Latest news with #TrumpSlump
Politico
02-06-2025
- Business
- Politico
Pritzker's budget blame game: Trump
Presented by Happy June, Illinois. And congrats to the state legislators who powered through the weekend. TOP TALKER BUDGET BLUES: Gov. JB Pritzker praised state lawmakers Sunday morning for passing a balanced state budget and blamed a 'Trump Slump' for Illinois seeing $500 million in reduced revenues. 'Donald Trump's incomprehensible tariff policies have put a tax on our working families and dampened the nation's economic outlook, the Trump Slump is affecting every state, and the chaos and uncertainty of the Republicans proposed cuts to health care and education and jobs have made budgeting well harder than ever before,' Pritzker told reporters in a press briefing alongside Lt. Gov. Juliana Stratton and state Senate President Don Harmon. Illinois House Speaker Emanuel 'Chris' Welch had a family commitment. Pritzker said the 'chaos' in D.C. is affecting other states, too. He pointed to Iowa and Indiana that once 'were bragging about their fiscal condition while laughing at ours. My, how times have changed.' We noted that last weel. The governor touted Illinois having nine credit upgrades and seven balanced budgets while 'Indiana's 10 percent budget deficit and Iowa's 5 percent budget deficit caused them to cut public health and higher education and dip into their rainy day fund.' It's sinful: In the end, the Democratic-led Illinois General Assembly approved a $55.2 billion spending plan and a $55.3 billion revenue package for the next fiscal year that also included a good share of sin taxes from online sports betting, to tobacco products, nicotine pouches and e-cigarettes. There's a lot that didn't get done: The transit bill to prevent a 'financial cliff' in the transportation industry failed to pass — there's talk now of returning to Springfield to address the problem. An energy bill that would protect the state's power grid didn't pass. And an omnibus bill to improve elections didn't pass. And a proposal to overhaul the state's Tier 2 pension system (which affects public employees hired on or after Jan. 1, 2011) didn't make it over the finish line, either (though lawmakers did approve $75 million for a reserve fund for the program). Funding that was approved: $500 million for economic development and investment in site readiness grants to local governments for economic development; $200 million for early childhood workforce compensation grants and a $175 million increase for the Child Care Assistance Program to support 150,000 children. Here's a budget breakdown from the governor's office. By the numbers: 'They passed 432 bills during their five-month spring session, though perhaps none more important than the state's budget for the fiscal year that begins July 1. The nearly 3,400-page spending plan and other budget-related bills passed just minutes before midnight on Saturday — roughly 30 hours after the measure was introduced,' reports Brenden Moore in The Pantagraph. There was some careful praise about getting over the finish line: Jack Lavin, head of the Chicagoland Chamber of Commerce, said his organization is 'pleased' that lawmakers passed an economic development package, 'which included incentives for manufacturers, capital investment programs and business recruitment.' Republicans could only roll their eyes: State Sen. Terri Bryant echoed her GOP colleagues, calling the budget 'irresponsible, unsustainable and wrong for Illinois.' Republicans also criticized Democrats for 'ramming' the budget through in the last hours of the session. RELATED Among bills going to governor's desk: A measure designed to rein in the practices of pharmacy benefits managers, or PBMs, law-enforcement background checks and legal help for immigrants, via the Tribune Chicago public transit in limbo after state lawmakers fail to fill nearly $1B budget gap, by the Block Club's Charles Thrush and Manny Ramos Illinois Senate leaves without taking a vote on plan to let terminally ill people end their own lives, by the Sun-Times' George Wiebe Bears' stadium efforts run out of time in Springfield but state Rep. Mary Beth Canty says deal was close and talks will continue, by the Tribune's Olivia Olander It's the latest tough snap for Bears president Kevin Warren, by the Sun-Times' Mitchell