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The Brief

The most important stories for you to know today
  • Rising costs knock budget back into deficit
    Governor Gavin Newsom, a man with light skin tone wearing a blue suit and tie, is speaking from a podium with a seal. He's standing in front of another seal hanging on the wall that reads "The great... state of California" in between the USA flag and California flag.
    Gov. Gavin Newsom addresses the media during a press conference unveiling his revised 2024-25 budget proposal at the Capitol Annex Swing Space in Sacramento on May 10, 2024.

    Topline:

    As Gov. Gavin Newsom prepares to unveil his revised budget proposal, California is experiencing unexpectedly shaky economic conditions, with a likely deficit of more than $10 billion next year.

    Why now: Facing a long horizon of budget deficits, California officials stretched and scrimped and massaged the numbers to stabilize the state’s finances last year. But an unforeseen economic downturn, spurred by President Donald Trump’s chaotic tariffs strategy, has knocked California out of fiscal balance once again. Gov. Gavin Newsom is now forecasting a $16 billion, or 4%, decline in tax revenues in his revised budget proposal, according to a memo provided by his office in advance of the announcement Wednesday. That plan is the opening salvo in negotiations with the Legislature, ahead of the start of the fiscal year in July.

    Why it matters: It’s a sharp turnaround from January, when Newsom projected a modest surplus in his $322 billion spending plan. The memo, which dubs the revenue shortfall the “Trump Slump,” does not provide an updated figure for California’s budget deficit.

    Read on... what this means for state programs.

    Facing a long horizon of budget deficits, California officials stretched and scrimped and massaged the numbers to stabilize the state’s finances last year. But an unforeseen economic downturn, spurred by President Donald Trump’s chaotic tariffs strategy, has knocked California out of fiscal balance once again.

    Gov. Gavin Newsom is now forecasting a $16 billion, or 4%, decline in tax revenues in his revised budget proposal, according to a memo provided by his office in advance of the announcement Wednesday. That plan is the opening salvo in negotiations with the Legislature, ahead of the start of the fiscal year in July.

    It’s a sharp turnaround from January, when Newsom projected a modest surplus in his $322 billion spending plan. The memo, which dubs the revenue shortfall the “Trump Slump,” does not provide an updated figure for California’s budget deficit.

    “We are seeing the slow-rolling impact of 'Liberation Day' and it's not a good one,” spokesperson H.D. Palmer said. “Conditions have definitely changed for the worse since January, in significant part because of those federal tariffs.”

    California’s financial picture was troubled even before the recent turmoil. Newsom and the Legislature took extraordinary steps last summer to close a budget gap projected in the tens of billions of dollars over two years, including by making sweeping cuts to state agencies and positions, clawing back funding increases for health care providers, eliminating affordable housing programs, delaying money for schools, suspending business tax credits and dipping into reserves.

    And while tax revenues came in $6.8 billion above forecast through April, other problems were brewing.

    A one-man 'wrecking ball' to California economy

    Medi-Cal, the state’s health insurance program for low-income people, has reported a more than $6 billion cost overrun this year — in part because an expansion to include immigrants without legal status brought in more new enrollees than expected — and it needed an emergency cash infusion in March.

    The devastating fires that hit Los Angeles in January also introduced new uncertainty for the budget, because the tax deadline for Los Angeles County — where a quarter of all Californians live — was delayed until October.

    But the biggest risk is undoubtedly from Trump’s tariffs, which Newsom sued last month to block. Stock market declines are poised to take a bite out of future income tax revenue, because California relies disproportionately on capital gains earned by the wealthiest taxpayers; that accounts for $10 billion of the projected revenue decline. Higher costs from the tariffs are also imperiling major sectors such as manufacturing, agriculture, tourism and shipping in California, whose largest trading partner is China.

    "It's one person that is taking a wrecking ball to our economy," state Senate President Pro Tem Mike McGuire, a Healdsburg Democrat, said last week during an event in Sacramento. "That is the existential threat to the state of California right now."

