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 is a term-limited Democrat with national ambitions. He's been trying to appeal to the political center as he contemplates his next career move.

It comes amid lingering questions over funding, all as the state faces a $12 billion deficit. Gov. Newsom made it clear that he is reinforcing his support for a project he believes will transform the future of California.