SAN FRANCISCO (Reuters) - California's budget deficit has ballooned to a staggering $34.8 billion, Gov. Gray Davis (news - web sites) announced on Wednesday, leaving lawmakers the task of crafting a new spending plan with scant revenues to fund state programs. "(It) is far more than any expert predicted," Davis told reporters. Previous official estimates put the deficit at $21 billion. Davis made his announcement after meeting with top legislative leaders to discuss the shortfall over the next 18 months that has already forced the Democratic governor to propose $10.2 billion in spending cuts in the nation's most populous and...