Sameea Kamal and Alexei Kossef at CalMatters

Just in time for the start of a new fiscal year July 1, Gov. Gavin Newsom and legislative leaders&nbsp;<a href="https://www.gov.ca.gov/2023/06/26/budget-agreement-2023-24/" target="_blank" rel="noreferrer noopener">announced Monday night</a>&nbsp;that they have reached a deal on the state budget—<a href="https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Floor%20Report%20of%20the%202023-24%20Budget%20%2006.26.23%20version.pdf" target="_blank" rel="noreferrer noopener">a $310 billion spending plan</a>&nbsp;that they say protects core programs and covers a $30 billion-plus deficit without dipping into key reserves.&nbsp;

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Just in time for the start of a new fiscal year July 1, Gov. Gavin Newsom and legislative leaders&nbsp;<a href="https://www.gov.ca.gov/2023/06/26/budget-agreement-2023-24/" target="_blank" rel="noreferrer noopener">announced Monday night</a>&nbsp;that they have reached a deal on the state budget—<a href="https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Floor%20Report%20of%20the%202023-24%20Budget%20%2006.26.23%20version.pdf" target="_blank" rel="noreferrer noopener">a $310 billion spending plan</a>&nbsp;that they say protects core programs and covers a $30 billion-plus deficit without dipping into key reserves.&nbsp;

The deal includes a plan to help public transit agencies still reeling from plummeting ridership during the pandemic. While Newsom’s May budget proposal failed to provide any assistance for&nbsp;<a href="https://calmatters.org/politics/capitol/2023/04/public-transit-california/" target="_blank" rel="noreferrer noopener">transit agencies facing a “fiscal cliff</a>,” and delayed $2 billion in construction projects, the Legislature rejected that move and&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/06/california-transit-budget/" target="_blank" rel="noreferrer noopener">proposed an additional $1.1 billion</a>&nbsp;over the next three years from the state’s cap-and-trade funds.&nbsp;

The deal includes a plan to help public transit agencies still reeling from plummeting ridership during the pandemic. While Newsom’s May budget proposal failed to provide any assistance for&nbsp;<a href="https://calmatters.org/politics/capitol/2023/04/public-transit-california/" target="_blank" rel="noreferrer noopener">transit agencies facing a “fiscal cliff</a>,” and delayed $2 billion in construction projects, the Legislature rejected that move and&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/06/california-transit-budget/" target="_blank" rel="noreferrer noopener">proposed an additional $1.1 billion</a>&nbsp;over the next three years from the state’s cap-and-trade funds.&nbsp;

The deal includes a total of $5.1 billion over four years—restoring the full $4 billion for construction and adding the $1.1 billion from cap-and-trade—with complete flexibility for agencies to use the money for operations as well as construction, subject to accountability measures and state oversight.&nbsp;

The deal includes a total of $5.1 billion over four years—restoring the full $4 billion for construction and adding the $1.1 billion from cap-and-trade—with complete flexibility for agencies to use the money for operations as well as construction, subject to accountability measures and state oversight.&nbsp;

“Public transportation is easy to take for granted, but allowing it to collapse would have been devastating for our state’s future,” state Sen.&nbsp;<a href="https://calmatters.org/legislator-tracker/scott-wiener-1970/" target="_blank" rel="noreferrer noopener">Scott Wiener</a> said in a statement. “This budget extends a critical lifeline that will help transit agencies maintain service while making critical improvements to cleanliness and safety.”

“Public transportation is easy to take for granted, but allowing it to collapse would have been devastating for our state’s future,” state Sen.&nbsp;<a href="https://calmatters.org/legislator-tracker/scott-wiener-1970/" target="_blank" rel="noreferrer noopener">Scott Wiener</a> said in a statement. “This budget extends a critical lifeline that will help transit agencies maintain service while making critical improvements to cleanliness and safety.”

But that money only gets transit agencies through the next few years.

But that money only gets transit agencies through the next few years.

To supplement funding for Bay Area transit agencies, Wiener announced Monday a coalition of Bay Area lawmakers to co-author&nbsp;<a href="https://sfstandard.com/transportation/bay-area-traffic-bridge-toll-hike-scott-wiener/">Senate Bill 532,</a> which would increase tolls on seven Bay Area bridges for five years by $1.50. That would yield about $180 million annually, most of which would be required to be used for maintaining current service levels, while 10% could go toward improvements.

To supplement funding for Bay Area transit agencies, Wiener announced Monday a coalition of Bay Area lawmakers to co-author&nbsp;<a href="https://sfstandard.com/transportation/bay-area-traffic-bridge-toll-hike-scott-wiener/">Senate Bill 532,</a> which would increase tolls on seven Bay Area bridges for five years by $1.50. That would yield about $180 million annually, most of which would be required to be used for maintaining current service levels, while 10% could go toward improvements.

