NEWSOM, the legislator agrees to the California budget transaction


From Alexey KossefCalmness

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Legislators of their desks during a session of the Assembly in the State Capitol in Sacramento on May 23, 2025. Photo of Fred Greaves for CalMatters

This story was originally published by CalmattersS Register about their ballots.

Gavard Gavin Newo gave way to some of his Suggested abbreviations of health programs In a state budget deal, he reached with legislative leaders at the end of Tuesday, but California will move on with its plan to limit services to undocumented immigrants such as the state is confronted with a growing deficitS

The $ 321 billion cost plan is expected to pass before the legislature for approval later this week, before the beginning of July 1 of the fiscal year. With the increase in health costs faster than expected, the state economy rifled by new tariffs And a further reduction in federal funding is coming, employees have faced $ 12 billion, which necessitated difficult conversations about California’s costs.

Officials have not officially announced the transaction as they continue to pursue the details of a provision, which can optimize the construction of residential projects near public transport and the development of more consumer in cities. NEWSOM demanded the language that met resistance from the state Senate.

“We appreciate a strong partnership with the legislature in reaching this budget agreement,” said Easy Garden spokesman in a statement. “The governor’s signature depends on the finalization of the legislation on the reduction of bureaucracy and the deployment of residential construction and the development of infrastructure throughout the country – to build more, faster.”

Despite the legislature has already passed your own version From the budget earlier this month for compliance with the constitutional period, it relies more on loans and less programs than Newsom, which seeks to turn the course of the latest major extensions of subsidized health care to stabilize long-term finances in California.

The budget agreement has been proposed or delayed many of its proposals. Legislative leaders argued against Premature people from a vital safety network While looking for other solutions to deal with a permanent revenue gap, which is expected to reach more than $ 20 billion a year in the coming years.

With officials eventually agree with less cost reductions – reflecting a Hope from many legislators This economy in California will eventually come together-state will withdraw around $ 7 billion from its rainy day fund and $ 6.5 billion from other cash reserves to balance the budget next year.

Nevertheless, the plan freezes enrollment from adults without legal status in Medi-Cal, the State Health Insurance Program for the poor starting in January. Once California has gradually opened the program for this population last year, more new patients enrolled by expected, contributing to About $ 6 billion exceeds costs This required an emergency assignment of Medi-Cal this spring.

The budget transaction also eliminates the dental coverage for those who remain recorded, beginning in July 2026 and creates a $ 30 monthly premium for untouched patients with Medi-Cal between the ages of 19 and 59, who will come into force in July 2027.

But he rejects the abbreviations proposed by the governor of their long -term care benefits as well as for overtime work for home health assistants and funding for reproductive health suppliers and does not do so Restore a strict asset test This could push thousands of newly worn older and disabled Californians from Medi-Cal.

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Governor Gavin Newsom turns to the media during a press conference, revealing his revised budget proposal 2025-26 in the Capitol cradle space in Sacramento on May 14, 2025. Photo of Fred Greves for CalMatters

Public transit agencies and the University of California and the California State University also avoid the reduction of funding under this cost plan, although some of the money for university systems has been delayed and will be required to borrow from the State General Fund, in the meantime. The deal includes $ 45 million to help The State University of Sonoma State UniversityIn the region of the President of the Senate Pro Tem Mike McGuire to turn his financial woes.

Homes, homelessness retain funding

The legislature successfully insists that it reserves grants and loans for $ 620 million for home construction at affordable prices and $ 500 million to support local homelessness services and add $ 100 million in one -time financing for the counties to start applying 36, they claim to claim that they claim to be claim They claim that they claim that they claim that they claim that they claim that they claim that they claim that they are proposals for local government and law enforcement, they claim that they are law enforcement and law enforcement agencies. need a lot more help to apply the measurewhich was approved exclusively by voters last fall to increase penalties and impose treatment of certain drug crimes. Newsom remains against this approach, which he claims to return California to the mass imprisonment.

The budget transaction maintains its proposal for Close Fifth State Prison Until the next October, which could save approximately $ 150 million a year and more than doubles the amount of the movie’s tax credit and the California television up to $ 750 million, another Governor’s priority when production escapes from the stateS

The plan also relies on other shifts of internal funds, including targeting $ 1 billion raised by greenhouse gas pollutants through auctions for restriction and trade in order to pay for fire and vegetation management projects. Some legislators had objected to the use of money Designed to deal with climate change in this way.

The fate of this system of restriction and trade that Newsom had suggested to be allowed through the budgetand his controversial impetus to Fast tracking of the delta tunnel are among several significant political questions left unresolved to the agreement. They can still be considered in the budget budget tracking bills in the coming weeks or through the regular legislative process by the end of summer.

The governor still disagrees with the proposal for legislation to allocate up to $ 1.75 billion to local Los Angeles authorities and transit agencies for San Francisco Bay, which are engaged in their own budget crowns.

And all this can be revised again later this year or early next year, as California is carefully looking at a major federal tax bill that is still negotiated in the congress, which can lead to Profound and funding for nutrition. The liberal legislators of the state and the advocacy groups put pressure to raise state taxes to compensate for these losses, something Newsom has previously opposed.

This article was Originally Published on CalMatters and was reissued under Creative Commons Attribution-Noncommercial-Noderivatives License.

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