What does “a pretzel palace” mean?
"Pretzel palace" is not a popular phrase except as the name of several shops, mostly retailers of pretzels and other snacks; for example, Pretzel Palace in West Dundee, Illinois.
I don't know what Jerry Brown meant to say in "It's a ‘pretzel palace’ of incredible complexity". Many people have trouble understanding Jerry Brown, and it may be that he had no specific meaning in mind but thinks of typical pretzel patterns as quite complex. Such thinking is a mistake, as one can see from videos that show how simple it is to shape a pretzel.
I'd like to expand the question by suggesting that the expression might refer to the brittleness of the budget--pretzels are complex in shape, but they break easily, so trying to "solve" or unravel them presents the danger that they will crumble into dust.