California's Budget Deficit Soars to $88 Billion

California lawmakers and Governor Gavin Newsom are facing a projected budget deficit of $73 billion for 2024-25, $15 billion higher than previously estimated. The shortfall poses a significant challenge, with potential impacts on spending, reserves, and legislative priorities. Assembly Speaker Robert Rivas expressed concern about the growing deficit and emphasized the need for oversight, spending cuts, and prudent use of reserves. The budget climate may also affect legislative efforts, such as healthcare initiatives, and prompt discussions on potential strategies, including tax measures. Governor Newsom is expected to propose an updated budget in May, with negotiations and a final spending blueprint in June.