• California faces budget challenges due to federal uncertainty, rising costs, and persistent inflation, requiring proactive measures.
• Minnesota, New Mexico, and Washington State are implementing strategies like taxes on millionaires, Medicaid trust funds, and revenue packages to protect residents.
• California should prioritize closing tax loopholes and protecting social supports to address inequality and ensure resources for its people.

California is navigating budget negotiations with an anticipated shortfall exacerbated by federal budget cuts and increasing costs for its residents. In response to these challenges, the article highlights how other states, including Minnesota, New Mexico, and Washington, are taking proactive measures to protect their residents by increasing revenue and safeguarding vital social services. It suggests California can learn from these examples to address its own budget constraints and ensure fairness.

• What: California faces budget negotiations amidst an expected shortfall due to federal uncertainty, rising housing costs, inflation and tariffs. Other states are taking proactive steps to protect their residents.
• Who: Gov. Gavin Newsom, California state legislators, Congress, the President, residents of California, Minnesota, New Mexico, and Washington state.
• When: The article refers to the current budget negotiations and the upcoming May revision of the budget proposal in 2025.
• Where: California, Minnesota, New Mexico, and Washington state, as well as the U.S. Congress.

The article analyzes California's budget situation in the context of federal policy changes and economic pressures. It argues that California should adopt strategies similar to those implemented in Minnesota, New Mexico, and Washington by increasing revenue through fairer taxation and prioritizing social supports. The analysis highlights the potential consequences of not addressing these issues, including increased inequality and harm to vulnerable populations. The author advocates for closing tax loopholes that benefit corporations and high-income households, framing it as both fair and fiscally responsible.

California faces significant budget challenges that require proactive state-level solutions. By learning from the examples of other states and prioritizing fair taxation and social supports, California can protect its residents from federal threats and ensure a more equitable future. The coming weeks will be a test of the state's leadership and its commitment to its values.