Armentrout and George Wiebe For mentally ill people facing low-level charges, lawmakers take steps to get them care, not prosecution, by the Sun-Times' Frank Main and Stephanie Zimmermann Three-point seat belts to be required on new school buses in Illinois, by the Daily Herald's Russell Lissau If you are Don Harmon, Playbook would like to hear from you! Email: skapos@ WHERE'S JB No official public events WHERE's BRANDON At Daley Plaza at 9 a.m. for the annual Pride Flag Raising Ceremony — At the Southwest Pumping Station for a Chicago Grand Prairie Water Commission water project announcement Where's Toni At Daley Plaza at 9 a.m. for the annual Pride Flag Raising Ceremony Have a tip, suggestion, birthday, new job or a complaint? Email skapos@ BUSINESS OF POLITICS — WHAT's NEXT: Now that the legislative session has wrapped up, watch for the governor to pivot his attention to the upcoming federal hearing in Washington, D.C., on June 12 about Illinois' sanctuary status. After that, Pritzker is expected to announce whether he'll seek a third term, timing it, likely, with the Cook County Democratic Party slating on July 17 and 18. — Endorsement: State Sen. Robert Peters has been endorsed in his bid for Congress in the 2nd District by the Amalgamated Transit Union, which includes Chicago Locals 241 and 308. — Dueling rallies at Huntley's Trump & Truth Store as owner vows to stay open, by the Tribune's Shanzeh Ahmad THE STATEWIDES — Feds say Michael Madigan should get 12½ years in prison: 'Madigan wielded the speaker's gavel in Springfield for 36 years. Now he's bracing to learn his fate June 13, when he's due to be sentenced by U.S. District Judge John Blakey. The hearing comes four months after a jury convicted Madigan in an historic verdict,' by the Sun-Times' Jon Seidel. — A Madigan elegy: Mac Hoffmann, who was a staff attorney under former Speaker Madigan from 2015 to 2016, is now a singer-songwriter based in Minneapolis. He's out with an acoustic piece about Madigan titled, 'The Fall of the Velvet Hammer.' In a note to Playbook, Hofmann says, 'It's not a takedown. It's a reckoning—a meditation on what it meant to serve a system that no longer made sense. The timing aligns with Madigan's sentencing, but the story behind it has been unfolding for nearly a decade.' Sample lyric: 'The cleanest guy in the Capitol is the janitor mopping the floor.' Listen here. — Springfield's historic Myers Building officially sold, by the State Journal-Register's Claire Grant — Fake IDs now as good as the real thing — and essential to Chicago's college social scene, by the Sun-Times' Mary Norkol TAKING NAMES — HATS OFF: Cook County Commissioner Donna Miller's annual Hats Off to South Suburban Women Luncheon drew a crowd of 300 Sunday at Ravisloe Country Club. Spotted: Congresswoman Robin Kelly, former Mayor Lori Lightfoot, Chicago Ald. Stephanie Coleman, Sauk Village Mayor Marva Campbell-Pruitt, Richton Park Mayor Rick Reinbold, Homewood Village Trustee Vivian Harris-Jones, Homewood Village Clerk Nakina Flores, East Hazel Crest Trustee Maureen Moe Forté, Appellate Judge Sharon Johnson, Rich Township Clerk Sugar Al-Amin, Matteson Trustee Carolyn Palmer, Calumet City Ald. Monet Forte Wilson, District Police Commander Karla Johnson and school Superintendent Blondean Davis. — Dulana Reese-Campbell has been elected board president of the Young Democrats of Chicago. Reese-Campbell is chief of staff to state Rep. Kam Buckner. Other officers: Jackie Duarte, Lindy Girman, Tyler Harding, Taylor Coward, Evelyn Wilder, Arthur Dennis, George Haines and Brian Frederick. Reader Digest We asked about impactful protest movements. Michael Churchill: 'Vietnam War protests.' Michael Burton: 'The eight-hour day movement, centered in Chicago in the 1880s, gave us the weekend by reducing the typical workweek from six days and 70+ hours to our current 40-hour work week.' Ted Cox: 'Occupy Wall Street, #MeToo and Black Lives Matter. They may not have the momentum right now, but they're not done by any means.' Sean Duffy: 'The 1917 February Revolution in Russia forced Czar Nicholas II to abdicate his throne and ended 300 years of rule by the Romanov dynasty.' Robert Fioretti: ' April 15, 1970, when an anti-war moratorium demonstration on tax day was held at Daley Plaza. More than 40,000 attended, and