Labor groups, still reeling from the return-to-office order, will soon need to negotiate suspending salary increases to help reduce California’s deficit.

California Gov. Gavin Newsom has unveiled a $322 billion budget proposal that aims to address a projected $12 billion deficit.

The governor is calling for closure of an unspecified prison as a cost-saving measure. The state’s inmate population is down 45 percent from its peak in 2006.