As Gabe Petek, the Legislature’s budget analyst, said in a January response to Newsom’s state revenue forecast, “These gains are not tied to improvements in the state’s broader economy, which has been lackluster, with elevated unemployment, a stagnant job market outside of government and healthcare, and sluggish consumer spending.”

Trump’s tariffs have whipped up historic market volatility and frayed America’s relationships with its allies and trading partners.