The Brief

California State University says it’s short $2.3 billion, a staggering budget gap that’s grown sharply since the system first revealed two years ago that it didn’t have the money to properly educate its students.

How the nation’s largest public four-year university system will generate that revenue is anyone’s guess, as annual tuition increases of 6% that kicked in last year and an influx of state taxpayer support have been insufficient to pay for Cal State’s growing labor, energy and education expenses.

The details of that cumulative gap were unveiled at the bimonthly Cal State Board of Trustees meeting this week.

More state support is increasingly unlikely, as California budget experts forecast multi-billion-dollar budget shortfalls worsened by severe federal cuts to major public safety-net programs, like Medicaid, and possible cuts to financial aid.

The funding shortfall, which doesn’t include billions of dollars in building maintenance backlogs, is a large portion of the system’s roughly $9 billion operating budget.

“This growing gap demonstrates why we need immediate action to achieve financial sustainability,” said Jeni Kitchell, an assistant vice chancellor for finance of Cal State. “We cannot sustain our current level of funding, especially while operating from a position of underfunding.”

The system fought off a $375 million proposed cut to its state allocation this year, instead receiving a $144 million cut — a 3% reduction in its state support. Lawmakers are offering Cal State a zero-interest loan to make up for that cut and promised to restore the money next year.

Already Cal State has cut more than 1,200 staff positions across the system in the past two years, reduced student support staff by 7% and terminated 1,400 courses during a period of ongoing budget deficits.

Without an infusion of cash, the system will have to shift money from some of its initiatives — including improving graduation rates — just to cover mandatory costs, such as health care, insurance, utilities, financial aid and agreed-upon union raises, Cal State leaders said. In such a scenario, system documents show, campuses may have to continue the cost-cutting they’ve implemented recently, which has included layoffs, reducing job categories, cutting courses and leaving job vacancies unfilled.

This year’s budget gap is $164 million.

State promises of more funding ‘violated’

Some Cal State trustees said they are frustrated that Gov. Gavin Newsom delayed his promises of five years of increasing state support, which was supposed to total more than $1 billion. Only three years of that compact have been funded to date; the fourth, which was supposed to kick in this year, will instead be spread out between 2026 and 2028, lawmakers and Newsom decided in the most recent state budget deal. Lawmakers didn’t signal a fifth year of compact funding, though they may in next year’s budget deal.

“We were promised a five-year compact,” said Jack McGrory, a Cal State trustee. He argued that Cal State trustees approved 10% or more in salary increases for workers the past two years based on those promises. “We did rely on the promise, and the promise was violated, and that's the story that we have to tell, and it's unfortunate, and it's going to put our relationships with the unions and our employees in a really bad situation,” McGrory added.

If the compact money or the $144 million state spending cut aren’t restored, Cal State won’t be able to grow student enrollment at a time when more high school graduates are completing the courses needed to be eligible for Cal State admissions. The system currently enrolls 460,000 students.

“How do we enroll more students if we do not have the resources to hire more faculty, to provide more staff support,” add mental health counselors and more free-food programs for Cal State’s largely low-income students, asked Patrick Lenz, the interim chief financial officer of Cal State.

Cal State has been trying to slow its spending. The chancellor’s office is cutting its budget by $18 million, or 8%, trustees learned at this week’s meeting. Several campuses in the Bay Area are consolidating their administrative offices to lower expenses. And last fall the system approved the merging of two campuses to avoid millions of dollars in new spending.

Unions say they’re owed raises

Meanwhile, thousands of employees are in a dispute with Cal State leadership over whether their union contracts guarantee them raises this year. The contracts say that if lawmakers fully fund the Cal State system, some of its workers get raises.

Cal State’s leadership says that because state lawmakers reduced the system’s funding by $144 million, they can’t give raises. Unions say because the state is allowing Cal State to borrow that money as a zero-interest loan, the system is fully funded. Cal State says borrowing money isn’t the same as being fully funded by the state. System leaders also lack confidence that the state will restore the $144 million cut next year. If the money doesn’t appear next year, Cal State would be stuck with a loan that adds to their budget crisis.

At least two state lawmakers are siding with unions. “Damn it, we are here to send a clear message. Do you hear us? Because guess what, if they don't get what they deserve, we're going to shut the s— down,” said Assemblymember Mike Gipson, a Democrat from Gardena, at a press conference outside the system’s headquarters Tuesday morning. He was addressing Cal State’s chancellor and other leaders who were assembled yards away for their meeting.

“With everything going on with ICE, we don't need to add additional pressure on not only the students but the faculty here. They're already traumatized. Our state is already traumatized,” Gipson added.