The bill would also give counties and transit agencies time to organize regional bond measures. (That coalition doesn’t include state Sen.&nbsp;<a href="https://calmatters.org/legislator-tracker/steven-glazer-1957/" target="_blank" rel="noreferrer noopener">Steve Glazer</a>, a fellow Democrat from Orinda, who opposes further investment in Bay Area transit until more oversight is in place).&nbsp;

The bill would also give counties and transit agencies time to organize regional bond measures. (That coalition doesn’t include state Sen.&nbsp;<a href="https://calmatters.org/legislator-tracker/steven-glazer-1957/" target="_blank" rel="noreferrer noopener">Steve Glazer</a>, a fellow Democrat from Orinda, who opposes further investment in Bay Area transit until more oversight is in place).&nbsp;

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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">My statement: Transit riders and taxpayers have witnessed first hand the trail of broken promises by advocates for bridge toll increases. We know from hard-learned experience that new funding does not ensure proper oversight and accountability at BART. 1/&mdash; Steve Glazer (@Steve_Glazer) <a href="https://twitter.com/Steve_Glazer/status/1673403568089616387?ref_src=twsrc%5Etfw">June 26, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

<a href="https://www.gov.ca.gov/2023/06/26/budget-agreement-2023-24/" target="_blank" rel="noreferrer noopener">The governor and legislative leaders also touted</a>&nbsp;that they were able to preserve money for education and social service programs, and increase money for childcare providers.

<a href="https://www.gov.ca.gov/2023/06/26/budget-agreement-2023-24/" target="_blank" rel="noreferrer noopener">The governor and legislative leaders also touted</a>&nbsp;that they were able to preserve money for education and social service programs, and increase money for childcare providers.

Newsom also noted that the budget includes accountability measures for transit and homelessness, and tax credits for some industries.&nbsp;

Newsom also noted that the budget includes accountability measures for transit and homelessness, and tax credits for some industries.&nbsp;

“This is a budget for the future,” said Assembly Speaker&nbsp;<a href="https://calmatters.org/legislator-tracker/anthony-rendon-1968/" target="_blank" rel="noreferrer noopener">Anthony Rendon</a>, a Lakewood Democrat who is scheduled to hand over the speaker’s gavel to Assemblymember&nbsp;<a href="https://calmatters.org/legislator-tracker/robert-rivas-1980/" target="_blank" rel="noreferrer noopener">Robert Rivas</a>, a Salinas Democrat, on Friday&nbsp;<a href="https://calmatters.org/politics/2022/11/california-legislature-assembly-speaker-deal/" target="_blank" rel="noreferrer noopener">under a negotiated transition</a>.&nbsp;&nbsp;

“This is a budget for the future,” said Assembly Speaker&nbsp;<a href="https://calmatters.org/legislator-tracker/anthony-rendon-1968/" target="_blank" rel="noreferrer noopener">Anthony Rendon</a>, a Lakewood Democrat who is scheduled to hand over the speaker’s gavel to Assemblymember&nbsp;<a href="https://calmatters.org/legislator-tracker/robert-rivas-1980/" target="_blank" rel="noreferrer noopener">Robert Rivas</a>, a Salinas Democrat, on Friday&nbsp;<a href="https://calmatters.org/politics/2022/11/california-legislature-assembly-speaker-deal/" target="_blank" rel="noreferrer noopener">under a negotiated transition</a>.&nbsp;&nbsp;

If all goes to plan, the main budget bill will be approved by both the Assembly and Senate today&nbsp;and signed by Newsom soon after.&nbsp;The Legislature began publishing&nbsp;a series of budget-related bills—reflecting agreements in specific policy areas—online Saturday morning to fulfill a requirement that they be available for public review for 72 hours before any votes.

If all goes to plan, the main budget bill will be approved by both the Assembly and Senate today&nbsp;and signed by Newsom soon after.&nbsp;The Legislature began publishing&nbsp;a series of budget-related bills—reflecting agreements in specific policy areas—online Saturday morning to fulfill a requirement that they be available for public review for 72 hours before any votes.

Democratic lawmakers&nbsp;<a href="https://calmatters.org/politics/2023/06/california-budget-legislature-2/" target="_blank" rel="noreferrer noopener">already passed a budget</a>, reflecting their own priorities, on June 15 in order to meet a constitutional deadline. That kicked off a 12-day window for Newsom to sign or veto the bill, increasing pressure on the two sides to reach a deal by Tuesday.

Democratic lawmakers&nbsp;<a href="https://calmatters.org/politics/2023/06/california-budget-legislature-2/" target="_blank" rel="noreferrer noopener">already passed a budget</a>, reflecting their own priorities, on June 15 in order to meet a constitutional deadline. That kicked off a 12-day window for Newsom to sign or veto the bill, increasing pressure on the two sides to reach a deal by Tuesday.

