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$18 Billion Deficit Greets Newsom’s Final Year in Office; How Will He Address It?

The $18 billion shortfall stems from rising spending, federal funding cuts, and economic uncertainty, with the deficit possibly reaching $35 billion without long-term solutions, analysts warn.

Will California Gov. Gavin Newsom raise taxes or cut spending to fix an $18 billion budget shortfall? Either could spell trouble for his legacy.

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  • 67% of the sources are Center
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The Sacramento Observer broke the news in on Tuesday, January 6, 2026.
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