California
CSUF economists raise inflation forecasts for Southern California
Economists with Cal State Fullerton say local and U.S. economies will see inflation rise as they absorb the ongoing supply shock from rising fuel costs caused by the Iran war, further cooling the already frigid homebuying market.
On Thursday, April 30, economists Anil Puri and Mira Farka revised their predictions for the year, writing in a semi-annual report that they expect inflation to climb into “the high-3s,” up from the previously anticipated 3.5% in the year’s first three months.
Puri told the Southern California News Group that he expects housing sales to slow in Orange County, especially if mortgage rates stay above 6%.
Also see: California homebuying falls below Great Recession lows
“Housing prices went up so much in the last few years, but they seem to have taken a little breather now,” Puri said. “Housing prices are under stress. We see only moderate improvement in housing in 2026.”
The theme throughout the 71-page report was a slowing economy that is dealing with higher fuel costs as a result of tighter crude oil supplies flowing through the Strait of Hormuz. About 20% of the world’s oil supplies pass through the shipping route.
The economists also wrote that growth in the U.S. is expected to slow to the “low-2s in the middle of the year” with the outlook for the fourth quarter and beyond appearing “brighter.” That prediction is already hitting the mark. The federal government’s Bureau of Economic Analysis said April 30 that GDP expanded at 2% rate in the first quarter.
“The U.S. economy is very well insulated and is coming out of the war with fewer bruises,” Farka told SCNG. “I know this is cold comfort with a lot of people hurting who are paying $7 or $8 gas prices, but there are a lot of cushions to lessen the impacts. U.S. consumers are still hanging strong.”
One such cushion are tax cuts from last year’s One Big Beautiful Bill Act, designed to boost consumer spending — money that now seems to be paying for those higher fuel costs, Farka said.
The annual inflation rate for 2025 was 2.7% versus 2.9% the year before. Inflation has edged higher from 2.4% in the first two months of 2026 to 3.3% in March — a month after the Feb. 28 war was launched by the U.S. and Israel against Iran. Growth in the economy was tepid last year, coming in at 2.1%, with a forecast by the economists made last fall of 2.4% for 2026.
The 2-month-old Iran war pushed the average price of gas in California to $6.060 a gallon on Friday, up 30% from $4.674 a gallon on the day after the war began, according to AAA Fuel Prices. In Orange County, the average price for regular gas reached $6.12 per gallon. Nationally, gas prices shot up 41% to $4.392 a gallon from $3.11 over the same period.
Local highlights
Business sentiment: The Woods Center index of Orange County business sentiment — based on a quarterly survey of Orange County executives — shows “modest improvement” in business sentiment in both national and regional economies heading into the 2026 second quarter. The Iran war was ongoing in the second half of March when the survey was administered.
According to the survey, 29.2% of executives expect industry activity to improve — more than double the 13% reported in the previous quarter. At the same time, the share anticipating a downturn declined to 24.6%, down from 31%.
Inflation: Overall, more than two thirds of respondents expect inflation to remain below 3% by year-end. Specifically, 26.1% of respondents expect inflation to come in below 2.5%, while 40% anticipate a range of 2.5% to 3%. Another 20% place inflation between 3% and 3.5%. Only 7.7% expect a range of 3.5% to 4%, and just 6.2% foresee inflation exceeding 4%.
Iran war impact: Survey respondents were asked to assess the impact of the ongoing conflict with Iran on their businesses. A majority — 55.4% — reported no direct effects. But the early signs of pressure are evident. Roughly one-quarter of respondents cited shifts in demand for their products, while a similar share pointed to rising transportation costs driven by higher fuel prices.
Additionally, 9.2% reported supply chain disruptions, and an equal share noted that elevated energy costs are beginning to weigh on operations.
California
8 people killed in B-52 bomber crash at California base, officials confirm
The eight individuals aboard the B-52 Stratofortress that crashed early Monday at Edwards Air Force Base, California, were killed, U.S. Air Force officials confirmed.
Gen. Ken Wilsbach, the Air Force chief of staff, said in a social media post Monday night that the force is grieving the loss of the individuals involved.
“It is with profound sadness that we mourn the loss of eight teammates today at Edwards AFB,” Wilsbach said in the post. “My thoughts are with the bomber and test communities during this difficult time.”
Air Force Secretary Troy Meink also lamented the deaths in a public statement, saying, “We mourn this loss and honor the service of our Airmen, civilians, and contractors who work every day to advance our mission.”
At 11:20 a.m. local time, or 2:20 p.m. Eastern Standard Time, the bomber aircraft crashed shortly after takeoff for a routine test mission and burst into flames, according to service officials. Initial indications of the crash were that it was not survivable.
Emergency personnel responded immediately to the scene, and as of late Monday were still working to account for all personnel, alongside base officials.
At a Monday afternoon news conference, Air Force officials said they were still attempting to locate personnel, as well as the aircraft’s black box, which could be used in the investigation of the incident.
The individuals on board were not all service members, Edwards Deputy Commander Col. James Hayes said at the news conference. The eight were a mix of military personnel, government civilians and contractors.
The crashed B-52 was in support of the radar modernization program, Hayes said.
The cause of the incident is still unknown, and it is currently under investigation by an interim safety board. The investigation will be taken over by a Safety Investigation Board that will determine the cause and will be followed by an Accident Investigation Board that will determine what information can be revealed to the public and next of kin.
