Eric He, Rachel Bluth and Lindsey Holden at Politico:
Ten people briefed on the matter said state lawmakers are being told to brace for a shortfall of at least $10 billion when Newsom presents his revised budget next week. In early January, the governor’s Department of Finance projected the state would see a small surplus this year. But Newsom and legislative leaders are now flying blind into budget crunch time, as tariffs and a lack of tax receipts — including those from some of the wealthiest Californians — are stoking financial uncertainty. “We’re going to be trying to pass a shell of a budget,” said one lawmaker, referring to the deficit projections. “They’re just fake numbers, because we just don’t know.”