Labor groups, still reeling from the return-to-office order, will soon need to negotiate suspending salary increases to help reduce California’s deficit.

The revised budget that Governor Gavin Newsom released Wednesday does not include direct funding for Proposition 36 — just like in January.

California would scale back state Medicaid coverage for immigrants without legal status, eliminate coverage for certain weight loss drugs and use money from a key climate program to help fund state fire response under a $322-billion budget proposal announced Wednesday by Gov.