California’s Newsom to Decide How to Spread Wealth From the 1%

California Governor Gavin Newsom is in the enviable position of having what could be a $68 billion budget surplus to bolster the world’s fifth-largest economy. But how he uses the windfall is becoming increasingly fraught.

Soaring inflation and record gas prices are squeezing residents. Abortion rights are likely to be rolled back in conservative states, making California a haven. Turmoil in financial markets and the prospect of an economic slowdown mean bond investors want to see more money set aside for potential dark days ahead.

Gavin Newsom

Photographer: Eric Thayer/Bloomberg

The Democratic leader, up for re-election this year, is set to present his revised ...