4.8 • 1.7K Ratings
🗓️ 23 November 2025
⏱️ 12 minutes
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California is facing a projected $18 billion budget deficit as Governor Gavin Newsom positions himself as a potential 2028 Democratic front-runner. From education funding and federal cuts to homelessness and local spending challenges, the state’s finances are under intense pressure. Meanwhile, political experts debate whether Newsom, or other candidates like AOC or Kamala Harris, have what it takes to lead the party nationally.
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| 0:00.0 | You know, 2028 frontrunner, political touts to be Gavin Newsom as the candidate to run for president, okay, frontrunner. |
| 0:10.2 | Meanwhile, California is facing projected $18 billion deficit as Newsom's heads into his last year as governor. |
| 0:20.0 | Okay. |
| 0:21.6 | So when you look at Rob, is this the one with... |
| 0:24.6 | This is the deficit. |
| 0:26.0 | This is a newscast reporting the deficit in California. |
| 0:28.4 | How fast do they get into it? |
| 0:30.3 | Right off the bat. |
| 0:31.0 | Okay, go for it. |
| 0:32.3 | California is facing a major budget deficit next year. |
| 0:35.3 | The California Legislative Analyst Office is predicting a budget shortfall of almost $18 billion. |
| 0:41.7 | ABC 10-Den is here to explain where most of the money is being spent. |
| 0:46.2 | Alex, the Department of Finance says the estimate is not off, and it's something the state has been |
| 0:50.0 | expecting leading into the next year. |
| 0:52.1 | The state blames the deficit on a number of things like |
| 0:54.8 | Trump administration cuts and spending on education and says this will be a priority for the governor |
| 0:59.9 | and the legislature in the new year. The legislative analyst has highlighted a number of the challenges |
| 1:07.0 | that we and the governor have underscored throughout 2025. The challenge is a potential |
| 1:12.2 | $18 billion deficit for the state's budget next year. In a new report, the legislative analyst |
| 1:17.3 | office predicts the shortfall will be $5 billion larger than Governor Gavin Newsom initially |
| 1:22.4 | expected. H.D. Palmer with the Department of Finance says there are a number of factors |
| 1:27.2 | that contribute to this number, like Proposition 98 that guarantees minimum funding for K-12 schools and community colleges. |
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