California Approves Budget to Address $46.8 Billion Deficit

Governor Newsom's plan includes spending cuts, temporary business tax hikes, and strategic investments in key programs.

The budget involves $16 billion in spending cuts and temporary tax increases on businesses with over $1 million in revenue.
Lawmakers reached an agreement that involved concessions from both sides, delaying some progressive policies.
The budget also draws from reserves and cuts state operations by nearly 8%, affecting various social programs.
Future deficits are still projected, despite the measures taken to address the current shortfall.
The budget includes efforts to amend the state constitution to allow for increased reserves to handle future financial challenges.