The Brief

Gov. Gavin Newsom opened this year with a rosy forecast: Buoyed by $17 billion more in revenue than previously planned, the state would have a modest surplus of $363 million for fiscal year 2025-26, he told reporters in January.

But life turns on a dime.

The January wildfires that ripped through Los Angeles forced the state to spend billions in disaster aid and delay tax filings for L.A. residents. The cost of Medi-Cal, the state-run health insurance program for low-income residents, ballooned to $6 billion more than anticipated. President Donald Trump’s on-again-off-again tariff policies rocked the stock market, which California heavily relies on for tax revenue. And the state lodged a flurry of lawsuits against the Trump administration over its threat to withhold federal funding for food assistance, disaster recovery and other grants.

By May, Newsom no longer predicted a modest surplus, but a $12 billion deficit.

To plug the hole, Newsom initially proposed drastic cuts to Medi-Cal. But the final budget he negotiated with state lawmakers depended largely on internal borrowing, dipping into the state’s reserves and freezing Medi-Cal enrollment for undocumented immigrants to avoid deep cuts to other social services.

While Democratic leaders largely blamed the Trump administration for California’s budget problem, the volatility of state revenues is not new. California highly depends on taxing the income and capital gains of high earners, whose fortune is often at the mercy of the stock market. In 2022, the state saw a nearly $100 billion surplus, followed by a projected $56 billion deficit over the next two years.

2026 outlook

The deficit is projected to reach nearly $18 billion next year, mostly because the state is expected to spend so much money that it would offset, if not eclipse, the strong tax revenues driven by an AI boom, said the nonpartisan Legislative Analyst’s Office in its fiscal outlook last month.

If the estimate holds, it’ll be the fourth year in a row in Newsom’s tenure that California faces a deficit despite revenue growth.

Worse yet, the structural deficit could reach $35 billion annually by fiscal year 2027-28, the LAO said.

California is facing $6 billion in extra spending next year, including at least $1.3 billion because the state must now pay more to cover Medi-Cal benefits under Trump’s budget bill. The state also stands to lose more housing and homelessness funding from the federal government.

How can legislators fix it? The options are stretching thin, as the state already took one-time measures to balance the books. The LAO notes that solving an ongoing structural budget problem requires either finding more sustainable revenue streams, or making serious cuts, or both.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

It’s been a year of highs, lows and an ever-brighter national spotlight for Gov. Gavin Newsom.

All eyes were on Los Angeles as wildfires tore through the city in January. Newsom, having just responded to President Donald Trump’s reelection by calling a special legislative session to fund lawsuits against him, was suddenly forced into a more conciliatory stance as he sought federal aid for fire recovery that has still not materialized. To close a tough budget deficit exacerbated by the prospect of steep federal cuts, he angered some in his own party with cuts to the state health coverage of undocumented immigrants. To explore Democrats’ losses in 2024, he alienated progressives while courting right-wing activists on his podcast.

He found his way back as Trump resister-in-chief — and national Democratic darling — again when the president sent aggressive immigration raids and the National Guard to Los Angeles this summer. Then he successfully converted the anti-Trump fervor of that moment into a campaign for Proposition 50, the Democratic gerrymandering effort to counter the president’s attempt to gain new GOP seats in Congress.

Newsom also won big with the Legislature along the way, using his considerable influence over the state budget to strong-arm lawmakers into passing significant carveouts to environmental law in an effort to boost construction of housing and infrastructure. He negotiated several major climate and energy policies that mostly ended up the way he wanted. Those efforts will allow Newsom to say to a national audience that he took voters’ concerns over affordability seriously and worked to lower housing and energy costs. But he will likely receive some blowback for backing away from a more aggressive and environmentally-minded stance toward the oil industry to achieve it — especially as he increasingly uses California’s strict emissions regulations and climate advocacy as a proxy for national leadership.

But the mostly victorious year for the governor’s political profile has also been touched by scandal in recent weeks amid campaign corruption charges filed against his former top aide. He has not been accused of wrongdoing, but it’s possible the association could taint his reputation regardless as he looks for his next political move.

2026 outlook

The next year will continue to be challenging for the state budget as officials predict more deficits. That would limit the governor’s ability to propose any ambitious new programs in his final year in office, a time he’ll need to try to make more inroads on some of California’s most entrenched problems. A persistent housing shortage, homelessness and the high cost of living are all likely to become baggage for Newsom if he does pursue an expected presidential run after he leaves office.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.

After the Thanksgiving leftovers are gobbled and the Christmas trees come down, many turn their attention to the new year, and may celebrate by making resolutions or watching the Times Square ball drop.

