California’s budget deficit climbs to nearly $18 billion, LAO says

California’s budget deficit has grown to nearly $18 billion, according to a new report from the Legislative Analyst’s Office, which says the state must balance the budget through spending cuts, increased revenue, or both. The shortfall is $5 billion higher than previously expected. Republicans blame overspending and lack of transparency, while some Democrats cite both waste and rising costs influenced by federal economic policies under President Trump. California must also backfill billions due to changes under the One Big Beautiful Bill affecting Medi-Cal and CalFresh funding. Democratic leaders say health care, food aid, housing, and education must remain protected, while Republicans argue public safety priorities are being sidelined. Gov. Newsom will finalize his proposal after Thanksgi