California’s budget deficit nears $18B, analysts say

California is facing an almost $18 billion budget deficit next year, according to a new report from the Legislative Analyst’s Office, which estimates the shortfall will be $5 billion larger than Governor Gavin Newsom expected. Finance officials say the deficit stems from several pressures, including Proposition 98’s required funding for schools, cuts in federal support during the Trump administration, stock market volatility, and rising costs in major programs such as Medi-Cal, which serves one in three Californians. Although state revenues are running $6 billion ahead of projections due to high-income tax receipts and market gains, analysts say spending continues to outpace revenue. Experts warn the state faces a long-term structural imbalance. Republican Sen. Roger Niello says lawmakers