After years of surpluses, California headed toward a deficit

By ADAM BEAM
Associated Press

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom says the state will have a $22.5 billion budget deficit. Newsom announced the deficit on Tuesday. It was a sharp turnaround from last year’s budget when the state had around a $100 billion surplus. Newsom wants to make up the shortfall by delaying some spending and shifting some expenses to other accounts. He proposed about $9.6 billion in cuts. Those reductions are in a variety of programs across the budget. Newsom does not want to dip into the state’s savings account. The state’s finances could change in the spring after most people file their tax returns.