many there are still protesting today.' Daniel Goldwin: 'Free Soviet Jewry protest movement.' Charles Keller: 'On Oct. 31, 1517, Luther sent a letter with the 95 Theses to the Archbishop of Mainz, marking the beginning of the Protestant Reformation.' Jim Lyons: 'The anti-war movement at the 1968 Democratic National Convention.' James Scalzitti: 'ACT-UP.' Emily Spangler: 'The Stonewall Movement. Stonewall is one of many reasons we LGBT people are recognized and protected in society.' NEXT QUESTION: What's a national holiday you'd like to see created? KEEPING UP WITH THE DELEGATION — China happy with restrictions on its students, Krishnamoorthi says: 'They want these people back,' said U.S. Senate candidate and Congressman Raja Krishnamoorthi on 'Face the Nation.' 'They want the scientists and the entrepreneurs and the engineers who can come and help their economy. And so we are probably helping them, as well as other countries, more than helping ourselves with this policy.' THE NATIONAL TAKE — The 'Medicaid moderates' are the senators to watch on the megabill, by POLITICO's Jordain Carney — Liz Magill, the first casualty in the war against elite universities, by POLITICO's Evan Mandery — DHS removes list of 'sanctuary' cities after sheriffs push back on non-compliant label, by Reuters' Ted Hesson — Chris Christie says Trump is giving free rein to white-collar criminals, by POLITICO's David Cohen — 'Completely unworkable': Sculpture experts say Trump's $34M statue garden has major problems, by POLITICO's Michael Schaffer TRANSITIONS — Jim Webb has started J Webb Strategies, a communications and crisis management business. He was director of operations at Serafin & Associates before it merged last year with Mercury Public Affairs. Webb also previously had a long career as a journalist for The Associated Press and was political editor at the Chicago Tribune. — Channyn Lynne Parker becomes interim CEO of Equality Illinois starting July 1. An Equality Illinois board member, Parker will serve in the post part-time while continuing in her full-time position as CEO of Brave Space Alliance, which serves LGBTQ+ individuals. Earlier this year, Brian Johnson announced he's stepping down as Equality Illinois CEO on June 30, via Windy City Times' Jake Wittich. — Alison Pure-Slovin has been named director of social action and partnerships for Simon Wiesenthal Center's Midwest office. She has been head of the organization's Midwest office since 2012. IN MEMORIAM — Richard Garwin, Chicago physicist who created the hydrogen bomb and worked to see it wasn't used, dead at 97, by the Sun-Times' Mitch Dudek EVENTS — Tuesday: State Rep. Kam Buckner is holding his Buckner Blues Bash. Details here — Saturday and Sunday: The Fort de Chartres Rendezvous, an annual tradition in Randolph County, takes place at the Fort de Chartres State Historic Site. Details here TRIVIA FRIDAY's ANSWER: Congrats to Ron Silver for correctly answering that Chicago's Monadnock Building is the tallest load-bearing brick building ever constructed. TODAY's QUESTION: Which boxing champion lost to Muhammad Ali and later ran for Chicago alderman? Email skapos@ HAPPY BIRTHDAY Congresswoman Delia Ramirez, business consultant Sonya Jackson, attorney Pejman Yousefzadeh, Kieloch Consulting Congressional Services Director Hannah Botelho, labor insider and lobbyist Alison Howlett, Tribune columnist Clarence Page, comms adviser Lauren Pulte and Dave Neal, legal chief for the State's Attorneys Appellate Prosecutor, who turns 70 -30-
Los Angeles Times
17-05-2025
- Business
- Los Angeles Times
Newsom says bailing L.A. out of budget crisis is ‘nonstarter.' Bass remains hopeful
For anybody confused about whether Gov. Gavin Newsom planned to come to Los Angeles' rescue Wednesday when he announced his May revision to the state budget, a clue could be found on the front page of his spending plan. In an AI-generated image, the budget cover page featured the Golden Gate Bridge and the San Francisco skyline, along with office workers who appear to be chatting it up in a forest glade next to an electric vehicle charging station. Not a hint of Los Angeles was anywhere to be seen. Deeper in the budget proposal, no salvation was found for L.A. And at a news conference Wednesday, Newsom said flatly that he did not plan to provide cash to help dig the city out of its budget hole. The city is facing a $1-billion shortfall due to inflated personnel costs, higher than ever liability lawsuit payouts and below-expected revenues. 