California's budget problem is growing by billions, according to the latest update from the California Legislative Analyst's Office. The LAO, which guides lawmakers in their state financial decision-making, released an update Tuesday projecting the shortfall to be $73 billion, $15 billion more than it had originally estimated. The LAO pointed to weaker-than-expected revenues for the slump. Gov. Gavin Newsom in May is expected to give his next formal update on the state's spending plan. "All else equal. This means the budget problem is likely to be higher," the LAO said. The update comes as the LAO and Newsom have had very different ideas of what the state's budget shortfall could look like. In January, Newsom had a more optimistic outlook with a projected $38 billion gap."From now through April, more than $51 billion in income and corporate tax receipts are forecast to come in. No one can say today with certainty how those numbers may change the budget estimate of a $38 billion shortfall," said H.D. Palmer, a spokesman for Newsom's Department of Finance. "A responsible step would be for the Legislature to act now on the early action budget measures needed for $8 billion in solutions to help close this gap." In response to the administration's call for early budget action, Assembly Speaker Robert Rivas said the early action will be taken, but negotiations are ongoing. Rivas told reporters lawmakers in the Assembly are focusing on providing more oversight into the administration's spending through a series of upcoming hearings. "The governor's budget has been more optimistic than the LAO, and I hope the governor is right," Rivas said. "I firmly believe it's always better to plan for the worst." When Newsom presented his state spending plan in January, he told KCRA 3 he would not raise taxes on Californians to help close the gap. Rivas could not rule it out on Tuesday. "I'm not ready to comment on it. I just think it's very early on," Rivas said. "There are many tools that are available. Which ones are appropriate, I'm not ready to comment on that yet." The LAO has suggested lawmakers consider increasing revenue, pulling back or cutting spending, shifting costs and tapping into the state's rainy-day fund. Those cuts could apply to any of the state's various services related to health, housing, the environment, education and more. Republicans have been critical of how the Democratic-led supermajority has so far handled back-to-back years of projected shortfalls. "How are we supposed to balance the budget when our governor can't even admit the true size of the deficit his administration racked up?" said State Sen. Brian Jones, R-Santee, on X.