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Gov. Gavin Newsom proposes $322B budget with no deficit

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Gov. Gavin Newsom proposes 2B budget with no deficit

TURLOCK, Calif. (AP) — California Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation’s most populous state.

But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions in federal dollars, which could force lawmakers to make painful cuts to essential programs. About a third of California’s budget relies on funding from the federal government, including tens of billions to provide health care services. Trump takes office Jan. 20, and Newsom must sign the final budget by the end of June.

California lawmakers already opened a special session to consider giving a fresh $25 million to Attorney General Rob Bonta’s office to defend against or take on potential legal challenges from the Trump administration. Fights are likely between California and Washington, D.C., over climate policy and immigrant rights. State senators have also proposed additional funding to provide free legal services to immigrant communities.

Newsom’s administration plans to provide more details on the budget proposal on Friday, the deadline to present it to lawmakers. Newsom announced the numbers early before heading out of state for former President Jimmy Carter’s funeral services.

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Newsom said he’s proposing little new spending, but the budget does allow the state to fully implement the country’s first universal transitional kindergarten program, which will make such school free for some 400,000 4-year-olds in California. That’s an effort Newsom has championed since 2021. His plan also includes doubling the state’s film and TV tax credit to $750 million annually to bring back Hollywood jobs that have gone to New York and Georgia.

He said good planning in the last budget allowed the state to avoid a major shortfall this year.

“Last year, we endeavored to make this year’s budget a nonevent,” Newsom said.

The governor’s office also estimates tax revenues for this year are $16.5 billion above projections, thanks to the booming stock market and rapid income growth for high-income Californians.

That has helped the state weather the sluggish economy with limited job growth and ongoing weak consumer spending.

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California’s economy is the fifth largest in the world. Last year the state faced an estimated $46.8 billion budget deficit and in the year before, a $32 billion budget shortfall. The state also saved $1.2 billion over two years by eliminating roughly 6,500 vacant positions in state departments and another $3.5 billion from cutting travel budgets and modernizing IT systems, Newsom said.

Still, such deficits have forced the state to pare back or delay some of its progressive policies that were fueled by record-breaking surpluses during the COVID-19 pandemic.

Newsom poked at Trump’s planned Department of Government Efficiency, to be run by Elon Musk, by noting he created an Office of Data and Innovation designed to streamline government back in 2019.

“Our D.O.G.E. is spelled O.D.I.,” he said.

Unlike most states, California taxes capital gains — mostly money made from investments and stocks — the same rate as money made from wages and salaries. The result is nearly half of the state’s income tax collections comes from only 1% of the population. That has led to unpredictable, large swings in revenue in California’s budget.

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In November, the nonpartisan Legislative Analyst’s Office warned the state will face double-digit shortfalls in the next five years. That could curtail California’s ability to shield its programs from Trump’s attacks.

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Remains of murder victim identified as missing Southern California millionaire 

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Remains of murder victim identified as missing Southern California millionaire 

After more than four decades, the remains of a woman who was found buried in the mountains of Riverside County were identified as a multi-millionaire who went missing in 1981.

The body of Thelma Gaston was discovered by a person gathering firewood in a mountainous area near Sugar Loaf Mountain and the Pinyon Crest community on Nov. 28, 1981.

After experiencing a series of heartbreaking life events, including the death of her husband and her 32-year-old son in the same year in 1957, Gaston continued forging ahead, focusing on her business of buying repossessed properties and selling them. 

By 1980, she had amassed a fortune estimated to be over $20 million, SFGATE reported.

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On June 28, 1981, a note was left on the front door of her home near Century City, saying she was out searching for her cat. However, she never returned home and her loved ones did not hear from her.

By then, Gaston was 80 years old. As Los Angeles Police Department detectives investigated her disappearance, they discovered a younger man, Lawrence Remsen, then 39, had recently entered her life and was the woman’s romantic companion, SFGATE reported.

At one point, the woman’s friends said Gaston had wondered about Remsen’s motives in being with her.

Police eventually found letters and documents reportedly signed by Gaston that gave Remsen power of attorney. Another letter allegedly written by the woman claimed she had run away “to have some fun in life.” However, her friends said the move was completely out of character.

Detectives later confirmed the letters were certified with a stolen notary stamp and her signatures were believed to be forged. 

