Legislators start working on California budget amid deficit

(The Center Square) – Amid concerns that there might be as large as an $18 billion budget deficit in the coming year, California lawmakers started writing the state’s budget with the help of finance officials.

The California Assembly Budget Committee Tuesday heard the concerns of officials from the state’s Finance Department and Legislative Analyst’s Office, which issued its budget report in November 2025. That report detailed an $18 billion budget deficit, according to previous reporting by The Center Square.

“Our budget process must be guided by our twin goals: compassion and fiscal responsibility,” Assemblymember Jesse Gabriel, D-Encino and chair of the Assembly Budget Committee, said during the panel’s meeting on Tuesday. “We know we cannot balance the budget on the backs of th...