California’s Balanced Budget Lie | San Jose News

California’s governor and lawmakers proudly declare their new budget “balanced” — but the numbers tell a different story. With $351 billion in planned spending and only $251 billion in the general fund, they’re expecting a $20 billion shortfall. This isn’t new — for four years, California has spent more than it takes in, fueled by a past accounting error that triggered a spending spree and piled up what critics call a “wall of debt.” Budget analyst Gabe Petek warns that California’s heavy reliance on wealthy taxpayers — especially from volatile stock market investments — leaves it dangerously exposed. He urged saving during high-revenue years, not spending it all and borrowing to cover the gap. Instead, the final budget added $5 billion in new spending, reversing earlier cuts to healthcare and social programs. While officials spin it as balanced, the reality is a continuation of overspending and rising debt — with many questioning the transparency behind the numbers. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/4e2b758dbc78a6fb