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Gavin Newsom's Political Legacy in California

Updated: 2 days ago

With California in shambles, Newsom sets his GPS for DC - a political cartoon
With California in shambles, Newsom sets his GPS for DC - a political cartoon

Gavin Newsom, California's Governor since January 2019 (following Lieutenant Governor 2011–2019 and San Francisco Mayor 2004–2011), has built his California political career atop a mountain of ambitious progressive policies. With his California career coming to an end its important to examine his legacy. His supporters praise his climate leadership, healthcare expansions (to illegal aliens), and a $3.9T GDP (world's 5th largest). Conversely, his critics deem it "disastrous" for fiscal mismanagement, inequality, and failures in homelessness, safety, and affordability. Recent reports (e.g., CalMatters year-end reviews) describe California as being in a state of "freefall", while Newsom turns his attention to his national ambitions (e.g., 2028 presidential hints) distracting from state woes like a $73B cumulative deficit. This article consolidates data from audits, U.S. Census, WalletHub, and critiques, emphasizing his failures and examining the key successes claimed by his supporters.


Key Achievements: Claims and Counterpoints

Newsom's advocates highlight transformative policies that have positioned California as a leader in progressive reforms, but critics argue these have often yielded limited benefits while imposing heavy costs on residents, businesses, and the budget.

  • Climate and Environment: Newsom signed aggressive laws like AB 1054 (2019 wildfire fund) and executive orders phasing out gas-powered cars by 2035, extending cap-and-trade to 2045, and investing $2B+ annually in resilience—driving green tech innovation and generating $562M in economic impact from film tax credits tied to sustainable projects. Greenhouse gas emissions dropped 20% since 2000 while California GDP rose 78%. However, critics contend these achievements have no demonstrable benefits beyond raising taxes, prices, and costing jobs—e.g., cap-and-trade extensions increased energy costs (adding 20 cents/gallon to gas), contributing to $5.12/gallon prices (highest in U.S.) and utility bills up 5–10% in 2025 for grid upgrades. Policies accelerated refinery closures (losing 15% capacity in 2025), leading to industry departures (e.g., companies citing "difficult business climate" and high costs) and job losses in traditional sectors, with no offset in green jobs amid a sluggish economy. Newsom defends by noting pollution cuts and economic growth, but opponents say the policies prioritize ideology over affordability.

  • Health Care and Social Reforms: Expanded Medi-Cal to illegal immigrants (covering 700K+ by 2025), pioneered same-sex marriage as mayor (2004, a national milestone), and advanced gun control (e.g., AB 28 excise tax on firearms). His early COVID-19 lockdowns were credited with saving lives, though criticized for personal hypocrisy (e.g., French Laundry dinner). However, critics argue the Medi-Cal expansion to undocumented immigrants has done nothing but contributed to the deficit and taken funds from other poverty programs—costing $333M in 2025–26 for long-term care alone (proposed for elimination to save funds), with overall program costs rising to freeze enrollment and impose $30/month premiums for undocumented individuals. This has strained the budget (e.g., $452M savings from 2025–26 freeze), diverting resources from citizens' poverty aid amid a 17.7% poverty rate. While it lowered poverty among non-citizens by ~2.9%, overall impacts are debated as fiscal pressures grow. Newsom's team emphasizes access equity, but opponents call it fiscally reckless.

  • Economy and Jobs: Oversaw a post-pandemic boom, with California's GDP surpassing $3.9T and tech/film incentives creating thousands of jobs—e.g., 28 film projects in 2025 generating $562M. Reforms like tax system overhauls aimed at equity, adding 2.6M jobs since 2019. However, critics assert this claimed growth was fueled by federal handouts (~$600B total aid, including $27B state + $14.7B local from ARPA) and deficit spending, quickly eroding in the current environment—job growth lagged at 1.5% annually (vs. 4.5% U.S., 2021–2025), with unemployment at 5.3% (above national 4.1%) and sectors like tech shedding positions amid regulations. The $73B deficit proposes cuts worsening trends, with structural gaps projected at $35B by 2027–28 as spending outstrips revenue. Newsom blames global factors; critics say it masks policy-driven stagnation.


Turning Budget Surpluses into Huge Deficits: Fiscal Freefall

Newsom inherited a $21B surplus from Jerry Brown but turned it into multiyear shortfalls through expansive spending on one-time programs, totaling $76.5B+ in fraud and waste per 2025 state audits. The $100B surplus in 2022 (fueled by pandemic aid and stock gains) evaporated due to overspending on initiatives like Medi-Cal expansions and climate programs, leading to a projected $73B cumulative deficit by 2025 and $18B for 2026. Key examples include $24B un-tracked on homelessness, $18B high-speed rail overruns (no operational track after 16 years), $11–$32B in COVID unemployment fraud (worst in the U.S., including payments to inmates and deceased), and the 911 system disaster—where $450M spent since 2019 on upgrading to Next Generation 911 was deemed unworkable in 2025, forcing a restart with additional delays and costs.


