As the debate intensifies over a proposed billionaire tax in California, Gov. Gavin Newsom continues to shut down the idea and has signaled he’s not going to compromise. “It’s a badly drafted effort and it’s already had an outsized impact on this state,” the governor told reporters ahead of the holiday weekend at a press conference in San Francisco. “It does not support our public educators, it does not support our teachers and counselors, librarians, it doesn’t support our firefighters, it doesn’t support the general fund.” “It may have its populist appeal as a headline; I deeply understand that,” Newsom added. “I get the politics of it intimately, but read the initiative.” Newsom and other opponents of the measure have noted California already has a progressive tax system that relies heavily on the state’s wealthiest residents. The top 1% provide about half of the state’s tax revenue, which helps the government pay for key services. Some state leaders worry that even losing a few of those Californians could result in a huge hit to the state’s bottom line. Venture capitalist and California resident Chamath Palihapitiya posted on X last week, “More calls from friends: the total wealth that has left California is now $1T .” The proposal is in its earliest stages. Healthcare labor group SEIU-UHW is attempting to get it on the November 2026 ballot. A spokesperson for the group said the signature gathering began this past week and said it was too early to provide an update on the amount received so far. The group will need about 875,000 signatures by June 24 if they want voters to decide in November. The group has said the one-time, 5% tax on billionaires could help backfill $100 billion in healthcare costs the state would need to shoulder in response to the Trump administration’s healthcare cuts. “It appears that Governor Newsom is trying to push this crisis onto the next administration – that’s deeply disappointing at a moment when our communities need leadership,” said Suzanne Jimenez with SEIU-UHW in a statement on Monday. “If he could see what frontline healthcare workers see every day—seniors, people with disabilities, and veterans at risk of losing care because of massive federal healthcare cuts in HR1—he wouldn’t be standing in the way of this ballot measure.””Right now, his priority seems to be protecting roughly 200 ultra-wealthy individuals,” Jimenez added. California’s State Senate Pro Tem Monique Limón and Assembly Speaker Robert Rivas have said they’re not ready to take a position on the proposal. “For us, our focus is on affordability,” Rivas told reporters earlier this month. “No one wants to raise taxes, no one wants to increase the costs for our most vulnerable residents.” Gov. Newsom has said that in May, when the state has more clarity on its finances, he’ll provide specific solutions to address the gaps in healthcare. In an interview on California Politics 360, when asked if she’s ok with waiting months to hear his ideas, Pro Tem Limón said the Senate isn’t waiting.”We don’t wait until May,” Limón said. “We are prepared that before May, you will see the Senate, the Senate Democratic Caucus come out with the solutions that we feel are important to move forward, given the signaling that’s happened thus far.” KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.

SACRAMENTO, Calif. —

As the debate intensifies over a proposed billionaire tax in California, Gov. Gavin Newsom continues to shut down the idea and has signaled he’s not going to compromise.

“It’s a badly drafted effort and it’s already had an outsized impact on this state,” the governor told reporters ahead of the holiday weekend at a press conference in San Francisco. “It does not support our public educators, it does not support our teachers and counselors, librarians, it doesn’t support our firefighters, it doesn’t support the general fund.”

“It may have its populist appeal as a headline; I deeply understand that,” Newsom added. “I get the politics of it intimately, but read the initiative.”

Newsom and other opponents of the measure have noted California already has a progressive tax system that relies heavily on the state’s wealthiest residents. The top 1% provide about half of the state’s tax revenue, which helps the government pay for key services. Some state leaders worry that even losing a few of those Californians could result in a huge hit to the state’s bottom line.

Venture capitalist and California resident Chamath Palihapitiya posted on X last week, “More calls from friends: the total wealth that has left California is now $1T [trillion].”

The proposal is in its earliest stages. Healthcare labor group SEIU-UHW is attempting to get it on the November 2026 ballot. A spokesperson for the group said the signature gathering began this past week and said it was too early to provide an update on the amount received so far. The group will need about 875,000 signatures by June 24 if they want voters to decide in November.

The group has said the one-time, 5% tax on billionaires could help backfill $100 billion in healthcare costs the state would need to shoulder in response to the Trump administration’s healthcare cuts.

“It appears that Governor Newsom is trying to push this crisis onto the next administration – that’s deeply disappointing at a moment when our communities need leadership,” said Suzanne Jimenez with SEIU-UHW in a statement on Monday. “If he could see what frontline healthcare workers see every day—seniors, people with disabilities, and veterans at risk of losing care because of massive federal healthcare cuts in HR1—he wouldn’t be standing in the way of this ballot measure.”

“Right now, his priority seems to be protecting roughly 200 ultra-wealthy individuals,” Jimenez added.

California’s State Senate Pro Tem Monique Limón and Assembly Speaker Robert Rivas have said they’re not ready to take a position on the proposal.

“For us, our focus is on affordability,” Rivas told reporters earlier this month. “No one wants to raise taxes, no one wants to increase the costs for our most vulnerable residents.”

Gov. Newsom has said that in May, when the state has more clarity on its finances, he’ll provide specific solutions to address the gaps in healthcare.

In an interview on California Politics 360, when asked if she’s ok with waiting months to hear his ideas, Pro Tem Limón said the Senate isn’t waiting.

“We don’t wait until May,” Limón said. “We are prepared that before May, you will see the Senate, the Senate Democratic Caucus come out with the solutions that we feel are important to move forward, given the signaling that’s happened thus far.”

KCRA 3 Political Director Ashley Zavala reports in-depth coverage of top California politics and policy issues. She is also the host of “California Politics 360.” Get informed each Sunday at 8:30 a.m. on KCRA 3.