Many signs point to an impending economic downturn in the years ahead. There’s a very good chance that there will be, if not a recession, at least an economic softening during Newsom’s first term. This means that he must continue Brown’s tradition of fiscal prudence and fend off unreasonable or unaffordable demands made by the Democratic-controlled Legislature for new spending. He must be firm despite the projected $15-billion surplus for the current fiscal year. Of course, Newsom will feel obligated to fulfill campaign promises such as the one to expand early childhood education, for which he’s already proposed $1.8 billion in new spending. But even with a healthy rainy day fund in place, he must remember that adding new ongoing expenses could mean cutbacks ahead if the economy tanks.
Source: latimes.com – Los Angeles Times