California Gov. Newsom proposes tapping reserves and cutting spending to close nearly $38 billion deficit

California Gov. Newsom proposes tapping reserves and cutting spending to close nearly $38 billion deficit

California Gov. Gavin Newsom speaks at a news conference at Universal Studios Hollywood in Universal City, Los Angeles, Ca… SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom is announcing a $291 billion state spending plan with an estimated $37.9 billion deficit.

That’s a significantly lower budget hole than the Legislative Analyst’s Office predicted in December. It estimated the state would face a $68 billion deficit.

That difference is likely due in part to a rebounding stock market.The proposal Newsom is laying out Wednesday outlines how he wants to spend taxpayer dollars and other state money for the fiscal year starting July […]

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