'The state's not in a position to write a check,' Newsom said. 'When you're requesting things that have nothing to do with disaster recovery, that's a nonstarter ... I don't need to highlight examples of requests from the city and county that were not related to disaster recovery and this state is not in a position, never have been, even in other times, to address those requests, particularly at this time.' The governor's rejection of Mayor Karen Bass' pleas for state aid came as he discussed the state's own economic woes. The state is confronting a $12-billion budget deficit in part due to a 'Trump Slump,' Newsom said. The governor had to make cuts to his own signature program offering healthcare to immigrants without proper documentation. The governor made sure to remind reporters Wednesday that the state had been more than willing to help with fire recovery efforts, but said that was the limit of its generosity. Newsom said that of the $2.5 billion offered to Los Angeles after the fires, more than $1 billion remained unused. That funding helped with emergency response and initial recovery from the January wildfires. Despite Newsom's edict, Bass didn't appear ready to throw in the towel. She said she and the governor were 'in sync' and in regular contact about the situation. State money to help with the budget crisis would be fire-recovery-related, Bass insisted. 'We had to spend a great deal of money of our general fund related to the wildfires. If we are able to get that reimbursed that relieves some of the pressure from the general fund,' Bass said in an interview with The Times. 'We submitted a document to him where we are asking him if the state would be willing to give us the money up front that FEMA will reimburse — so we are requesting 100% fire-related.' Bass visited Sacramento in March and April. She and L.A. legislators first requested $1.893 billion in state aid to help with the budget crisis and disaster recovery. The mayor has since pared down the request, but the amount she is now requesting is not public. In the initial request, they asked for $638 million for 'protecting city services under budgetary strain.' That request is likely dead. But the $301-million request for 'a loan to support disaster recovery expenses pending FEMA reimbursement' still stands. Bass said she most recently met with the governor two weeks ago, and he informed the mayor that the state's financial situation was not looking good. The revision is just a starting point for final budgetary negotiations between the governor and the Legislature, and the state budget won't be completed until at least mid-June, weeks after the deadline for the City Council to approve its own budget. 'We have 36 members of the L.A. delegation fighting for the city and we'll just have to wait and see what happens in June,' said Assemblymember Tina McKinnor, who chairs the Los Angeles County Legislative Delegation. McKinnor said she is confident that the state budget will have money not just for fire recovery, but also to help the city manage its broader financial woes. 'We will not fail L.A.,' McKinnor said. With the state lifeline in serious doubt, the cuts the city will have to make to balance its budget took another step toward reality. While Bass is still hopeful for state aid, the council seemed less hopeful. 'We expected and planned for this outcome, but that doesn't make it any less frustrating. The governor's decision to withhold support from California's largest city after we experienced the most devastating natural disaster in the state's history is a serious mistake, with consequences for both our long-term recovery and the strength of the state's economy,' said Katy Yaroslavsky, who chairs the council's budget committee. 'This will not be a 'no-layoff' budget,' Yaroslavsky said on May 8 at a budget hearing. Bass stressed that she is still trying to avoid any layoffs. The city plans to avert further layoffs by transferring employees to the proprietary departments, like the harbor, the airport and perhaps the Department of Water & Power. 