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California Legislature Passes Budget, Talks with Gov. Gavin Newsom to Continue
Lawmakers approved a budget that delays Medi-Cal cuts, adds 22,770 child care slots and sets aside $900 million for homelessness.
On Monday, California legislators advanced a $355.9 billion budget plan to meet the state's constitutional deadline while largely avoiding or delaying deep social service cuts Governor Gavin Newsom proposed last month.
Lawmakers are constitutionally required to pass a balanced budget by June 15 each year to receive their pay, a deadline the budget process follows after the Legislative Analyst's Office projected a $16.9 billion deficit.
Disagreeing with Newsom's austerity approach, the legislature earmarked $900 million for homelessness, rejected proposed childcare slot reductions, and added $2.7 billion more for TK-12 schools than the governor proposed.
With the new fiscal year beginning July 1, negotiations will continue over the next two weeks as legislators and the governor seek to resolve differences on healthcare and education funding.
Assembly and Senate members also voted to withhold $55 million from the California Department of Motor Vehicles over concerns about potential deportations, while supporting three new tax measures to bolster revenue.