California Faces Record $68 Billion Budget Deficit

Governor Gavin Newsom and state Democrats under pressure as tax revenues fall short and spending cuts loom.

California is facing a record $68 billion budget deficit, a major blow to Governor Gavin Newsom and state Democrats who will need to make significant changes next year.
Tax revenues are expected to come in at $58 billion below assumptions in multiyear budgets, contributing to the deficit.
Newsom's rumored presidential ambitions could be impacted by the state's financial situation, with critics accusing him of running a secret campaign while the state's finances worsen.
Options to ease the deficit include tapping into $24 billion in reserves and making spending cuts, particularly in education, which could be politically damaging for Democrats.
The deficit could continue to present problems for Newsom's successor and the California legislature, with ongoing annual deficits of $30 billion predicted.