California's Mass Exodus Fuels Record $68 Billion Budget Deficit

California is facing a severe revenue decline and a record $68 billion budget deficit, prompting Democrats to consider spending cuts as people and businesses continue to leave the state. The deficit has grown exponentially in a few months, largely due to changes in tax filing deadlines and poorer economic conditions. The state's cash reserves may not be enough to cover the multi-year deficits, and the Legislative Analyst's Office suggests increasing revenue, cutting spending, or both as long-term solutions. California's population declined for the first time in 2020, with over half a million people leaving the state. Governor Gavin Newsom's office emphasizes fiscal responsibility and plans to introduce a balanced budget proposal in January.