California's Budget Deal Solves $32B Deficit and Boosts Transit Agencies.

California Governor Gavin Newsom and the state Legislature have agreed on a $310.8 billion budget plan that covers a nearly $32 billion deficit without raiding the state's savings account. The plan includes cutting some spending, delaying other spending, and shifting some expenses to other funds. The budget would borrow $6.1 billion and set aside $37.8 billion in reserves, the most ever. The budget includes a lifeline for public transit agencies struggling to survive following steep declines in riders during the coronavirus pandemic. The plan does not raise income taxes to cover the deficit, but it does impose a new tax on managed care organizations.