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California faces budget deficit of $22.5B, governor says
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California faces budget deficit of $22.5B, governor says

  • By ADAM BEAM Associated Press
  • Updated

California Gov. Gavin Newsom has projected a $22.5 billion budget deficit for the upcoming fiscal year. That's a sharp turnaround from the $98 billion surplus Newsom had to work with last year. Newsom announced the deficit Tuesday as he lays out his spending priorities for the fiscal year that starts in July. The state has about $35.6 billion in reserves. The deficit isn't surprising. California relies heavily on taxes from the richest Californians, which can cause budget whiplash as the economy and stock market shift. Still, the deficit could signal the end of a decade's worth of economic growth in the nation's most populous state.