Gavin Newsom Expected To Announce Record-Level Deficit In California

California Governor Gavin Newsom (D-CA) is anticipated to announce a higher budget deficit than the previously reported $22.5 billion, according to sources.

The updated figure is likely to be included in the May revision of his budget proposal, with the Legislative Analyst’s Office approximating it to be $5 billion more than the previous estimation.

The state’s tax code, which relies on high-income taxpayers whose income is tied to the stock market, is said to be one of the reasons behind the increased budget deficit.