Taxes, AI Top California Lawmakers’ Plans in Newsom’s Final Year

California legislators reconvene Monday for Gov. Gavin Newsom’s final year in office, pursuing ambitious policy proposals on taxes and tech amid an estimated $18 billion budget deficit.

The state’s finances are likely to dominate the first half of the year at the state capitol. Newsom is set to propose a budget this week, which will kick off months of negotiations over a spending plan formally due by mid-June. California’s current fiscal year budget totals about $321 billion.

Some of the governor’s fellow Democrats and labor union allies want to protect priorities like health care by raising taxes on higher earners. ...