The December 2025 High-Risk Audit Program flagged eight agencies, including the Governor's Office, as high-risk for "waste, fraud, abuse, or mismanagement," with specific wastes like $5M on unused cell phones and $1.3M DMV over-payments. Critics blame "reckless" budgeting without reforms; Newsom cites external shocks like federal aid expiration (~$600B during COVID) and disasters, while implementing some cuts (e.g., $7.1B from reserves in 2025–26 proposal). GOP lawmakers demand deeper reductions, calling it a "fiscal freefall" eroding services and fueling tax hikes.

Fiscal Year

Surplus/Deficit

Key Factors/Notes

2019–2020 (Inherited)

$21.4B Surplus

Stable from Brown era; early COVID spending.

2021–2022

$100B Surplus

Federal aid and stock market gains; rebates issued to residents.

2023–2024

$27B Deficit

Revenue shortfalls and overspending; addressed through cuts including to education and climate programs.

2024–2025

$55B Deficit

Continued revenue declines, economic slowdown; solutions included spending reductions, reserve withdrawals, and borrowing. Cumulative deficit addressed reached around $73B including prior actions.

2025–2026

$15B Deficit (initially projected modest surplus then revised to $12B deficit)

Initial surplus projection of $363M revised downward due to wildfires requiring disaster aid, $6B Medi-Cal cost overrun, stock market volatility from tariffs, and federal policy uncertainties; addressed via internal borrowing, reserve use, and freezing Medi-Cal enrollment for undocumented immigrants. Projections assume $16.5B in revenue growth and $7.1B in reserves used; ongoing federal funding risks under new administration.

2026–2027 (Added)

$18B - $35B Deficit (Projected)

End of certain federal aids, increased spending including at least $1.3B for Medi-Cal amid Trump budget changes, potential loss of federal housing/homelessness funding; fourth consecutive deficit despite revenue growth from AI boom. Projected tax deficits from outmigration (net loss of high-income taxpayers, with $102B in income leaving 2020-2022, equating to several billion in lost tax revenue annually, though partially offset by in-migration) and business relocations (mitigated somewhat by slowing outmigration trends due to national job market conditions and strong AI/tech sector gains); structural issues could lead to $35B annual deficits by 2027-28 without interventions.

Other key metrics by which we must judge Newsom's legacy include:

Homelessness

$37B Spent with Record Highs and No Accountability

Despite $37B invested since 2019 on programs like Project Homekey (hotel conversions) and Homeless Housing Assistance, homelessness reached a record 187,000 in 2025—up 60% from 2015 and 24% from 2019, representing 28% of the U.S. total. A 2024 state audit revealed $24B un-tracked for outcomes, with modest 4% declines in some 2025 counts but a 3% rise in un-sheltered individuals statewide. Fraud cases, like the Shangri-La firm's $100M+ embezzlement for luxury items (with ties to Newsom's admin via lobbyists), underscore waste. Newsom vetoed oversight bills like SB 917 (2022) as "unnecessary," allowing poor tracking; his administration claims 71,000 housed and blames local governments. Critics, including U.S. Attorney Bill Essayli (who charged developers in misuse schemes), argue this perpetuates urban decay, with encampments and related crime symbolizing governance failure. Legacy: Seen as a humanitarian disaster, tying back to Newsom's San Francisco mayoral "Care Not Cash" program, which housed 2,000 but grew the un-housed from 6,000 to 8,000 by 2011.


Job Losses

Sluggish Recovery and Sector Declines

California's job growth lagged at 1.5% annually (vs. 4.5% U.S., 2021–2025), adding ~150,000 in 2025 but with unemployment at 5.3% (above national 4.1%). Early 2026 immigration raids caused an 8.6% employment drop for non-citizen women (1 in 12 out of work), hitting agriculture and services. Tech and entertainment sectors shed jobs amid high costs and regulations (e.g., new 2026 AI/wage laws). The $73B deficit proposes cuts exacerbating losses, like reduced apprenticeships. Critics blame "job-killing" taxes and mandates driving businesses to Texas/Florida; Newsom highlights 2.6M jobs added since 2019 and blames federal policies. Legacy: Contributes to economic stagnation, with X users mocking "California dream turning nightmare."


Loss of Tax Base: Population Exodus Drains Revenue

Population grew minimally by 0.05% to 39.12M in 2025, but net domestic migration remained negative at -216,000, costing $4.5B annually in tax revenue as high earners flee. Los Angeles County saw declines due to reduced immigration. Countless businesses and company headquarters have packed up and left the state as well. Critics attribute this "exodus" to high costs, crime, and regulations. The result is shrinking a tax base and fueling deficits; Newsom blames federal immigration issues and notes slight growth from births/international arrivals. Legacy: Erodes funding for services, widening inequality and grows the deficits.