Assemblymember Al Muratsuchi, a Democrat from Torrance, said he stands in “solidarity” with union workers to “to call on the chancellor and the trustees to keep your promise.”

The California State University Employees Union, with 35,000 clerical, custodial and student assistant members, says that the raises they think they’re owed are worth $30 million more than what Cal State plans to give them.

Erin Foote, a vice president for organizing for the union, said in an interview that Cal State leaders should partner with the union in pushing for legislation or a ballot measure to ensure Cal State and University of California have guaranteed funding. “It costs millions of dollars to run a revenue measure, and we would need the CSU to be our partner,” Foote said.

Cal State’s cash reserves are at $760 million — enough to operate the system for a month.

How Cal State’s budget shortfall grew

How did Cal State’s cumulative funding gap grow from $1.5 billion to $2.3 billion since 2023? Chancellor’s office staff point to these latest budget realities:

• $143.8 million: the amount of Cal State’s cut in state support this year
• $310.5 million: the growth in labor costs
• $322 million: the budget shortfalls at Cal State’s campuses the past three years

In that same time, Cal State’s revenue grew, but not by enough to cover the increase in costs. State funding that goes to the system’s operating budget — the corpus of money to pay for its education mission — grew from $4.5 billion to $4.87 billion last year. State support is Cal State’s largest source of funding for its operations. And the system’s tuition revenue jumped from $3.24 billion to $3.53 billion. Combined, those are increases of almost $700 million, according to the system’s financial transparency portal.

Next year is projected to be more of the same fiscal hurt.

Cal State budget officials say that the system will incur $365 million in new, mandatory costs in 2026-27, including $63 million in increased staff health care premiums and about $160 million in wage increases. That amount doesn’t include growing enrollment by the 3,500 students that the compact requires, which would cost $56 million.

For Cal State to afford the new, mandatory expenses, the state would need to return the 3% cut and a portion of the compact funding the system was supposed to get this year. None of that is a sure bet.

The funding they can rely on is new tuition revenue: students will be charged another 6% increase next fall.

Warner Bros. Discovery's blockbuster announcement Thursday that it would accept Paramount Skydance's takeover bid shouldn't be thought of simply as seeking to unify two major Hollywood players, two big streaming platforms and two leading TV news divisions under one roof.

It is certainly that. The nearly $111 billion Paramount-Warner marriage would unite their studios — and their back catalogue of shows and movies. It would add such franchises as D.C. Comics, Harry Potter and Game of Thrones to Paramount's Top Gun, Mission Impossible and Star Trek powerhouse. Paramount+ and HBO Max. CBS and CNN.

But there's more to it.

Paramount Skydance Chairman and CEO David Ellison is relying largely on the financial backing of his father, Larry Ellison — the co-founder of software giant Oracle, the lead investor in TikTok US, and one of the richest people on the planet.

The Ellisons have staged what appears to be a lightning-swift ascent through social and legacy media relying heavily on their connection to the Oval Office.

Should the Ellisons receive a green light from regulators to proceed with the deal, the minnow will have swallowed the whale. Warner currently has more than five times the market value of Paramount.

That's on top of acquiring Paramount itself and a major stake in TikTok US — all in less than a year. And that's in addition to Oracle, which runs much of the digital backbone of the nation's commerce and government.

Oracle co-founder Larry Ellison, right, sits next to media mogul Rupert Murdoch as they listen to President Donald Trump speak in the Oval Office.

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"It's tech giants becoming media giants," argues Jon Klein, a former top executive at CNN and CBS News.

But history shows such mega-mergers often end in tears. The movie business is expensive. Cable television is highly profitable but in steep decline as viewers cut the cord. The combined company will be saddled with debt. So why would the Ellisons spend their billions this way?

David Ellison has sought to be a force in Hollywood for years. He helped to produce movies with Tom Cruise at his family's company Skydance Media. But for his father, Larry Ellison, it's about more than just making his son's very expensive dreams come true.

"Beyond any dollars that they can derive — it's the data about consumer habits, down to the specific identity," Klein says.

He says the push into artificial intelligence by Oracle creates a thirst for more insight into how people view news and entertainment and what products they buy online. The streaming channels and social media giant both offer greater and more granular information.

"That's the prism that you've got to look at this Paramount/WBD deal through," says Klein, co-founder of HANG Media, a Gen Z social video engagement platform. "Oracle... wants to be one of the major players in AI. That's what Oracle wants to get out of media."

The deal still hinges on acceptance from antitrust regulators in Washington and Europe, who can seek to block the transaction. California's attorney general made clear Thursday night he would also give the acquisition tough scrutiny.

