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June 13th, 2025                                                                                       (916) 553-4093

California Business Roundtable Raises Alarms Over Record State Spending and Growing Deficits

For News Media: Click below to access a video statement from CBRT President Rob Lapsley. This video is formatted for easy inclusion in your newscast

SACRAMENTO, CA – Today, Rob Lapsley, President of the California Business Roundtable, issued the following statement in response to the Legislature’s record-setting 2025–26 state budget proposal, which includes more than $325 billion in General Fund, Special Fund, and bond spending:

“California is poised to continue with near-record-breaking spending, despite economic uncertainty, especially around federal funding. The Legislature’s plan commits more than $232 billion from the General Fund, nearly $90 billion in special funds, and billions more in bond expenditures, all while the state continues to face a chronic structural deficit of $10 to $20 billion in the General Fund and billions more in special funds.

“What we are seeing is a budget built not on discipline, but on the assumption that taxpayers—especially the business community—will continue to foot the bill for years of overspending by this Legislature. Now, the Legislature has asked the Legislative Analyst for a report on how to raise taxes on businesses as soon as 2026, which will hit employers large and small, and in turn, driving up costs for every Californian.

“Higher business taxes don’t just affect employers. They raise the cost of goods, services, housing, and utilities—exacerbating the very cost-of-living crisis that state leaders claim to be addressing. California already ranks among the most expensive states in the nation. We cannot afford to make it worse.

“The Roundtable supports Governor Gavin Newsom’s longstanding opposition to new and higher general taxes and will fight to protect California’s employers and families from the consequences of runaway spending and short-sighted tax hikes that will drive up the cost of living and drive out hardworking families and businesses.”

About the California Business Roundtable
The California Business Roundtable is a nonpartisan organization composed of senior executives of major California employers. CBRT engages in research and advocacy to promote policies that strengthen the state’s economy, improve the quality of life for all Californians, and ensure a competitive business climate.

Source: California Department of Finance, Chart B, Historical Data: Budget Expenditures

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