California Faces $18 Billion Budget Gap as Leaders Weigh Deep Cuts | News Channel 3-12

California’s largest teachers union spurs drive to make income tax surcharge permanent

First adopted in 2012, this version of the income tax would hit the top 2% of earners. It would produce as much as $15 billion annually, although less than half would go to schools and community colleges.

Madera County could face bankruptcy; $7M in cuts, new taxes proposed. What's at risk?

California Faces $18 Billion Budget Gap Despite AI Tax Windfall California Faces $18 Billion Budget Gap Despite AI Tax Windfall

California's analyst office warns AI-driven tax windfalls may prove temporary as an $18 billion budget gap and structural deficits loom.

California Faces $18 Billion Budget Gap as Leaders Weigh Deep Cuts | News Channel 3-12

SANTA BARBARA, Calif. (KEYT) - State leaders are bracing for a multibillion-dollar challenge as California faces an estimated $18 billion deficit heading into the 2026–27 fiscal year. Officials warn the gap could widen even further, with a long-term structural deficit of about $35 billion a year projected to begin in 2027–28. Lawmakers believe the pressure is on to rein in spending while protecting essential programs. When the Legislature reconv…