This year’s negotiations were more fraught due to a $31.5 billion deficit, a sharp contrast with&nbsp;<a href="https://calmatters.org/explainers/california-budget-whiplash/" target="_blank" rel="noreferrer noopener">record budget surpluses</a>&nbsp;the last two years. The deficit is the result of a downturn in the stock market—a&nbsp;<a href="https://calmatters.org/explainers/california-budget-whiplash/#213c7457-4712-4732-bb2b-6ac38ba7faaf" target="_blank" rel="noreferrer noopener">volatile but significant source</a>&nbsp;of California’s state revenues because of its reliance on income taxes, especially those of high earners. Bracing for potential further revenue declines, the budget deal allows the governor to delay, with notification to the Legislature, one-time spending commitments before March 1.

This year’s negotiations were more fraught due to a $31.5 billion deficit, a sharp contrast with&nbsp;<a href="https://calmatters.org/explainers/california-budget-whiplash/" target="_blank" rel="noreferrer noopener">record budget surpluses</a>&nbsp;the last two years. The deficit is the result of a downturn in the stock market—a&nbsp;<a href="https://calmatters.org/explainers/california-budget-whiplash/#213c7457-4712-4732-bb2b-6ac38ba7faaf" target="_blank" rel="noreferrer noopener">volatile but significant source</a>&nbsp;of California’s state revenues because of its reliance on income taxes, especially those of high earners. Bracing for potential further revenue declines, the budget deal allows the governor to delay, with notification to the Legislature, one-time spending commitments before March 1.

The&nbsp;<a href="https://calmatters.org/explainers/california-budget-2023/" target="_blank" rel="noreferrer noopener">budget process this year</a>&nbsp;was also made more complicated when many Californians were granted until October, instead of April, to file income tax returns because of storm-related disaster declarations, which made it hard to pin down a precise figure on the state’s revenue.&nbsp;

The&nbsp;<a href="https://calmatters.org/explainers/california-budget-2023/" target="_blank" rel="noreferrer noopener">budget process this year</a>&nbsp;was also made more complicated when many Californians were granted until October, instead of April, to file income tax returns because of storm-related disaster declarations, which made it hard to pin down a precise figure on the state’s revenue.&nbsp;

Add to that Newsom’s&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/06/california-delta-tunnel-budget/" target="_blank" rel="noreferrer noopener">insistence that legislators approve</a>&nbsp;his recent proposal to&nbsp;<a href="https://calmatters.org/environment/2023/05/gavin-newsom-ceqa-reform/" target="_blank" rel="noreferrer noopener">overhaul the permitting process</a>&nbsp;for major infrastructure projects by changing the landmark California Environmental Quality Act, a move that some housing advocates and developers have demanded for years.&nbsp;

Add to that Newsom’s&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/06/california-delta-tunnel-budget/" target="_blank" rel="noreferrer noopener">insistence that legislators approve</a>&nbsp;his recent proposal to&nbsp;<a href="https://calmatters.org/environment/2023/05/gavin-newsom-ceqa-reform/" target="_blank" rel="noreferrer noopener">overhaul the permitting process</a>&nbsp;for major infrastructure projects by changing the landmark California Environmental Quality Act, a move that some housing advocates and developers have demanded for years.&nbsp;

The governor wanted a package of 11 measures, alongside the main budget bill, that aim to streamline the permitting process among federal, state and local governments; limit the time courts have to hear challenges on environmental reviews; and increase funding to state agencies.

The governor wanted a package of 11 measures, alongside the main budget bill, that aim to streamline the permitting process among federal, state and local governments; limit the time courts have to hear challenges on environmental reviews; and increase funding to state agencies.

Lawmakers pushed to consider the plan outside of the budget process so they would have more time to review its potential effects and to&nbsp;<a href="https://calmatters.org/environment/2023/06/california-water-lawmakers-newsom-delta/" target="_blank" rel="noreferrer noopener">exempt the proposed Delta tunnel</a>&nbsp;from the changes. That contentious $16 billion project would send water from the Sacramento-San Joaquin Delta south to 27 million people and 750,000 acres of farmland.&nbsp;

Lawmakers pushed to consider the plan outside of the budget process so they would have more time to review its potential effects and to&nbsp;<a href="https://calmatters.org/environment/2023/06/california-water-lawmakers-newsom-delta/" target="_blank" rel="noreferrer noopener">exempt the proposed Delta tunnel</a>&nbsp;from the changes. That contentious $16 billion project would send water from the Sacramento-San Joaquin Delta south to 27 million people and 750,000 acres of farmland.&nbsp;

