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.

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

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.