Newsom's Final Budget Battle: Billion-Dollar Deficit

0:00Governor Gavin Newsom is facing his roughest budget battle yet, his eighth and final one for California. He's got to close a multi-billion dollar deficit by mid-May for the 2026-27 plan after federal funds dropped and spending. Demands keep piling up. State revenues have beat projections by a few billion lately, but it's not enough. The January placeholder budget hit $349 billion, with $248 billion from the General Fund. Number four years, deficits totaled $125 billion, hidden by loans, gimmicks, and emergency transfers. Newsom pledged to balance the books before he bounces, maybe eyeing a presidential run, telling Democrats he'll cut spending if needed. But his track record shows spending jumps 72% since 2019-20, from $203 billion to $300. $49 billion proposed now. After pushing back hard, schools won $5.6 billion restored for education. Cities need $1 billion for homelessness aid that got slashed.

1:03Unions and others demand the state cover federal cuts in health and social services, with the Senate floating a payroll tax on big employers for $5 billion to $8 billion yearly in health funds. Other tax hikes like corporate tweaks and ballot measures on well taxes loom too. Newsom resists raises, but might have to pick leave deficits behind, or hike taxes first, as the deadline closes and fast. I'm Cory with the story, that's your California News Today update, AI powered and always on.