California Governor Gavin Newsom recently dismissed the Department of Government Efficiency (DOGE) as a “promo project,” asserting that California has been implementing civil service reforms long before DOGE’s inception. He highlighted the state’s efforts in consolidating job classifications and updating job descriptions, claiming leadership in this area.
However, California has faced significant budget challenges in recent years. The state’s Legislative Analyst’s Office reported a $27 billion deficit in 2023-24 and a projected $55 billion deficit in 2024-25, attributing these shortfalls partly to rapid spending growth driven by past program expansions.
In June 2024, the Associated Press reported an estimated $46.8 billion budget deficit for California, noting that previous surpluses were largely due to federal COVID-19 aid and increased tax revenue from the state’s wealthiest residents.
Additionally, the Tax Foundation’s 2025 State Tax Competitiveness Index ranked California 48th overall, citing high tax rates and an uncompetitive tax structure.
Under Newsom’s administration, spending on homelessness has surged. Since 2019, California has allocated approximately $24 billion to address homelessness, yet the number of unsheltered individuals has continued to rise. A state audit released in April 2024 criticized the lack of adequate monitoring of homelessness program outcomes, questioning the effectiveness of the substantial expenditures.
Furthermore, the cost of California’s high-speed rail project has escalated significantly. Initially estimated at $33 billion, the project’s expenses have now exceeded $100 billion, with substantial portions of the rail line remaining unfinished.
These financial challenges and project overruns have raised concerns about the state’s fiscal management and the effectiveness of its spending under Governor Newsom’s leadership.
California Governor Gavin Newsom refers to Elon Musk and Vivek Ramaswamy’s initiative DOGE as a “promo project.”
‘We’ve been working [on this] before DOGE was DOGE.” pic.twitter.com/8ACvGJNTsW
— Yashar Ali ? (@yashar) December 16, 2024