California's Record $68 Billion Budget Deficit: A Looming Crisis for Newsom

California is facing a record $68 billion budget deficit, largely due to misjudged tax collections and an economic slowdown exacerbated by storms and rising prices. The deficit poses challenges for Governor Gavin Newsom as he seeks to build his national profile. The state must now develop a plan to address the deficit, with Newsom set to present his proposal in January. Despite the deficit, the state still has over $37 billion in savings, and lawmakers may consider using some of those funds to help balance the budget. The economic downturn has hit California particularly hard, with rising unemployment and a decline in home sales.