California Update: AI to the (Fiscal) Rescue; Spencer for Hire in LA?

California’s revised state budget for the new fiscal year beginning in July comes with a plot twist – a deficit that’s no more, courtesy of an unexpected capital-gains tax windfall. But is the same entity that showered Sacramento with billions in tax revenue – California’s vibrant AI sector – also a source of long-term economic and policy concerns (tech-related job losses; competing with farmers for water and electricity)? And how does AI and the jittery state of California’s finances factor into Gov. Gavin Newsom’s presidential ambitions? Meanwhile, as the Golden State’s June 2 primary approaches, is it time to take reality-TV “villain” and Palisades Fire victim Spencer Pratt seriously as he gains ground in Los Angeles’ contentious mayoral race? Recorded on May 20, 2026.