SACRAMENTO, Calif. (AP) — California will likely have a $25 billion budget deficit next year, state officials announced Wednesday, ending a run of historic surpluses and acting as a warning to other states about a potential recession.

Democratic-controlled California taxes rich people more than other states, meaning most of its drop in revenue is because the uber-wealthy aren't making as much money as they used to. That's why California is often one of the first states to have budget problems when the economy starts to falter.

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