Gov. Gavin Newsom of California has, in recent years, been deeply critical of Republican-led states. He even debated Florida Gov. Ron DeSantis, claiming the Republican was mismanaging the Sunshine State.
Many have criticized the problems hurting California residents. It appears Newsom is ignoring the crime, homelessness, and drug problems his state is reeling from.
It’s been well-documented that the left-wing state government is facing a massive tax deficit. But now, the governor has to explain why his state is defaulting on a major loan.
From The Post Millennial:
It has been revealed that California is drowning in a $68 billion budget deficit which has resulted in the state defaulting on a $20 billion loan from the federal government.The multi-billion dollar deficit comes under Democrat Gov. Gavin Newsom’s leadership and is so extreme that Newsom’s Department of Finance has called for a spending freeze across state agencies.
The state of California, which in past years boasted about a tax surplus, is facing a $68 billion budget deficit for the coming year. The Democrat-run state is apparently so cash poor, that it will be unable to pay back a $20 billion loan from the federal government.
California’s Department of Finance has even called for a spending freeze across state agencies. That could result in a lack of staff and resources—which will directly impact residents.
With the state unable to pay back this loan, it means the federal government is out over $20 billion. Which could result in cuts by federal agencies that could affect Americans in every state.
Republicans will not be kind to California, as this news spreads. The state has seen a resident exodus in recent years, with tens of thousands of people leaving for other states. Small businesses have moved. Large businesses have closed locations in many California cities.
Many people have commented on the policies that have resulted in rising crime, drug abuse, and homelessness. California is also responsible for the ongoing migrant crisis, failing to repel illegal aliens the same way Texas has.
Key Takeaways:
- California has defaulted on a $20 billion loan from the federal government.
- This comes as the state deals with a $68 billion deficit in the new year.
- Democrat Gov. Newsom has long been critical of Republican-led states, accusing them of mismanagement.
Source: The Post Millennial