    The grim outlook will almost certainly force more reductions to state programs, and legislative leaders will have their own ideas about what to target after Newsom puts forward his priorities today.

    Bargaining will ramp up over the next month, with a June 15 deadline for the Legislature to pass a balanced budget or forgo its pay, though sometimes provisions of an overall deal drag out beyond that.

    A person, out of focus in the foreground, sits next to a white binder filled with papers, which is placed on a table attached to a seat.
    A binder showing Gov. Gavin Newsom’s revised budget proposal for 2023-24 during a press briefing at the state Natural Resources Agency in Sacramento on May 12, 2023.
    (
    Rahul Lal
    /
    CalMatters
    )

    “Anyone who thinks we’re not going to make cuts this year is not in touch with reality,” Assemblymember Jesse Gabriel, an Encino Democrat who leads the Assembly budget committee, told CalMatters. “Advocates who are proposing major expansions of programs should stop wasting people’s time.”

    One likely exception is a proposed $420 million annual increase of California’s film and television tax credit, more than doubling the pot of available subsidies and boosting the amount that individual productions can receive. It’s a priority for Newsom, with the strong backing of many Los Angeles-area legislators, especially as the region seeks a comeback after the fires.

    Trump’s effort to slash federal spending is another looming question mark. Congressional Republicans have floated shifting more of the cost of social safety net programs to the states, though they are struggling to reach a budget agreement.

    If they ultimately push through major changes to federal funding, lawmakers could be back in Sacramento later this year or early next year revising the state budget once again.

    “Ninety percent of the ball game is in Washington,” Gabriel said. “It’s frustrating to me that this is beyond our control.”

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

  • Who should pay for a meal? An expert weighs in.
    If you order more food than everyone else, how do you split the check? Chef and writer Kiki Aranita offers advice.
    If you order more food than everyone else, how do you split the check? Chef and writer Kiki Aranita offers advice.
    We all love going out with friends. But who pays for a meal, or how we split the bill, is almost always a sticky situation. Karen Thomas, an etiquette expert based in Connecticut, recently joined LAist’s daily news program AirTalk to outline how to navigate this.

    The etiquette: “By etiquette standards, the person who invites, pays,” Thomas said, adding, “If I invite you, I should be doing the paying.”

    Why it matters: Sometimes one person makes significantly more than the other, and splitting a check down the middle can feel a bit weird. And speaking of weird, it is weird for an adult child to pay for dinner when they’re out with their folks?

    Read on: For more on Thomas's approach to splitting the check.

    One of the great perks of financial well-being is being able to treat loved ones to a special meal every now and then. But just because one person can pick up the tab, do the unwritten rules of society mandate they have to?

    Karen Thomas, an etiquette expert based in Connecticut, recently joined LAist’s daily news program AirTalk, to answer listener questions and to outline how to navigate the often tricky world of finances between friends and family.

    The Golden Rule

    Etiquette as a principle refers to societal norms in various forms of human interactions that rely on codes of conduct and expected behaviors. In other words, the field of Etiquette argues that there is a proper, generally acceptable way to go about almost any human interaction. That includes the gambit of splitting the check.

    “By etiquette standards, the person who invites, pays,” Thomas said, adding, “If I invite you, I should be doing the paying.”

    But is it that black-and-white? What if you are the person who wants to go out with your friends, but you simply cannot sustain the financial burden that comes with covering everyone’s bases at the end of the meal?

    In this case, awkward conversations can’t be avoided — but bad timing can be!

    “There’s nothing worse than putting the server in a bad position,” Thomas said, adding, “Talk about things ahead of time and say I’m going to pick up the tab, or why don’t we split the tab.”

    Getting this uneasy conversation out of the way doesn’t just give you peace of mind, but it also clears the way for a more pleasant and non-contentious meal.

    Do parents always have to pay when dining out with adult children?

    For the most part, baby boomers are considered the wealthiest generation that ever lived, with Gen X coming in second. Many parents take great pride in being able to treat their kids to a night out.

