Newsom Says California’s Deficit Is $30 Billion Lower Than Reported, Unveils $292 Billion Budget Plan

While the state’s Legislative Analyst’s Office estimated in December a $68 billion budget deficit, the governor said his office’s calculations showed the total closer to $38 billion.

California Gov. Gavin Newsom speaks during a press conference at the Unity Council in Oakland, Calif., on May 10, 2021. Justin Sullivan/Getty Images

SACRAMENTO, Calif.—Faced with a multi-billion-dollar deficit, California Gov. Gavin Newsom released Jan. 10 his fiscal year 2024–2025 budget proposal, with plans to use reserves and to reduce and defer spending to balance the state’s finances.

“If there’s a narrative this year, it’s all about accountability,” Mr. Newsom said during a press conference, after submitting his proposal.