Here are some other highlights of the deal — how much the state plans to invest in other key policy areas that have been sticking points since Newsom kicked off the budget process in January&nbsp;<a href="https://calmatters.org/politics/2023/01/california-budget-newsom-deficit/" target="_blank" rel="noreferrer noopener">with his initial proposal</a>.&nbsp;

Here are some other highlights of the deal — how much the state plans to invest in other key policy areas that have been sticking points since Newsom kicked off the budget process in January&nbsp;<a href="https://calmatters.org/politics/2023/01/california-budget-newsom-deficit/" target="_blank" rel="noreferrer noopener">with his initial proposal</a>.&nbsp;

<h2 class="wp-block-heading" id="safety-net">Social Services and the Safety Net</h2>

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<h2 class="wp-block-heading" id="safety-net">Social Services and the Safety Net</h2>

Low-income families who receive state subsidies to pay for child care would see a&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB116" target="_blank" rel="noreferrer noopener">near-elimination of copayments</a>&nbsp;known as “family fees” under the budget bills that are part of the Legislature’s agreement with Newsom.&nbsp;

Low-income families who receive state subsidies to pay for child care would see a&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB116" target="_blank" rel="noreferrer noopener">near-elimination of copayments</a>&nbsp;known as “family fees” under the budget bills that are part of the Legislature’s agreement with Newsom.&nbsp;

The fees, which can be hundreds of dollars a month for families, have been waived throughout the pandemic but were&nbsp;<a href="https://calmatters.org/california-divide/2022/10/subsidized-child-care/" target="_blank" rel="noreferrer noopener">set to return</a>&nbsp;at the end of September. Under the tentative agreement, families would not have to pay more than 1% of their incomes toward the fees.&nbsp;

The fees, which can be hundreds of dollars a month for families, have been waived throughout the pandemic but were&nbsp;<a href="https://calmatters.org/california-divide/2022/10/subsidized-child-care/" target="_blank" rel="noreferrer noopener">set to return</a>&nbsp;at the end of September. Under the tentative agreement, families would not have to pay more than 1% of their incomes toward the fees.&nbsp;

The budget bills also include funding to raise pay for child care providers,&nbsp;<a href="https://calmatters.org/california-divide/2023/06/child-care-california/" target="_blank" rel="noreferrer noopener">who have demanded</a>&nbsp;an immediate 25% increase in reimbursement rates (amounting to $1 billion a year) and a long-term plan to overhaul how those rates are calculated.&nbsp;

The budget bills also include funding to raise pay for child care providers,&nbsp;<a href="https://calmatters.org/california-divide/2023/06/child-care-california/" target="_blank" rel="noreferrer noopener">who have demanded</a>&nbsp;an immediate 25% increase in reimbursement rates (amounting to $1 billion a year) and a long-term plan to overhaul how those rates are calculated.&nbsp;

But how the funding gets doled out—whether the funding is a permanent raise or a temporary stipend—remains a sticking point between Newsom’s administration and the child care providers’ union. The parties are still bargaining a new labor contract for providers days before the current one expires.

But how the funding gets doled out—whether the funding is a permanent raise or a temporary stipend—remains a sticking point between Newsom’s administration and the child care providers’ union. The parties are still bargaining a new labor contract for providers days before the current one expires.

A shark named Mr. Burns is known as “the patriarch” of the shark-filled waters of Northern California.

<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2022/06/110223-Patricia-Moran-LA-8-CM.jpg?resize=780%2C521&amp;ssl=1" alt="Patricia Moran watches children enrolled at her at-home daycare in San Jose on Nov. 2nd, 2022. Photo by Laure Andrillon for CalMatters" class="wp-image-290564"/><figcaption class="wp-element-caption">Patricia Moran watches children enrolled at her at-home day care in San Jose on Nov. 2, 2022. |&nbsp;Laure Andrillon for CalMatters</figcaption></figure>

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<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2022/06/110223-Patricia-Moran-LA-8-CM.jpg?resize=780%2C521&amp;ssl=1" alt="Patricia Moran watches children enrolled at her at-home daycare in San Jose on Nov. 2nd, 2022. Photo by Laure Andrillon for CalMatters" class="wp-image-290564"/><figcaption class="wp-element-caption">Patricia Moran watches children enrolled at her at-home day care in San Jose on Nov. 2, 2022. |&nbsp;Laure Andrillon for CalMatters</figcaption></figure>

In addition to other funds intended to help communities across the state recover from this year’s storms and flooding, the budget plan would provide direct relief to the towns of Planada and Pajaro. Both towns were partially under water after the winter storms. Now they are slated to receive $20 million each to help residents recover,&nbsp;<a href="https://calmatters.org/economy/2023/03/storm-flood-california-aid-cannabis-farmworkers/" target="_blank" rel="noreferrer noopener">regardless of their citizenship or legal status</a>.

