California Faces $74 Billion Deficit After Record Surplus

Gov. Newsom's revised budget highlights revenue shortfalls and spending cuts amid criticism of fiscal management.

California's budget swung from a $97.5 billion surplus in 2022 to a $74 billion deficit in 2024.
Gov. Newsom attributes the deficit to volatile capital gains and climate change impacts on tax revenue collection.
Critics argue that unsustainable spending and budgetary mismanagement are to blame for the financial crisis.
The revised budget includes numerous spending reductions and proposals to address revenue volatility.
Calls for greater transparency and prudent fiscal policies grow as the state grapples with ongoing deficits.