Thanks to the widely adopted Gregorian calendar, most people have marked the new year on Jan. 1 for centuries. But with so many other calendar systems — such as the Chinese, Islamic or Hebrew calendar — how did this come to be? And how did it come to represent new beginnings?

How the Gregorian calendar — and Jan. 1 — was born

Let's go back in time. The Gregorian calendar, and its Jan. 1 start date, has its origins in ancient Rome.

The goal of many early Roman calendars was to find a way to align lunar cycles, solar years and seasons, as several religious festivals and holidays revolved around the equinoxes and moon phases.

For example, many Christians wanted Easter to fall on the spring equinox every year, said Darin Hayton, an associate professor of history at Haverford College.

"So we have a number of competing goals that don't admit easily of mathematical solutions," he said.

When a 10-month calendar didn't do the trick, the Romans borrowed from the Greeks and Egyptians, who figured out that 12 lunar cycles fit into a solar cycle. So Roman King Numa Pompilius extended their calendar to 12 months by adding February and January, named after Janus, the Roman god of beginnings. Jan. 1 was then made the start of the calendar, Hayton said.

In 45 B.C.E., while Julius Caesar was high priest, he stretched the 12-month calendar to 365 days and a quarter of a day. But that quarter amounted to a full day after four years. So he implemented leap years to catch the calendar back up with the solar year, Hayton said.

But there was still a problem. The astronomers of Caesar's day who calculated the length of a solar year were off by about 11 ½ minutes, a misalignment that would grow significantly over time.

To fix the overcorrection, in 1582, Pope Gregory XIII added a caveat to leap years: a century year (such as the year 2000) will only be considered a leap year if it is divisible by 400.

Hence, the Gregorian calendar was born. It was popularized as European countries that were a "dominant economic force" began using it, and took it with them into countries they colonized, Hayton said.

Many cultures use days other than Jan. 1 to ring in the new year

Much of the world uses the Gregorian calendar and its Jan. 1 start date as New Year's personally and professionally, but many cultures also use their own calendars for social and spiritual occasions.

In some Asian cultures, such as Chinese, Korean and Vietnamese, people celebrate the Lunar New Year between late January and February to coincide with the first new moon on the lunar calendar.

"It emphasizes family reunions, honoring of ancestors, and prosperity," said Usha Haley, who teaches international business at Wichita State University's business school.

Rosh Hashanah is the Jewish New Year and falls on the first day of Tishrei, the seventh month of the Hebrew calendar, which is September or October on the Gregorian calendar, according to History.com. Nowruz, the Persian New Year, coincides with the spring equinox in March, Haley said.

Rosh Hashanah "marks a time of reflection, repentance, and spiritual renewal," Haley said, while Norwuz celebrates "rebirth and nature."

How to make your own fresh start

People gravitate to New Year's Day to reset as a part of the "fresh start effect," said Katherine Milkman, a professor of operations, information and decisions at the University of Pennsylvania's Wharton business school.

The phenomenon is rooted in humans' tendency to perceive moments in our lives as chapters, instead of one long continuum, and New Year's gives us a "chapter break" from old patterns and previous experiences.

"'That was the old me, and this is the new me, and the new me is going to be different,'" she said. "It gives us optimism about our ability to achieve more."

New Year's is the most popular "fresh start" because there's a strong social pressure, as many other people are doing the same thing at the same time, Milkman said.

But you don't have to start anew on Jan. 1. A fresh start is still valuable if it's on your birthday, the first day in a new apartment or even on a random Monday, according to Milkman.

To stick with the goals you've laid out for a fresh start, Milkman recommends breaking them down into small, actionable items and making them enjoyable. That could mean partnering with someone on a goal or "temptation bundling," which pairs your goals with things you like.

"Like, 'I only get to binge watch my favorite TV shows while I'm exercising,' or 'I can only listen to my favorite podcast while I'm cooking a fresh meal for my family,'" she said.

If you prefer to stick to Jan. 1 for your fresh start, don't worry. Hayton says the Gregorian calendar is unlikely to change anytime soon, as it would be very disruptive. Switching to a new system would likely face heavy resistance due to the potential social costs, like shifting or losing holidays or birthdays.

"The rebel in me would love it to change, but I think that it would take almost an act of God — not an act of the Pope — to get the calendar to change," he said.
Copyright 2025 NPR

The annual Polar Bears Plunge at Cabrillo Beach could look a little different this year as the beach in San Pedro remained closed as of Tuesday afternoon.

Every year on New Year's Day, swimmers take a frigid dip into the ocean water, marking the beginning of the new year. But in 2026, that plunge might not happen.

Cabrillo Beach has been closed to swimmers since last Wednesday after 100,000 gallons of sewage contaminated the water, according to public health officials. Officials continue to urge swimmers to stay out of the water and to not make contact with wet sand.