In addition to other funds intended to help communities across the state recover from this year’s storms and flooding, the budget plan would provide direct relief to the towns of Planada and Pajaro. Both towns were partially under water after the winter storms. Now they are slated to receive $20 million each to help residents recover,&nbsp;<a href="https://calmatters.org/economy/2023/03/storm-flood-california-aid-cannabis-farmworkers/" target="_blank" rel="noreferrer noopener">regardless of their citizenship or legal status</a>.

The agreement kills a proposal to create an unemployment insurance program for undocumented workers, who are ineligible for jobless benefits. Advocates had hoped to start a pilot program; then pushed instead for a working group to study the issue. Neither got the administration’s agreement in the budget.

The agreement kills a proposal to create an unemployment insurance program for undocumented workers, who are ineligible for jobless benefits. Advocates had hoped to start a pilot program; then pushed instead for a working group to study the issue. Neither got the administration’s agreement in the budget.

The tentative agreement also includes $500 million to make permanent a temporary 10% increase in welfare benefits for recipients of CalWorks, the state’s cash aid program. But lawmakers couldn’t reach an agreement with Newsom’s administration on an Assembly&nbsp;<a href="https://calmatters.org/california-divide/2023/06/calworks/" target="_blank" rel="noreferrer noopener">proposal to loosen work requirements</a>&nbsp;and lessen financial penalties for recipients, which could have weakened the ties between welfare and work and focused more on supportive social services that could help a family in crisis.

The tentative agreement also includes $500 million to make permanent a temporary 10% increase in welfare benefits for recipients of CalWorks, the state’s cash aid program. But lawmakers couldn’t reach an agreement with Newsom’s administration on an Assembly&nbsp;<a href="https://calmatters.org/california-divide/2023/06/calworks/" target="_blank" rel="noreferrer noopener">proposal to loosen work requirements</a>&nbsp;and lessen financial penalties for recipients, which could have weakened the ties between welfare and work and focused more on supportive social services that could help a family in crisis.

The Legislature did get its way in the agreement by rejecting a Newsom proposal to use half of the state’s $900 million in reserves for social safety net programs, with lawmakers reasoning the reserves should be saved for worse budget years.&nbsp;

The Legislature did get its way in the agreement by rejecting a Newsom proposal to use half of the state’s $900 million in reserves for social safety net programs, with lawmakers reasoning the reserves should be saved for worse budget years.&nbsp;

—&nbsp;<a href="https://calmatters.org/author/jeanne-kuang/" target="_blank" rel="noreferrer noopener">Jeanne Kuang</a>&nbsp;and&nbsp;<a href="https://calmatters.org/author/nicole-foy/" target="_blank" rel="noreferrer noopener">Nicole Foy</a>

—&nbsp;<a href="https://calmatters.org/author/jeanne-kuang/" target="_blank" rel="noreferrer noopener">Jeanne Kuang</a>&nbsp;and&nbsp;<a href="https://calmatters.org/author/nicole-foy/" target="_blank" rel="noreferrer noopener">Nicole Foy</a>

<h2 class="wp-block-heading" id="climate">A Hit on Climate Programs</h2>

California’s efforts to battle climate change—particularly programs to help switch to zero-emission vehicles and clean energy—appear poised to take a substantial hit in the budget agreement between Newsom and the Legislature.

California’s efforts to battle climate change—particularly programs to help switch to zero-emission vehicles and clean energy—appear poised to take a substantial hit in the budget agreement between Newsom and the Legislature.

Based on the June 15 budget approved by the Legislature, an estimated $5 billion, or 9%, will be cut out of $54 billion in climate climate projects established in the 2021 and 2022 budgets. The Legislature and the governor were still working out final details.

Based on the June 15 budget approved by the Legislature, an estimated $5 billion, or 9%, will be cut out of $54 billion in climate climate projects established in the 2021 and 2022 budgets. The Legislature and the governor were still working out final details.

Newsom has&nbsp;<a href="https://ebudget.ca.gov/FullBudgetSummary.pdf" target="_blank" rel="noreferrer noopener">said his budget</a>&nbsp;proposals give priority “to communities that face disproportionate harm from pollution and the climate crisis.” But environmentalists say the reductions will keep California from meeting its targets for cutting greenhouse gas emissions and other air pollutants.

Newsom has&nbsp;<a href="https://ebudget.ca.gov/FullBudgetSummary.pdf" target="_blank" rel="noreferrer noopener">said his budget</a>&nbsp;proposals give priority “to communities that face disproportionate harm from pollution and the climate crisis.” But environmentalists say the reductions will keep California from meeting its targets for cutting greenhouse gas emissions and other air pollutants.

