California’s Newsom Looks to Increase Budget by $11 Billion
Governor of California Gavin Newsom during the State of the State address at the California State Capitol in Sacramento on Jan. 8.
Photographer: Jason Henry/BloombergCalifornia Governor Gavin Newsom proposed a $349 billion budget for the fiscal year that begins in July that leans on steadier economic growth and resilient financial markets to keep the state’s projected deficit to about $3 billion, a far smaller gap than earlier estimates.
The plan unveiled Friday includes $248 billion in general fund spending, about $11 billion more than the current year, as revenue rebound on stronger cash receipts, elevated stock prices and a more favorable economic outlook, according to the administration. California’s progressive tax system leaves the budget especially sensitive to market swings, with the top 1% of taxpayers generating nearly half of personal income-tax collections.