California's Record-Breaking $68 Billion Budget Deficit: A Looming Crisis

California's budget deficit has reached a record $68 billion due to unexpectedly low tax revenues, prompting the possibility of the state's deepest spending cuts since the Great Recession. Governor Gavin Newsom and lawmakers may need to make significant reductions in spending, including education, climate, and healthcare. While the state has options to address the deficit, such as using cash reserves and making one-time cuts, analysts project annual deficits of $30 billion in future years. The release of Newsom's budget proposal will initiate negotiations on how to address the financial situation.