“These climate budget rollbacks undercut our state’s ability to meet our climate goals — pure and simple,” Mary Creasman, chief executive of the advocacy group California Environmental Voters, said in a statement. “The climate crisis isn’t taking a break in 2023, that much is clear, and neither can our climate action.”

“These climate budget rollbacks undercut our state’s ability to meet our climate goals — pure and simple,” Mary Creasman, chief executive of the advocacy group California Environmental Voters, said in a statement. “The climate crisis isn’t taking a break in 2023, that much is clear, and neither can our climate action.”

<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2022/06/120522-LA-SMog-RV-AP-CM.jpg?resize=780%2C520&amp;ssl=1" alt="" class="wp-image-282020"/><figcaption class="wp-element-caption">Downtown Los Angeles is shrouded in early morning coastal fog and smog.&nbsp;|&nbsp;Richard Vogel/AP Photo</figcaption></figure>

Senate leaders in April&nbsp;<a href="https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Senate%20Budget%20Plan.pdf" target="_blank" rel="noreferrer noopener">proposed restoring some of the climate cuts</a>&nbsp;but the governor’s office rejected that plan because it depended largely on tax increases and suspending corporate tax credits.

Senate leaders in April&nbsp;<a href="https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Senate%20Budget%20Plan.pdf" target="_blank" rel="noreferrer noopener">proposed restoring some of the climate cuts</a>&nbsp;but the governor’s office rejected that plan because it depended largely on tax increases and suspending corporate tax credits.

The $5 billion would be less than the $6 billion reduction that Newsom originally proposed in January. But environmentalists said even some of the wins will have mixed results.

The $5 billion would be less than the $6 billion reduction that Newsom originally proposed in January. But environmentalists said even some of the wins will have mixed results.

For instance, regional transit agencies will be able to use money slated for clean energy infrastructure and the purchase of zero-emission buses for operations, said Jamie Pew, a fellow with NextGen Policy.

For instance, regional transit agencies will be able to use money slated for clean energy infrastructure and the purchase of zero-emission buses for operations, said Jamie Pew, a fellow with NextGen Policy.

Given how central a role public transportation plays in meeting greenhouse gas targets, the tradeoff was necessary, Pew said. The cuts do, however, endanger the state’s potential to electrify more buses.&nbsp;

Given how central a role public transportation plays in meeting greenhouse gas targets, the tradeoff was necessary, Pew said. The cuts do, however, endanger the state’s potential to electrify more buses.&nbsp;

“We love electric buses and want to see more of them and want to electrify the entire fleet but there is not much point to running electric buses if you don’t have a transit system,” Pew said.&nbsp; “It hurts to have to make that tradeoff, but from my perspective it is an acceptable one to make in this budget situation.”

“We love electric buses and want to see more of them and want to electrify the entire fleet but there is not much point to running electric buses if you don’t have a transit system,” Pew said.&nbsp; “It hurts to have to make that tradeoff, but from my perspective it is an acceptable one to make in this budget situation.”

To make up for the cuts, Newsom has said he is seeking federal climate funding from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. He also has asked the Legislature to seek voters’ approval of a climate bond, ranging from $6 to $16 billion.

To make up for the cuts, Newsom has said he is seeking federal climate funding from the Inflation Reduction Act and the Infrastructure Investment and Jobs Act. He also has asked the Legislature to seek voters’ approval of a climate bond, ranging from $6 to $16 billion.

—&nbsp;<a href="https://calmatters.org/author/alejandro-lazo/">Alejandro Lazo</a>

—&nbsp;<a href="https://calmatters.org/author/alejandro-lazo/">Alejandro Lazo</a>

<h2 class="wp-block-heading" id="k12education">A Mixed Bag for K-12 Education</h2>

The budget includes a historic, 8.22% cost-of-living adjustment for California’s public schools. The total Proposition 98 funding for the 2023-24 fiscal year will be $108.3 billion. But the governor and the Legislature also agreed to some hefty cuts.

The budget includes a historic, 8.22% cost-of-living adjustment for California’s public schools. The total Proposition 98 funding for the 2023-24 fiscal year will be $108.3 billion. But the governor and the Legislature also agreed to some hefty cuts.

First off is the $200 million decrease to the Arts, Music, Instructional Materials Discretionary Block Grant. Despite its name, school districts were allowed to use this money on everything from facilities to salaries. In January, Newsom proposed slashing $1.8 billion, but his office ultimately agreed to go with the Legislature’s smaller cut.

First off is the $200 million decrease to the Arts, Music, Instructional Materials Discretionary Block Grant. Despite its name, school districts were allowed to use this money on everything from facilities to salaries. In January, Newsom proposed slashing $1.8 billion, but his office ultimately agreed to go with the Legislature’s smaller cut.

