Wealthy Taxpayer Shortfall Forces California to Freeze Spending

California Governor Gavin Newsom ordered a spending freeze as the state’s projected budget deficit ballooned to $68 billion for the next fiscal year — almost five times higher than the initial forecast.

State agencies should cut spending on everything from office supplies to computer equipment and halt all non-essential travel, Newsom’s Department of Finance said in a letter posted to its website late Tuesday. The freeze also restricts purchases of new vehicles and other equipment.

Government entities “must take immediate action to reduce expenditures and identify all operational savings achieved,” budget director Joe Stephenshaw said in the letter.

The deficit ...