{"id":2372179,"date":"2024-11-22T13:15:02","date_gmt":"2024-11-22T18:15:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-doesnt-have-the-financial-capacity-for-trump-resistance-lawsuits-washington-examiner\/"},"modified":"2024-11-22T13:20:10","modified_gmt":"2024-11-22T18:20:10","slug":"california-doesnt-have-the-financial-capacity-for-trump-resistance-lawsuits-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/california-doesnt-have-the-financial-capacity-for-trump-resistance-lawsuits-washington-examiner\/","title":{"rendered":"California doesn\u2019t have the financial capacity for Trump resistance lawsuits &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcalifornia-doesnt-have-the-financial-capacity-for-trump-resistance-lawsuits-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2372179&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article discusses California&#8217;s financial struggles as outlined by the\u2063 California Legislative\u200c Analyst&#8217;s Office (LAO). Despite a significant reduction in the state&#8217;s budget deficit, projections suggest that it could \u2062rise to $20\u200c billion by 2026. The LAO warns \u2063that the state&#8217;s expenditure is growing faster \u2064than revenue, raising concerns about recognizing new spending commitments\u200d amid current\u200d fiscal constraints.<\/p>\n<p>Governor \u200bGavin Newsom has indicated plans to allocate substantial funds for lawsuits against the Trump administration, a move criticized by California \u2064Republicans who argue the state cannot\u200c afford \u2063such expenses given its existing $2 billion deficit. Past experiences show California engaged in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/lincoln-day-dinner-trump-embraces-legal-troubles-with-walk-up-song-in-iowa\/\" title=\"Trump embraces legal troubles with walk-up song at Lincoln Day Dinner in Iowa.\">numerous legal battles<\/a> against Trump, which have proven costly.<\/p>\n<p>The state&#8217;s fiscal situation \u2064has fluctuated due to reliance on volatile stock market revenues, which supported high budget surpluses in \u2062previous\u2062 years. However, recent downturns prompted budget revisions, resulting in a projected adjusted budget \u200cwith a deficit of $2 billion for the upcoming year. Analysts express concern over the state&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economic-update-gdp-revised-down-to-4-9-in-q3\/\" title=\"GDP in Q3 revised down to 4.9% in economic update\">declining consumer spending<\/a> and rising \u2062unemployment, suggesting that the current emphasis \u200don expanding state programs, such as Medicaid, \u2064could lead to further\u200c financial instability if\u200d not carefully managed. the LAO advocates\u200d for greater scrutiny of expenditures and prioritization of budgetary commitments to ensure long-term fiscal health.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">California doesn&rsquo;t have the financial capacity for Trump resistance lawsuits<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1879940\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/california\/\" target=\"_blank\" rel=\"noopener\" title=\"\">California <\/a>Legislative Analyst&rsquo;s Office projected a dismal fiscal outlook for the Golden State as Gov. <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/gavin-newsom\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Gavin Newsom<\/a> (D-CA) is anticipated to pour millions of dollars into fighting the Trump administration.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>The non-partisan budget watchdog released an analysis this week showing that while the state has managed to reduce its budget deficit by a massive amount since last year, the deficit is estimated to climb back up to a staggering $20 billion by 2026.&nbsp;<\/p>\n<p>&ldquo;We anticipate the Legislature likely will need to address deficits in the future, for example by reducing spending or increasing taxes. In our view, this year&rsquo;s budget does not have capacity for new commitments, ongoing ones,&rdquo; the LAO&rsquo;s report reads.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/presidential\/3220326\/five-democrats-prime-position-face-party-2028\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>FIVE DEMOCRATS IN PRIME POSITION TO BE FACE OF THE PARTY IN 2028<\/strong><\/a><\/p>\n<p>LAO analyst Gabriel Petek warned that state expenditures are growing by roughly 2.3% more than they have in previous years. He said expenditures are outpacing revenues by nearly 2%, making additional spending by California officials and agencies unwise.&nbsp;<\/p>\n<p>The LAO&rsquo;s warnings come as Newsom <a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/3222691\/gavin-newsom-special-session-trump-proof-california\/\" target=\"_blank\" rel=\"noopener\" title=\"\">pledged to<\/a> do everything in his power to stop President-elect Donald Trump&rsquo;s Republican agenda from touching California after he won the election earlier this month, signaling that pricy lawsuits are on the horizon.<\/p>\n<p>California sued the Trump administration more than 120 times between 2016 and 2020 during his first term in office. But with lawsuits coming at a heavy expense and the state headed toward a $30 billion budget deficit by 2027, California Republicans are pushing back against Newsom&rsquo;s anti-Trump agenda.<\/p>\n<p>&ldquo;California has a $2 billion deficit that&rsquo;s projected to explode in the next few years, and Newsom&rsquo;s solution is to spend another $100 million on lawyers to fight President Trump,&rdquo; the California state assembly&rsquo;s Republican leader, James Gallagher, told the <em>Washington Examiner.<\/em> &ldquo;You can&rsquo;t lead the &lsquo;resistance&rsquo; when you can barely pay the bills. It&rsquo;s too bad Newsom is more focused on chasing headlines for his 2028 presidential run than actually running the state.&rdquo;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3222408\/joe-biden-lame-duck-session-trump-proof-legacy\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>BIDEN TO USE LAME-DUCK SESSION TO &lsquo;TRUMP-PROOF&rsquo; LEGACY<\/strong><\/a><\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">President Joe Biden shakes hands with California Gov. Gavin Newsom as he arrives at Moffett Federal Airfield, Calif., Monday, June 19, 2023. Biden is ramping up his reelection effort this week with four fundraisers in the San Francisco area, as his campaign builds up its coffers and lays strategic foundations for 2024. (AP Photo\/Susan Walsh)<\/figcaption><\/figure>\n<p>Newsom has had a rocky year steering fiscal matters over the past few years.