California recalled a governor the last time Sacramento burned through a surplus and left behind a $38 billion deficit.
Now the state's own financial watchdog says Newsom did the same thing – and it's worse than anyone knew.
What the report found about California's payroll is the line that should end his presidential campaign.
Newsom Spent Your Money on Medi-Cal for Illegal Immigrants and Now Sacramento Cannot Count the Payroll
The California Legislative Analyst's Office – 75 years old, nonpartisan, the state's most trusted fiscal referee – just published a report that had Sacramento lawmakers demanding answers out loud.
Revenue in California is up $100 billion since Newsom took office in 2019.
The state is staring at a structural budget deficit of $20 to $30 billion anyway.
That's not a recession problem. That's not a one-time emergency. That is the permanent financial wreckage Newsom is leaving behind when he walks out the door.
LAO’s report states – plainly, in writing – that California cannot say with certainty how much of its general fund it spends on employee salaries, how much it spends on benefits, or how many full-time positions are actually filled using general fund dollars.
The data, the LAO says, is not reliable.
Assemblymember David Tangipa put it the way your grandfather would.
"We're looking at deficits in the tens of billions and the state can't even tell you how many people it's paying or what they cost?"
"That should stop everyone in their tracks."
State Sen. Roger Niello was just as direct.
"Governor Newsom's colossal spending disaster will likely be his biggest legacy: recurring deficits of tens of billions of dollars despite growing revenue," Niello said.
Where Newsom's California Budget Deficit Came From and Where the Spending Went
The LAO answered that question, and the answer is exactly what you'd expect.
Seventy percent of the $100 billion revenue increase went to maintaining existing programs – Medi-Cal, K-14 education, developmental services, in-home supportive care.
Newsom spent the other 30% on university expansions, childcare, police oversight, and free health care for illegal aliens.
When the LAO ran the numbers on what it would cost to undo every Newsom discretionary spending increase since 2019, the savings came to about $15 billion.
That's barely half the annual shortfall.
The LAO's conclusion: the underlying costs and spending choices were never affordable.
Newsom's office pushed back, calling it maintenance of existing commitments – schools, health care, vulnerable Californians.
Neither his office nor the California Department of Finance explained where the payroll data went.
The Last California Governor Who Left a Deficit This Big Got Recalled
Gray Davis was governor of California the last time Sacramento did this.
Davis burned through a surplus during the dot-com boom, expanded spending, and announced a $35 billion budget deficit the month after he won reelection in 2002.
California voters recalled him eleven months later.
Fifty-five percent voted to throw him out.
Arnold Schwarzenegger replaced him.
Newsom's numbers are already moving in the wrong direction.
The most recent Harvard-Harris poll found 50 percent of Democrats prefer Kamala Harris as the 2028 nominee, compared to just 22 percent for Newsom.
Back in January, the same poll had him down only nine points.
UC San Diego political science professor Thad Kousser told the New York Post that Newsom "will face immense scrutiny as we head toward a potential presidential run" and "will absolutely be held accountable for California's financial health, growth and every policy that has come out of his time as governor."
The state's own fiscal watchdog just published a report saying Sacramento can't count its own payroll.
Gray Davis had a $38 billion deficit and California showed him the door.
Newsom is leaving behind $20 to $30 billion a year – every year – and he thinks he's ready to run the country.
The LAO just told him he can't even run the payroll.
Sources:
- Josh Koehn, "Gavin Newsom's Awful Debt Legacy Laid Bare," New York Post, April 29, 2026.
- Legislative Analyst's Office, "The 2026-27 Budget: California's Fiscal Outlook," Sacramento, 2026.
- John Nolte, "Harris Jumps to 28-Point Lead Over Newsom in 2028 Primary Poll," Breitbart, April 28, 2026.
- Thad Kousser, quoted in New York Post, April 29, 2026.