    But still, it puts them in a position where their kids — even when they become adults — expect mom and pops to pick up the tab, every stinking time.

    As it turns out, even though the inherent expectation may be there, it most certainly does not have to be the norm.

    “Whenever I take my adult kids out to eat, I always pick up the tab,” said Thomas. “I feel that it’s expected, but by etiquette standards, that is incorrect,” adding that if parents are tired of their kids not chipping in, they too need to preface the meal with an understanding about splitting, or even footing, the bill.

    “I insist, this one’s on me.”

    Have you ever found yourself expecting a meal from a person you did a huge favor for? Well, the “it’s the least I can do” offer may have some holes in it too, if you’re not careful, as AirTalk listeners pointed out.

    ‘A friend of mine needed a car during COVID, when the supply chain was really low,” Linda in Culver City told Larry, “I have someone who I keep pretty close to my chest because he’s my car guy, and I took this person along with me. Not only did I get them a car, I also got them a tremendous deal.”

    Linda said that her friend was in a celebratory mood after, and they decided to go to a restaurant that she would otherwise not go to. “When the bill came, they wanted to split it,” said Linda. “I just found it extraordinarily rude. I assumed the meal was a thank you. It left a dampened feeling on me about them.”

    Am I being cheap or fair?

    Etiquette aside, what happens when one person racks up the bill a disproportionate amount?

    What if one person orders a salad and the person they’re with orders a prime steak and pairs it with the perfect — and pricey — wine?

    ‘‘At that point, ask for separate checks; that way, we’ve drawn the line in the sand,” Thomas said. “You could pull the waiter or waitress aside, not in front of the other person, and ask for them to split the checks.”

    Big groups and big tips

    Willis in Long Beach called in and said, “My mother turned 80 and we three kids decided to sponsor a birthday party. When the check came to the table, there was already a gratuity included on it.”

    In Southern California, it is not uncommon for restaurants to add a mandatory gratuity charge for large groups.

    “My brother-in-law actually said we’re all going to pay $100 extra each, without consulting us to ask what tip amount we should leave,” said Willis, adding, “He’s of much greater means than me, and I did not like that he took it upon himself to decide what the additional tip would be.”

    “The extra tip should have been discussed between all three of you,” said Thomas. ‘‘I would have just gone along with the flow of things just to not have any conflicts, and then I would have discussed it afterwards during another time.”

    Cultural expectations can override etiquette

    All this said and done, it could very well be that splitting the bill and the etiquette that goes along with it just does not apply to you.

    Lori called in to say, “In Armenian culture, we don't politely discuss who's paying the check; we fight over it. It doesn't matter who invited whom, who is wealthy, or who ordered what. Paying the bill is a cultural honor sport. There is pushing, yelling, dramatic wallet grabbing, and sometimes actual emotional blackmail.”

    You can listen to Larry Mantle's full conversation with etiquette expert Karen Thomas and listeners below.

    Listen 17:52
    When there’s an income or age disparity, who should pick up the check?

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  • A Palisades teacher rebuilds his classroom
    A man with light skin tone, glasses, and short white hair smiles for a portrait. He wears a blue shirt that says Palisades Charter High on it.
    Robert King teaches U.S. History and is the student government advisor at Palisades Charter High School.

    Topline:

     Last January, Robert King watched on TV as Palisades Charter High School burned. While his classroom is still standing, King lost the collection of posters, books and other artifacts he used to tell the story of our country’s history from the colonial era to the modern day.

    The backstory: The blaze destroyed 30% of Palisades Charter High School and closed the campus for a year. The U.S. history teacher returned to the school for the first time last week ahead of the school’s Jan. 27 reopening.

    Rebuilding a collection: The post-fire clean-up stripped King’s room of nearly everything he’d collected over his career, but he’s already started to rebuild his collection. A former student ordered a new copy of the World War II era poster of Rosie the Riveter and a New York Times reader donated a collection of vintage campaign buttons after reading about the school’s relocation in the paper.

