Newsom Blames ‘Trump Slump’ for California’s $12 Billion Deficit

California Governor Gavin Newsom unveiled a budget proposal that aims to close a $12 billion deficit, marking the third consecutive fiscal year in which state lawmakers need to plug significant shortfalls.

Newsom, a second-term Democrat, said that a projected $363 million discretionary surplus for the upcoming fiscal year has morphed into a deficit in the months since his office unveiled his January budget proposal as new federal trade policies under President Donald Trump have dampened California’s revenue projections and its economic outlook.