Governor Gavin Newsom of California is positioning himself for a presidential campaign, yet the state's economic conditions raise questions about his record. California has the highest gas prices and taxes in the continental United States, alongside the highest electricity rates and home prices. The state also carries a substantial debt, nearing $270 billion, primarily due to unfunded liabilities for state workers' benefits, with annual budget deficits ranging from $15 to $70 billion.

A significant portion of California's income tax revenue is generated from a small percentage of households, leading to concerns about the exodus of affluent residents. Newsom has expanded Medi-Cal health insurance to include thousands of undocumented immigrants, which has contributed to a growing reliance on this program, with half of the state's population now enrolled.

California also has the largest number of homeless individuals and a high poverty rate, alongside the highest food prices in the continental U.S. The state's infrastructure is often rated poorly, and it ranks among the states with the highest per-capita violent crime rates.

Despite its natural wealth and resources, including significant oil reserves and agricultural production, California's governance has faced criticism. Newsom's tenure, which includes six years as governor and previous roles in local government, has coincided with a notable decline in the state's economic standing, prompting a mass exodus of residents.

The political landscape in California is dominated by the Democratic Party, with no Republican statewide officeholders, raising questions about the implications of one-party rule on governance and policy effectiveness. As Newsom prepares for his presidential bid, the challenges facing California may complicate his campaign narrative.