'We're all working very, very hard with the same goal in mind and that is having a balanced, responsible budget that avoids laying off city workers,' she said Thursday. — MOURNING ONE OF CITY HALL'S OWN: Former chief of staff to Councilmember Kevin de León and longtime L.A. politico Jennifer Barraza Mendoza died Tuesday at 37 following a long battle with cancer. Barraza Mendoza began her career organizing with SEIU Local 99, helped lead De León's Senate campaign and also served as a principal at Hilltop Public Solutions, among other roles. 'In a political world of shapeshifters, she stood out as fiercely loyal and guided by principle,' De León said in a statement. 'She never sought the spotlight — but when tested, she rose with unmatched strength to protect her team, her community, and what she knew was right.' — MINIMUM WAGE WAR: The City Council voted Wednesday for a sweeping package of minimum wage increases for hotel workers and employees of companies at Los Angeles International Airport. One hotel executive said the proposal, which would take the wage to $30 in July 2028, would kill his company's plan for a new 395-room hotel tower in Universal City. Other hotel companies predicted they would scale back or shutter their restaurant operations. The hotel workers' union countered by saying business groups have made similar warnings in the past, only to be proved wrong. — SECOND TIME'S A CHARM: Surprise! On Friday, the City Council had to schedule a do-over vote on its tourism wage proposal. That vote, called as part of a special noon meeting, came two days after City Atty. Hydee Feldstein Soto's office warned that Wednesday's vote had the potential to violate the city's public meeting law. — READY TO RELAUNCH: Councilmember Eunisses Hernandez plans to host her campaign kickoff event for her reelection bid Saturday in Highland Park, where she was born and raised. She already has a few competitors in the race, including Raul Claros, who used to serve on the Affordable Housing Commission, and Sylvia Robledo, a former council aide. The left-wing councilmember has already won the endorsements of Council President Marqueece Harris-Dawson and from colleagues Heather Hutt, Ysabel Jurado, Hugo Soto-Martinez and Nithya Raman. Controller Kenneth Mejia also endorsed her. — PHOTO BOMB: Recently pictured with Eunisses Hernandez: Political consultant Rick Jacobs — the former senior aide to then-Mayor Eric Garcetti who was accused of sexual harassment. Jacobs now works as a consultant for the politically powerful Southwest Regional Council of Carpenters. Per a post on Jacobs' LinkedIn, Hernandez posed for a photo this week with Jacobs and several union members while presenting the group with a city certificate of recognition. Jacobs has denied the harassment allegations, but the scandal bedeviled Garcetti in his final years in office and nearly derailed his ambassadorship to India. Jacobs has remained in the political mix — some may remember his controversial appearance at Bass' exclusive 2022 post-inauguration Getty House afterparty. Also worth noting: The Carpenters are major players in local elections, and their PAC spent nearly $150,000 supporting Hernandez's then-opponent Gil Cedillo in the 2022 election. 'Councilmember Hernandez was proud to stand with the carpenters who built the little library at North East New Beginnings, the first-of-its-kind interim housing site she opened in 2024. She was there to honor their craftsmanship and community contribution — nothing more. She did not choose who else appeared in the photo,' said Naomi Villagomez Roochnik, a spokesperson for Hernandez. — PARK GETS AN OPPONENT: Public Counsel attorney Faizah Malik is challenging Councilmember Traci Park from the left, the tenants rights lawyer announced Thursday. Malik is styling her campaign in the mold of prior progressive incumbent ousters, she said, though she has yet to garner any of their endorsements. But she did get an Instagram signal boost from former CD 11 Councilmember Mike Bonin, who characterized her as 'A Westside leader who will fight for YOU and your family.' Meanwhile, centrist group Thrive LA had a fundraiser for Park this week, and declared her its first endorsement of the 2026 cycle. — FIREFIGHT: Active and retired firefighters blasted the council's recommendation to nix 42 'Emergency Incident Technicians,' who help develop firefighting strategy and account for firefighters during blazes. In a letter to the council, the firefighters said the 1998 death of firefighter Joseph Dupee was linked to removal of EITs during a previous budget crisis. 