Newsom Says California Tax Hikes Unneeded Despite Bigger Deficit

California Gov. Gavin Newsom (D) is holding the line against tax increases, despite a projected budget deficit that has grown to $31.5 billion and pressure from legislative leaders in his own party.

The Democrat is instead proposing to use more delayed or reduced spending, internal funding shifts, and reserve funds to close the deficit, which is $9.3 billion more than he projected in January. In releasing his revised $224.1 billion general fund budget plan Friday for the fiscal year that starts July 1, he is avoiding broad tax changes but keeping targeted proposals he first offered in ...