California Gov. Gavin Newsom signs budget to close $46.8B budget deficit

Gov. Gavin Newsom has signed California’s budget to close an estimated $46.8 billion deficit through $16 billion in spending cuts and temporarily raising taxes on some businesses. Newsom's office announced the signing Saturday. Lawmakers passed the budget Wednesday following an agreement between the governor and legislative leaders in which both sides made concessions and also had wins, forced again to pare back or delay some progressive policies that had been fueled by record-breaking surpluses during the COVID-19 pandemic. The deficit was about $32 billion last year and grew even larger this year, with more deficits projected for the future.