"If a merger substantially reduces competition in any market, it's illegal. Courts sort of take that literally," says University of Chicago law professor Eric Posner, who held a senior antitrust position in the U.S. Justice Department under former President Joe Biden.

"But in practice, the Justice Department has discretion on whether to challenge these mergers," Posner tells NPR. "And the courts have discretion on whether to block them."

Friendly ties to Trump

President Donald Trump's Justice Department is a wild card. Last year, the department's then antitrust chief, Gail Slater, took an aggressive stance against Google in court. Last month, the Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of a wireless tech competitor. Slater resigned under duress this month, however.

The Federal Communications Commission is unlikely to intervene, as no broadcast licenses would change hands in the Paramount takeover of Warner. But its chair, Brendan Carr, may well advise the Justice Department and he has lauded David Ellison's moves at CBS.

Even before sweetening its offer this week, Paramount proclaimed its "confidence in the speed and certainty of regulatory approval for its transaction."

Publicly, it argues that such consolidation is needed to take on streaming giants, very much including Netflix but also Amazon Prime, Apple, Disney and YouTube.

Behind the scenes — and sometimes in not-so-hidden ways — the Ellisons have become cozy with President Trump. Larry Ellison is a backer and adviser.

On Tuesday night, David Ellison attended Trump's State of the Union address as a guest of the president's ally, Senator Lindsey Graham, a South Carolina Republican. Graham tweeted out a photo of the two men making Trump's signature "thumbs-up" gesture ahead of the speech.

The president cares deeply about TV news. He has publicly said he wants new owners for CNN — which he has blasted repeatedly as "fake news" — and has proven willing to interfere in corporate matters in his return to the White House.

Netflix CEO Ted Sarandos departs the White House on Wednesday. Sarandos was there to discuss Netflix's bid for Warner Bros. just hours before Warner announced its preference for Paramount.

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Netflix chief Ted Sarandos met Thursday with administration officials at the White House — though notably not with Trump, according to an aide — in a last-gasp effort to salvage his company's competing bid. By the end of the night, Netflix had given up the fight.

The shadow cast over the process by the president has inspired sharp criticism of the path that Paramount and the Ellisons took to land the Warner deal.

"A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want," Democratic Sen. Elizabeth Warren of Massachusetts said in a statement. "With the cloud of corruption looming over Trump's Department of Justice, it'll be up to the American people to speak up and state attorneys general to enforce the law."

"It is not just the seemingly open corruption of this entire process that leaves me shaken," writes Jeffrey Blehar in the conservative National Review. "I am shaken by how little people will care."

Said Seth Stern, head of the Freedom of the Press Foundation, "Ellison will readily throw the First Amendment, CNN's reporters and HBO's filmmakers under the bus if they stand in the way of expanding his corporate empire and fattening his pockets."

CNN's future hangs in the balance

The Ellisons' acquisition of Paramount followed a similar path.

Last summer, the previous owners of Paramount announced the end of late night host Stephen Colbert's CBS show as they sought federal approval to sell the company to David Ellison.

While they cited economics, Colbert's was the top-rated late night show on network television — and he has been a lacerating satirist of the president. Colbert called the cancellation a "big fat bribe."

Ellison subsequently made additional pledges to the FCC's Carr to win support. Among them: he promised the cessation of diversity, equity and inclusion initiatives throughout Paramount and the addition of an ombudsman to field complaints of ideological bias. He named the former head of a conservative think tank to that role.

Carr blessed the sale. He has since praised the shifts made at CBS News.

The question of what happens to CNN hovers prominently over the Warner sale. The network has undergone rounds of cuts under a series of owners seeking to reduce debt; Paramount would be its fourth corporate parent in under a decade.

Other elements are in play as well.

CBS's new editor in chief is Bari Weiss, founder of the center-right opinion and news site The Free Press. Ellison bought the site and added it to Paramount's portfolio.

Bari Weiss, CBS News' editor in chief, interviews conservative activist Erika Kirk in a CBS town hall event in December.

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Weiss has contended CBS and much of the rest of the media has been too reflexively hostile to conservatives and the president, and she's sought to revamp the newsroom.

CNN's Anderson Cooper, who has also served as a correspondent for CBS's 60 Minutes for two decades, recently announced that he would leave the show, citing the desire to spend time with his small children. Associates, speaking on condition of anonymity because they were not authorized to disclose internal network matters, say he was concerned about the approach that Weiss has taken at CBS.

She is considered likely to have a role over CNN as well, should the deal go through.

