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California has a multibillion-dollar budget deficit. Here's what you need to know

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California has a multibillion-dollar budget deficit. Here's what you need to know


SACRAMENTO, Calif. (AP) — California has a huge budget problem that could force thorny decisions from Democratic leaders who enjoyed a more than $100 billion surplus just three years ago.

This is the second year in a row the nation’s most populous state is facing a multibillion-dollar shortfall. State revenues have continued to fall amid increasing inflation and a slowdown in the state’s usually robust technology industry.

Democratic Gov. Gavin Newsom on Friday announced his plan to address the deficit in the state’s budget. The release of his plan kicks off a budget negotiation marathon with Democratic lawmakers, who hold supermajorities in both chambers.

Newsom and lawmakers have until June 15 to pass a budget, or lawmakers don’t get paid.

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HOW BIG IS THE BUDGET?

Newsom proposed a $288 billion spending plan on Friday for the fiscal year that starts July 1. That is well below the nearly $311 billion budget he signed into law last year. But it is still by far the largest of any state in the country. New York recently passed a $237 billion budget, and Texas and Florida spend far less annually.

WHAT ABOUT THE DEFICIT?

It’s complicated. Newsom announced on Friday a $26.7 billion deficit, but it’s really closer to $45 billion. That’s because Newsom didn’t include roughly $17.3 billion worth of actions he and lawmakers already agreed on. Those included a cut of $3.6 billion in primarily one-time funding to some school, welfare and climate programs. The plan also delays and defers about $5.2 billion in spending for various programs, including $1 billion to fund rail and public transit systems.

WHY DOES THE DEFICIT MATTER?

California’s constitution requires lawmakers and the governor to balance the budget — meaning the state can’t spend more money than it has. That means they have to either find more money by raising taxes, which Newsom doesn’t want to do, or find ways to cut, shift or delay spending. Newsom’s proposal focuses mostly on cuts, but it will also dip into reserve funding.

WHAT ARE THOSE CUTS?

Newsom proposed cuts across 260 state programs. Here are some of the highlights:

    1. Eliminating 10,000 vacant state worker jobs for a saving of $762 million. Newsom didn’t immediately provide a list of all the jobs.

    2. Clawing back $6.7 billion previously set aside to pay doctors more to see poor patients and immigrants.

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    3. Shaving off nearly 8% in operating costs to almost all state agencies through actions like getting rid of landlines in state offices and evaluating printing needs.

    4. Cutting $2 billion from broadband initiatives to pursue cheaper options

    5. Closing housing units with 4,600 beds across 13 state prisons to save $81 million.

    6. Reducing funding for homelessness and housing initiatives by nearly $1.2 billion, including $474 million from an anti-foreclosure program to preserve existing affordable housing.

    7. Reducing $500 million in water storage funding. He didn’t offer specifics on how that would be applied.

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    8. Shutting down an in-home service care program that serves 14,000 low-income, undocumented immigrants with disabilities for a savings of $94.7 million

    9. Cutting roughly $2 billion from six education programs, including $550 million from an initiative to upgrade preschool and kindergarten facilities and $510 million in scholarships for middle class college students pursuing a teaching credential.

    10. Eliminating $352.5 million in funding for state and local public health and $189.4 million from mental health services fund.

HOW ABOUT TAX INCREASES?

Newsom has repeatedly said he could balance the budget without raising taxes. But his proposal calls for the suspension of the widely used net operating loss tax deduction for businesses the following fiscal year, which some are seeing as a tax increase.

He is also increasing the tax on managed care organizations, the private companies that contract with the state to provide Medicaid benefits.

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Republican governor candidate Chad Bianco says he’s the ‘antithesis to California state government’

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Republican governor candidate Chad Bianco says he’s the ‘antithesis to California state government’


We are counting down to the California governor’s race. Chad Bianco, the sheriff of Riverside County, is one of the two biggest names running on the Republican ticket.

In a one-on-one interview with Eyewitness News political reporter Josh Haskell, Riverside County Sheriff Chad Bianco said, “I am the antithesis to California state government because I am going to take a nuclear bomb into that building and absolutely destroy everything that they do to us behind closed doors.”

Although he’s been elected by the voters twice, Bianco says he’s not a politician — which is why he believes his campaign for California governor is resonating, as reflected in the polls.

“President Trump, in one year, from 2025 when he took over, until now, did absolutely nothing to harm California. What’s harming California is 30 years of Democrat one-party rule that have created an environment here that no one can live in anymore. They’ve only been successful here in California because we vote D no matter what. You vote D or die. I mean, that’s it. Charles Manson would be elected in California if he was the only Democrat on the ballot,” Bianco said.

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Bianco isn’t the only conservative Republican running for governor, and according to polling, he’s neck-and-neck with former Fox News host Steve Hilton.

SEE ALSO: CA governor candidate Steve Hilton says ‘everybody supports’ Trump’s immigration policies

Leading in some polls in the wide-open California Governor’s race as the June primary creeps closer is Republican and former Fox News host Steve Hilton.

“Steve has no chance of winning in November. The Democrats know that I’m going to win in November, and so they have to do everything they can to keep me out of that,” Bianco said.

