The joint announcement by state Treasurer Bill Lockyer and Finance Director Mike Genest means California residents will be hit by the full force of a $1.8-billion personal income tax boost and $1 billion in slashed spending.
California's personal income tax rate now will rise by a full 0.25%, boosting to 9.55% the current maximum of 9.3%.
The increase would have been half that had enough federal stimulus money been available to offset the state's budget problems.
The news comes as tax revenue flowing to the state continues to plunge.
Just a month after they reached an agreement to end a protracted partisan stalemate and balance the budget, lawmakers now face the prospect of a new and even deeper deficit of $8 billion or more.
That deficit could continue to grow if the state economy slumps further and if voters reject half a dozen budget measures on a May 19 special election ballot.