Latest news with #CaliforniaBudget
CBS News
01-07-2025
- Politics
- CBS News
California state budget to go into effect as lawmakers approve key CEQA reform bill
California lawmakers passed a massive state budget vote with just hours to spare before the July 1 deadline and the start of the new fiscal year. The state Assembly and Senate passed a California Environmental Quality Act (CEQA) reform bill that included a poison pill. Gov. Gavin Newsom and legislative leaders agreed that if the bill had failed, the entire state budget would have been inoperable. The bill calls for streamlining CEQA by exempting it from urban infill projects to build millions more homes across the state. Assemblymember Alex Lee (D-San Jose) supports it. "It reflects how seriously we are taking the budget crisis, that we're willing to do the entire budget deal on the back of streamlining housing," Lee told CBS Sacramento. Monday evening, Newsom was set to speak at a press conference with other lawmakers where the governor would be signing the bill into law. "Affordable, decent housing is the civil rights struggle of our time here in California, and today, we take a transformative step forward in that fight," State Assembly Speaker Robert Rivas said. Opponents called the bill a heavy-handed approach, with Newsom and legislative leaders tying the entire budget to a single issue. "It's wrong on so many different levels," state Senator Roger Niello (R-Fair Oaks) said. "The point is that the governor is telling the legislators what to do, and I believe that is a violation of powers." This is a developing story. Follow along with CBS Sacramento for more updates.
The Guardian
28-06-2025
- Business
- The Guardian
California leaders approve budget to close $12bn deficit in blow to progressive causes
California lawmakers on Friday approved a budget that pares back a number of progressive priorities, including a landmark healthcare expansion for low-income adult immigrants without legal status, to close a $12bn deficit. It is 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 $321bn spending plan was negotiated by legislative leaders and the Democratic governor, Gavin Newsom. 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 healthcare 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 $16bn. 'We've had to make some tough decisions,' Mike McGuire, the senate president pro tempore, said on 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 $17bn to $24bn annually. 'We're increasing borrowing, we're taking away from the rainy day fund, and we're not reducing our spending,' said Tony Strickland, a Republican state senator, before the vote. 'And this budget also does nothing about affordability in California.' Here's a look at spending in key areas: Under the budget deal, California will stop enrolling new adult patients without legal status in its state-funded healthcare 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 is a major blow to an ambitious program started last year to help the state inch closer to a goal of universal healthcare. A Democratic state senator, María Elena Durazo, broke with her party and voted 'no' on the healthcare changes, calling them a betrayal of immigrant communities. The deal also removes $78m 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. Lawmakers agreed to let the state tap $1bn 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 $1bn would annually go to the state's long-delayed high-speed rail project. The budget does not 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 $1bn 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 $10m to increase the daily wage for incarcerated firefighters, who earn $5.80 to $10.24 a day currently. The budget agreement will provide $80m 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, $50m, will help counties build more behavioral health beds. Probation officers will get $15m for pre-trial services and courts will receive $20m to support increased caseloads. Advocates of the measure – including sheriffs, district attorneys and probation officers – said that was not enough money. Some have estimated it would take about $400m for the first year of the program. Newsom and lawmakers agreed to raise the state's film tax credit from $330m to $750m annually to boost Hollywood. The program, a priority for Newsom, will start this year and expire in 2030. The budget provides $10m to help support immigration legal services, including deportation defense. But cities and counties will not 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 does not act on Newsom's proposal to streamline a project to create a vast underground tunnel to reroute a big part of the state's water supply.
Yahoo
28-06-2025
- Business
- Yahoo
California closes $12B deficit by cutting back immigrants' access to health care
SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom signed on Friday 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. Lawmakers passed the budget earlier in the day following an agreement of a $321 billion spending plan between Newsom and Democratic leaders. But the whole budget 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. 'It's balanced, it maintains substantial reserves, and it's focused on supporting Californians,' Newsom said in a statement about the budget. 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 care Under 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 2026. The state will also implement a $30 monthly premium 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. Environment Lawmakers 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 safety The 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 priorities Newsom 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.
