Governor-elect Becerra faces $29 billion budget shortfall after Newsom's term

Xavier Becerra, who won the governorship in the recent election, will need to submit a new state budget to the California Legislature shortly after his inauguration in January, sonomanews.com reported.

Outgoing Governor Gavin Newsom is leaving behind a substantial fiscal challenge, with a $29 billion 'wall of debt' that must be addressed, according to the Legislature's budget analyst Gabe Petek.

During Newsom's eight years in office, the state spent $1.7 trillion in general fund revenue while only taking in $1.4 trillion, resulting in an average annual overspending of $37 billion, sonomanews.com detailed.

The spending increases also led to a growth in the state's payroll by 100,000 positions. Newsom's budget strategies included using accounting methods, draining emergency reserves, and incurring on- and off-the-books loans to cover deficits.

Becerra faces a choice similar to that of former Governor Jerry Brown in 2010: continue deficit spending and increase debt or implement measures such as spending cuts and tax increases to balance the budget and reduce debt.

Brown's approach included public discussions on budget balancing, temporary tax hikes, and creating reserves to prepare for future fiscal challenges, which Becerra might consider as he tackles the current budget issues.