California Legislature approves budget that slashes spending to address $46.8 billion deficit

Associated Press

SACRAMENTO, Calif. (AP) — California lawmakers have approved a budget that slashes spending and temporarily raises taxes on businesses. The budget closes an estimated $46.8 billion budget deficit. It’s the second year in a row the nation’s most populous state has had a multibillion-dollar shortfall. The budget includes $16 billion in cuts. It temporarily raises taxes on businesses with more than $1 million in revenue. The taxes are expected to bring in more than $5 billion to the state. The budget reflects an agreement between Democrats in the Legislature and Gov. Gavin Newsom. The governor is expected to sign it into law in the coming days.