Gov. Gavin Newsom and state legislative leaders have reached an agreement on how to spend the state's tax dollars over the next year. The agreement announced late Monday would spend about $311 billion. The budget covers a nearly $32 billion budget deficit through a combination of spending cuts, delayed spending and borrowing. The proposal includes major changes to the state's building and permitting process. But the changes would not apply to a controversial project to build a tunnel to send water to Southern California. The budget proposal would leave the state with $38 billion in reserves.