may well take Gavin Newsom’s political career down right along with it.
Stay tuned to Blue State Blues for any updates to this ongoing story.