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California Faces $12 Billion Deficit: Cuts Proposed

5/15/2025

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Summary

Story summary

California is grappling with a $12 billion budget deficit driven by soaring healthcare costs and tariffs.
Governor Gavin Newsom's revised $322 billion budget proposes cuts to Medi-Cal and social services to mitigate the deficit.
Newsom attributes economic instability to tariffs, forecasting a $16 billion revenue loss for the next year.
Legislative discussions are underway, with a June 15 deadline to finalize a balanced budget.
Public universities face reduced cuts, while film tax credits will receive additional funding.

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Story summary

California is grappling with a $12 billion budget deficit driven by soaring healthcare costs and tariffs.
Governor Gavin Newsom's revised $322 billion budget proposes cuts to Medi-Cal and social services to mitigate the deficit.
Newsom attributes economic instability to tariffs, forecasting a $16 billion revenue loss for the next year.
Legislative discussions are underway, with a June 15 deadline to finalize a balanced budget.
Public universities face reduced cuts, while film tax credits will receive additional funding.