That's about $10 billion more than Newsom predicted in January, when he offered his first budget proposal. The deficit is part of Newsom's overall proposal for a $306 billion budget, by far the largest state budget in the nation. California is one of the only states to have a shortfall this year. That's mostly because its progressive tax code relies on wealthy taxpayers whose income is closely tied to the performance of the stock market. Newsom Proposes Spending Cuts, Using Reserves, Borrowing In January, Newsom proposed a number of ideas to cover the deficit, including about $9.

https://gvwire.com/2023/05/12/state-budget-deficit-balloons-to-nearly-32-billion-newsom/

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