Only the Homeless Population Is Growing In Newsom’s California

 Two significant issues affecting California under Governor Gavin Newsom’s leadership: the rise in homelessness and the migration of taxpayers out of the state, resulting in substantial financial losses.

1. Increase in Homelessness:

California has witnessed a 20% increase in homelessness from 2019 to 2025, despite spending $37 billion aimed at addressing this crisis.

The growth in the homeless population is about 40% when comparing 2025 figures to those from 2018.

The Trump administration previously attempted to cut federal housing aid to California due to allegations of fraud within its homeless programs.

2. Outmigration of Taxpayers:

From 2020 to 2025, California experienced an exodus of 1.6 million more people leaving than moving in.

The state’s overall population is now 200,000 lower than it was in 2020.

Many departing residents relocated to states like Arizona, Texas, and Florida, where tax rates are lower and businesses are more favorable treated.

3. Loss of Tax Revenue:

In 2023 alone, California lost billions in tax revenues as many taxpayers moved out.

Los Angeles County faced significant losses, with over 17,000 tax filers leaving and taking nearly $1.9 billion in income with them.

Other counties, such as Orange and San Diego, also saw substantial numbers of residents depart.

4. Increased Government Spending:

Despite the losses, California’s government spending has risen dramatically, with per-capita spending increasing by 68% in the last eight years.

The number of government employees per capita has also risen by 27%.

5. Concerns About Future Tax Initiatives:

Proposition 40, a proposed initiative to tax billionaires' wealth, could exacerbate the state’s issues if passed.

Mark Cuban, a notable investor, warns that this tax may drive not just billionaires but also entrepreneurs out of California.

Under Governor Newsom, California is facing a paradox where homelessness is increasing significantly despite massive financial outlays to combat it, while a notable number of productive citizens are leaving, leading to substantial tax revenue losses. The state's approach to governance appears to prioritize spending over attracting and retaining taxpayers, which could lead to even greater challenges in the future. The editorial indicates a pressing need for reevaluation of policies to address these critical issues effectively. 

https://issuesinsights.com/2026/08/19/only-the-homeless-population-is-growing-in-newsoms-california/