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Remsen had tried selling some of Gaston’s properties and attempted to withdraw more than $100,000 from her bank accounts. Remsen eventually fled the Southern California area.

A few months later, he was arrested by border agents when he tried to enter the U.S. from Mexico. He was charged with Gaston’s murder even though the woman’s body had not been found.

During a trial hearing, Remsen later claimed he found the woman dead of natural causes in her home and, attempting to take her fortune, had disposed of her body in the ocean.

The judge disagreed and later ruled that Remsen had killed the woman “intentionally and with malice.” He was convicted of murder and sentenced to life in prison.

Gaston’s body was later discovered buried in a shallow grave in the mountains. However, due to the poor condition of the remains, investigators were unable to narrow down an identity.

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A breakthrough occurred in 2022 when the Riverside County Sheriff’s Coroner’s Bureau received new funding to reexamine long-standing unidentified cases. 

“Combined with significant advances in forensic science, this funding opened new avenues for identification,” the sheriff’s office said.

In May 2026, utilizing investigative genetic genealogy and dental records, the remains were positively identified as Gaston’s.

“The Riverside Sheriff’s Coroner’s Bureau extends its sincere appreciation to everyone whose dedication, expertise, and perseverance made this identification possible,” officials said in a statement. “Together, these efforts have ensured that Ms. Gaston has her name—and her story—returned to her.”

Remsen, who is now 83 years old, continues serving his life sentence at the California Institution for Men in Chino.

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Southern California hits hottest day of its extreme heat warning

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Southern California hits hottest day of its extreme heat warning

Southern California remains under an extreme heat warning as residents brace for the hottest day of the week on Wednesday.

“It will be roasty toasty in the valleys, lower mountain elevations and far interior, with highs ranging from 100 to 110 degrees,” the National Weather Service said. The warmest conditions are expected in the western San Fernando Valley.

An extreme heat warning remains in effect for much of Southern California until 8 p.m. Thursday. Forecasters say there is a high risk of heat-related illness for anyone outdoors for extended periods. Heat advisories are also in place for areas along the coast.

“Highs for today: 98 in Ojai, 100 in Ontario. Temecula, good morning to you, 100 degrees expected there. 112 in Palm Springs. Unbelievably hot,” KTLA’s Kirk Hawkins said Wednesday morning.

Southern California will be under an extreme heat warning from July 14-16, 2026. (National Weather Service)

Residents are urged to adjust their afternoon plans to limit strenuous outdoor activities during the heat of the day, stay hydrated and check in on elderly neighbors and loved ones.

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The Weather Service said record highs are slightly warmer than those forecast for Wednesday. As a result, despite the extremely hot conditions, few, if any, temperature records are expected to be broken.

A few degrees of cooling are expected Thursday, but a more significant cooldown will arrive Friday as onshore winds increase.

Afternoon highs are expected to cool even more over the weekend, with below-average temperatures possible in some areas.

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Stabbing at Chino Hills liquor store ends in attempted murder arrest

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Stabbing at Chino Hills liquor store ends in attempted murder arrest

A Chino Hills man was arrested on suspicion of attempted murder following a violent incident at a local liquor store, authorities announced Tuesday.

The July 13 incident occurred around 5 p.m. in the 4000 block of Descanso Avenue, according to the San Bernardino Sheriff’s Department, which responded to reports of a stabbing at the location.

Arriving deputies found a stabbing victim inside the store and rendered medical aid until personnel with the Chino Valley Fire District arrived. The victim was transported to Pomona Valley Hospital Medical Center, where he remains in stable condition.

While being treated at the scene, investigators said the victim repeatedly stated that someone named Alex was responsible for the attack.

A 30-year-old man was arrested after stabbing inside a liquor store in the 4000 block of Descanso Avenue on July 13, 2026. (Google)

The suspect, now identified as Hayden Alexander Marquez, 30, was located not far from the liquor store and taken into custody, sheriff’s officials said.

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Investigators did not provide a motive for the stabbing or detail the relationship between the two men.

Marquez was booked into the West Valley Detention Center on suspicion of attempted murder.

Anyone with information about the investigation is urged to contact the Chino Hills Police Station at 909-364-2000. Those wishing to remain anonymous can call the We-Tip hotline at 800-78-CRIME or submit tips online at www.wetip.com.

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