    “ I like things to be able to tell a story. That's my approach to teaching history,” King said. “ When I put things on the wall, it's with an idea that I will bring it in as part of the story later on.”

    Last January, Robert King watched on TV as the school where he’s taught for 30 years burned in the Palisades Fire.

    The blaze destroyed 30% of Palisades Charter High School and closed the campus for a year. The U.S. history teacher returned to the school for the first time last week ahead of the school’s Jan. 27 reopening.

    “To be back here in my classroom — as I started in this room, actually in 1996 — it's just an incredible, joyful thing for me,” King said.

    While his classroom is still standing, King lost the collection of posters, books and other artifacts he used to tell the story of our country’s history from the colonial era to the modern day.

    “One of the reasons I've been working all week to set up the room is I want normalcy,” King said. “I want [students] to be able to connect with the room. I want them to feel that this is a place that is comfortable for them and a place that they can learn.”

    The interior of a classroom, which has a number of desks in neat lines, and a bright blue floor.
    King's classroom on the eve of students' return to campus for the first time since the Palisades Fire.
    (
    Mariana Dale
    /
    LAist
    )

    How the fire changed Pali High

    Pali opened as part of the Los Angeles Unified School District in 1961 and now as an independent charter school it enrolls 2,400 students from throughout Los Angeles. The school’s palm trees and grassy quad have appeared in a handful of movies and shows including Freaky Friday (the 2003 Lindsay Lohan edition) and Carrie.

    When King first arrived last week, a chunk of that picturesque campus was gone. He avoided the north side of the campus where the J building and baseball fields once stood.

    A large green field lies in front of a two-story building.
    A grassy field at Palisades Charter High School where an academic building once stood.
    (
    Mariana Dale
    /
    LAist
    )

    “ I thought ‘OK that's not the school,’” King said. “‘I don't know that.’”

    King said now that he’s had some time to process the change, he’s started to imagine how his students will see the grassy expanse after spending much of the last year in a refurbished Santa Monica department store.

    “They're gonna love having a big open space,” King said. “That part of it is kind of joyful, but it is just so different.”

    As part of the post-fire clean-up, the Los Angeles Unified School District stripped King’s room of nearly everything he’d collected over his career.

    A framed September 12, 2001 front page of the L.A. Times that reads “Terrorists Attack New York, Pentagon,” and a copy of a World War I documentary on VHS are a few of the only items left from before the fire.

    There’s also a metal sign that reads “The King is in residence” on the wall above the whiteboard. Next to it is a new sensor, part of a network set up throughout the Palisades schools to monitor air quality.

    Rebuilding a history collection

    King has had help rebuilding his collection.

    “Some of the things that I truly loved, kids remembered,” King said.

    Three shadow boxes with circular buttons of varying sizes. Many are red, white and blue. Among them are buttons that read "Goldwater," "Adlai" and "Winning Democrat."
    A family's unwanted collection of campaign buttons now has a new home in King's classroom.
    (
    Mariana Dale
    /
    LAist
    )

    A former student ordered a new copy of the World War II era poster of Rosie the Riveter.

    “Before I even was able to start setting up at Sears, I had gotten it in the mail,” King said.

    Want to make a donation to King’s collection?

    You can reach Robert King by email. King said anything that he doesn’t use in his own classroom may be shared with his Pali colleagues.

    A New York Times reader donated a collection of vintage campaign buttons after reading about the school’s relocation in the paper.

    “When I get to each of these elections, I'm now gonna have something to be able to hold up to the kids,” King said. “We can even look at what's on the buttons to even see what the story was, … How were they using these buttons to advertise what was gonna happen in that election?”

    A man with light skin tone wears shorts and a long-sleeved light blue shirt and stands on a bridge beneath a beam that reads Edmund Pettus Bridge.
    Last summer King traveled through Georgia and Alabama and stopped at several famous civil rights landmarks, including the Edmund Pettus Bridge.
    (
    Courtesy Robert King
    )

    This summer King went to Alabama and Georgia. On a road trip from Selma to Montgomery, he picked up a poster of (and walked across) the Edmund Pettus Bridge, where state troopers beat nonviolent civil rights protestors in 1965.

