Newsom to update his budget proposal Friday as California's deficit is likely growing

Gov. Newsom announced a $38 billion deficit in January, ballooning to $58 billion including public education cuts. Declining tax revenues worsened the situation, leading to a larger deficit.

To address the deficit, California has cut one-time spending, deferred other expenditures, and utilized borrowings from various accounts. Tougher decisions may be imminent if the deficit continues to grow.

Governor Newsom emphasized managing the shortfall without resorting to general tax increases. State's budgeting complexities stem from its reliance on income taxes from wealthy individuals, exposing it to market swings.

Read at ABC7 San Francisco