California governor warns of looming deficit

SACRAMENTO, Calif. (AP) — The Latest on Gov. Jerry Brown's budget proposal (all times local):

11 a.m.

Gov. Jerry Brown has proposed a $122.5 billion budget for California and is warning of a possible $2 billion deficit in the coming fiscal year.

Brown says the budget will be the most difficult California has faced since 2012, as the state deals with declining revenues.

Brown says California has the most regressive tax system in the United States, relying too heavily on the richest few.

The Democratic governor released his spending plan Tuesday amid uncertainty about changes to come from President-elect Donald Trump and the Republican-led U.S. Congress.

Brown's proposal is his opening salvo in six months of spending negotiations with lawmakers.

Democrats who control the Legislature generally have favored more substantial spending on higher education, social services and other state programs than Brown.


12:01 a.m.

California Gov. Jerry Brown is set to release his opening budget proposal Tuesday, revealing how his administration plans to prepare for possible steep cuts in federal funding for health care and other public services.

The Democratic governor has crafted his spending plan amid tremendous uncertainty about the changes to come from President-elect Donald Trump and the Republican-led U.S. Congress.

The incoming Republican president has pledged to repeal President Barack Obama's health care law, which California has embraced. Trump has also said he will financially punish local governments that impede federal immigration enforcement, as Democratic legislators have vowed to do.

Obama's Affordable Care Act provides about $20 billion to help deliver health care to 5 million Californians.

Brown's January budget is the governor's opening salvo in the six-month spending negotiations to come.