Newsom administration allegedly knew of $2B California budget error for months: report

The California Newsom administration allegedly knew of a $2 billion budget error tied to CalPERS for months, which could reduce a projected $3 billion deficit but still faces long-term annual deficits of $20-$35 billion. The Legislative Analyst’s Office identified the error as double-counting retirement contributions and miscalculations, with the administration disputing the characterization as an 'error' and calling it a revised estimation method.