    “ I like things to be able to tell a story. That's my approach to teaching history,” King said. “ When I put things on the wall, it's with an idea that I will bring it in as part of the story later on.”

    King said he remembers what’s been lost as he moves through his lesson plans for the year.

    For example, he imagines reaching for a copy of Only Yesterday from the bookshelf behind his desk to read a passage to his students about the 1920s, and remembering it’s not there.

    He plans to share these moments as they happen with the class.

    “ I'll say, ‘I had this and this is what I would've done,’” King said. “And we'll kind of have a moment with that.”

  • Forums on the deal set for Los Angeles
    A smartphone displays a white screen with the Charter Communications logo in the center. The phone is in front of a screen with red and green stock market screen.
    If approved, the Charter-Cox merger would combine two of California's largest telecom companies.

    Topline:

    The California Public Utilities Commission is hosting a series of public forums — including one in Los Angeles — where the public can learn more and comment on Charter’s $34.5 billion bid to take over Cox Communications.

    What we know: Charter Communications is vying to take over Cox for $34.5 billion, merging two of the country’s largest telecom companies. The two companies are also part of the state's Big 5 providers, along with AT&T, Verizon and Comcast.

    Why it matters: Digital equity advocates have said that communication company mergers are declining competition, meaning there’s an increased concentration of power over broadband pricing and services.

    Read on … for when and how to join the forums in L.A.

    The California Public Utilities Commission is hosting a series of public forums — including one in Los Angeles — where the public can learn more and comment on Charter’s $34.5 billion bid to take over Cox Communications.

    The merger would combine two of California’s largest telecom companies.

    Digital equity advocates have said that communication company mergers are declining competition, meaning there’s an increased concentration of power over broadband pricing and services.

    What it matters 

    The proposed merger comes on the heels of another — Verizon acquired Frontier Communications earlier this month for $20 billion. The business moves also follow the federal government's pullback of $2.75 billion in funding by slashing the Digital Equity Act.

    The Verizon-Frontier merger came with state requirements to promote digital equity, but advocates are concerned that fewer companies will hold greater power over affordable prices.

    According to Charter, the merger to combine companies will help the provider compete more aggressively with other broadband companies.

    How to participate

    An in-person forum will be held on Feb. 12 at the East L.A. County Library on 4837 E. 3rd St. The first forum begins at 2 p.m. and a second begins at 6 p.m.

    If you can’t make it in person, two virtual meetings will take place on Feb. 4 and Feb. 25. More details can be found here.  

    Details on the merger

    If the deal is approved, the combined Charter-Cox company will be named Cox Communications, but customers will see Spectrum as the brand when they purchase internet, cable and mobile services.

    Spectrum is owned by Charter Communications and is the home to the Dodgers’ regional sports network.

    According to the filing, the Charter-Cox merger will mean that existing Cox customers will get access to Charter’s service plans.

    Charter also reported that all Cox job roles that are overseas will be transferred to the U.S. In a statement following the merger announcement, Chris Winfrey, president and CEO of Charter, said the move will allow both companies to provide products that save families money, and create more American jobs.

    With the merger, the combined company will also be able to compete more aggressively with other broadband companies, according to Charter.

    Charter and Cox declined to comment.

  • Cal Poly will bring the winning entry to life
    Clad in ponchos, crowds watch from bleachers on opposite sides of a street as a Rose Parade float makes its way. The float depicts a fallen robot in a rainforest, being nursed back to health by wild animals.
    The award-winning Cal Poly Universities Rose Float, "Jungle Jumpstart," during the January 2026 parade.

    Topline:

    The Cal Poly Rose Float team, made up of students from Cal Poly Pomona and Cal Poly San Luis Obispo, is accepting design submissions for next year’s Pasadena Rose Parade. Community members of all ages are encouraged to submit a float design—and they can make as many submissions as they’d like.

