California lawmakers brace for Newsom budget proposal while tax collection drops

Gov. Gavin Newsom (D-CA) will give his updated budget proposal on Friday afternoon, leaving many lawmakers and lobbyists prepared for large spending cuts to offset a deficit estimated of $73 billion.

Newsom’s new budget proposal for California comes a month after he slashed one-time funding programs and delayed spending in programs in an effort to reduce the deficit by $17.3 billion. 

By the end of April, state taxes collected from the state’s three biggest sources, personal income, corporations, and sales, were $6 billion less than previous estimates. As a result, California’s deficit has only grown larger. Unlike the U.S. government, California law requires the state to have a balanced budget. This is the second year in a row that California has had a deficit. Last year,

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