CNN CEO Mark Thompson urged colleagues to focus on their news coverage. "Despite all the speculation you've read during this process, I'd suggest that you don't jump to conclusions about the future until we know more," he wrote in a memo Thursday.

Perceived value beyond the bottom line

The deal David Ellison struck for Warner is valued at nearly $111 billion. The new company would carry substantial debts and have Saudi and Emirate backing. The profits are currently relatively modest.

Yet Klein contends larger motives are in play. Just look at Google, he says, which owns what many consider the dominant media company, YouTube.

"They want to know what you watch, and where you come from, and what you buy when you watch, and where you go after you buy, and what you post in the comments and what you like and love and all that," Klein says.

"And if you can combine that with your streaming content and your studio decisions and your marketing for all the content product you're creating," he adds, "you're in a very very powerful position."

Copyright 2026 NPR

This story first appeared on The LA Local.

The Serving Spoon has been an Inglewood cornerstone for four decades, dishing up grilled corn bread and fried turkey chops. 

Now, though, the whole country is in on the secret. 

The breakfast and lunch spot on Centinela Avenue was announced Wednesday by the James Beard Foundation as one of six winners of the America’s Classics Award, an honor the foundation says goes to “timeless” local institutions. The foundation is also responsible for the James Beard Award, one of the nation’s top culinary honors. 

The Serving Spoon joins a pantheon of other L.A.-area eateries to win the classics award including Guelaguetza, Langer’s Deli and Philippe the Original. 

Jessica Bane, part of the third generation to run the family-owned restaurant, said the honor is still sinking in, but that it validates decades of work. “It’s being done out of love,” Bane said.

The Serving Spoon has been an Inglewood cornerstone for four decades, dishing up grilled corn bread and fried turkey chops.

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The award announcement hailed The Serving Spoon as an “anchor” of L.A.’s Black community, run by staff who genuinely care for their customers.“The restaurant is cherished for its joyful hospitality and as a place where all can gather and feel at home,” the announcement read. 

The Serving Spoon didn’t exactly need Beard recognition — the diner is often packed and already has  pedigree as Snoop Dogg and Raphael Saadiq’s breakfast spot of choice in the 2000 Lucy Pearl song “You” — but Bane said the award takes the diner’s reputation national.“The recognition is beyond appreciated,” Bane said. 

The Serving Spoon was founded in 1983 by Bane’s grandfather, Harold E. Sparks. He passed the restaurant down to Bane and her brother, Justin Johnson, through their parents. 

The menu looks much the same as it did four decades ago, Bane said, though some of the dishes have been renamed for regulars. 

During the Thursday lunch rush a day after the announcement, The Serving Spoon’s vinyl booths were packed, as usual. Bane oversaw the dining room while Johnson marshaled plates of fried catfish through the kitchen. 

Tina and Kevin Jenkins waited for a table outside. The L.A. natives each have been coming to The Serving Spoon since childhood. They live in Lancaster now, but make sure to come back to the diner whenever they’re in town. 

“It’s the atmosphere, our people, our music,” Tina Jenkins said.

Despite taxes on imports at levels not seen in a century, Long Beach’s seaport had a good year in 2025. And a decent January.

Port officials said Wednesday they started the new year by leading the nation in trade, responsible for moving more than 847,000 shipping containers in January — 51% of the total cargo at the San Pedro Bay Complex, which it shares with neighboring Port of Los Angeles.

In a call with reporters, Port CEO Noel Hacegaba said that despite a “fair share of doom and gloom” at the time, the seaport finished 2025 as its busiest year on record.

This comes days after President Donald Trump signed new, across-the-board tariffs on U.S. trading partners, and later added he would raise the tariffs to 15%. It’s a direct response to a recent Supreme Court decision that found his tariffs announced last April were unconstitutional.

The new tariffs would operate under a law that restricts them to 150 days, unless approved by Congress.

Asked to measure how much this will affect the seaport, traders, logistics companies and consumers, Hacegaba reiterated a word he has evoked heavily in the past 10 months: uncertainty.

“Our strong cargo volumes do not suggest we are not being affected by tariffs,” Hacegaba said, adding the Port saw a 13% decline in imports driven by major reductions in iron, steel, synthetic fibers, salt, sulfur and cement.

Economists are somewhat more confident, saying it would take nothing short of a national economic crisis to reverse the seaport’s fortunes. “Even if the market is affected, our standing at the Port of Long Beach, even compared to other ports, is strong,” said Laura Gonzalez, an economics professor at Cal State Long Beach.

But experts caution that the ruling will heap the most damage on businesses, especially smaller enterprises, as well as the average consumer who already bore the tariff’s costs last year.