'Please do not repeat the same mistake that was made in 1998 when EITs were removed and said removal was found to be a contributing factor in the death of LAFD Captain Joseph Dupee,' the firefighters wrote. — EMPLOYMENT LAW AND ORDER: Some LAPD officers are hitting the jackpot on what are known as 'LAPD lottery' cases. The city has paid out nearly $70 million over the last three years to officers who have sued the department after alleging they were the victims of sexual harassment, racial discrimination or retaliation against whistleblowers. The massive payouts are not helping the city's coffers. One of the leading causes of the current fiscal crisis is the ballooning liability payments that the city makes in settlements and jury verdicts. — WATER OLYMPICS: L.A. County's plan to run a water taxi between Long Beach and San Pedro during the Olympics paddled forward this week. Supervisor Janice Hahn introduced a motion, with co-author Mayor Bass, to launch a feasibility study assessing ridership demand, cost and possible routes. '[The water taxi] would give residents, workers and tourists an affordable alternative to driving and parking at these Games venues,' Hahn said. — ROBO-PERMIT: City and county residents submitting plans to rebuild their burned down properties could have their first interaction with an AI bot who would inspect their plans before a human. Wildfire recovery foundations purchased the AI permitting software, developed by Australian tech firm Archistar, and donated it to the city and county. The tech was largely paid for by Steadfast L.A., Rick Caruso's nonprofit. — TRUMP'S VETS MOVE: President Trump signed an executive order calling on the Department of Veterans Affairs to house up to 6,000 homeless veterans on its West Los Angeles campus, but even promoters of the idea are skeptical of the commander in chief's follow-through. 'If this had come from any other president, I'd pop the Champagne,' said Rep. Brad Sherman (D-Sherman Oaks), whose district includes the West Los Angeles campus. Trump, he said, follows up on 'like one out of 10 things that he announces. You just never know which one. You never know to what extent.' — ADDRESSING THE ELEPHANTS IN THE ROOM: A Los Angeles County Superior Court judge denied a motion for a temporary restraining order Thursday that sought to stop the L.A. Zoo from transferring elephants Tina and Billy to the Tulsa Zoo. The judge said the decision was out of the court's purview. The zoo said Thursday that the 'difficult decision' to relocate the pachyderms was made with the 'care and well being' of the animals at top of mind. 'Activist agendas and protests are rightfully not a consideration in decisions that impact animal care,' the statement said. — CHARTER SQUABBLE: Bass made her four appointments to the Charter Reform Commission this week. She selected Raymond Meza, Melinda Murray, Christina Sanchez and Robert Lewis to serve as commissioners. She also named Justin Ramirez as the executive director of the commission. Bass's appointments came on the heels of reform advocate Rob Quan sending out mailers about the mayor's delay in making appointments, which left the commission unable to get to work. 'Karen Bass wasted eight months. That was when her appointments were due. Eight months ago,' Quan said in an interview. — WORKDAY TROUBLE: The Department of Water and Power is slated to adopt a new human resources software, Workday, in mid-June. But Gus Corona, business manager of IBEW Local 18, warned of 'serious concerns' and the potential for 'widespread problems and administrative chaos.' In a letter this week to DWP CEO Janisse Quiñones, which The Times obtained, Corona said there was a 'consistent lack of clarity' about the new system, especially around union dues and benefit deductions, retroactive pay and cost of living adjustments. 'The level of uncertainty so close to a planned launch date is deeply troubling,' Corona wrote. That's it for this week! Send your questions, comments and gossip to LAontheRecord@ Did a friend forward you this email? Sign up here to get it in your inbox every Saturday morning.
