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Final agreement decided in private – CalMatters
In short
The Legislature approves a temporary state budget, but must still negotiate with Governor Newsom on the final agreement. The way the State spends taxpayers’ money is, to a large extent, decided outside of public opinion.
After legislative leaders failed to reach an agreement with Gov. Gavin Newsom on how to close California’s projected multibillion-dollar deficit, the Legislature today approved a replacement state budget, just ahead of a mandatory deadline.
With just weeks to go before the start of the new fiscal year on July 1, both sides are refusing to publicly discuss what specific issues are holding up a deal.
Newsom’s office and his Finance Department declined to answer questions about remaining differences with the Legislature that still need to be resolved. Representatives of the President of the Senate Pro Temporary Mike McGuire and President of the Assembly Roberto Rivastasked with negotiating with the governor, would not make them available to the media today after their members approved a spending plan that will almost certainly not be the actual budget.
“There is a shared set of priorities,” said the Assembly member Jesse Gabriel, an Encino Democrat who leads the Assembly budget committee, told reporters after the vote. “It’s more about what are the most effective solutions, what are the programs and services that we think are the best way forward compared to others.”
His counterpart on the Senate budget committee – Sen. Scott Wienera Democrat from San Francisco – did not respond to an interview request.
Newsom presented a plan last month to address what his administration estimates will be a remaining funding gap of $56 billion over the next two years, including by tapping reserve accounts, deferring school funding, eliminating government jobs, and cutting or delaying funding for education programs. infrastructure, health and climate.
Assembly Speaker Robert Rivas speaks to reporters after the Assembly passed a measure to reduce the state’s budget deficit at the Capitol in Sacramento on April 11, 2024. Photo by Rich Pedroncelli, AP Photo
Democratic leaders in the Legislature, where the party holds an absolute majority in both houses, launched a counterproposal a few weeks later. Among the main discrepancies is the pressure for more substantial measures reductions in prison funding reverse some of Newsom’s proposed cuts to scholarships for middle-income studentspublic health programs, subsidized daycare spaces and housing development.
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The governor and Legislature must also decide whether to reuse billions of dollars that were aimed at increasing payments for health care providers treating low-income patients, as Newsom suggested, and whether they should delay further increase in the minimum wage for healthcare professionalswhich could potentially save the state billions of dollars, but faces strong opposition from unions.
Gabriel defended the process as “exceptionally transparent,” pointing to dozens of legislative budget hearings in which he said “there was a public assessment of these issues” and “opportunities for Californians to intervene.” He said he doesn’t think any of the final solutions would be a surprise.
“I think Californians have a good understanding of what the key issues are at stake in this process,” he said.
Despite ongoing negotiations over undisclosed provisions, Democratic lawmakers voted today to adopt their version of the spending plan because they must approve a balanced budget by midnight Saturday to get paid. The bill was approved by 29 votes to 8 in the Senate and 59 to 14 in the Assembly, along largely party lines.
Republicans criticized the proposal as out of step with the needs of Californians. They raised objections to provisions suspending some tax deductions for businesses in order to raise additional revenue, and reversed previous commitments on increasing health care spending. Several members called for the inclusion of billions of dollars for the the state’s troubled high-speed rail project and to expand access to healthcare for undocumented immigrants while other programs are cut.
“This is a shameful budget,” said deputy Kate Sanchez, a Republican from Rancho Santa Margarita, said during the debate. “This budget is cruel, divisive, and completely out of touch with the reality and struggles that Californians are actually facing.”
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