California Legislature Faces $68 Billion Budget Deficit Amid Protests and Legislative Challenges

Lawmakers reconvene to tackle budget cuts, protests over Gaza war, reparations for Black Californians, AI regulation, and wildfire insurance issues.

California Legislature reconvenes facing a projected $68 billion budget deficit for 2024-25, with potential cuts in health care, housing, education, and environmental programs.
Protests over the Gaza war disrupted the first day of the legislative session, with calls for a ceasefire and a redirection of California's contribution to U.S. military aid to Israel towards state priorities.
Lawmakers are expected to introduce bills to offer reparations to Black Californians descended from enslaved people, following a state task force's report that recommended an $800 billion compensation package.
Legislators will consider bills to create a new regulatory framework for artificial intelligence systems, amid rising concerns about its applications, including in campaigns and elections.
Wildfire insurance remains a pressing issue, with major insurance companies ceasing to sell new homeowner policies in California and new regulations not expected until 2026.