California’s new budget covers $32 billion deficit without touching reserves

By ADAM BEAM
Associated Press

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom and state legislative leaders have reached an agreement on how to spend the state’s tax dollars over the next year. The agreement announced late Monday would spend about $311 billion. The budget covers a nearly $32 billion budget deficit through a combination of spending cuts, delayed spending and borrowing. The proposal includes major changes to the state’s building and permitting process. But the changes would not apply to a controversial project to build a tunnel to send water to Southern California. The budget proposal would leave the state with $38 billion in reserves.