California budget is $12 billion in the red; More cuts to CDCR

California Gov. Gavin Newsom unveiled his 2025-26 budget on May 13, 2025. The liberal governor announced that his state is facing a $12 billion budget deficit mostly due to generous social services programs. His decision highlights Newsom’s struggle to protect his liberal policy priorities against budget challenges in his final years on the job and as he weighs his next political move, which could include a presidential run.

In true form for Newsom ignoring the voters decision, he plans on grabbing $1.3 billion in funding in 2025-26 from Proposition 35, a measure voters approved in November that dedicated the revenue from a tax on managed care organizations to primarily pay for increases to Medi-Cal provider rates. He also plans to dedicate another $1 billion of the failed bullet train project.

To pay for Newsom’s controversial train project and healthcare for illegal immigrants, the governor plans on closing yet another CDCR prison by October 2026. Even though Proposition 36 is expected to increase CDCR’s inmate population, the additional prison closure is needed to fund the California Model programs to make CDCR’s inmates happier while incarcerated.

This additional prison closure comes shortly after the department has already closed four institutions: California City Correctional Facility, Deuel Vocational Institution, California Correctional Center, and Chuckawalla Valley State Prison. Additionally, CDCR has deactivated 11 facilities, portions of 2 facilities, and 42 housing units across 11 prisons. These closures were needed to fund new inmate activities and programs to ensure their time in prison is more joyful and entertaining. The costs of the failed California Model of prison management has resulted in more staff attacks and a severe increase in inmate murders.

The inmate entertainment programs currently scheduled for the San Quentin Rehabilitation Center are still funded under the proposed budget. The California Model requires inmates to have more fun while incarcerated so funding for an entertainment plaza, complete with shopping center, coffee shop, and other activities will continue. There is no funding planned for tools or equipment needed to curb the increase on staff attacks by inmates in the state.