(The Center Square) – California legislators have been told to expect a deficit of $10 billion or more even if revenues do not fall due to higher than anticipated spending, reports Politico.

Critics note that the $10 billion figure matches estimated costs of the state’s expansion of eligibility for Medi-Cal, the state’s taxpayer-financed health care system, to all income-qualifying illegal immigrants. 

“What a fiscal coincidence: precisely the estimated cost of Gavin Newsom’s plan to extend state Medi-Cal to illegal immigrants,” said Will Swaim, president of the conservative California Policy Center on X. 

Earlier this week, the state-funded Legislative Analyst’s Office warned the state’s economy is “stagnant” and “fragile” and that the budget is reliant on an “unsustainable” stock market. Earlier Friday, the LAO urged lawmakers to consider the possible negative downturn that tends to but does not always accompany significant decreases in consumer sentiment. 

“If hard economic data fall in-line with worrisome economic indicators, the state’s revenue outlook will turn more negative; however, recent history suggests this outcome is far from certain,” wrote the LAO. “As such, we urge policymakers to weigh the risks of both the possibility of a further downturn and of better than expected growth when making budget decisions.”

Last year, the state narrowly closed a $73 billion deficit through a combination of spending cuts, deferrals, shifts, and reserve withdrawals. 

Now, even if state tax revenue remains steady, rising non-discretionary spending, such as from Medi-Cal, combined with possible cuts or funding withholding at the federal level could leave the state billions of dollars short yet again. 

Federal spending in California is set to be $171 billion this year.

In February, state officials said California had spent $9.5 billion thus far on Medi-Cal services for illegal immigrants, The Center Square first reported, resulting in California Gov. Gavin Newsom requesting a $6.4 billion emergency bailout to fund the program for the remainder of the fiscal year. 

In April, Newsom bragged about the strength of the California economy, sharing it’s now the world’ fourth-largest economy in U.S. dollars — due to the relative decline of the Japanese yen to the dollar. After accounting for the high cost of goods and services, California only barely edges out low-performing Italy, and the state has shed hundreds of thousands of private sector jobs amid lower projected sales and corporate tax revenue. 

(The Center Square) − As Louisiana’s legislative session continues, lawmakers are considering multiple bills aimed at increasing oversight of regulatory actions and tightening the rules for how taxpayer money is spent.

One of the early measures gaining traction is Senate Bill 59 by Sen. Mike Reese, R-Leesville, which would require legislative approval before any state agency rule with a significant fiscal impact — defined as at least $200,000 per year or $1 million over five years — could take effect. The bill passed a key Senate vote and now awaits consideration in the House.

Supporters say the bill would improve accountability by ensuring that major regulatory decisions are reviewed by elected officials. The proposal is similar to the so-called “REINS Act” model being promoted in legislatures across the country.

Under current Louisiana law, agencies must include fiscal impact statements with proposed rules, but they are not always subject to legislative approval. SB 59 would expand that oversight, requiring the fiscal office to assess potential costs and trigger committee hearings for high-impact rules. Emergency regulations would also be subject to additional fiscal scrutiny under the bill.

Meanwhile, another piece of legislation — SB184 by Sen. Heather Cloud, R-Allen — would implement new standards for nongovernmental organizations that receive public dollars.

The bill, which is scheduled for further debate in the Senate Finance Committee, would require recipient organizations to provide detailed financial audits, outcome data, and statements of public purpose before receiving state appropriations.

Nonprofits would also need to be registered in Louisiana for at least one year, keep administrative costs under 15% of expenditures, and maintain a physical office in the state. Groups that fail to submit required documentation could face a five-year ban from receiving state funds.

The legislation would consolidate existing data into a searchable portal through Louisiana’s Checkbook platform to allow the public and lawmakers to better monitor how funds are spent.

“These bills are part of a broader effort to increase transparency and ensure responsible stewardship of taxpayer money,” Cloud said during a recent hearing.

In addition to the legislative activity, Governor Jeff Landry has launched a new initiative—the Department of Governmental Efficiency (DOGE)—tasked with identifying ways to reduce waste and improve performance in state government.

Landry appointed Steve Orlando as Fiscal Responsibility Czar, who is expected to work closely with the Louisiana Legislative Auditor.

A news release from the governor’s office says residents are encouraged to submit suggestions for improving government efficiency via email.

The DOGE initiative has drawn both support and criticism. Supporters see it as a step toward greater fiscal accountability, while critics, including some legislators, question whether it duplicates existing oversight functions already handled by the legislature and the state auditor.

“Legislators create and pass the state’s annual budget, which the governor then signs, with a line-item veto,” Rep. Mandie Landry, D-New Orleans, said in a statement. “A new, bureaucratic entity cannot and should not supersede these constitutional powers.”

(The Center Square) – Having discovered an employee in his office not commuting to work and living outside of North Carolina, state Auditor Dave Boliek’s office checked state agencies and found 1,011 with out-of-state addresses on W-2 forms.

Many are simply outdated after moves to North Carolina.

The Rapid Response Division of the auditor’s office says 317 of those were not in bordering states South Carolina, Tennessee and Virginia. It did not give a number for the border state of Georgia. The total was within 13 state agencies.

A release from Boliek’s office says, “Multiple agencies reported back that employees had not properly updated the address on their W-2 form since relocating to North Carolina. OSA confirmed with the state agencies the employees were accounted for. Through proactive engagement, OSA assisted other agencies in properly updating the address on employee W-2 forms.”

The report concludes with the recommendation, “State agencies should annually remind all employees to update their contact information as well as tax information and annually verify said contact information and tax information is up-to-date and correct.”

Tax laws identify residents, part-time residents and nonresidents with respect to paying state income tax.

A nonresident “resides in North Carolina for a temporary or transitory purpose and is, in fact, a domiciliary resident of another state or country,” or “does not reside in North Carolina but has income from sources within North Carolina and is, in fact, a domiciliary resident of another state or country.”

Part-time means having moved in or out and having residency in another state during the tax year. The Filing Requirements Chart determines if there is need to file a state income tax return.

Residents of the state must file income tax returns each year, per the requirement chart.