Bloomberg
15-05-2025
- Business
- Bloomberg
Newsom Rethinks Budget Under ‘Trump Slump'-Inflicted Deficit
Welcome to Bloomberg's California Edition—covering all the events shaping one of the world's biggest economies and its global influence. Join us each week as we put a unique lens on the Golden State. Sign up here if you're not already on the list. Gavin Newsom kicked off the year expecting California lawmakers to have a modest surplus to help shape next year's budget. Instead, the state has plunged into a $12 billion deficit —a turnaround Newsom blames on a tariff-induced 'Trump Slump.'
CBS News
15-05-2025
- Business
- CBS News
Gov. Newsom blames Trump policies for $12 billion California budget deficit
SACRAMENTO — Gov. Gavin Newsom on Wednesday announced his revised $332 billion state spending proposal, revealing that California is facing a $12 billion budget deficit. Under the governor's revised proposal, California would scale back state Medi-Cal coverage for immigrants without legal status, fast-track a project to tunnel water from Northern to Southern California, eliminate coverage for certain weight loss drugs and use money from a key climate program to help fund state fire response. Newsom, a Democrat, blamed President Donald Trump's tariff policies for the budget hole, a volatile stock market causing a decline in revenues from wealthy taxpayers, and a reduction in global tourism. "California's fundamental values don't change just because the federal winds have shifted," Newsom said in a statement. "Even as the Trump Slump slows the economy and hits our revenues, we're delivering bold proposals to build more housing, lower costs for working families, and invest in our kids." California is required by law to balance its budget every year. Newsom first unveiled a plan in January without a projected shortfall. His revised proposal now heads to state lawmakers, who have until mid-June to negotiate before a final budget act must be passed. Here is a look at some of what Newsom is proposing: Health care and human services Under Newsom's plan, California would pause enrollment for low-income adult immigrants without legal status and, beginning in 2027, require eligible adults to pay a $100 monthly premium. Newsom estimated the changes would save the state $5.4 billion by the 2028-2029 fiscal year. California would pause enrollment for low-income adult immigrants without legal status and, beginning in 2027, require eligible adults to pay a $100 monthly premium. Newsom estimated the changes would save the state $5.4 billion by the 2028-2029 fiscal year. Newsom also wants to stop using revenues from a tobacco tax to pay dental, family planning and women's health providers. The revenues from the tax have declined close to 40% between 2017 and 2024 and can no longer make those payments without using the general fund, a state Department of Finance spokesperson said. The proposal would save at least $500 million a year. But that would also cut California Planned Parenthood's budget by a third, the organization said. The group is heavily critical of the proposed cut. "It's cruel, quite frankly, especially during this time that we're fighting at the federal level as well," said Jodi Hicks, president and CEO of Planned Parenthood Affiliates of California and a Newsom ally. The governor also proposed eliminating state health care coverage for certain drugs used for weight loss beginning in January 2026, which would save an estimated $85 million for the upcoming fiscal year and $680 million by fiscal year 2028-2029. The state would also delay the repayment of a $3.4 billion loan for state Medicaid providers under Newsom's plan. Newsom plans to cut spending for a program providing in-home domestic and personal care services for some low-income residents and Californians with disabilities by capping workers' overtime and travel hours at 50 hours per week. The move would reduce spending by nearly $708 million for the upcoming fiscal year. Environment Gov. Newsom announced a plan to fast-track a project to create a massive underground tunnel to reroute a big part of the state's water supply. The Delta Conveyance Project would tunnel water from the Sacramento-San Joaquin River Delta to Southern California. Newsom says the project, which has received pushback from the governor's own party, is essential to avoiding future water disasters. The California Department of Water Resources says the project would provide clean and affordable water to 27 million people in the southern part of the state. Newsom also wants to reauthorize the state's cap-and-trade program through 2045. The program aims to reduce emissions from industrial sources over time through market-based mechanisms, and it is set to expire in 2030. Money generated through auctions of credits needed to pollute goes into a fund that lawmakers tap for climate-related spending and the state's high-speed rail project. Newsom proposed tapping $1.5 billion from that fund for the state fire department. He said the shift would help ensure carbon emitters help pay for the state's response to fires intensified by climate change. His proposal would also ensure $1 billion annually for the state's long-delayed high-speed rail project. The project now receives 25% of the cap-and-trade fund money, which ends up being a little more or a little less than a billion annually depending on the year. Environmental groups called on Newsom to back proposals aimed at making fossil fuel companies pay the state for damages linked to climate change. The money would be used in part to support the state's response to climate-driven natural disasters. Public Safety Newsom proposed closing another state prison by October 2026 to save $150 million annually. Newsom has already approved the closure of three prisons since 2019. The state's prison population has declined over the years, even after voters last year passed a tough-on-crime ballot measure that could incarcerate more people, according to Newsom's budget plan. Newsom didn't specify which facility would shutter. The budget proposal did not include funding to implement the voter-approved initiative that makes shoplifting a felony for repeat offenders again, increases penalties for some drug charges and gives judges the authority to order people with multiple drug charges to get treatment.
