California Touts Economic Strength Despite Budget Deficits

Governor plans $19 million marketing campaign to counter 'myths' about state's business climate

Mar. 28, 2026 at 8:51am

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Despite running state budget deficits for several years, California Governor Gavin Newsom is planning to spend $19 million on a marketing campaign to portray the state as having a vibrant economy and counter what he calls 'myths driven by misinformation and political rhetoric' about California's business climate.

Why it matters

California's budget challenges and ongoing deficit spending raise questions about the state's fiscal health and economic outlook, even as the governor seeks to promote a more positive narrative. The planned marketing campaign reflects the political stakes involved in shaping public perceptions of California's economic strength.

The details

California has not had a balanced state budget for four or five years, with the current budget continuing to spend more than the state's revenues. However, Governor Newsom wants to allocate $19 million towards a marketing effort to counter what he views as 'myths' and 'misinformation' about California's business climate.

  • California has not had a balanced state budget for four or five years.
  • The current state budget continues to overspend revenues.

The players

Gavin Newsom

The Governor of California who is planning a $19 million marketing campaign to promote the state's economic strength.

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The takeaway

The planned marketing campaign highlights the political tensions around perceptions of California's economic health, as the state grapples with ongoing budget deficits despite the governor's efforts to present a more positive narrative.