California's Budget Deficit Soars to $32 Billion, Newsom Proposes Transit Funding Cuts

California Governor Gavin Newsom announced a plan to cover the state's nearly $32 billion budget deficit this year through a combination of borrowing and delaying some spending while shifting other expenses to different sources. The plan would cut spending by about $10.6 billion while potentially leaving the state with multibillion-dollar deficits in the future. Newsom proposed no major tax increases for individuals or spending cuts across the state's most important programs, including those impacting public education, health care, and homelessness. The budget proposal must first be approved by the Democratic-controlled Legislature.