California's Budget Deficit Soars to $32 Billion, Gov. Newsom Unveils Revised Budget

California Governor Gavin Newsom announced a budget deficit of nearly $32 billion, $10 billion more than predicted in January, due to high federal inflation rates and delayed tax filings after winter storms. Newsom proposed $1.1 billion in spending cuts and up to $3.9 billion more if revenues don't improve, along with shifting expenses, taking money from the state's safety net reserve, and borrowing. California's progressive tax code relies on wealthy taxpayers whose income is closely tied to the stock market, making the state vulnerable to big swings. The challenge for Newsom will be persuading lawmakers to agree on spending cuts.