California’s Newsom Looks to Increase Budget by $11 Billion

California Governor Gavin Newsom proposed a $349 billion budget for the fiscal year that begins in July that leans on steadier economic growth and resilient financial markets to keep the state’s projected deficit to about $3 billion, a far smaller gap than earlier estimates.

The plan unveiled Friday includes $248 billion in general fund spending, about $11 billion more than the current year, as revenue rebound on stronger cash receipts, elevated stock prices and a more favorable economic outlook, according to the administration. California’s progressive tax system leaves the budget especially sensitive to market swings, with the top 1% of ...