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California's budget has billions in cuts to close deficit

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SACRAMENTO, Calif. — California Democratic Gov. Gavin Newsom has signed a $202.1 billion budget.

The spending plan reflects an economy and tax revenues hobbled by the coronavirus pandemic.

The budget contains billions of dollars in cuts to state worker salaries, the court system and public colleges and universities. But that spending would be restored if the federal government sends the state more aid by Oct. 15.

In addition to the spending cuts, the budget closes the deficit by temporarily raising taxes on some businesses, pulling heavily from the state's reserves and delaying billions of dollars of expenses to future years.

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