California Budget

Gov. Gavin Newsom has moved to close five state prisons because of California's falling incarcerated population. The next one in line is in Riverside County.

Cal State’s budget gap is now $2.3 billion. It's not likely to get any help from the state, which is struggling with its own deficit.

Gov. Gavin Newsom is counting $7 billion drawn from a reserve account as revenue, making California's $20 billion budget deficit seem smaller.

Officials are shoring up water systems infiltrated by the golden mussel. Dogs and human inspectors are checking boats at some lakes, but a patchwork of oversight leaves many lakes unprotected. “There's just too many boats and too many people out there," one warden said.

California's biggest pension fund and markets around the world learned to live with President Trump's tariff threats. CalPERS gained 11.6% on investments in 2024-25.

Gov. Gavin Newsom delayed his mandate that most state employees return to the office four days a week in a deal with unions. Labor leaders say his claim of “operational necessity” now rings hollow.

One of the most powerful political blocs in California, the Latino Caucus had to balance reining in Medi-Cal's rising costs with helping undocumented immigrants. All but four overcame their misgivings and voted to freeze new enrollment and make other cuts to immigrant health insurance.

Operators of mental health support lines are laying off staff and ceasing or curtailing services due to California budget cuts and a 2024 ballot measure.

California’s excise tax on legal weed is increasing, despite efforts to keep it lower to help the struggling industry. Lawmakers left it out of the state budget they passed Monday.

Major changes to the California Environmental Quality Act include an exemption for high-tech industrial plants and other projects. The move, fast-tracked under pressure from Gov. Gavin Newsom, sparked fierce pushback from environmental, community and labor groups.