Education Rankings: High Funding Yields Low Results

California ranks #24 overall in U.S. News 2025 Best States for Education (#10 in higher ed but #37 in pre-K–12) and #25 for public schools in WalletHub 2026, based on performance, funding, and safety. Despite a $123B budget (~$23K per pupil, highest in U.S.), it scores #38 in math proficiency and #40 in reading (NEA 2025), with 30% chronic absenteeism in 2023–2024 and teacher shortages. Newsom signed universal pre-K expansions but vetoed accountability measures as "redundant." Critics cite union influence and mismanagement; his administration points to strong individual schools (e.g., 14 Long Beach high schools ranked in U.S. News 2025–2026). Legacy: Represents wasted investment, leaving generations under-served.


Cost of Living: Crushing Burden Fuels Inequality

California's cost of living index is 142.2 (3rd highest, 42% above national average per 2025 data), driven by housing (98% higher), utilities (34% higher), and transportation. Median home price: ~$941,000; 1-bedroom rent: $2,500+; poverty rate 17.7% (highest U.S., adjusted for costs, affecting 7M). Fuels migration (1 in 4 considering leaving). Newsom blames shortages, signing bills for 1.2M new units; critics fault regulations stifling supply. Legacy: Widens gaps, exacerbating poverty and exodus.


Water Crisis: Chronic Shortages Amid Slow Action

Ranked #1 for water stress, 2025's below-average precipitation renewed restrictions, costing $3B in agriculture. Newsom shifted $1.5B to the $20B+ Delta Tunnel (completion 2055) and signed SB 72 for targets but vetoed "redundant" bills. Critics say environmental priorities hinder supply; he notes 2.9B gallons captured in 2025. Legacy: Unresolved conflicts raise food prices and strain economy. No new reservoirs built in spite of numerous initiatives funding new construction.


Wildfires: 2025's Record Destruction

Fires burned 1.2M acres in 2025 ($15B damages, exceeding 2020), destroying 5,000+ structures. Signed SB 1101 for prescribed burns and exempted rebuilds from clean codes. Critics blame inadequate forest management and utility bailouts ($10.5B ratepayer costs via 2019 fund); Wildfire destruction was fueled by the mismanagement of the State's water resources. Newsom cites climate change and invests $2B+ annually. Legacy: Cumulative ~10M acres burned since 2019, with soaring insurance rates (up 300% in high-risk areas).


Decline of San Francisco (Mayor 2004–2011): Urban Decay Roots

"Care Not Cash" reduced cash welfare to fund housing but grew homelessness from 6,000 to 8,000 by 2011; property crime rose 20%. Rents doubled to $2,500, widening inequality. Critics say it laid groundwork for 2020s "doom loop" (vacant offices, drugs, closing businesses); Newsom claims 40% street crime reduction. Legacy: Tied to statewide failures.


High Gas Prices: Nation's Highest

$5.12/gallon (January 2026, up 15% from 2025)—national $3.45. Refinery closures (15% capacity loss), taxes (57.9 cents/gallon), and blends add $0.50–$1.21. Critics blame green policies accelerating shutdowns; Newsom cites global factors. Legacy: Burdens commuters, inflating costs.


Soaring Utility Prices: Ratepayer Squeeze

Residential electricity ~$340/month (up 5–10% in 2025 for wildfire/grid), 2x national. CPUC-approved hikes fund $4.4B utility profits; renewables add pressure. Slight 5% cuts in 2026, but projected rises. Critics fault bailouts; Newsom notes investments. Legacy: Contributes to poverty.


Poverty Rate: Highest Adjusted for Costs

17.7% in 2024–2025 (highest U.S., 5 points above 12.7% national via SPM)—~7M affected, highest among seniors (21.1%) and Latinos (19.5%). Rose from 15.2% in 2022; critics blame high costs despite aid; Newsom notes official rate 10.6–11.5%. Legacy: Exacerbates inequality.


Newsom's legacy reflects bold vision and big talk but execution yields fiscal woes and economic crises fueling claims of "disaster dynasty."


Sources:

Turning Budget Surpluses into Huge Deficits: Fiscal Freefall

Homelessness: $37B Spent with Record Highs and No Accountability

Job Losses: Sluggish Recovery and Sector Declines

Loss of Tax Base: Population Exodus Drains Revenue

Education Rankings: High Funding Yields Low Results

Cost of Living: Crushing Burden Fuels Inequality

Water Crisis: Chronic Shortages Amid Slow Action

Wildfires: 2025's Record Destruction

Decline of San Francisco (Mayor 2004–2011): Urban Decay Roots

High Gas Prices: Nation's Highest

Soaring Utility Prices: Ratepayer Squeeze

Poverty Rate: Highest Adjusted for Costs

Water Crisis: Chronic Shortages Amid Slow Action

Wildfires: 2025's Record Destruction

Decline of San Francisco (Mayor 2004–2011): Urban Decay Roots

High Gas Prices: Nation's Highest

Soaring Utility Prices: Ratepayer Squeeze

Poverty Rate: Highest Adjusted for Costs

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