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California faces a projected $10 billion budget deficit next year, a sharp reversal from a projected surplus earlier this year. The downturn is attributed to unforeseen economic factors, primarily President Trump's tariffs, which have negatively impacted California's key industries and reduced tax revenues. Governor Newsom will unveil a revised budget proposal, likely involving significant program cuts, to address the shortfall. The state's Medi-Cal program and recent wildfires also contributed to the financial strain. Negotiations with the legislature will determine the specifics of the budget cuts.

Prepared by Christopher Adams and reviewed by editorial team.