Mar 07 2025 3 mins
California continues to grapple with the aftermath of devastating wildfires that struck Los Angeles in January, while also facing new challenges and opportunities across the state. Governor Gavin Newsom recently announced $24 million in investments to boost LA's economic recovery, including $10 million for a small business relief fund and $11 million for workforce training partnerships[20]. The governor also unveiled the California Jobs First Economic Blueprint, a statewide plan aimed at driving sustainable economic growth and innovation over the next decade[6].
In Sacramento, the state legislature is considering a $322.3 billion balanced budget proposed by Governor Newsom, which includes no deficit and nearly $17 billion in combined reserves[14]. The budget proposal expands the California Film and Television Tax Credit program and allocates resources from the recently passed $10 billion Climate Bond to fund water, climate, wildfire, and natural resource projects[14].
On the business front, the Los Angeles County Economic Development Corporation (LAEDC) released its 2025 Economic Forecast Report, projecting real GDP growth for Los Angeles County at 2.1% in 2025 and 1.3% in 2026[10]. However, unemployment is expected to rise to 6.1% in 2025, up from 5.7% in 2024[10]. The report also highlights ongoing challenges in housing affordability, with just 11% of households able to afford a median-priced home[10].
In a move affecting state employees, Governor Newsom has ordered all state agencies allowing remote work to mandate employees be in the office four days a week starting July 1[16]. This decision comes as the state aims to balance workplace flexibility with the need for in-person collaboration and productivity.
California's weather outlook remains active, with two storm systems expected to bring heavy rain and mountain snow to Central and Southern California from March 5 to 7[12]. These storms may help alleviate drought conditions but also pose potential risks for areas affected by recent wildfires.
Looking ahead, California faces uncertainty regarding federal policies, including potential mass deportations of undocumented workers and new tariffs on key trade partners. The UCLA Anderson Forecast warns that these factors could significantly impact both the U.S. and California economies, potentially suppressing job growth and complicating efforts to address the state's housing needs[17]. Additionally, the state will continue to focus on wildfire recovery efforts and prepare for upcoming events such as the 2028 Olympics, which are driving infrastructure investments and business opportunities across the region.
In Sacramento, the state legislature is considering a $322.3 billion balanced budget proposed by Governor Newsom, which includes no deficit and nearly $17 billion in combined reserves[14]. The budget proposal expands the California Film and Television Tax Credit program and allocates resources from the recently passed $10 billion Climate Bond to fund water, climate, wildfire, and natural resource projects[14].
On the business front, the Los Angeles County Economic Development Corporation (LAEDC) released its 2025 Economic Forecast Report, projecting real GDP growth for Los Angeles County at 2.1% in 2025 and 1.3% in 2026[10]. However, unemployment is expected to rise to 6.1% in 2025, up from 5.7% in 2024[10]. The report also highlights ongoing challenges in housing affordability, with just 11% of households able to afford a median-priced home[10].
In a move affecting state employees, Governor Newsom has ordered all state agencies allowing remote work to mandate employees be in the office four days a week starting July 1[16]. This decision comes as the state aims to balance workplace flexibility with the need for in-person collaboration and productivity.
California's weather outlook remains active, with two storm systems expected to bring heavy rain and mountain snow to Central and Southern California from March 5 to 7[12]. These storms may help alleviate drought conditions but also pose potential risks for areas affected by recent wildfires.
Looking ahead, California faces uncertainty regarding federal policies, including potential mass deportations of undocumented workers and new tariffs on key trade partners. The UCLA Anderson Forecast warns that these factors could significantly impact both the U.S. and California economies, potentially suppressing job growth and complicating efforts to address the state's housing needs[17]. Additionally, the state will continue to focus on wildfire recovery efforts and prepare for upcoming events such as the 2028 Olympics, which are driving infrastructure investments and business opportunities across the region.