5 things to know about CA Democrats’ $356 billion state budget

from Yue Stella YuCalMatters

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California lawmakers are expected to pass $356 billion state budget today it will largely avoid or delay billions of dollars in cuts to social services The government Gavin Newsom proposed last month.

Then the (real) budget negotiations can begin.

Today’s vote is only a formality, as lawmakers are constitutionally required to pass a balanced budget by June 15 each year to continue receiving their salaries. They have until the end of the month to strike a deal with Newsom before the new fiscal year begins on July 1.

Over the next two weeks, lawmakers will have to settle their differences with Newsom on health care cuts, school funding and homelessness, and more.

Here are five takeaways from the Legislature’s spending plan:

Punt and mitigate health care cuts

Facing federal funding cuts under the tax-and-spend law that President Donald Trump signed last year, Newsom proposed several measures to limit health coverage for undocumented immigrants, as well as refugees, asylum seekers, and survivors of human trafficking.

Top legislative Democrats want to delay those cuts for a year while they look for alternatives to mitigate the impact.

Newsom also wants to raise the monthly Medi-Cal premium that undocumented immigrants pay from $30 to $50. But lawmakers prefer to wait it out, proposing to leave the decision to the next governor.

“I don’t think it’s about Gavin Newsome,” Sen said. John Lairda Santa Cruz Democrat who chairs the budget committee. “It’s really about trying to stretch as much as we can in the hope that we don’t have to make these cuts.”

The Legislature rejected Newsom’s proposal to reinstate the strict Medi-Cal asset tests for seniors and adults with disabilities until July, instead placing a less restrictive limit to take effect in the 2027-28 fiscal year. With bipartisan support, lawmakers also rejected Newsom’s proposed cuts to the Home Support Services program.

However, they agreed with Newsom’s spending plan 300 million dollars to subsidize private health care for low-income Californians.

Reimbursement of some child care, TK-12 money

Democratic lawmakers want to add 22,000 publicly funded child care spaces over the next few years. They also rejected Newsom’s proposed cut to 6,800 state-supported spaces due to declining federal and state funding.

The new slots will give priority to children under the age of 3. Advocates who applauded the proposal say it will fill a gap that has been left unfilled Newsom’s transitional kindergarten expansion to reach 4-year-olds.

Betting on a rosier revenue forecast, state lawmakers proposed $2.7 billion more funding for TK-12 schools and community colleges than Newsom did in May.

Schools and educators hoped for more. They wanted the Legislature to reject Newsom’s proposal to withhold $3.9 billion in constitutionally guaranteed school money — an accounting mechanism to prevent schools from being overpaid in case projected revenue doesn’t materialize.

“We demand that the Legislature and the governor follow the law, stop the gimmicks and shell games, and fully fund our schools,” said David Goldberg, president of the California Teachers Association. “Our union is prepared to do whatever it takes to hold them accountable if they don’t. Our students deserve no less.”

More generous with counties

The Legislature’s spending plan would give counties more money to strengthen eligibility checks on Californians applying for food stamps and health benefits, reviews now required under Trump’s spending bill.

It also would allocate $125 million to help counties restore indigent care, a program serving low-income Californians that largely disappeared under Obamacare.

State lawmakers also want to set aside $900 million for the state’s homeless fund, while Newsom included only $500 million in his proposal.

More revenue please

Newsom has proposed three new tax measures, and lawmakers are on board with them:

The proposals come as California voters rejected most local tax initiatives in June’s primary election. But Newsom’s proposals do not require voter approval — just the support of two-thirds of each legislative chamber.

There is still an appetite among lawmakers to make corporations pay. Senate Democrats proposed a monthly fee for large employers to enroll employees in Medi-Cal, but have now backed away from the plan, instead asking the next governor to offer “fully viable options” next year.

Save more money for rainy days

There is consensus between the Legislature and the governor to raise the cap on the revenue the state can deposit into its rainy day fund. The question is how much. State leaders are constitutionally required to make deposits into the account each year, but the balance cannot exceed 10 percent of the state’s general fund tax revenue under current law.

Changing that amount would require voter approval. Lawmakers are considering putting a measure on the November ballot that would allow them to throw more money at lean years. They have a short deadline of June 25 to decide what they want to present to voters.

This article was originally published on CalMatters and is republished under Creative Commons Attribution-NonCommercial-No Derivatives license.