California Gov. Gavin Newsom on Wednesday will reveal his plan to cover a staggering budget deficit as the nation's most populous state weathers a revenue downturn that could have major consequences for 5.8 million public school children.
Just two years ago, California had a budget surplus of more than $100 billion because of a surging stock market and a bounty of federal coronavirus aid. That came to an end last year as inflation slowed the economy down, resulting in a $32 billion deficit. This year, the deficit could be as large as $68 billion, according to the most recent estimate from the nonpartisan Legislative Analyst's Office.
