California lawmakers pass their proposed budget, negotiations continue with Newsom
Thursday's action ensures California lawmakers get paid, which is tied to a constitutional deadline by midnight Thursday to pass the budget act.
Thursday's action ensures California lawmakers get paid, which is tied to a constitutional deadline by midnight Thursday to pass the budget act.
Thursday's action ensures California lawmakers get paid, which is tied to a constitutional deadline by midnight Thursday to pass the budget act.
California lawmakers on Thursday passed the Legislature's version of the budget as Democratic leaders continue to negotiate the final state spending plan with Gov. Gavin Newsom.
Thursday's action ensures California lawmakers get paid, which is tied to a constitutional deadline by midnight Thursday to pass the budget act. The plan represents a deal struck among California's Democratic lawmakers and passed on party-line votes in both the Senate and Assembly.
For the first time in about a decade, California lawmakers and the governor are grappling with a significant budget shortfall in the tens of billions of dollars. The $312 billion spending plan passed Thursday covers a $30.7 billion gap, despite Newsom's administration and the Legislative Analyst Office noting the budget problem would be bigger.
The plan mirrors many parts of Newsom's proposed version of the budget presented in May, with no cuts to core programs and increased spending for education, health and flood protection. The Legislative Analyst Office noted the legislative plan involves more borrowing and cost shifts than Newsom's proposal.
“What we have is a budget that embodies our core values and defends our principles," said Assembly Speaker Anthony Rendon. "We were able to do that because we built smart budgets in recent years. We knew tough times would come; we didn’t know when."
The legislative plan does not involve any tax increases on individual Californians or businesses and does not involve any withdrawals from the state's $37 billion rainy day fund, despite Democratic efforts earlier this year to use these strategies to fill the budget gap. Newsom publicly rejected both ideas in May.
California lawmakers and the governor's spending plan will be finalized with an incomplete picture, because Califorina's tax filing deadline was extended to October. This means about $40 billion of expected revenue is in limbo. Republican lawmakers criticized the plan passed Thursday.
"With so much uncertainty on the horizon, now is the time for prudence and input from both sides," said Assemblyman Vince Fong, R-Bakersfield. "California can simply not afford this spending plan."
As negotiations continue, lawmakers and the governor are still at odds over a handful of issues, including funding for public transportation. The governor has proposed cutting $2 billion already earmarked for local rail. The Legislature wants to keep the money in place while adding an extra $1.1 billion over the next three years to prevent what some Democrats have warned would be a "death spiral" for transit systems such as BART.
Another sticking point between Newsom and lawmakers is the governor's proposal to cut down on the paperwork and process for energy and transportation projects in California, which are typically held up and drawn out in court as a result of California's environmental laws. Newsom has said he wants to move his proposal with a sense of urgency by using the expedited budget trailer bill process that would allow it to go into effect immediately once approved. Democrats have said they need more time to digest the plan.
With the new fiscal year starting July 1, lawmakers and the governor have two weeks to come to a compromise.