But organizers of the annual plunge say the beloved tradition will go on, even if that means no swimming. That includes the yearly king and queen coronation, hot cocoa and pastries.

“We are just playing it by ear, I know that there is testing for the water being done, but we have not heard back,” Lisa Guerr, president of the Cabrillo Beach Polar Bears club, told LAist. “We are leaving it up to our lifeguards to have the most up-to-date information and make the decision for us. As of now, we are continuing on as planned.”

What’s going on in the water? 

Officials blame a sewer pipe in Carson for causing the spill, which was stopped last Wednesday, according to the L.A. County Sanitation District. The district said the cleanup at the site was completed the next day.

A spokesperson for the Los Angeles County Department of Public Health said staff collected water samples for testing and that they noticed yesterday that the closure signs at the beach were removed.

That signage has since been reposted and lifeguards were notified, officials told LAist.

The county said touching the water during a beach closure may cause illness, especially in children, the elderly and susceptible people.

According to the county, “swimmers should avoid water contact at the posted areas of the beach until the hazardous condition has ended."

Soon after President Donald Trump’s inauguration last January, his administration took a series of actions that touched virtually every aspect of public education in Southern California.

While some of those policies have since been paused or rolled back, the changes left many educators and families nervous and frustrated.

Here’s a round-up of some of the big moments from 2025.

Immigration fears keep students out of school

In April, the U.S. Department of Homeland Security showed up at two LAUSD schools to conduct what officials at the agency described as “wellness checks” on some immigrant students. The agents were turned away.

Widespread immigration sweeps started in L.A. a few months later.

Local school leaders, parents and students have said that fear has at times kept kids from attending school and high school principals across the country reported similar experiences.

We’ve also seen acts of resistance. As early as February, students walked out to protest Trump’s policies. Teachers and volunteers with organizations like Union del Barrio began patrolling neighborhoods near schools to sound an alarm if there was any suspected immigration enforcement activity.

Schools have also provided additional resources, including busing for students afraid to walk to school and know-your-rights training for parents.

Immigration concerns also stretched into early childhood education. The U.S. Department of Health and Human Services said in July that children without legal status would be barred from Head Start programs. That directive was paused by the administration, and then rejected by a federal judge.

An inspirational message decorates the wall of a Head Start classroom.

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Cory Turner

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NPR

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Federal budget cuts hit hard

The administration made a number of budget cuts to agencies that serve students and their families.

Early in the year, the administration slashed Department of Education staff.

The department also made steep cuts to its civil rights office in March, which already faced a backlog of complaints. Seven of 12 regional Office for Civil Rights branches were shuttered, including one in San Francisco, which handled complaints filed in California. The cases involve families trying to get services for students with disabilities, allegations of bias related to race and religion, and claims of sexual violence.

Many attorneys with the Office for Civil Rights were called back to work in December as the backlog of complaints became untenable.

The administration also restructured its funding of homeless services, meaning that the future may be even rougher for L.A. families seeking housing. Data reviewed by LAist show the number of unsheltered L.A. County children and families rose in 2025.

The National Blue Ribbon Schools Program was eliminated in 2025. The end of the program sunsets a long-standing celebration of local school achievements. LAist preserved the records of California winners.

And the shutdown this fall over the federal budget also ensnared children and others who rely on food assistance from SNAP and WIC. In some cases, school districts invested in expanded meal programs to help make up for lost meals.

Diversity, equity and inclusion were targeted

The Trump administration has also sought to eliminate language associated with historically under-served communities across public education:

• Some Head Start centers were told to avoid words like “Black,” “minority,” and “trauma” in their funding applications.
• Under pressure to avoid certain terms, educators in TK-12 have had to figure out different approaches to improve academic outcomes and mental health for Black students.
• Colleges and universities such as the University of Southern California have eliminated “diversity, equity and inclusion” as stated values.

Trump also took other actions. He issued an executive order to end public service loan forgiveness for people who work at places that “advance illegal immigration, terrorism, discrimination and violent protests.”

Public higher education in California also found itself in unfriendly territory

In March, the Justice Department announced an investigation into University of California campuses related to allegations of antisemitism.

A few months later, the Justice Department revealed the results of an investigation into UCLA, alleging it found “indifference” to “a hostile educational environment for Jewish and Israeli students” — much like at Harvard, Columbia and other elite universities. To settle those and other claims, the Trump administration demanded $1 billion from UCLA.

The National Science Foundation and the National Institutes of Health froze hundreds of millions of dollars in federal funding that had been allocated to the university’s researchers. This cut funding for a wide variety of projects — everything from research into pediatric cancer to how our gut microbiome affects our health.

Most of UCLA’s frozen research funding was restored by late September, following court orders. The UC system is still in negotiations with the Trump administration.