California faces $32 billion budget deficit, Newsom proposes cuts to transit funding.

California's budget deficit has increased to almost $32 billion, which is $10 billion more than what Governor Gavin Newsom predicted in January. The deficit is due to high inflation and a decision to let most people delay filing their taxes because of winter storms. California is one of the only states to have a shortfall this year, mostly because its progressive tax code relies on wealthy taxpayers whose income is closely tied to the performance of the stock market. Newsom's proposal includes roughly $10.6 billion in spending cuts and shifting expenses, taking some money from the state's safety next reserve and borrowing.