The Sun
15-05-2025
- Health
- The Sun
Newsom floats cutting free healthcare for some migrants in California
LOS ANGELES: California's Democratic Governor Gavin Newsom on Wednesday proposed eliminating free healthcare for undocumented migrants in what he said was an effort to balance a budget battered by Donald Trump's erratic governance. The move is the latest sign of political moderation from a man believed to have White House ambitions, who is looking to soften his image among conservative voters and distance himself from a reputation as a free-spending liberal helming a state where migration is out of control. Newsom told a press conference that California should freeze admission to the public Medi-Cal program for undocumented people starting next year, and should charge those already enrolled $100 per month. 'We're not cutting or rolling back those that enrolled in our medical system. We're just capping it, particularly for those without documentation,' he said. Almost 11 percent of the 15 million Medi-Cal recipients are undocumented, Newsom said. In March, the California state legislature reported that opening Medi-Cal to undocumented immigrants -- which began in 2023 -- had cost $2.7 billion more than expected in 2024. The program's costs have also been bloated by high drug prices, including a growing demand for weight control prescriptions. 'Trump Slump' Trimming eligibility for Medi-Cal and cutting back on drug availability could save the state approximately $5.4 billion over the coming years, Newsom's office said. He presented the idea as part of an overall plan to make up a $12 billion shortfall in California's budget. Newsom said the state's financial situation was due in part to the impact of President Donald Trump's volatile tariff policies, which have walloped California, the world's fourth largest economy, and one that is heavily exposed to international trade and tourism. The state's revenues for the first 18 months of Trump's presidency were expected to be $16 billion lower than they would have been without the volatility, a fall he dubbed the 'Trump Slump.' Economists say the US economy as a whole is expected to take a hit from the uncertainty generated by the sudden policy lurches from the White House, with business leaders unwilling to invest and consumers increasingly wary of spending. California last month sued the Trump administration over the tariffs, saying the president did not have the ability to impose taxes on imports unilaterally, a power the lawsuit said rests only with Congress. Wednesday's announcement dovetails with Newsom's push to present himself as a fiscally responsible alternative to Trump, while trying to keep pace with the national mood on immigration. But he faces a tough balancing act in a state where a majority of voters support providing healthcare to undocumented migrants. 'California is under assault. The United States of America, in many respects, is under assault because we have a president that's been reckless in terms of assaulting those growth engines,' he told reporters. 'It's created a climate of deep uncertainty,' he added. 'This is a Trump Slump all across the United States, reflected in adjustments by every independent economist, by leading banks, by institutions.' Local Republicans hit back Wednesday, characterizing the budget shortfall as Democratic Party overspending that disproportionately benefits migrants. 'I urged the governor to immediately freeze his reckless Medi-Cal expansion for illegal immigrants a year and a half ago, before it buried our healthcare system and bankrupted the state,' state Senate Minority Leader Brian Jones said. 'With a massive deficit largely driven by this policy, our focus should be on preserving Medi-Cal for those it was originally designed to serve.'
