California
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.
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.
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.
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.
California
California lawmakers seek $32M to combat invasive pest found on grapevines sold at Costco
FRESNO COUNTY, Calif. (FOX26) — California lawmakers are now asking the federal government for more than $32 million in emergency funding to stop the spread of an invasive insect that was recently discovered on grapevines sold at Costco stores across the state.
The request comes about a month after Fresno County agricultural officials discovered grapevine plants infested with the glassy-winged sharpshooter, a pest capable of spreading Pierce’s Disease, a deadly infection that can kill grapevines.
In a letter sent to U.S. Agriculture Secretary Brooke Rollins, Sens. Adam Schiff and Alex Padilla joined Reps. Mike Thompson, David Valadao and other members of California’s congressional delegation in requesting $32.2 million in emergency funding to contain and eradicate the pest.
[RELATED] Fresno County grapevine plants shipped to Costco were infested with bugs
Lawmakers say the infected nursery stock was identified Mat 19 by the California Department of Food and Agriculture and the Fresno County Agricultural Commissioner’s Office.
The plants had been distributed to Costco stores in more than two dozen California counties before being sold to customers.
Officials believe some of the infested plants have since been transported to homes in at least 38 counties across the state.
The movement of infested nursery stock into and near key grape-producing regions, including areas critical to California’s winegrape and fresh table grape production, significantly elevates the urgency of this response.
The glassy-winged sharpshooter feeds on grapevines and spreads Pierce’s Disease, an incurable bacterial infection that can destroy vineyards by preventing vines from transporting water.
Lawmakers warned that the pest poses a serious threat to California’s wine and table grape industries.
According to the Wine Institute, California’s wine industry supports 1.1 million jobs nationwide and generates an economic impact of more than $170 billion.
California also produces 99% of the nation’s table grapes, with an annual crop value estimated at $2.59 billion.
If the pest spreads unchecked, the California Department of Food and Agriculture estimates losses associated with Pierce’s Disease and the glassy-winged sharpshooter could exceed $104 million annually.
The requested funding would support emergency response efforts, including tracing the movement of infested plants, surveying affected areas and expanding trapping programs.
Additional funding would also be used for long-term monitoring and eradication efforts over the next several years.
The lawmakers are asking the U.S. Department of Agriculture to immediately release the funding through the Commodity Credit Corporation, arguing that the outbreak meets the federal definition of an agricultural emergency.
Growers have already contributed more than $62 million toward research and mitigation efforts over the past 25 years through industry assessments, according to the letter.
Federal officials have not yet announced whether the funding request will be approved.
California
California Now Offers Free Passes to State Historic Parks (Just Don’t Miss the Deadline) | KQED
An annual pass that’s usually $50 is free in honor of Juneteenth — and to mark the 250th anniversary of the signing of the Declaration of Independence.
Historical buildings are visible at Sonoma State Historic Park, Sonoma, California, May 31, 2026. Until July 6, Californians can download the state historic park pass for free and use it as many times as they want through the end of 2026. (Smith Collection/Gado via Getty Images)
“California doesn’t hide from hard truths and uncomfortable history – in fact, we embrace it and learn from it,” Newsom wrote.
Until July 6, Californians can download the state historic park pass for free and use it as many times as they want through the end of 2026. The pass gives free entry to state historic parks for up to four people.
Jump to:
The Historian Passport grants entry to more than 30 state historic parks, including parks like Olompali and Malakoff Diggins which, rather than just providing outdoor recreation, also have an educational emphasis on the state’s history.
Many of these parks tell the story of the state’s cultural or indigenous history, from missions and museums to temples and the site that sparked the California Gold Rush.
Newsom made a similar move to make state parks free for Martin Luther King Jr. Day this year, in response to Trump’s decision to eliminate the holiday from the list of fee-free days at national parks across the country, replacing it with his birthday on Flag Day.
How to get your free Historian Passport for up to four people
You must make an account with the state’s reservation site ReserveCalifornia.com to obtain a Historian Pass. Then, visit the site’s Advance Passes page and select “Special Edition Historian Passport” from the dropdown menu, which will show as costing $0. No payment information is required.
After checking out, you’ll receive an email with an attached PDF version of your Historian Passport.
The state recommends you print off this PDF to present at any California state historic park for free entry, although you may just be able to show the image on your phone too.
Bear in mind that cellphone service may be poor at many state historic parks, so it’s worth screenshotting the PDF to save it as an image on your phone in case you’re unable to search your email.
Looking for free entry to other state parks that aren’t included in the Historian Passport? Consider checking out a parks pass from your local library, which provides these passes as part of the California State Library Parks Pass program.
Northern California State Historic Parks to visit for free this year with a Historian Passport
Bay Area
Sacramento area
Sierra foothills
KQED’s Carly Severn contributed to this report.
California
In-N-Out drive-thru DUI arrest gets California man 3 years in prison
A 33-year-old Northern California man was sentenced to three years in prison after he was found passed out drunk behind the wheel in the drive-thru of an In-N-Out Burger, marking his seventh arrest and conviction for driving under the influence.
According to the Monterey County District Attorney’s Office, California Highway Patrol officers were alerted to the June 2025 situation by a store employee.
Responding officers approached the vehicle and reported smelling urine and vomit, along with the odor of alcohol inside the car, the Los Angeles Times reported.
Officers arrested the man, identified as Carlos Alvarez of Salinas, on suspicion of felony DUI.
This was his fourth DUI conviction in the past 10 years, The Times reported.
It was not immediately clear what sentences were imposed in Alvarez’s prior DUI convictions or whether he has previously served jail time for any of the other felony convictions.
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