When asked about the affordability crisis in the state, Bianco said, “Almost the entire issue of affordability in California is because of regulation, excessive regulation imposed by government. Every single regulation can be signed away with the governor’s signature.”

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“It is a drug and alcohol addiction problem that, and a mental health problem,” he said about the homelessness crisis. “Every single bit of money that is going to these nonprofits that say ‘homeless,’ zero money. You’re getting absolutely nothing. I can’t tell you that we would end what we see in the homeless situation within a year, but I guarantee you we would never see it again after two years.”

When challenged on that prediction, pointing to how the state doesn’t have the facilities to treat the number of people living on our streets, Bianco responded, “We have been conditioned to believe that buildings take five years to build. It takes 90 days or less to build a house, but in California, it takes three to five years because the government won’t allow it. The regulations that are destroying this state are going to be removed with me as the governor.”

Bianco also said California jails shouldn’t have to play the role of treatment facilities.

Although he says he supports the Trump administration and wants the president’s endorsement, Bianco has been traveling the state — meeting not just with Republicans, but Democrats and independents as well. He says all of our state government officials have failed.

The primary election is June 2.

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No clear front-runner in race for California governor, new poll shows

A new poll shows there’s still no clear front-runner in the race to replace Gov. Gavin Newsom.

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PlayOn Sports fined $1.1 million by California watchdog over student data violations

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PlayOn Sports fined .1 million by California watchdog over student data violations


California’s privacy watchdog has ordered PlayOn Sports to pay a $1.10 million fine and change how it handles consumer data after finding the company’s practices violated state law in ways that affected students and schools in the state.

The California Privacy Protection Agency Board issued the decision following a settlement reached by CalPrivacy’s Enforcement Division.

The decision is the first by the board to address privacy violations involving students and California schools.

Schools across the country use PlayOn Sports’ GoFan platform to sell digital tickets to high school sporting events, theater performances, and homecoming and prom dances, with attendees presenting tickets at the door on their mobile phones.

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Schools also use PlayOn Sports’ platforms for other sports-related activities, including attending games, streaming them online, and looking up statistics about teams and players.

In California, about 1,400 schools contract with PlayOn Sports for these services.

[RELATED] X faces possible fines as EU probes Grok nonconsensual, sexualized deepfakes

GoFan is also the official ticketing platform for the California Interscholastic Federation, the governing body for high school sports.

According to the board’s decision, PlayOn Sports used tracking technologies to collect personal information and deliver targeted advertisements to ticketholders and others using its services.

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The company allegedly required Californians to click “agree” to tracking technologies before they could use their tickets or view PlayOn Sports websites, without providing a sufficient opt-out option.

“Students trying to go to prom or a high school football game shouldn’t have to leave their privacy rights at the door,” said Michael Macko, CalPrivacy’s head of enforcement. “You couldn’t attend these events without showing your ticket, and you couldn’t show your ticket without being tracked for advertising. California’s privacy law does not work that way. Businesses must ensure they offer lawful ways for Californians to opt-out, particularly with captive audiences.”

The decision also describes students as a uniquely vulnerable population and warns that targeted advertising systems can subject students to profiling that can follow them for years, expose them to manipulative or harmful content, and develop sensitive inferences about their lives.

Instead of providing its own opt-out method, PlayOn Sports directed students and other users to opt out through the Network Advertising Initiative and the Digital Advertising Alliance, which the decision said violated the company’s responsibility to provide its own way for consumers to opt out. The company also allegedly failed to recognize opt-out preference signals and did not provide Californians with sufficient notice of its privacy practices.

“We are committed to making it as easy as possible for all Californians — from high school students to older adults, and everyone in between — to make the choice of whether they want to be tracked or not,” said Tom Kemp, CalPrivacy’s executive director. “Californians can opt-out with covered businesses, and they can sign up for the newly launched DROP system to request that data brokers delete their personal information.”

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Beyond the $1.10 million fine, the board’s order requires PlayOn Sports to conduct risk assessments, provide disclosures that are easy to read and understand, and implement proper opt-out methods.

The order also requires the company to comply with California’s privacy law prohibiting the selling or sharing of personal information of consumers between 13 and 16 without their affirmative opt-in consent.



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California bill to bar police from taking second job with ICE advances in state Assembly

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California bill to bar police from taking second job with ICE advances in state Assembly


Wednesday, March 4, 2026 4:43AM

CA bill to keep police from moonlighting with ICE advances

SACRAMENTO, Calif. (KABC) — A bill that would prevent police officers from moonlighting with federal immigration enforcement agencies, such as U.S. Immigration and Customs Enforcement, is advancing through the California State Assembly.

AB 1537 passed the State Assembly’s committee on public safety on Tuesday.

The bill also requires that officers report any offers for secondary employment related to immigration enforcement to their place of work.

Those failing to comply could face decertification as a peace officer in California.

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The bill was introduced by Assemblymember Isaac Bryan, whose district includes Mar Vista, Ladera Heights, Mid-Wilshire and parts of South Los Angeles.

Copyright © 2026 KABC Television, LLC. All rights reserved.



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