Level-Set: Sacramento’s New Floor for Fiscal Responsibility

May Revise? Try May Regret

Yesterday, Governor Gavin Newsom’s May revision claims to “level-set” state finances, but the only thing being leveled is the financial security of hard-working Californians. Instead of confronting a projected $12 billion budget deficit, the Governor leans on $5.3 billion in short-term loans, fund shifts, and other accounting gimmicks that do nothing to address the long-term imbalance.

“The highest taxes in the nation are already crushing Californians, and the Governor’s so-called May Revise only digs the hole deeper,” said Senator Choi. “Instead of tightening the belt, he maxes out the taxpayers’ credit card, raids our reserves, and bankrolls pet projects while basic services crumble. If this plan moves forward, California will keep declining.”

Spending is still spiraling. Medi-Cal has soared from $17.1 billion in 2014-15 to $37.6 billion this year and is projected to hit $44.6 billion next year, driven largely by full-scope coverage of illegal immigrants, $86.5 million in 2025-26, exploding to $3.3 billion a year by 2028-29. Taxpayers paying rising premiums are left wondering why they’re subsidizing benefits for those who broke federal law to be here.

“Governor Newsom calls this ‘level-setting,’ but what he’s doing is wallet-resetting. Pouring billions into benefits for people here illegally while law-abiding Californians foot the bill. The California middle class is not an ATM,” stated Senator Choi. “That isn’t fiscal discipline, its fiscal malpractice. Californians deserve a government that lives within its means instead of flattening their paychecks to prop up runaway programs.”

The May Revision doubles down on misplaced priorities: slashing base funding for our public universities while preserving billions in unsustainable programs. Cuts to UC and CSU total nearly $274 million this year while the cost of undocumented Medi-Cal expansion could have instead eliminated in-state tuition entirely.

While entire communities are still rebuilding from devastating fires, the Governor reverses $177.5 million in school faculty aid, forcing fire-impacted school districts to beg for uncertain Prop 2 funds. That’s not leadership. That’s abandonment.

After almost 70% of voters approved Proposition 36, the Governor called it an “unfunded mandate” and indicated no funding would come from the budget in general. This is a slap in the face to voters who feel unsafe in their communities and passed a measure to try to remedy this.

Senator Choi urged the Legislature to scrap the gimmicks, immediately suspend Medi-Cal eligibility for undocumented adults, and cap spending growth at inflation plus population.

“If the Governor truly wants to ‘level-set,’ he should start by leveling with the people about what we can afford,” the Senator added. “Anything less will turn this May Revision into a May Regret we all will pay for.”