IT'S NOT A pROGRESSIVE STATE:

Legislative leaders have been largely optimistic about the budget situation, noting that the deficit is less drastic than during the last recession more than a decade ago and arguing that they have plenty of fiscal tools at their disposal to avoid deep spending cuts. Last month, Senate Democrats pitched increasing taxes on large corporations and suspending a major business tax credit to raise new funds, an idea that Newsom quickly rejected.

The governor reiterated today that it was not "the right time to raise taxes and I was crystal clear on that." He also also took off the table -- at least for now -- dipping deeper into the state's reserves, which he said should be maintained while the state weathers the broader economic uncertainties.

"No one can be wedded ideologically to conditions that may present themselves, but right now, we're able to submit a budget that we think is prudent and it's balanced," he said. "Those are conversations for another day."

Newsom closed his remarks by encouraging the Legislature to show restraint, both in what it seeks in a budget deal and with costly proposals that lawmakers may try to advance to the governor's desk later this year, which he said he would have to veto.

"You don't have to be profligate to be progressive," Newsom said, trotting out what has become a favorite turn of phrase. "We tend to write checks that we can't keep and then we let people down."

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