&nbsp;<\/p>\n<p>During fiscal years&nbsp;2021 and 2022, California generated unexpectedly high budget <a href=\"https:\/\/lao.ca.gov\/Publications\/Report\/4297\" target=\"_blank\" rel=\"noopener\" title=\"\">surpluses<\/a>, largely because the &ldquo;stock market was on fire.&rdquo;<\/p>\n<p>&ldquo;California gets a lot of tax revenue from stock market capital gains, and it kind of turbo-charged our revenue growth in those years,&rdquo; Petek said.&nbsp;<\/p>\n<p>Lawmakers responded to the revenue gains by funneling expenditures into a host of one-time or temporary state programs.&nbsp;<\/p>\n<p>However, relying on an unpredictable and uncertain stock market for revenue rather than building a <a href=\"https:\/\/amzn.to\/3YuVZYV\">strong underlying economy promoting small businesses<\/a> and job growth didn&rsquo;t go so well for the Golden State. <a href=\"https:\/\/calbudgetcenter.org\/resources\/qa-what-does-the-budget-shortfall-mean-for-california\/#h-what-other-options-do-policymakers-have-to-balance-the-state-budget\" target=\"_blank\" rel=\"noopener\" title=\"\">Downturns<\/a> in the stock market in 2022 put California in a vulnerable fiscal situation, pushing lawmakers to reconsider the previous investments made into state programs.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/presidential\/3222249\/how-kamala-harris-plowed-through-1-billion\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>HOW KAMALA HARRIS PLOWED THROUGH $1 BILLION<\/strong><\/a><\/p>\n<p>&nbsp;&ldquo;We had slower revenue growth than we had had before, and we couldn&rsquo;t afford all of those temporary commitments that had been made based on the prior revenue anticipated revenue growth,&rdquo; Petek reflected.&nbsp;<\/p>\n<p>Facing a $68 billion budget deficit this year, the California legislature slashed expenditures and many &ldquo;temporary commitments&rdquo; over the spring of 2024, resulting in an adjusted budget deal announced in June with a projected deficit of $2 billion.&nbsp;<\/p>\n<p>While the state&rsquo;s fiscal situation appears far better at first glance now than it did at the start of the year, the Legislative Analyst&rsquo;s Office&rsquo;s latest report shows that California&rsquo;s underlying economy is weak, setting it up for a lackluster fiscal outlook and massive budget deficit increases down the road.<\/p>\n<p>&ldquo;We&rsquo;re seeing declining consumer spending. We&rsquo;re seeing an unemployment rate that&rsquo;s ticking up and very anemic, job growth, and the job growth we are getting is entirely attributable to government and healthcare, and so that is not a foundation on which our office can project comfortably that we&rsquo;re going to have robust revenue growth going forward,&rdquo; Petek said.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/presidential\/3220431\/how-elon-musk-helped-trump-back-to-white-house\/\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>HOW ELON MUSK HELPED WILL TRUMP BACK TO THE WHITE HOUSE<\/strong><\/a><\/p>\n<p>He warned that California&rsquo;s move to expand commitments in recent years such as expanding its Medicaid program, which is called Medi-Cal, to cover noncitizens, has put it on a troubling path where expenditures outweigh revenues by concerning margins.&nbsp;<\/p>\n<p>&ldquo;Our advice to the legislature is that they should conduct oversight of programs and take a take stock of what their main priorities are, and try to, you know, work on addressing that misalignment,&rdquo; the LAO analyst concluded.&nbsp;<\/p>\n<p>California&rsquo;s Democratic lawmakers have met the budget warnings with pledges to &ldquo;show restraint with this year&rsquo;s budget.&rdquo;&nbsp;<\/p>\n<p>&ldquo;It&rsquo;s not a moment for expanding programs,&rdquo; Assembly Speaker Robert Rivas said.&nbsp;<\/p>\n<p>With both sides of the aisle promising to make trims, it remains to be seen if Newsom will be successful in his pledge to combat the Trump administration with a barrage of costly lawsuits.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><\/strong><\/a><\/p>\n<p>As lawmakers consider the LAO&rsquo;s dismal fiscal outlook, Newsom visited Washington, D.C., earlier this month to <a href=\"https:\/\/www.washingtonexaminer.com\/news\/3226991\/newsom-lobbies-biden-admin-for-funds-as-he-seeks-trump-proof-california\/\" target=\"_blank\" rel=\"noopener\" title=\"\">lobby<\/a> the Biden administration for funds as he seeks to target the incoming Trump administration.<\/p>\n<p>&ldquo;Governor Newsom will advocate for key priorities to advance the health and well-being of all Californians &mdash; including disaster funding, the approval of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/newsom-lobbies-biden-administration-for-funds-as-he-seeks-to-trump-proof-california-washington-examiner\/\" title=\"Newsom lobbies Biden administration for funds as he seeks to \u2018Trump-proof\u2019 California - Washington Examiner\">state health care initiatives aimed<\/a> at improving access to health and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">mental health care<\/a> for Californians, and crucial climate waivers,&rdquo; his office said.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1879940\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1879940\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>California lacks the funds for lawsuits against Trump<\/p>\n","protected":false},"author":3142,"featured_media":2372180,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/11\/Newsom.-.webp","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[4045,45521,45520,3634],"class_list":["post-2372179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-california","tag-financial-capacity","tag-resistance-lawsuits","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/11\/Newsom.-.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2372179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3142"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2372179"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2372179\/revisions"}],"predecessor-version":[{"id":2372183,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2372179\/revisions\/2372183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2372180"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2372179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2372179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2372179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}