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What's Happening to California Schools? LA Budget Crisis, Gasoline Going Up July 1st, and More...
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First off… The Big News 👇
BREAKING NEWS
What’s Happening to California Schools?
WHAT YOU NEED TO KNOW:
California’s education system is spending more than ever—over $23,000 per student—but student test scores remain stagnant, raising serious questions about the return on that investment.
Despite record-high funding, only 34% of students meet math standards and 47% meet English standards, showing little improvement in recent years.
Critics argue that the state’s education system lacks transparency and accountability, making it difficult to see where the money is actually going.
Meanwhile, student enrollment is declining, which means spending per student is even higher than it appears.
Some experts are calling for performance-based funding models and clearer reporting to ensure resources actually improve student outcomes.
The central concern remains: without fundamental reforms, increased funding alone won’t fix California’s educational challenges.
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LAUSD Confronts Looming Fiscal Crisis in Debate Over $18.8-billion Budget
WHAT YOU NEED TO KNOW:
The Los Angeles Unified School District (LAUSD) is preparing to vote on a new budget that acknowledges a looming financial crisis, despite years of record state funding.
With COVID-era relief funds drying up and declining enrollment continuing, officials warn that fiscal challenges are imminent.
The proposed $18.8-billion budget includes increases in per-pupil spending but also hints at difficult decisions ahead.
Meanwhile, pressure from powerful employee unions has grown, demanding further investments in staff and student resources.
While LAUSD maintains it has managed its finances responsibly, critics argue that ongoing labor demands and rising costs may force cuts in coming years.
The district’s budget discussion reflects a broader struggle in California education: how to maintain investments in the face of shrinking resources and rising expectations.
California Budget Update
BIG WIN AS @CAgovernor is forced to cave
Even KING Newsom @GavinNewsom must bend to the will of the people
California voters in November overwhelmingly approved Proposition 36, a measure that ramped up the penalties for repeat thieves and drug dealers. The measure called for the— Mike Netter (@nettermike)
2:12 AM • Jun 25, 2025
LA Bleeds Cash: Legal Payouts Triple as City Heads Toward $1B Budget Crisis
WHAT YOU NEED TO KNOW:
Los Angeles is grappling with a worsening budget crisis as legal payouts have surged from $91 million to $289 million over the past two years.
The spike stems from lawsuits involving dangerous sidewalks, police misconduct, traffic accidents with city vehicles, and other civil claims.
These payouts are now a major contributor to the city’s projected $1 billion deficit for fiscal year 2025-26.
Departments like LAPD and Public Works are among the top sources of these costs, with LAPD-related settlements alone nearing $100 million.
In response, city officials are imposing hiring freezes, cutting services, and laying off employees.
Without significant reforms to reduce risk and improve accountability, LA’s financial strain will likely intensify, impacting residents and core services.
Gavin Newsom Sipped Cabernet While Los Angeles Burned
WHAT YOU NEED TO KNOW:
California Governor Gavin Newsom attended a private event at the Getty mansion during the height of anti-Israel protests at UCLA, raising questions about his leadership during a time of escalating campus unrest.
While protestors clashed with police and Jewish students reported threats and intimidation, Newsom was reportedly sipping cabernet with wealthy donors, seemingly disengaged from the turmoil.
Despite having sweeping powers and a personal connection to UC leadership, he failed to act decisively or publicly address the safety concerns at state-run universities.
Critics argue that his silence reflects a broader trend of political avoidance, especially when progressive protestors are involved.
The article suggests that Newsom prioritized political optics and fundraising over the well-being of students facing threats and violence.
His inaction, according to the author, exemplifies weak leadership in the face of a growing national crisis on college campuses.
Two California Oil Refineries Shutting Down… Gas to Reach $8 per Gallon?
Two large California oil refineries are shutting down, triggering mounting concerns from state legislators, industry groups and many others
Cannot do business in the state of California’: Gas prices could hit $8/gallon as two refineries shut down
Keep reminding yourself and
— Mike Netter (@nettermike)
1:45 PM • Jun 23, 2025
WHAT YOU NEED TO KNOW:
California lawmakers approved a $288 billion state budget on June 13, 2025, in an effort to meet the June 15 constitutional deadline and avoid losing pay.
The Legislature’s plan attempts to close a $46.8 billion deficit through a mix of spending cuts, delays, and internal borrowing—but it is still not final.
Lawmakers and Gov. Gavin Newsom must now negotiate a revised version, with a final agreement expected by the end of June.
Key disagreements remain, including Newsom’s proposal to cut $1.2 billion from public transit funding, which legislators oppose.
The budget plan maintains major social programs and avoids tax hikes, but relies heavily on accounting maneuvers to stay balanced.
Critics warn that these short-term fixes could create bigger financial problems if revenues continue to fall.
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In a noisy digital world, owning your audience through email gives you freedom and leverage.
If you want to start your own newsletter, please email me at: [email protected].
OFFICIAL NOTICE: Gas Prices Increasing July 1st 👇
So Newsom, the King,has posted the warning to us,his servants.
