{"id":1762,"date":"2026-05-13T17:33:08","date_gmt":"2026-05-13T17:33:08","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/state-controller-warns-cas-spending-outpaces-revenue-ahead-of-budget-release\/"},"modified":"2026-05-13T17:33:08","modified_gmt":"2026-05-13T17:33:08","slug":"state-controller-warns-cas-spending-outpaces-revenue-ahead-of-budget-release","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/state-controller-warns-cas-spending-outpaces-revenue-ahead-of-budget-release\/","title":{"rendered":"State controller warns CA\u2019s spending outpaces revenue ahead of budget release"},"content":{"rendered":"<article><!-- --><!-- --><!-- WPS-5038 -- removed the script from WPS and added the placeholder for trinity player --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- --><!-- CONTENT --><!--[--><!--[--><\/p>\n<p>California\u2019s long-term fiscal pressures, such as its healthcare and education expenses, are growing, State Controller Malia Cohen warned Tuesday, presenting an annual audit of the state\u2019s financial positions.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/homeless-count-in-sacramento-county-increases-13-from-2024-report-shows\/\">Homeless count in Sacramento County increases 13% from 2024, report shows<\/a><\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>It marked the first time in eight years that the annual financial report has been released before lawmakers and the governor finalize a budget for the upcoming fiscal year, the controller said.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Cohen\u2019s remarks echoed recent warnings from other financial observers: California\u2019s costs are increasing and though revenues are strong now, that might not always be the case moving forward.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cThe question for California is no longer simply whether revenues are growing, it\u2019s whether spending growth is becoming sustainable,\u201d Cohen said during a press conference announcing the release of the state\u2019s .<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The financial report provides an audited look at the state\u2019s financial position during the past fiscal year, which ended in June 2025.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Cohen celebrated the $596 billion in total revenue California collected primarily from personal income taxes during fiscal year 2024-25. But she emphasized that spending, particularly on long-term programs such as Medi\u2011Cal, the state\u2019s health insurance program for low-income residents, is growing at a faster rate than revenue growth.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The nonpartisan Legislative Analyst\u2019s Office recently reported that California\u2019s General Fund spending has increased over $100 billion since 2019\u201120. That growth was largely driven by increases to existing programs, such as spending on K\u201114 education and Medi-Cal<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The financial report comes just before the governor is expected to present a modified budget proposal for the upcoming fiscal year on Thursday.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/could-legal-principle-rooted-in-dueling-shape-sacramento-k-street-shooting-trial-3\/\">Could legal principle rooted in dueling shape Sacramento K Street shooting trial?<\/a><\/p>\n<p><!--]--><!--[--><\/p>\n<p>Legislative leaders have presented revised budget proposals in recent weeks. Senate President Pro Tem Monique Lim\u00f3n released a plan that would restore billions of dollars for programs, including K-12 schools and homelessness assistance, that the governor previously proposed cutting.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>The proposed reversal on those cuts is a result of California\u2019s higher-than-expected revenue from tax collections, which has largely been driven by the growing artificial intelligence industry and a successful stock market, the LAO reported last week.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Cohen did not offer lawmakers specific advice on how to address the state\u2019s structural deficit, but she did encourage the Legislature to be \u201cmindful of the allocation of tax dollars.\u201d She warned against passing a budget that is temporarily balanced, but later results in a deficit because expenditures outpace revenue.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>\u201cWe just need to be cautious and judicious,\u201d Cohen said. \u201cThe markets are very volatile, and it is hard to gauge what future revenue is going to be when coming into the state of California.\u201d<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>A review of the publication dates of the past financial reports found that the last time the controller\u2019s office published a previous fiscal year\u2019s report before the governor\u2019s May revision was in , when the Controller\u2019s Office was under the leadership of Cohen\u2019s predecessor, Betty Yee.<\/p>\n<p><!-- --><!--]--><!--[--><\/p>\n<p>Cohen, who took office in 2023, said that the controller\u2019s office and other state agencies had previously <b>blamed one another<\/b> for delays in releasing the reports. She said her office prioritized completing this report on time so the Newsom administration and the Legislature would have an audited financial report when making budget decisions.<\/p>\n<p><!--]--><!--[--><\/p>\n<p>Cohen is currently running for reelection. She faces two opponents, Meghann Adams and Herb Morgan, in the June primary.<\/p>\n<p>Read more <a href=\"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/13\/dick-cable-remembered-snails-return-sacramento-bees-top-stories-from-may-9-and-10-4\/\">Dick Cable remembered, snails return: Sacramento Bee\u2019s top stories from May 9 and 10<\/a><\/p>\n<p><!-- --><!--]--><!--]--><!-- --><!-- --><!-- --><!-- --><\/article>\n","protected":false},"excerpt":{"rendered":"<p>California\u2019s annual financial report was released before the budget, highlighting rising Medi\u2011Cal and education costs and warning about future fiscal sustainability.<\/p>\n","protected":false},"author":1,"featured_media":1130,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,4],"tags":[],"class_list":["post-1762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-california","category-capitol-alert"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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