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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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California doctor who drove Tesla off cliff with family inside won’t face trial, granted mental health diversion

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California doctor who drove Tesla off cliff with family inside won’t face trial, granted mental health diversion


The “suicidal” California doctor accused of intentionally driving his Tesla off a cliff with his wife and two young children inside won’t face trial for attempted murder as he is instead set to begin a mental health diversion program.

Dharmesh Patel, who was granted admission into the two-year program last Thursday at the San Mateo County Court, will remain in jail for “several weeks” before he’s released, the San Mateo District Attorney told NBC News.

The radiologist, who has spent the last 18 months behind bars. will be released from jail to his parent’s home where he will be ordered not to leave.

He will also have to report to court weekly for a progress report.

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Patel will be ordered to be tested twice a week “to show medication compliance,” and will have to abstain from drugs and alcohol while also forfeiting his driver’s license and passport, the outlet reported.

Dharmesh Patel won’t face trial for his attempted murder charges after his admittance into a mental health diversion program. David G. McIntyre for NY Post

The doctor will return to court on July 1 where details of his release will be determined, a spokesperson for District Attorney Stephen Wagstaffe told NBC News.

Judge Susan Jakubowski granted Patel admission to the program while the DA’s office “intensely” opposed it.

The radiologist appeared “by all accounts a kind and loving” father, said Jakubowski on Thursday, adding that Patel would be better served in treatment than in jail, the Mercury News reported.

Last week’s ruling was made after evidence was found showing Patel has major depressive disorder.

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Patel was accused of driving his Tesla Model Y off the 250-foot cliff off “Devil’s Slide” on Highway 1 and landing on the shore of the Pacific Ocean in Jan. 2023. AP
Miraculously, Patel, his wife and their two children — a 7-year-old daughter and 4-year-old son — all survived. Facebook/Neha Patel

In April two doctors testified in court that Patel suffered from “major depressive order” and experienced a “psychotic” break during the attempted murder-suicide on Jan. 2, 2023.

The Tesla Model Y plummeted off the 250-foot cliff off “Devil’s Slide” on Highway 1 and landed on the shore of the Pacific Ocean.

Miraculously, Patel, his wife and their two children — a 7-year-old daughter and 4-year-old son — all survived.

Patel was arrested and later charged with three counts of attempted murder. He initially pleaded not guilty to the charges saying the Tesla experienced a malfunction causing the car to careen off the cliff.

His wife Neha later told investigators her husband had suffered from depression before the crash.

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“He’s depressed. He’s a doctor. He said he was going to drive off the cliff. He purposefully drove off,” Neha told rescuers.

During his testimony, psychologist Mark Patterson said Patel’s delusions were provoked by the nation’s fentanyl crisis, the war in Ukraine and feared his children could be kidnapped and molested, which appeared to have been connected to Patel’s worries about accused sex trafficker Jeffrey Epstein.

In May, Neha Patel begged prosecutors to drop the charges and admit her husband into the program.

In April two doctors testified in court that Patel suffered from “major depressive order” and experienced a “psychotic” break during the attempted murder-suicide. AP
Neha Patel later told investigators her husband had suffered from depression before the crash. Facebook/Neha Patel

“We need him in our lives and it has been over a year and a half since my children or I have seen or spoken to Dharmesh,” she said.

The doctor was deemed a good candidate for the program because he’s at low risk of injuring anyone else and has shown progress with his treatment since the crash, Patterson said.

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California Shelves Repeal of 1950 Housing Law That Stoked Racial Tension | KQED

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California Shelves Repeal of 1950 Housing Law That Stoked Racial Tension | KQED


“While SCA 2 was one of many efforts to help address the housing crisis, the November’s ballot will be very crowded, and reaching voters will be difficult and expensive,” Allen said in a statement. “In addition, the legislature recently passed my SB 469, which substantially addresses some of the most significant concerns about how Article 34 might be impacting housing production.”

SB 469 clarifies that the use of state affordable housing dollars does not trigger Article 34’s requirement for voter approval. Allen said his focus is on determining whether these efforts are “making a significant dent in addressing the problem,” adding that quickly building more affordable housing is a priority.

