California’s budget deficit has likely grown. Gov. Gavin Newsom will reveal his plan to address it

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom will update his budget proposal on Friday, and the news likely won’t be good.

Newsom, in his last term as governor and widely seen as a future presidential candidate, announced a nearly $38 billion deficit in January, driven by declining revenues. Days later, the nonpartisan Legislative Analyst’s Office said the deficit was actually $58 billion when including some reductions in public education spending.

State officials needed a big rebound in tax collections to improve things, but it hasn’t happened. Through the end of April, state tax collections from its three biggest sources — personal income, corporations and sales — dropped more than $6 billion below the previous estimate.

That means the deficit has likely gotten larger, and Newsom will have to propose more ways to fix it. This is the second year in a row California has had a deficit, and so far the state has avoided the most painful cuts to major ongoing programs and services. Instead, Newsom and lawmakers have slashed one-time spending, delayed other spending and borrowed from other accounts.

A bigger deficit could force tougher choices. In January, Newsom floated the possibility of delaying a minimum wage increase for health care workers that Newsom signed into law to much fanfare just last year.

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