California faces $32B budget deficit: Newsom

 California's budget deficit has grown to nearly $32 billion, which is $10 billion more than predicted.

California has the largest budget in the nation at $306 billion and is facing a shortfall this year.

The progressive tax code that relies on wealthy taxpayers whose income is closely tied to the performance of the stock market is a contributing factor to the deficit.

 To address the deficit, Newsom proposed spending cuts of about $10.6 billion, 

 clawing back unspent money in various programs, shifting expenses, taking some money from the state's safety net reserve, and borrowing.

 Republican legislative leaders criticized Newsom proposal as irresponsible spending by the Democrats who control Sacramento.

 Newsom office said it was prepared for the shortfall "with the governor and legislature paying down the state's prior debts, building unprecedented reserves and prioritizing one-time investments."

 Newsom budget shortfall announcement comes roughly a year after he touted a budget surplus of $97 billion and said it was "simply without precedent."

 Warren Buffett’s Berkshire Hathaway’s Big Win: $1.2 Billion in a Day