California Budget

A close-up of a person holding a piece of paper with both their hands. The paper is a revised questionnaire for people who will be filing their taxes.

Commentary

SALT in old wounds: California’s taxes on wealth may hinge on how Trump treats deductions

President Donald Trump and Congress may toss a federal cap on how much people deduct for local and state taxes. If so, California's rich could enjoy a big tax cut.

By

Dan Walters

• January 30, 2025

A person wearing a navy blue suit points in front of them as they stand behind a lectern with the California seal in front of it. A large screen with a graphic that reads "our state revenues are up by $16.5 B" is seen next to him.

Commentary

Southern California wildfires could be a double whammy for the state’s shaky budget

The proposed budget the Newsom administration unveiled earlier this month is already scrap paper because the deadly wildfires that scorched Southern California will clobber tax revenues while imposing massive new financial burdens.

By

Dan Walters

• January 29, 2025

A burned Bank of America ATM kiosk showing extensive fire damage. The ATMs are charred and melted, with a metal support beam leaning against them. Surrounding debris, including broken tiles and remnants of the structure, is scattered on the ground. Two potted plants flank the damaged kiosk, partially scorched from the fire.

Commentary

LA wildfires could clobber California economy as state recovers from a pandemic recession

LA County's wildfires add uncertainty to California's already shaky recovery from the pandemic-era recession and higher than average unemployment.

By

Dan Walters

• January 16, 2025

A person with salt and pepper hair and wearing a black suit with a white shirt speaks during a press conference.

Commentary

Three years later, surplus spending casts a shadow over Newsom’s new state budget

A mistaken belief in a $97 billion phantom surplus three years ago complicates today's budget proposal, along with such future unknowns as wildfire costs and possible cuts in federal support.

By

Dan Walters

• January 10, 2025

California Gov. Gavin Newsom speaks at a podium indoors, pointing outward with one hand while standing behind a microphone. A presentation screen and gray wall are visible behind him as he addresses an audience.

Politics

California has more money than expected. Here’s how Gavin Newsom wants to spend it

Gov. Gavin Newsom expects a small California budget surplus after facing a deficit one year ago. His office is releasing details as devastating wildfires continue to burn in Los Angeles.

By

Mikhail Zinshteyn

and

Yue Stella Yu

• January 10, 2025

A person raises their right arm in the air and they lay on a medical bed in an examination room at a clinic. The person wears a black cardigan and yellow shirt.

Health

A Medi-Cal ‘gap’ hurts tens of thousands of low-income seniors. Will California finally fix it?

The Newsom administration on Friday is expected to release its next budget proposal. Health care advocates want the governor to fix a Medi-Cal rule that discourages seniors from getting coverage.

By

Ana B. Ibarra

• January 9, 2025

A firefighter in safety gear holds a firehose up and directs the water towards a car. The scene is apocalyptic, with fire smoke, flames and burning vehicles and structures in the background.

California Wildfires

LA fires underscore how much California has to lose if Trump withholds disaster aid

The federal government typically covers 75% of rebuilding costs after a major disaster. President-elect Trump has threatened to withhold firefighting money from California.

By

Ryan Sabalow

and

Alexei Koseff

• January 9, 2025

White popcorn boxes with red pinstripes, and the words "POP CORN" printed on them sit on a light colored, wooden table. The setting is a theatre or movie event.

Commentary

Tax loopholes cost California and its cities $107 billion but get little scrutiny

California would have 45% more for its budget if certain tax breaks, called tax expenditures, were eliminated, a fiscal consultant for the Legislature said.

By

Dan Walters

• December 20, 2024

A courtroom at the San Diego County Superior Court in San Diego on Oct. 9, 2023. Photo by Adriana Heldiz, CalMatters

Justice

California judges say they’re underpaid, and their new lawsuit could cost taxpayers millions

California judges receive raises based on what the state gives to other public employees. A new lawsuit alleges the state is miscalculating judicial wage increases.

By

Adam Ashton

• December 11, 2024

A split image showing two individuals speaking at podiums in separate settings. On the left, a person wearing a dark suit, white shirt, and black tie speaks passionately against a backdrop of deep blue curtains. On the right, another person, dressed in a navy suit, white shirt, and green tie, gestures while speaking, with an industrial background featuring shelves and equipment. Both individuals appear to be addressing an audience.

Capitol

Top Democrats say they won’t just ‘Trump-proof’ California — they’ll make it affordable again

Gov. Newsom wants the California Legislature to prepare for the Trump administration, but its leaders also say they heard voters’ message on lowering the cost of living.

By

Alexei Koseff

• December 2, 2024