    What you could win: The winner will see their work showcased for audiences around the world. They will also have the choice between two tickets to the 2027 parade or a $500 cash prize.

    The backstory: The Cal Poly float design contest is part of a decades-long tradition. Since 1949, students from both campuses have teamed up to create dozens of floats. Last year, the Cal Poly universities took top honors for that creation, winning the Sweepstakes Award for “most beautiful entry.”

    The deadline to enter is coming up! Community members must submit their entries to rosefloat@cpp.edu by Feb. 5 at 5 p.m.

    Keep reading: To learn why the contest deadline is so early in the year.

    The annual Pasadena Rose Parade took place less than a month ago, but at Cal Poly Pomona and Cal Poly San Luis Obispo, students who are part of the cross-campus Rose Float team are already prepping for 2027.

    Now through Feb. 5, the team is accepting design submissions for next year’s float. Community members of all ages are encouraged to apply—and they can make as many submissions as they’d like.

    Over the next few months, a fleet of Cal Poly students will bring the winning design to life. The winner will see their work showcased for audiences around the world. They will also have the choice between two tickets to the 2027 parade or a $500 cash prize.

    The Cal Poly float design contest is part of a decades-long tradition. Since 1949, students from both campuses have teamed up to create dozens of floats. Last year’s piece, titled “Jungle Jumpstart,” featured a 40-foot robot being tended to by animals as it lay on the rainforest floor.

    The Cal Poly universities took top honors for that creation, winning the Sweepstakes Award for “most beautiful entry.”

    Every part of the float is done by students, from the construction down to driving the float along Colorado Boulevard, said Allyson Jane Castillo, a mechanical engineering major at Cal Poly Pomona. She’s been part of the Rose Float team since her freshman year and now serves as campus president.

    Four college students stand before a wall of metal squares. Two of them, clad in denim coveralls with a rose emblem on their backs, wear goggles and gloves to protect themselves. Sparks fly from their equipment as they weld together pieces of metal.
    Members of the Cal Poly Rose Float team weld the robot for the 2026 float.
    (
    Courtesy
    /
    Cal Poly Pomona
    )

    What happens after you submit?

    Bennett Parisi, Castillo’s San Luis Obispo counterpart, is a graduate student in electrical engineering. He said that, each year, the team receives approximately 100 submissions.

    But the work actually starts before the submission deadline. In December — before the year is even over, before they even finish the float — the team chooses student leaders from each campus for the following year.

    Then, once they select the design in February, the students work on sourcing the materials they need and start building the bones of the float. In the fall, they get down to business to flesh it out.

    It can take up to 300 students to bring each float to life, Parisi said. Every fall, students from his campus make a 200-mile trek to Cal Poly Pomona to work on the float on Saturdays. Then, a week before New Year’s Day, the entire fleet heads west to Pasadena, where they stay at a hotel while working on finishing touches.

    Parisi joined the team as an undergrad, after being cooped up during the pandemic. He said the group has been a chance to build enduring ties with students from all walks of life at both campuses. Parisi grew up playing team sports, but, in his view, the Rose Float team’s camaraderie is unparalleled.

    That’s fitting, because the theme of next year’s parade is “Welcome…celebrating the simple joy of belonging—that feeling that you’re always welcome, no matter who or where you are,” said Terry Madigan, president of the 2027 Tournament of Roses Association in a press statement. “It’s the warmth of family,” he added, “whether related or chosen, the love of good friends and the welcoming embrace of community.”

    How to apply

    Castillo and Parisi encourage applicants to create designs that align with the theme. They also emphasize that you don’t need to be a great artist to be competitive. Some of the entries they receive are drawn by children, Parisi said.

    There is no limit to the number of entries an individual can submit, but these entries can only be submitted to the Cal Poly Rose Float Team.

    Submissions can be in color or black and white, no larger than 11-by-17 inches.

    Community members must submit their entries to rosefloat@cpp.edu by Feb. 5 at 5 p.m., with the subject line “2027 Concept.” The body of the email should include the applicant’s name, phone number and email address.