California lawmakers are bracing for a $10 billion-plus budget hole — without federal cuts
Story by Eric He, Rachel Bluth and Lindsey Holden • 12h
SACRAMENTO, California — Gov. Gavin Newsom is likely staring down a $10 billion budget hole that could deepen to $20 billion or more.
President Donald Trump’s tariff policies, a Medi-Cal shortfall and delayed tax filings from Los Angeles-area wildfire victims are putting the state in a worse economic situation than the California governor previously anticipated — and that’s without taking into account expected federal spending cuts.
Ten people briefed on the matter said state lawmakers are being told to brace for a shortfall of at least $10 billion when Newsom presents his revised budget next week.
In early January, the governor’s Department of Finance projected the state would see a small surplus this year. But Newsom and legislative leaders are now flying blind into budget crunch time, as tariffs and a lack of tax receipts — including those from some of the wealthiest Californians — are stoking financial uncertainty.
https://www.msn.com/en-us/news/politics/california-lawmakers-are-bracing-for-a-10-billion-plus-budget-hole-without-federal-cuts/ar-AA1EmfWt?ocid=widgetonlockscreen&cvid=e92764aabc5a42818f522a6851338fc0&ei=60