The governor and Legislature also met in the middle to reduce the Learning Recovery Block Grant by $1.6 billion, leaving $6.3 billion available to districts for helping students recover from pandemic-era learning loss.

The governor and Legislature also met in the middle to reduce the Learning Recovery Block Grant by $1.6 billion, leaving $6.3 billion available to districts for helping students recover from pandemic-era learning loss.

Runners in the SF Marathon in San Francisco on Sunday, July 28, 2024.

<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2022/06/02282023_COLISEUMELEMENTARY_CM_PU23-CM.jpg?resize=780%2C519&amp;ssl=1" alt="Students collaborate on solving additional problems inside Bridgette Donald-Blue’s classroom at Coliseum Street Elementary in Los Angeles on Feb. 28, 2023. Photo byPablo Unzueta for CalMatters" class="wp-image-296136"/><figcaption class="wp-element-caption">Students collaborate on solving additional problems inside Bridgette Donald-Blue’s classroom at Coliseum Street Elementary in Los Angeles on Feb. 28, 2023.&nbsp;|&nbsp;Pablo Unzueta for CalMatters</figcaption></figure>

In a big win for dyslexia advocates, the budget includes $1 million for the California Department of Education to form an independent task force that would compile a list of screening tools used to test students for difficulties with reading. California is currently&nbsp;<a href="https://calmatters.org/education/k-12-education/2023/02/dyslexia-screening/" target="_blank" rel="noreferrer noopener">one of 10 states</a>&nbsp;that doesn’t screen all students for dyslexia, despite having a governor who’s been outspoken about his past struggles with the learning disability.&nbsp;

In a big win for dyslexia advocates, the budget includes $1 million for the California Department of Education to form an independent task force that would compile a list of screening tools used to test students for difficulties with reading. California is currently&nbsp;<a href="https://calmatters.org/education/k-12-education/2023/02/dyslexia-screening/" target="_blank" rel="noreferrer noopener">one of 10 states</a>&nbsp;that doesn’t screen all students for dyslexia, despite having a governor who’s been outspoken about his past struggles with the learning disability.&nbsp;

The $1 million is just the beginning. Districts will be required to screen all students starting in the 2025-26 school year, using one of the tools approved by the task force. Advocates,&nbsp;<a href="https://calmatters.org/education/2023/03/dyslexia-screening-2/" target="_blank" rel="noreferrer noopener">including classroom teachers</a>, say it’s long overdue.

The $1 million is just the beginning. Districts will be required to screen all students starting in the 2025-26 school year, using one of the tools approved by the task force. Advocates,&nbsp;<a href="https://calmatters.org/education/2023/03/dyslexia-screening-2/" target="_blank" rel="noreferrer noopener">including classroom teachers</a>, say it’s long overdue.

The budget also includes a $300 million&nbsp;<a href="https://calmatters.org/education/k-12-education/2023/01/school-funding-equity/" target="_blank" rel="noreferrer noopener">“equity multiplier”</a>&nbsp;allocated for schools with the highest concentrations of “socioeconomically disadvantaged” students, which includes students from low-income households, students experiencing homelessness and students whose parents did not graduate high school.&nbsp;

The budget also includes a $300 million&nbsp;<a href="https://calmatters.org/education/k-12-education/2023/01/school-funding-equity/" target="_blank" rel="noreferrer noopener">“equity multiplier”</a>&nbsp;allocated for schools with the highest concentrations of “socioeconomically disadvantaged” students, which includes students from low-income households, students experiencing homelessness and students whose parents did not graduate high school.&nbsp;

The state will also require districts receiving equity-multiplier funding to create plans to support student groups who performed lowest on one or more of the categories included in the&nbsp;<a href="https://www.caschooldashboard.org/reports/ca/2022" target="_blank" rel="noreferrer noopener">California School Dashboard</a>, which tracks suspension rates, test scores, chronic absenteeism and graduation rates.This component of the equity multiplier was not in Newsom’s original proposal and suggests concessions to advocates for Black students who had fought for all of this money to go to Black students, who are the lowest-performing on&nbsp;<a href="https://caaspp-elpac.ets.org/caaspp/DashViewReportSB?ps=true&amp;lstTestYear=2022&amp;lstTestType=B&amp;lstGroup=5&amp;lstSubGroup=74&amp;lstGrade=13&amp;lstSchoolType=A&amp;lstCounty=00&amp;lstDistrict=00000&amp;lstSchool=0000000&amp;lstFocus=a" target="_blank" rel="noreferrer noopener">standardized tests</a>&nbsp;throughout California.

