Gov. Newsom to deliver final State of the State address amid $18B budget deficit

SACRAMENTO, Calif. (KGO) -- Governor Gavin Newsom volition present his last State of the State code Thursday greeting earlier a associated league of the Legislature astatine the California Capitol, the archetypal clip Newsom volition bash truthful in-person since the pandemic.

The two-term politician faces a projected $18 cardinal fund shortage successful his last twelvemonth successful office, mounting the signifier for pugnacious decisions and argumentation battles.

"It's conscionable going to beryllium a pugnacious mode for him to spell out," said State Sen. Dave Cortese, D-San Jose. "There are going to beryllium argumentation fights this twelvemonth successful presumption of however to adjacent the deficit. We are astatine a constituent wherever we can't chopped our mode retired of it."

Housing affordability is expected to beryllium a cardinal focus. State Sen. Jesse Arreguín, D-Oakland, who chairs the Senate Housing Committee, said helium anticipates Newsom volition proceed pushing for solutions.

"I spot lodging arsenic a cardinal portion of our affordability agenda," Arreguín said. "We've done a batch to streamline the regulatory process. Now we tin look astatine however we tin incentivize and innovate lodging production. I cognize the politician supports that goal."

Assembly Republicans released a prebuttal Wednesday, criticizing Newsom's grounds connected affordability and governance.

"Housing is present little affordable than ever. Families are leaving the state. Young Californians are locked retired of location ownership. The committedness faded," the video said. "Californians wage the terms for years of mismanagement."

Political advisor Jim Ross said Newsom volition apt usage the code to signifier his bequest and aboriginal ambitions.

"The past things helium does successful bureau are going to beryllium the things that radical remember," Ross said. "So I deliberation he's going to beryllium precise focused connected an docket this twelvemonth that is going to enactment him successful the presumption helium wants to be, to tally for president."

Newsom's code begins astatine 10:30 a.m. Thursday.