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On their first day back from summer recess, California lawmakers made clear that the budget crunch isn’t over.

School districts across Oregon announced this year that they’re struggling with major budget deficits, leading to layoffs and program cuts.

Gov. Newsom and legislative leaders announce an agreement to bridge the state budget deficit by dipping into reserves and reducing some spending. The deal also calls for a bill in August to set aside more money and a 2026 constitutional amendment to grow the state’s rainy day fund.

Gov. Newsom’s latest budget proposal cuts the Middle Class Scholarship to $100 million. The Legislature wants to provide more than $900 million for it.

A program that helps small businesses is just one of the proposed budget cuts on which California’s governor and Legislature disagree.

The Legislature passes a placeholder state budget, but must still negotiate with Gov. Newsom on the final deal. How the state spends taxpayer money is largely being decided out of public view.

Oregon Senate Democrats are planning a leadership shuffle in coming weeks, as the chamber’s top budget writer steps down from the role to focus on a statewide campaign.

School districts throughout Oregon are facing massive budget shortfalls, leading to big cuts.

Economists cautioned that the potential of a $582 million refund was still shaky, with warning signs on the horizon.

Two major forces are at play: Gov. Gavin Newsom scaled back his promise of increased financial support for Cal State, while university officials agreed to 5% salary increases earlier this year.

As funds for climate change programs are cut, Democrats and environmentalists are pushing for a bond measure on the ballot to restore some funding.

State lawmakers often don’t know how well a program is working before deciding whether to cut or increase spending. Instead, they hear from advocates, interest groups and sometimes the public. Key budget hearings ramp up this week.