Fearing deficits, California senators ask Gavin Newsom for budget transparency
A bipartisan group of state senators on Wednesday expressed alarm about budget deficits California is expected to face in upcoming years and called on Gov. Gavin Newsom’s administration to be more transparent with its spending plans.
“It’s simply an irresponsible position to be putting ourselves in,” state Sen. Catherine Blakespear, D-Encinitas, said about the upcoming shortfalls. “And it does expose us to tremendous risks in the event and likelihood that we do have a downturn in our economy.”
Both the Department of Finance and the Legislative Analyst’s Office, which advises the Legislature on fiscal and policy matters, predict the state will need to deal with deficits in upcoming years.
That is despite a surge in tax revenue due to the continued rise of the stock market, largely driven by enthusiasm about the prospects of artificial intelligence.
Earlier this month, Newsom’s administration released a proposed budget for the upcoming fiscal year that estimated a nearly $2.9 billion deficit that does not include major cuts or new spending.
Erika Li, a top budget official at the finance department, told senators in a hearing the administration wanted to work with the Legislature before releasing a more specific spending plan in May.
“Our intent is to have robust conversations and to have them soon,” Li said.
State Sen. Christopher Cabaldon, D-West Sacramento, said he hoped those conversations would not just happen in secret.
“This is not a year to say, ‘Hey, let’s take the closed-door negotiations of the final two weeks and let’s have closed-door negotiations for five months,’ “ he said to Li. “That is not the outcome, that’s not the standard we should be setting.”
State Sen. Eloise Gómez Reyes, D-Colton, was also direct in her comments to Li: “We cannot wait until May.”
The Legislature has until June 15 to pass a budget for the fiscal year that begins July 1. Although legislators can pass updated ones after meeting that deadline.
State Sen. Roger Niello, R-Fair Oaks, said to Li the lack of specifics in the January budget makes it more challenging for the committee to do its work before the deadline. The group plans to hold many hearings on specific aspects of the state’s spending plan, which could see significant changes.
“Why are we analyzing a budget that isn’t complete?” Niello asked. “That’s, I have to say, a little bit frustrating.“
This story was originally published January 22, 2026 at 5:00 AM.