Noel Hacegaba, CEO of the Port of Long Beach, held his first State of the Port in Long Beach on Thursday, Jan. 15, 2026.

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Tariffs added $1,700 in costs to the average U.S. household, as importers raised prices to offset higher import taxes — especially on clothes, shoes and electronics from China and other Southeast Asian nations.

Consumers, Gonzalez said, should budget over the next six months “for essentials.”

Priyaranjan Jha, an economics professor at UC Irvine, said historically trade policies since 2018 have shown that for every dollar of duty imposed, consumer prices rose by about 90 cents.

Even if tariffs are reduced or reversed, and pressure is relieved on importers, consumers shouldn’t expect lower sticker prices right away, he said. “Firms do not always reduce prices as quickly as they raise them, especially if contracts or inventories are involved.”

Richer San, a former banker and business owner in Long Beach, said he’s in regular talks with shops across the city’s historic Cambodia Town that have been crushed by the increased prices of imported ingredients.

“Most of these are family-owned businesses operating on very small profit margins,” he said, adding there is little to no margin to “absorb higher costs.”

Many companies managed to avoid price increases last year in part by stockpiling inventory in the first half of the year to be sold through Christmas and the start of the year. As stock dwindles, many businesses might be less willing to eat the cost of a new set of tariffs.

Marc Sullivan, president of Long Beach-based Global Trade and Customs, said his logistics company saw a brief boom last year in ordered goods, mostly medical equipment and pharmaceuticals.

But by June, orders dropped 35%, a trend that continues today. It’s forced him to freeze any new hiring in the past year and at least through the next six months as he waits for federal officials to settle on tariffs that will determine the cost of shipped goods.

“For the companies that I work with that are importing into the state here, it’s just ‘hold on and let’s see what happens,’” he said.

“I’d like to hire a salesperson to go out and chase new business, … but it’s just a bleak outlook,” he added.

In the interim, he’s received a steady flow of calls (that started “within minutes” of the ruling) from importers looking to claim refunds or recoup their tariff expenses. The U.S. Treasury had collected more than $140 billion from tariffs enacted under emergency powers, and the Supreme Court left the decision of how to appropriate the refund proceedings to lower courts.

His response: They might be stuck waiting for a while. “Customs doesn’t pay anything back quickly,” he said. “It could be a year before you ever see anything back to you.”

Sullivan said he knows of companies that spent upwards of $20,000 per shipment for months.

“They’re going to want that money to be able to reinvest it,” Sullivan said.

But some experts say that consumers, as well as small businesses, deserve a share of refunds.

“The importer may receive a refund even though consumers bore much of the cost,” Jha said. “Courts generally refund the statutory payer, not downstream buyers, but that opens the possibility of follow-on litigation. Small businesses that directly imported goods and paid tariffs should qualify for refunds.”

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A long turtle lineage: Dubbed “Porkchop” by aquarium staff due to her hefty appetite, the young female green sea turtle represents one of seven sea turtle species worldwide (six of which occur in U.S. waters). These animals have called our oceans home since at least the time of the dinosaurs — about 110 million years ago, according to NOAA. All species of sea turtles found in the U.S. are listed as either endangered or threatened and are protected by the Endangered Species Act.

Porkchop’s healing journey: Aquarium vets had to amputate Porkchop’s right front flipper after tangled fishing lines severely cut off her blood flow. She also had a fishing hook removed from her throat. First rescued after being spotted in the San Gabriel River by volunteers with the aquarium’s sea turtle monitoring program last March, her healing journey took nearly a year. She now swims and eats as well as her four-flippered kin and after a final physical exam, blood sample and X-ray, vets determined she was ready to return to her wild roots. She also now has a microchip, so if she ends up stranded again, scientists will know it’s her.

An ambassador for conservation: Porkchop became the aquarium’s first public-facing ambassador for its expanded green sea turtle rescue efforts. A new holding tank, viewable by the public, doubles the aquarium’s capacity to rescue green sea turtles and provides firsthand education about their conservation efforts. The aquarium is currently caring for another larger and older female green sea turtle — she weighs more than 200 pounds — rescued from the San Gabriel River in January. She’ll be in the public viewing tank in the coming months when she’s recovered a bit more.

How to help local green sea turtles: Green sea turtle populations are actually doing quite well in the San Gabriel River, but trash, debris and pollution remains a big threat. If you fish the San Gabriel River, never litter fishing lines or hooks. If you see a stranded sea turtle in the San Gabriel River or elsewhere, call the West Coast Marine Mammal and Sea Turtle Stranding Network’s hotline at (562) 506-4315. You can also donate to the aquarium’s rescue program.