California legislators stop hundreds of accounts as deficits


Several MPs and State Capitol staff sit behind daisies with two orders during a legislative hearing. A large oval image of the seal of the state installation of California can be seen hung on the wall behind them.
Assemblys are found during a hearing of a tension file in the Capitol swinging space in Sacramento on May 23, 2025. Photo of Fred Greaves for Calmatters

State legislators stopped hundreds of bills with new advantage costs on Friday. Why? The legislature has again suffered its comparatively opaque process Known as the “voltage file”. It is expected to hang over legislators’ heads A state budget deficit of $ 12 billion This is envisaged to get worse due to federal tariffs and increased government spending.

Committees for Budget Loans of Assembly and Senate conduct these proceedings twice a year. Calm Jean Quang and Yue Stella Yu Explain, 32% of 1098 measures were carried out on Committees on Friday – Which means that these proposals are essentially dead or delayed for the year.

  • Assembly Buffy WicksDemocrat from Ouckland and Chairman of the Committee on Budget Loans of the Assembly: “Very good bills will fall to the road today. We are not in a year where we can expand programs, develop new offices, new agencies, new departments and expand our prints.”

The Assembly trimmed approximately the same number of accounts as last May, while the Senate accumulated slightly higher percentage of the bills (29% compared to 25.5% in 2024), According to the longtime lobbyist Chris MichelliS

Some remarkable bills that did not progress included those that would expand health services as a federal -approved seeking proposal to cover some housing services under Medi-CalInsurance program for low-income residents and another to allow more patients with Medi-Cal to Get home careS

Two crime bills, Both introduced by RepublicansThey were also spied. A person would ban some prisoners from being released early Through the Conditional Exemption Programand the other would increase penalties for Giving fentanyl to minorsS

But Committees have adopted 742 other bills, including a proposal from a member of the Assembly Rick Znsod and supported by governor Gavin Newo Expand Tax Credit to the State Film IndustryS Although a language to increase the state’s tax credit to $ 750 million a year The bill was struck, the specific amount is expected to be smoothed during budget negotiations, said ZHSC, Democrat from Los Angeles.

The bills that survived Friday will face another obstacle next week, when they have to get out of the House – Assembly or the Senate – where they were introduced.

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A large country’s deficit by 2029

A man wearing a seaside suit is behind Lesterne during a press conference. The California seal, the state flag and the US flag can be seen behind them.
Governor Newsom reveals its processed budget proposal 2025-26 in the Capitol swinging space in Sacramento on May 14, 2025. Photo from Fred Greaves for CalMatters

The service of the non -partisan legislative analyzer agree with the Newsom Administration The fact that the state is “likely to face a constant future deficit”, which is expected to range from $ 10 billion to $ 20 billion over the next four years.

The last destruction of the number of the analyst’s cabinet was dropped on Saturday, a typical event, which follows the detection of the governor earlier this month from his updated state budget plan, which also predicted years of operational deficit in tens of billions.

One of Newsom’s key suggestions to help reduce costs and include the budget opening is to limit new recipients of Medi-Cal, especially freezing adult enrollment Immigrants who have no constant legal statusS The service recommends that the legislature “maintains at least the level of current decisions” as proposed by the governor, but may adopt “additional decisions” in anticipation of future deficits.

Some good news: Due to a little higher revenue estimates, the analyst’s office designs that this year the budget state will improve by nearly $ 2 billion compared to the administration’s estimate. But uncertain “changes to the federal budget” are likely to add more financial pressure to the state, according to the service.

All this information will shape the discussions between legislators and Newsom as they create a budget deal for next year until the end of June.

How the Federal Budget Bill can affect Medi-Cal

The Capitol building in the United States is in the lower center of the frame, with branches of trees curved on each side of the building.
The US Capitol building views from the National Mall in Washington, County Colombia on April 4, 2025. Photo of Samuel Corum, AP

Talking about “Changes to the Federal Budget”, the Republican Chamber of Republics of US Representatives last week, has expanded the budget package that can have major effects on millions of low -income Californians recorded in Medicaid.

On a national scale, Bill Guts Medicaid Cost of $ 700 billionwhich can lead to loss of California up to $ 20 billion a year and 217,000 jobs, according to April analysis of UC Berkeley Labor CenterS

To reduce costs, the bill offers cutting For countries that provide coverage of immigrants without legal status which would affect CaliforniaS This will also limit the number of new participants from imposing proof of working hoursS

Around 15 million Californians are on Medi-Cal, the application of the Medicaid state. But rudely 29% of Medi-Cal recipients are unable to work due to care of care, school, disability or other reasons. The new job requirements could endanger the coverage of 3.5 million Californians according to A Budget and Policy Priority Center Analysis.

The Chamber advanced the bill, with all 43 California Democrats voted against it and all nine GOP members – who represent a total of 2.5 million students Medi-Cal – Voting for this. At least Right group In California, the redundancies are justified to limit federal costs.

US Senate must approve the bill, but some GOP senators say the bill Do not cut enough To deal with national debt.

Finally: Fire resistant neighborhood in California

Two -storey house in beige and brown tones. Sign entitled "Fire resistant" In addition to the additional information, it was placed on the front meadow of the house.
Model home in the Dixon Trail neighborhood in Escondido on April 24, 2025. Photo from Adriana walk, Calmatters


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Lyn La is a writer of a CalMatters newsletter, focusing on the best political, political and Capitol stories in California every weekday. It produces and treats Whatmatters, the flagship daily newsletter of Salmatters …

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