Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

2 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

2 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

3 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

3 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

3 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

3 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

3 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

3 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

3 days ago
When Newsom Gives His State of the State, He Should Be Candid About California’s Economy
dan_walters
By Dan Walters, CalMatters Commentary
Published 1 year ago on
March 28, 2024

California faces economic challenges under Gov. Gavin Newsom's leadership, as the state lags behind in recovering from the pandemic. (CalMatters/Miguel Gutierrez Jr.)

Share

Getting your Trinity Audio player ready...

Gov. Gavin Newsom postponed his annual State of the State address while awaiting the fate of his mental health ballot measure in this month’s election.

Dan Walters Profile Picture
Dan Walters

CalMatters

Opinion

Whenever Newsom gets around to giving his appraisal of the state’s condition, he should curb his braggadocious tendencies and acknowledge that it faces what could be prolonged – even semi-permanent – economic sluggishness.

While Newsom was sweating out the vote count on Proposition 1, which prevailed by fewer than 30,000 votes, the federal Bureau of Labor Statistics was reporting that in February, California recorded the nation’s highest unemployment rate, with 5.3% of its labor force being jobless.

That unhappy statistic reflected a growing consensus that while the rest of the nation is enjoying a fairly vigorous recovery from the effects of the COVID-19 pandemic, California is lagging behind.

It’s a major factor in the state’s having an immense budget deficit, one that could last for years. Newsom’s budget planners and the Legislature’s budget analyst, Gabe Petek, both see annual deficits in the $30 billion range for the remainder of Newsom’s governorship.

“California entered a revenue and economic downturn last fiscal year,” Petek said in his analysis of Newsom’s 2024-25 budget. “State tax revenues fell 20 percent. The number of unemployed workers in California increased by 200,000. A key question for this budget is: to what extent and for how long will this downturn persist? The governor’s budget assumes a quick return to growth, projecting an 8 percent increase in tax revenues in the current fiscal year. While possible, we think this assumption is optimistic. Halfway through the current year, we are yet to see clear signs of such a rebound.”

In January, when the labor bureau conducted its annual revision of employment data, replacing previous estimates with hard numbers, it found that California’s picture was markedly darker than had been reported earlier.

For example, it had estimated that in the first half of 2023, the state had gained an average of 32,500 jobs each month, but in January revised that to an average loss of 400 jobs per month.

The Los Angeles Times performed its own analysis of California’s employment situation, reporting that between September 2022 and September ’23, the state’s jobs grew by a scant .15%, the lowest level of any state. Its employment growth was a tiny fraction of expansion in Texas and Florida, two states that Newsom often depicts as backward.

Californians know that something isn’t right. A recent poll by the Public Policy Institute of California found that “majorities of Californians think the state is headed in the wrong direction and predict bad economic times for the state economy in the next 12 months.”

Newsom Approval Rating Drops to 46%

The same poll also found that Newsom’s approval rating among Californians had dropped to 46%, which may partially explain why his ballot measure fared so poorly despite spending $15 million on the campaign.

California’s sluggish economy is also a factor in the state’s recent population losses, driven mostly by an outflow of people to other states with more vibrant economic prospects and lower living costs. Texas is the No. 1 destination for ex-Californians.

“About one in four lower-income residents say that the lack of well-paying jobs in their region is making them seriously consider moving out of the state,” the PPIC poll found.

When he finally delivers his State of the State address, Newsom will be tempted to ignore these troubling signs and depict a state that’s a global trendsetter, but such a head-in-the-sand attitude will erode his standing among Californians even more.

The time for bragging has passed. The time for humility and candor has arrived.

About the Author

Dan Walters has been a journalist for nearly 60 years, spending all but a few of those years working for California newspapers. He began his professional career in 1960, at age 16, at the Humboldt Times. CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more columns by Dan Walters, go to calmatters.org/commentary.

Make Your Voice Heard

GV Wire encourages vigorous debate from people and organizations on local, state, and national issues. Submit your op-ed to bmcewen@gvwire.com for consideration.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

DON'T MISS

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

DON'T MISS

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

DON'T MISS

Oil Dips Ahead of Expected OPEC+ Output Increase

DON'T MISS

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

DON'T MISS

Fresno County Authorities Investigating Suspicious Death of Transient Man

DON'T MISS

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

DON'T MISS

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

UP NEXT

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

UP NEXT

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

UP NEXT

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

UP NEXT

Oil Dips Ahead of Expected OPEC+ Output Increase

UP NEXT

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

UP NEXT

Fresno County Authorities Investigating Suspicious Death of Transient Man

UP NEXT

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

UP NEXT

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

Valley Crime Stoppers’ Most Wanted Person of the Day: Rachelle Maria Blanco

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

4 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

4 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

4 hours ago

California’s Politics Drifts Right While New York’s Leans Left

5 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

1 day ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

1 day ago

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

2 days ago

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

2 days ago

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

2 days ago

Oil Dips Ahead of Expected OPEC+ Output Increase

2 days ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A suspected DUI driver crashed into a parked California Highway Patrol motorcycle and tow truck along Highway 99 near North Avenue, missing ...

4 hours ago

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
4 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
4 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
4 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
4 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Tesla Chief Executive Officer Elon Musk gets in a Tesla car as he leaves a hotel in Beijing, China May 31, 2023. (Reuters File)
4 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

A search dog operates at Camp Mystic after deadly flooding in Kerr County, Texas, U.S., July 5, 2025. (Reuters/Sergio Flores)
4 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

2024 Democratic National Convention
5 hours ago

California’s Politics Drifts Right While New York’s Leans Left

Solar Farm in Riesel, Texas
1 day ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

Help continue the work that gets you the news that matters most.

Search

Send this to a friend