California Proposes Mere $8.5 Billion Spending Cut Against $68 Billion Deficit

California governor Gavin Newsom proposed a $292 billion state budget for the 2024-2025 fiscal year, driving economists to wonder why he plans only $8.5 billion in real spending cuts against what the nonpartisan Legislative Analyst’s Office says is a projected $68 billion deficit. Newsom hit back against the LAO, claiming the state’s deficit is only $37.8 billion.