Forecast sees $2-billion state deficit, warns of changes under Trump

The California Legislative Analyst’s Office projected a $2-billion budget deficit for Gov. Gavin Newsom and lawmakers next year, warning of future challenges under the incoming Trump administration. The forecast relies on higher tax revenues but cautions against new spending commitments due to a gradual economic slowdown. The state faces increased costs from propositions and minimum wage hikes, while preparing for potential disasters like wildfires and earthquakes, prompting calls for fiscal restraint and bipartisan cooperation.

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