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SACRAMENTO, California: California Governor Gavin Newsom has confirmed that the state’s budget deficit has risen to nearly $32 billion.

Democrat Newsom, who is in his second term, also announced a plan to cover the shortfall this year, which will potentially leaving California with multibillion-dollar future deficits.

He also proposed no major tax increases for individuals or spending cuts for key state programs, including public education, healthcare and homelessness.

However, his plan would reduce spending by about $10.6 billion, about $1 billion more than his proposal in January, with the rest of the deficit being covered by a combination of borrowing, delaying some spending, and shifting other expenses to different sources.

“This was not an easy budget, but I hope you see we will try to do our best to hold the line and take care of the most vulnerable and most needy, but still maintain prudence,” Newsom said.

California must have a balanced budget every year, unlike the federal government, and while Newsom’s budget is balanced this year, he has committed the state to spending more money than projected in the future.

Under his plan, the deficit would be $5 billion next year and grow to $14 billion by 2027.

In response, Republican assembly member Vince Fong from Bakersfield, vice chair of the Assembly Budget Committee, said, “The fact that the Governor continues to overspend, creating structural deficits in future years, is fiscally irresponsible.”

California’s progressive tax system relies on wealthy people, drawing some half of its revenues from only 1 percent of the state’s population.

Newsom’s plan is to use the volatile tax system to their advantage, leaving California with $37.2 billion in various savings accounts, money that could be used to balance future budgets.

“A progressive tax system allows us to stack away billions and billions of dollars for exactly this moment. I want all $42 billion and more. I want to be surprised,” Newsom said.

Newsom also has proposed some $700 million in cuts or spending deferrals by delaying money for programs that might help nonprofits turn foreclosed property into affordable housing.

In response, Michelle Pariset, director of legislative affairs for Public Advocates, a nonprofit law firm and advocacy group, said, “Its disappointing that the governor is not taking bigger measures to fight California’s worsening housing crisis.”

Newsom’s budget must first be approved by the state’s Democratic-controlled legislature.