— Mike Netter (@nettermike)
3:34 PM • Jun 24, 2025
Lawsuits Against California by Oil Companies Allowed to Proceed
WHAT YOU NEED TO KNOW:
The U.S. Supreme Court has allowed energy producers to move forward with a lawsuit against California over its emissions rules, marking a significant development in the fight over state-led climate policy.
The plaintiffs argue that California’s regulations—which effectively penalize out-of-state energy production—violate the U.S. Constitution’s Commerce Clause by imposing unfair burdens beyond state borders.
This case could have broad implications, potentially curbing the ability of states like California to unilaterally drive national environmental standards through aggressive local regulation.
California, which has long positioned itself as a climate policy leader, may now face judicial scrutiny over whether its policies overstep constitutional limits.
The justices did not offer a detailed opinion, but the decision to allow the lawsuit signals serious legal questions ahead.
If successful, the case could reshape how far states can go in setting rules that affect national energy markets.
The Great Egg Heist: 280,000 eggs disappeared from America’s top producer. Then came a ransom note.
WHAT YOU NEED TO KNOW:
A Washington Post investigation revealed that Cal-Maine Foods, the country’s largest egg producer, dramatically increased its profits during the 2022 bird flu outbreak, despite not being directly affected by the virus.
While competitors lost millions of hens and scrambled to meet demand, Cal-Maine kept its flocks intact and took advantage of supply shortages to sharply raise prices.
The company’s profit surged more than 700% that fiscal year, sparking criticism and accusations of price gouging.
Lawmakers and consumer groups argue that Cal-Maine exploited market chaos for excessive financial gain, especially as consumers faced record-high egg prices.
Cal-Maine insists its pricing followed market trends and demand forces, but the investigation suggests they disproportionately benefited from a crisis they escaped.
The episode has reignited debate over corporate profiteering during national emergencies and whether regulatory oversight is sufficient to prevent future manipulation.
LET’S GO CALIFORNIA with @taxfighter7 @nettermike and KURT on CFR.
Katy Grimes is Editor in Chief of California Globe, an independent, professional pro-growth, pro-business news website, non-partisan and objective, reporting what we see and hear without fear or favor.
A long time investigative and political journalist, analyst, and author, Grimes is a credentialed investigative journalist and reports on the California Legislature and politics from the State Capitol in Sacramento, providing readers independent, thoughtful coverage, important news often overlooked, and the unvarnished truth of what’s going on in the biggest state in the nation.
Grimes co-authored California’s War Against Donald Trump: Who Wins? Who Loses? with James Lacy, published September 2017, and contributed the chapter on Crime in California to James Lacy’s Taxifornia 2016 (https://amzn.to/2LS0qpX).
California Globe founder Ken Kurson said, “As newspapers disintegrate and the few remaining journalists obsess over national matters, California is starving for independent, thoughtful coverage of what’s going on in the biggest state in the nation. Katy’s experience, toughness, and commitment to reporting issues from all sides make her the perfect person to build California Globe into the No. 1 resource for state political news.”
My motto has always been, “Political Journalist, Saucy Cynic, Quintessential Analyst. Never a Stenographer,” which is why obsessively chronicling California politics is how I report on “the rest of the story” and important news often overlooked. My readers know they are getting the unvarnished truth.
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Big SCOTUS Win for Trump Admin on Illegal Immigration Deportations
WHAT YOU NEED TO KNOW:
The Supreme Court delivered a major victory for the Trump administration by allowing the federal government to deport migrants to third countries that are not their country of origin.
This decision lifts a previous injunction and gives U.S. immigration authorities broader power to implement agreements with nations like El Salvador, Honduras, and Rwanda.
The ruling drew sharp criticism from liberal justices, who warned it could expose vulnerable individuals to persecution and danger without adequate legal recourse.
Supporters argue it strengthens border enforcement and restores executive authority over immigration policy.
Opponents fear it undermines due process and international human rights protections.
The decision signals a shift in how far the courts are willing to go in upholding aggressive immigration enforcement measures.
Guest Column
Big Daddy Takes Newsom to The Woodshed
WHAT YOU NEED TO KNOW:
A scathing editorial criticizes California Governor Gavin Newsom for prioritizing political ambition over the well-being of his state.
The author argues that under Newsom’s leadership, California has faced soaring crime, homelessness, a collapsing education system, and rampant fiscal mismanagement—all while he positions himself as a potential national figure.
The piece mocks Newsom’s media stunts and “performative governance,” claiming he uses photo ops and flashy speeches to distract from policy failures.
It also accuses him of turning a blind eye to the damage caused by progressive policies that have hollowed out public safety and economic stability.
Rather than addressing the state’s real problems, the article says Newsom is more focused on battling red-state governors and currying favor with national media.
The editorial calls for Californians to demand accountability and warns that if left unchecked, the governor’s ambitions will come at a continued cost to taxpayers and public trust.
Enjoy the celebration of our country next week!
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The 4th of July marks a momentous event in American history. The adoption of the Declaration of Independence in 1776. This document also boldly proclaimed the colonies’ separation from British rule. This established the United States as a free and sovereign nation. The spirit of independence, liberty, and self-determination embodied in the Declaration of Independence continues to resonate with Americans to this day. It serves as a reminder of the hard-fought struggles and sacrifices made by the founding fathers and countless others in their pursuit of freedom.
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