California’s $68 Billion Deficit Looms as Newsom Unveils Budget

California Gov. Gavin Newsom’s proposed budget to be released on Wednesday will cast uncertainty on some of the legislature’s more ambitious policy priorities in areas such as labor, health care, and the environment as the state faces a $68 billion deficit.

The Democratic governor has already cited cost concerns as a reason for changing plans to raise the minimum wage for health care workers in the state that was enacted by a 2023 law, and his administration has ordered a spending freeze across government agencies.

Crafting a balanced budget by the state’s mid-June deadline will fall not just to the ...