THE WEEKEND. NOW BACK OVER TO YOU. DIRK. THANK YOU. CALIFORNIA LAWMAKERS OFFICIALLY PASSED THE STATE’S SPENDING PLAN TODAY, BUT THERE’S ALSO A CATCH. GOVERNOR GAVIN NEWSOM SAYS HE WON’T SIGN OFF ON THE STATE BUDGET UNLESS LAWMAKERS PASS A MAJOR PROPOSED LAW HAVING TO DO WITH THE ENVIRONMENT AND HOUSING. KCRA THREE CAPITOL CORRESPONDENT ASHLEY ZAVALA HERE WITH US NOW. SO TELL US A LITTLE BIT ABOUT WHAT’S GOING ON HERE. GULSTAN. THE STATE BUDGET NEEDS TO GO INTO EFFECT JULY 1ST, NEXT TUESDAY. AND RIGHT NOW, ALL $321 BILLION OF IT HANGS IN THE BALANCE. GOVERNOR GAVIN NEWSOM IS PUSHING LAWMAKERS TO SEND HIM A BILL THAT WOULD MAKE MAJOR CHANGES TO CALIFORNIA’S ENVIRONMENTAL LAWS TO MAKE IT EASIER TO BUILD HOUSING AND MORE POPULATED PARTS OF THE STATE. LAWMAKERS TODAY IN THE STATE SENATE AND STATE ASSEMBLY PASSED THAT $321.1 BILLION SPENDING PLAN TODAY. THAT’S EVERYTHING FROM THE STATE’S HEALTH CARE TO PUBLIC SAFETY TO SCHOOLS, TRANSPORTATION AND OTHER MAJOR SERVICES SPENDING. BUT TALKS CONTINUE ON THAT HOUSING AND ENVIRONMENTAL BILL. WHAT THE GOVERNOR SPECIFICALLY WANTS TO CHANGE IS THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, ALSO KNOWN AS CEQA, TO EXEMPT NEW HOUSING PROJECTS IN URBAN PARTS OF THE STATE TO KEEP GROUPS OF PEOPLE AND PEOPLE FROM FILING LAWSUITS THAT COULD STOP OR SLOW NEW HOUSING. THE GOVERNOR IS PUTTING THE ENTIRE BUDGET ON THE LINE FOR THIS, AND THAT VOTE WILL HAPPEN MONDAY. THE GOVERNOR TOLD US HE’S CONFIDENT THIS WAS FOUNDATIONAL AND CRITICAL, AND WE WANTED TO GET IT DONE, GET THESE LAWS GOING. IN EFFECT QUICKLY AND AND SEND A MESSAGE TO FOLKS OUT THERE. WE MEAN BUSINESS ABOUT ADDRESSING THE ORIGINAL SIN IN THIS STATE. AFFORDABILITY, ADDRESSING THE SUPPLY DEMAND IMBALANCE IN THIS STATE AND ADDRESS SOME OF THE REGULATORY THICKETS THAT REMAIN IN THIS STATE. SO I’M VERY GRATEFUL THE PROGRESS WE’VE MADE. AND I’M VERY CONFIDENT THAT ON MONDAY, I’LL BE SIGNING THOSE BILLS AND WE WILL BE MOVING FORWARD. CONTINUING OUR MOMENTUM TO ADVANCE EVEN FURTHER REFORMS. NOW, JUST A BRIEF CIVICS REFRESHER. THIS PROCESS INVOLVES THREE CO-EQUAL BRANCHES THE STATE SENATE, THE STATE ASSEMBLY, AND THE GOVERNOR. WHILE WE HEARD FROM THE GOVERNOR TODAY, WE DID NOT HEAR FROM THE ASSEMBLY SPEAKER, ROBERT RIVAS, OR STATE SENATE PRO TEM MIKE MCGUIRE. BOTH REFUSED TO STOP AND TALK WITH REPORTERS TODAY, WE SHOULD NOTE FIGURING OUT HOW TO SPEND YOUR TAXPAYER DOLLARS IS THEIR MAIN JOB. BUT AT THIS POINT, WE DON’T KNOW HOW THE LEGISLATURE WILL MOVE ON MONDAY. GULSTAN DART I CAN’T REMEMBER THE LAST TIME THAT THE SPEAKER HAD A GAGGLE TO THINK ABOUT IT. BUT ACTUALLY, I MEAN, BACK TO TODAY. WHAT HAPPENS IF THIS ALL SOMEHOW BLOWS UP IF THE STATE BUDGET DOESN’T GO INTO EFFECT IN TIME, WE’LL SEND THIS STATE WILL BE ABLE TO KEEP PAYING ITS BILLS, AT LEAST IN THE SHORT TERM. BUT ON JULY 10TH, EXPENSES LIKE STATE WORKER PAY, TRIAL COURT FUNDING AND STATE VENDO

Advertisement Gov. Newsom conditionally signs California budget as legislature closes $12B deficit Editorial Standards ⓘ

Gov. Newsom on Friday said he signed the state budget, but it’s contingent on another piece of legislation.California’s governor said his signature would be valid based on the enactment of either AB 131 or SB 131 on Monday, June 30.Previous coverage: California lawmakers on Friday approved a budget that pares back a number of progressive priorities, including a landmark health care expansion for low-income adult immigrants without legal status, to close a $12 billion deficit.It’s the third year in a row the nation’s most populous state has been forced to slash funding or stop some of the programs championed by Democratic leaders. This year’s $321 billion spending plan was negotiated by Democratic Gov. Gavin Newsom and legislative leaders.Newsom is expected to sign the budget. But it will be void if lawmakers don’t send him legislation to make it easier to build housing by Monday.The budget avoids some of the most devastating cuts to essential safety net programs, state leaders said. They mostly relied on using state savings, borrowing from special funds and delaying payments to plug the budget hole.California also faces potential federal cuts to health care programs and broad economic uncertainty that could force even deeper cuts. Newsom in May estimated that federal policies — including on tariffs and immigration enforcement — could reduce state tax revenue by $16 billion.