New York Times
28-06-2025
- Health
- New York Times
Newsom Signs Budget That Includes Health Care Cuts for Undocumented Immigrants
Gov. Gavin Newsom signed a California budget on Friday that relied on scaling back health care for undocumented immigrants, even as he and other California Democrats in recent weeks have condemned the Trump administration for cracking down on immigrant workers. In signing the budget, Mr. Newsom backtracked on his earlier pledge to insure all low-income residents, regardless of their immigration status. But it came as the state faced a $12 billion deficit, driven in part by a large cost overrun in the state's insurance plan for undocumented immigrants, and it would have been politically difficult to cut programs for citizens without reducing benefits for undocumented immigrants. When Mr. Newsom initially proposed the cuts in May, it was seen as a centrist pivot for a governor who is a potential presidential candidate in 2028. But after President Trump sent National Guard troops to Los Angeles nearly three weeks ago to thwart protesters, Mr. Newsom returned to his role as a liberal antagonist of the Republican administration and accused Mr. Trump of endangering American democracy. The California budget for the fiscal year that starts Tuesday relies on prohibiting new enrollment of undocumented immigrants in the state's Medicaid program, known as Medi-Cal, starting in January. Adults between the ages of 19 and 59 who were already enrolled will have to pay a new $30 monthly premium beginning in 2027. And the state will eliminate dental care in July 2026 for undocumented adults and other noncitizens. Medi-Cal serves roughly 15 million people, including 1.6 million undocumented immigrants. Because the federal government does not pay for most health care for undocumented immigrants, it costs California more to insure noncitizens than it does to cover citizens. Democrats have argued that the state has a moral responsibility to provide health care to its immigrant work force, and they have said that preventative treatment can avert more costly emergency care down the road. Democrats who control the State Capitol cast their decisions on Friday as a necessary move to help close the budget deficit and said it was not an ideological shift away from supporting immigrants. Some choked back tears in emotional floor speeches about their undocumented family members as they voted for cuts to Medi-Cal. Want all of The Times? Subscribe.
New York Times
28-06-2025
- Health
- New York Times
Newsom Signs Budget That Relies on Health Care Cuts for Undocumented Immigrants
Gov. Gavin Newsom signed a California budget on Friday that relied on scaling back health care for undocumented immigrants, even as he and other California Democrats in recent weeks have condemned the Trump administration for cracking down on immigrant workers. In signing the budget, Mr. Newsom backtracked on his earlier pledge to insure all low-income residents, regardless of their immigration status. But it came as the state faced a $12 billion deficit, driven in part by a large cost overrun in the state's insurance plan for undocumented immigrants, and it would have been politically difficult to cut programs for citizens without reducing benefits for undocumented immigrants. When Mr. Newsom initially proposed the cuts in May, it was seen as a centrist pivot for a governor who is a potential presidential candidate in 2028. But after President Trump sent National Guard troops to Los Angeles nearly three weeks ago to thwart protesters, Mr. Newsom returned to his role as a liberal antagonist of the Republican administration and accused Mr. Trump of endangering American democracy. The California budget for the fiscal year that starts Tuesday relies on prohibiting new enrollment of undocumented immigrants in the state's Medicaid program, known as Medi-Cal, starting in January. Adults between the ages of 19 and 59 who were already enrolled will have to pay a new $30 monthly premium beginning in 2027. And the state will eliminate dental care in July 2026 for undocumented adults and other noncitizens. Medi-Cal serves roughly 15 million people, including 1.6 million undocumented immigrants. Because the federal government does not pay for most health care for undocumented immigrants, it costs California more to insure noncitizens than it does to cover citizens. Democrats have argued that the state has a moral responsibility to provide health care to its immigrant work force, and they have said that preventative treatment can avert more costly emergency care down the road. Democrats who control the State Capitol cast their decisions on Friday as a necessary move to help close the budget deficit and said it was not an ideological shift away from supporting immigrants. Some choked back tears in emotional floor speeches about their undocumented family members as they voted for cuts to Medi-Cal. Want all of The Times? Subscribe.
