“You know, some people talk about this economy is booming, inflation is cooling, lowest unemployment in our lifetimes,” Newsom said. “All that may be true, but people don’t feel that way.”
He said some believe “the economy is not supportive. They feel like the economy is not nourishing.”
The governor made the remarks in Fresno County in the Central Valley during a press conference to announce a California Jobs First Economic Blueprint that will include hundreds of millions of dollars in grants for apprenticeship and career training programs.
Over the next three years, $120 million in grants are expected to fund job creation projects across the state’s 13 economic regions.
Grants will be focused on strengthening industries and accelerating growth through capital and infrastructure investment, according to the governor’s statement.
“Today is another critically important milestone in aligning strategic investments that further economic growth and job creation in every region of California,” stated Dee Dee Myers, senior adviser to Newsom and director of the governor’s Office of Business & Economic Development.
“This new economic framework will set the foundation for sustainable and inclusive growth, ensuring that the industries of today and tomorrow provide the good-paying jobs Californians deserve.”
Newsom was joined by students and alumni of the program, in addition to local politicians and business leaders including Karen Warner, CEO of agricultural waste company Beam Circular.
Warner said the plan will benefit the state and its residents.
“California is home to the industries and innovators that are shaping the materials, food, energy, and products that we use every day,” she said. “California Jobs First will help us make big bets on the industries of the future that will deliver quality jobs, a healthy environment, and new pathways to prosperity in local communities across every region of the state.”
Speaking in a county where President-elect Donald Trump won a majority of the vote in the November election, the governor said he represents all Californians.
“I don’t care who you voted for,” Newsom said. “I care about all people. I care about protecting them, their public health, and their public safety.”
While it is unclear what steps the Legislature intends to take, Attorney General Rob Bonta has also stated his intention to use all legal means to resist Trump’s policies.
Noting that the state had sued the first Trump administration 122 times, the governor said during the press conference that any litigation in Trump’s second term would be reactive to perceived assaults from the federal government rather than proactive.
He also mentioned a newly released fiscal outlook from the nonpartisan Legislative Analyst’s Office, which showed the state’s budget was “roughly balanced” through the 2025–2026 fiscal year.
Tax collections in recent months exceeded June estimates by about $7 billion, according to the Legislative Analyst’s Office report.
“Every year’s a new budget,” Newsom said. “The new revenue numbers, back up, are encouraging.”
According to analysts in the Legislative Analyst’s Office, higher revenues are due to higher capital gains taxes, bonuses, and stock compensation resulting from record-high stock market valuations.
While some high-income earners reap the rewards, some workers on the other end of the wage scale do not fare as well, according to the report.
A “sluggish economy” is attributed to high interest rates, which affect borrowing costs, and a “soft labor market” that reflects a two-year slowdown, the analysis concluded.
In the coming years, analysts are expecting deficits of between $20 billion and $30 billion annually between the fiscal year beginning in 2026 through 2029.
Spending is to blame, according to the outlook, as costs are rising at nearly twice the historic average at 5.8 percent a year, while revenues are increasing by about 4 percent annually.
“It’s definitely a spending problem,” Republican state Sen. Roger Niello, vice chair of the Senate Budget Committee, told The Epoch Times.
He also questioned some of what he called “gimmicks” in the current fiscal year’s budget, including a mandate to all state agencies to reduce expenditures. The reductions could save the state $2.2 billion, though it is unclear how much money was saved so far.
Deputy Analyst Carolyn Chu from the Legislative Analyst’s Office said they were unable to procure data from the state’s finance department, but Newsom is required to update the Legislature with the budget proposal for the coming fiscal year by Jan.10.
The governor said during the press conference that he is currently working on the details and expects to complete the budget in the coming weeks.