The Air Force has yet to reveal the identities of the eight individuals. Teams were in the process of notifying family members by Monday afternoon.
Cristina Stassis is a reporter covering stories surrounding the defense industry, national security, military/veteran affairs and more. She previously worked as an editorial fellow for Defense News in 2024 where she assisted the newsroom in breaking news across Sightline Media Group.
California
California GOP Senator Suggests Putting Marijuana Back On The Ballot To ‘Reverse’ Legalization – Marijuana Moment
A California Republican senator says it is time to have a “serious discussion” about putting a measure on the ballot to potentially “reverse” legalization of marijuana in the state—also raising concerns about President Donald Trump’s move to reschedule cannabis at the federal level.
“I think it’s time to assess the effects, the significant unintended consequences of the legalization of marijuana, which has not just happened in California, but in other states too,” Sen. Roger Niello (R) said at a hearing of the Senate Business, Professions and Economic Development Committee last week.
“Now we can’t change it without going back to the people, but I think we should have a serious discussion, a serious analysis of the obvious…unintended negative consequences I don’t think that the writers of the proposition cared about,” he said as first reported by State Affairs, referring to the cannabis legalization ballot initiative that California voters approved in 2016. “I think these could have been predicted. They just wanted recreational use to be legalized.”
Niello raised concerns that “we’re even seeing our current president now advocating that by downplaying the classification of marijuana at the federal level.”
“We have seen significant negative consequences of this legalization, both here as well as in other states,” the senator, who was speaking at a hearing at which lawmakers approved a bill to legalize marijuana dispensary drive-thru windows in California, said. “I think it’s time for us to have a serious analysis of that, and whether or not we want to develop a proposition to go back to the voters and either reverse it or somehow reform it so that we don’t continually deal with the problems that we do.”
“I oppose the legalization of marijuana,” he said, citing data about cannabis use by young people and an alleged link to mental health problems and claiming that the 2016 reform was “written to please everybody” which resulted in a “dysfunctional policy that is bound for unintended consequences.”
Elsewhere in the U.S., marijuana legalization opponents are currently collecting signatures to put measures to roll back the reform in Maine and Massachusetts—though those anti-cannabis campaigns have faced accusations of misleading petitioning tactics.
A separate anti-marijuana effort in Arizona for a similar measure was dropped after its lead organizer said his initial concerns about the legal cannabis industry were misplaced.
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Back in California, regulators recently adopted emergency rules changes for the state’s marijuana licensing process that are intended to make it easier for businesses to qualify for benefits in line with the Trump administration’s recent move to federally reschedule medical cannabis.
They also separately launched a new AI tool to help businesses identify marijuana product packaging may appeal to kids in violation of state rules.
Gov. Gavin Newsom (D), meanwhile, recently took credit for helping to lead the push for the state to legalize marijuana and discussed his own limited experience with using cannabis.
In October, however, Newsom vetoed a bill that would have allowed certain marijuana microbusinesses to ship medical cannabis products directly to patients via common carriers like FedEx and UPS, stating that the proposal “would be burdensome and overly complex to administer.”
Newsom did sign a bill earlier that month aimed at streamlining research on marijuana and psychedelics.
In September, the governor also signed a measure into law to put a pause on a recently enacted tax hike on marijuana products.
Separately, the state attorney general says Indian tribes cannot independently engage in marijuana commerce with licensed cannabis businesses without first obtaining their own commercial license from state officials.
California officials recently awarded nearly $30 million in grants for marijuana-focused academic research projects.
California
Miss California competition returns to Fresno at the Saroyan Theatre
FRESNO, Calif. (FOX26) — After a four-year absence, the Miss California competition is returning to Fresno, bringing dozens of contestants back to the city that long served as the pageant’s home.
Contestants gathered at River Park on Sunday afternoon to kick off competition week.
Organizers said 63 contestants for Miss California and Miss California Teen took part in the event.
They emphasized the competition is about more than what happens on stage, saying contestants spend months developing leadership skills, advocating for causes they care about and earning scholarships.
“And when you hear that pageants are just girly stuff, no. No, these are intelligent, bright, beautiful women,” said Sandy Johnson who volunteers for the event.
Another speaker highlighted the focus on service and advocacy: “They’re all here with their passions and their community service initiatives to go forward and change the world as one of them becomes the next Miss California and another becomes the next Miss California teen.”
Reigning Miss California Rachel Axt of Clovis said her experience has helped her share her community initiative, advocating for children on the spectrum.
“It’s also helped me in my career as a special education teacher be able to get the word out and to show people what it’s really like to live life on the spectrum,” Axt said.
This year’s competition also marks a homecoming for the pageant. From 1994 to 2022, Fresno served as the host city. Now, after four years, the competition has returned.
“It’s special to me because I was born and raised in Fresno County, but it’s very special to the community because in many ways, this is the historical home of Miss California,” said Axt.
Volunteer Sandy Johnson said events like the pageant provide an economic boost to the area.
“They’re bringing their parents, their guests, and they’re in the city and eating and shopping and doing all those things,” Johnson said.
The Miss California competition is scheduled for June 15-20, 2026, at the Saroyan Theatre in downtown Fresno.
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