Gov. Gavin Newsom used his final "state of the state" address to pitch California as a beacon for the future — a double-edged sword at best for the 2028 presidential hopeful.

California Gov. Gavin Newsom is waking up to a $18 billion budget hangover — and fixing it won’t be pretty. After years of surpluses, the Golden State is facing staggering deficits that could balloon to $35 billion in the coming years, according to the state’s Legislative Analyst, after a years-long spending spree combined with federal...