Backed by the California Real Estate Association, the forerunner to the current California Association of Realtors, Article 34 was first adopted by voters in 1950. Realtors played on voters’ fears that affordable housing would lead to greater racial integration of exclusively white neighborhoods.

CAR issued a formal apology in 2022 for its past support of Article 34, with association President Otto Catrina condemning the actions and vowing to address the legacy of its “discriminatory policies and practices.”

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The organization “remains a strong supporter of the repeal of Article 34 … which adds unnecessary hurdles and costs to the creation of affordable housing,” CAR spokesperson Sanjay Wagle said in a statement.

Wagle noted that a majority of Californians support repealing the provision but cited research showing a voter education campaign would be needed to explain the article’s effects.

“The cost of such a campaign in an election year with so many initiatives on the ballot made this campaign more costly and difficult, thus making it more logical to pursue a repeal on a future ballot,” Wagle wrote. “We thank Sen. Allen and Sen. Wiener for their efforts on this repeal effort and look forward to working [with] them and other stakeholders on this issue in the future.”





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California Quarterback Commits to Penn State’s 2026 Recruiting Class

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California Quarterback Commits to Penn State’s 2026 Recruiting Class


Though Penn State has been busily filling its 2025 recruiting class in June, the program hasn’t stopped looking ahead. The Nittany Lions on Tuesday received a commitment from 4-star California quarterback Troy Huhn, who became the second player in Penn State football’s 2026 recruiting class.

Huhn (6-4, 205 pounds) will be a junior at Mission Hills High, just north of San Diego. He threw for 1,623 yards and 16 touchdowns as a sophomore last season. Huhn quickly built a strong offer sheet that included Michigan, Ohio State, Oregon, Texas, Auburn and Notre Dame, among many others. Huhn took an unofficial visits to Ohio State and Penn State in June, committing to the Nittany Lions two weeks after his trip.

Huhn is the 2026 recruiting class’ 10th-rated quarterback prospect, according to the 247Sports Composite, and a top-15 player in California. On3 ranks Huhn highest among the major recruiting services, slotting him at No. 60 nationally and sixth at quarterback.

Huhn, who committed to Penn State offensive coordinator Andy Kotelnicki and quarterbacks coach Danny O’Brien, spent time with head coach James Franklin during his unofficial visit. He told Sean Fitz of Blue-White Illustrated that Franklin made an impression.

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“Coach O’Brien was great, but really my main thing when I was getting out there was to have more time with coach Franklin. They definitely gave that to me,” Huhn said in his interview with Blue-White Illustrated. “I really felt the love from coach Franklin. He’s very business, he’s awesome, he’s a funny guy. My mom loves him, he loves my mom. That relationship with him is now a lot better and I’m glad I got to spend that time with him.”

Huhn joins Harrisburg athlete Messiah Mickens on the ground floor of Penn State’s 2026 recruiting class. Mickens committed to Penn State in August 2023. Penn State had been recruiting several 2026 quarterbacks alongside Huhn. One of their targets, Dia Bell, recently committed to Texas.

Huhn’s commitment continued a prolific stretch for the Nittany Lions. Franklin and his staff have received commitments from five players in a four-day stretch. Four of them committed to Penn State’s 2025 recruiting class.

The most recent 2025 commitment belonged to Max Granville, a 4-star prospect from Texas and first-team all-state honoree as a junior. Granville, who will be a senior at Fort Bend Christian Academy, is rated as a 4-star linebacker according to the 247Sports Composite. However, the 6-3, 220-pound Granville projects at defensive end and was recruited by Penn State defensive line coach Deion Barnes. Granville chose Penn State after making an official visit to State College earlier in June. He also visited USC, Texas A&M and Oklahoma in June and took an official visit to Baylor in April.

Penn State opens the 2024 football season Aug. 31 at West Virginia. The game is scheduled for a noon kickoff on FOX.

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AllPennState is the place for Penn State news, opinion and perspective on the SI.com network. Publisher Mark Wogenrich has covered Penn State for more than 20 years, tracking three coaching staffs, three Big Ten titles and a catalog of great stories. Follow him on Twitter @MarkWogenrich.





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