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In summary
Down the hall from where Gov. Gavin Newsom bragged about his proposal for a balanced biennial budget, California lawmakers began quickly beating back their colleagues’ expensive proposals.
If you’re just a bill sitting on “Capitol Hill” in Sacramento, the last place you want to be is in the Legislature’s dreaded “suspense file.”
Known as most secret and twice-yearly fast-track hearings, the day of impasse files is a frenzy where the chairmen of the House and Senate Appropriations Committees quickly and quietly shelve legislative proposals in the name of spending cuts.
Often chairs are more ruthless during years of budget trouble.
But despite a a rosier budget picture from Gov. Gavin Newsompresented Thursday just down the hall from the appropriations hearings, lawmakers largely halted any new spending programs that had no way of financing themselves.
Both chambers rejected about a quarter of the bills for consideration – 90 out of 332 in the Senate and 169 out of 637 in the assembly.
“We are working to fulfill our enduring promise to serve all Californians by acting with fiscal responsibility,” the senator said. Sabrina Cervantesthe new chairman of the Appropriations Committee, appointed this year by the Senate President Pro Tem Monique Lemonin a statement after the court hearing.
Uncertainty files are where appropriations committees send bills that would cost the state at least $50,000 in the Senate and $150,000 in the Assembly. The process was originally a way for lawmakers to consider policy proposals that cost the state money, balancing them against each other.
But it’s also an opportunity for lawmakers to quietly nix controversial bills, appease powerful special interests without fanfare and lighten their workloads. Lawmakers decide in advance, in secret, which bills to pass to the other chamber and which to reject. Public hearings are rapid publicizing of decisions.
One measure would have provided property tax relief to low- and moderate-income households. Another would establish a special utility rate for data centerswhich use so much water and electricity that they run out of supplies and raise prices for nearby communities. Another failed measure would provide tax credits to homeowners who have “hardened” their homes against wildfires.
An additional wildfire prevention measure would instruct Cal Fire, the state’s wildland fire service, to prioritizes vegetation management in areas where there is a high concentration of homeowners who rely on The state’s FAIR plan or plan of last resort, for insurance.
And the committee delayed a bill from Sen. Scott Wiener that would be released clean and renewable energy transmission projects from California’s landmark Environmental Review Act.
Like Newsom in his governorship’s final budget presentation, lawmakers blamed state finances on Trump and federal decisions stemming from the Republican-controlled Congress.
In the Assembly a closely watched bill seeking to repeal a tax breaks for multinational companies was removed from the agenda before the court hearing. He sought to repeal a law known as the “water mark” that allowed multinational companies to avoid paying taxes on overseas income. the proposal Assembly Bill 1790is supported by unions and opposed by business groups.
Assembly Appropriations Chairman Buffy Weeks said the proposal would be discussed as part of the budget negotiations.
“I think a lot of things are going to shake out in the next month in terms of what the budget looks like, in terms of what’s on the ballot,” Weeks said after the hearing.
It’s among a handful of proposals — including a ballot initiative to tax billionaires — to address the billions of dollars in federal funding the state is expected to lose next year.