Newsom announces $45B deficit in downsized budget proposal

California Gov. Gavin Newsom (D) on Friday announced a $44.9 billion deficit in his revised proposal for the 2024-2025 state budget, while proposing a series of cuts to close the spending gap.

The shortfall includes $27.6 billion detailed in his proposal, plus $17.3 billion in cuts that the State Legislature proactively instituted a few weeks ago.

The governor proposed a $288.1 billion topline budget figure, down from Newsom’s initial January proposal for a $291.5 billion budget.