Newsom faces tough budget reality amidst deficit and immigration policy criticism.

California Governor Gavin Newsom has proposed a revised spending plan to offset the state's $31.5 billion budget deficit, caused by a shortfall in tax collection. The plan includes shifting funding to bonds, tapping into the state's safety net reserve, and renewing a tax on managed care programs to support Medi-Cal. Newsom has also proposed reducing funding increases for climate and transportation programs. The state's financial situation is uncertain due to delayed tax receipts and the possibility of federal default on its debt. Lawmakers have proposed increasing taxes on large corporations, but Newsom has rejected the idea.