“We’ve had to make some tough decisions,” Senate President Pro Tempore Mike McGuire said Friday. “I know we’re not going to please everyone, but we’re doing this without any new taxes on everyday Californians.”Republican lawmakers said they were left out of budget negotiations. They also criticized Democrats for not doing enough to address future deficits, which could range between $17 billion to $24 billion annually.“We’re increasing borrowing, we’re taking away from the rainy day fund, and we’re not reducing our spending,” said Republican state Sen. Tony Strickland prior to the vote. “And this budget also does nothing about affordability in California.”Here’s a look at spending in key areas:Health careUnder the budget deal, California will stop enrolling new adult patients without legal status in its state-funded health care program for low-income people starting in 2026. The state will also implement a $30 monthly premium in July 2027 for immigrants remaining on the program, including some with legal status. The premiums would apply to adults under 60 years old.The changes to the program, known as Medi-Cal, are a scaled-back version of Newsom’s proposal in May. Still, it’s a major blow to an ambitious program started last year to help the state inch closer to a goal of universal health care.Democratic state Sen. Maria Elena Durazo broke with her party and voted “no” on the health care changes, calling them a betrayal of immigrant communities.The deal also removes $78 million in funding for mental health phone lines, including a program that served 100,000 people annually. It will eliminate funding that helps pay for dental services for low-income people in 2026 and delay implementation of legislation requiring health insurance to cover fertility services by six months to 2026.But lawmakers also successfully pushed back on several proposed cuts from Newsom that they called “draconian.”The deal secures funding for a program providing in-home domestic and personal care services for some low-income residents and Californians with disabilities. It also avoids cuts to Planned Parenthood.EnvironmentLawmakers agreed to let the state tap $1 billion from its cap-and-trade program to fund state firefighting efforts. The cap-and-trade program is a market-based system aimed at reducing carbon emissions. Companies have to buy credits to pollute, and that money goes into a fund lawmakers are supposed to tap for climate-related spending.Newsom wanted to reauthorize the program through 2045, with a guarantee that $1 billion would annually go to the state’s long-delayed high-speed rail project. The budget doesn’t make that commitment, as lawmakers wanted to hash out spending plans outside of the budget process. The rail project currently receives 25% of the cap-and-trade proceeds, which is roughly $1 billion annually, depending on the year.Legislative leaders also approved funding to help transition part-time firefighters into full-time positions. Many state firefighters only work nine months each year, which lawmakers said harms the state’s ability to prevent and fight wildfires. The deal includes $10 million to increase the daily wage for incarcerated firefighters, who earn $5.80 to $10.24 a day currently.Public safetyThe budget agreement will provide $80 million to help implement a tough-on-crime initiative voters overwhelmingly approved last year. The measure makes shoplifting a felony for repeat offenders, increases penalties for some drug charges and gives judges the authority to order people with multiple drug charges into treatment.Most of the fund, $50 million, will help counties build more behavioral health beds. Probation officers will get $15 million for pre-trial services and courts will receive $20 million to support increased caseloads.Advocates of the measure — including sheriffs, district attorneys and probation officers — said that’s not enough money. Some have estimated it would take around $400 million for the first year of the program.Other prioritiesNewsom and lawmakers agreed to raise the state’s film tax credit from $330 million to $750 million annually to boost Hollywood. The program, a priority for Newsom, will start this year and expire in 2030.The budget provides $10 million to help support immigration legal services, including deportation defense.But cities and counties won’t see new funding to help them address homelessness next year, which local leaders said could lead to the loss of thousands of shelter beds.The budget also doesn’t act on Newsom’s proposal to streamline a project to create a massive underground tunnel to reroute a big part of the state’s water supply. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel