Joe Bowers and Edward Henderson | California Black Media
On June 12, the California Legislature passed a $311.7 billion state budget.
In the Legislature’s proposal, some transit, climate change and childcare funding that Governor Newsom proposed cutting in his $306.5 billion spending plan, which was released in May, would be restored.
The Legislative Analyst’s Office projects that there will be a $34.5 billion deficit. To minimize the impact of this gap, the Legislature is proposing a mix of spending and revenue delays, cuts and shifts.
In their budget plan, lawmakers have chosen not to use $450 million from the state’s Safety Net Reserve unlike Newsom’s proposal. The plan rejects $2 billion in cuts to the Transportation Infrastructure Package. Bay Area and Los Angeles leaders were strong lobbyists for restoring the transportation funds. It also rejects a plan to delay funding for 20,000 subsidized child-care slots for low-income families and proposes releasing them on July 1, 2024. Lawmakers additionally committed $1 billion for another round of Homeless Housing, Assistance and Prevention grants.
If legislators had failed to approve a budget by June 15, they would not have gotten paid. However, negotiations with Newsom’s administration will continue through June 30. The governor must sign the final budget by July 1, the start of the new fiscal year.
The Governor and legislators will continue to make adjustments through trailer bills after that deadline.