The state will also require districts receiving equity-multiplier funding to create plans to support student groups who performed lowest on one or more of the categories included in the&nbsp;<a href="https://www.caschooldashboard.org/reports/ca/2022" target="_blank" rel="noreferrer noopener">California School Dashboard</a>, which tracks suspension rates, test scores, chronic absenteeism and graduation rates.This component of the equity multiplier was not in Newsom’s original proposal and suggests concessions to advocates for Black students who had fought for all of this money to go to Black students, who are the lowest-performing on&nbsp;<a href="https://caaspp-elpac.ets.org/caaspp/DashViewReportSB?ps=true&amp;lstTestYear=2022&amp;lstTestType=B&amp;lstGroup=5&amp;lstSubGroup=74&amp;lstGrade=13&amp;lstSchoolType=A&amp;lstCounty=00&amp;lstDistrict=00000&amp;lstSchool=0000000&amp;lstFocus=a" target="_blank" rel="noreferrer noopener">standardized tests</a>&nbsp;throughout California.

—&nbsp;<a href="https://calmatters.org/author/joe-hong/" target="_blank" rel="noreferrer noopener">Joe Hong</a>

—&nbsp;<a href="https://calmatters.org/author/joe-hong/" target="_blank" rel="noreferrer noopener">Joe Hong</a>

<h2 class="wp-block-heading" id="financial-aid">More In-State Slots at UC, CSU</h2>

More admissions letters for California undergraduates, a fulfilled promise to increase state support for public universities, vows to further grow the state’s financial aid program for the middle class, and expanded affordable student housing&nbsp;<a href="https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Floor%20Report%20of%20the%202023-24%20Budget%20%2006.26.23%20version.pdf#page=54" target="_blank" rel="noreferrer noopener">are the key features</a>&nbsp;in the deal crafted by the Legislature and Newsom.

More admissions letters for California undergraduates, a fulfilled promise to increase state support for public universities, vows to further grow the state’s financial aid program for the middle class, and expanded affordable student housing&nbsp;<a href="https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Floor%20Report%20of%20the%202023-24%20Budget%20%2006.26.23%20version.pdf#page=54" target="_blank" rel="noreferrer noopener">are the key features</a>&nbsp;in the deal crafted by the Legislature and Newsom.

The University of California will need to enroll<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB102#:~:text=It%20is%20the%20intent%20of%20the%20Legislature%20that%20the%20University%20of%20California%20shall%20increase%20resident%20undergraduate%20enrollment%20by%207%2C800%20full%2Dtime%20equivalent" target="_blank" rel="noreferrer noopener">&nbsp;7,800 more in-state undergraduates</a>&nbsp;this fall and be expected to educate another 8,800 California students by 2026.&nbsp;

The University of California will need to enroll<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB102#:~:text=It%20is%20the%20intent%20of%20the%20Legislature%20that%20the%20University%20of%20California%20shall%20increase%20resident%20undergraduate%20enrollment%20by%207%2C800%20full%2Dtime%20equivalent" target="_blank" rel="noreferrer noopener">&nbsp;7,800 more in-state undergraduates</a>&nbsp;this fall and be expected to educate another 8,800 California students by 2026.&nbsp;

The move doubles down on the state’s commitment&nbsp;<a href="https://calmatters.org/education/higher-education/2023/03/lawmakers-uc-enrollment-admissions/" target="_blank" rel="noreferrer noopener">to maintain access to the selective public institution</a>. Part of the plan includes giving&nbsp;<a href="https://calmatters.org/education/2021/09/uc-out-of-state-tuition/" target="_blank" rel="noreferrer noopener">the UC to enroll fewer 900 out-of-state students</a>, who pay three times as much in tuition, to make way for an equal number of California residents.&nbsp;

The move doubles down on the state’s commitment&nbsp;<a href="https://calmatters.org/education/higher-education/2023/03/lawmakers-uc-enrollment-admissions/" target="_blank" rel="noreferrer noopener">to maintain access to the selective public institution</a>. Part of the plan includes giving&nbsp;<a href="https://calmatters.org/education/2021/09/uc-out-of-state-tuition/" target="_blank" rel="noreferrer noopener">the UC to enroll fewer 900 out-of-state students</a>, who pay three times as much in tuition, to make way for an equal number of California residents.&nbsp;

Under the same deal, the California State University system is expected to grow its in-state undergraduate enrollment&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB102#:~:text=4%2C057%20full%2Dtime%20equivalent%20students" target="_blank" rel="noreferrer noopener">by 4,000 students</a>&nbsp;for the coming academic year and add another 20,000 seats by 2025.&nbsp;

Under the same deal, the California State University system is expected to grow its in-state undergraduate enrollment&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB102#:~:text=4%2C057%20full%2Dtime%20equivalent%20students" target="_blank" rel="noreferrer noopener">by 4,000 students</a>&nbsp;for the coming academic year and add another 20,000 seats by 2025.&nbsp;

While the budget deal fulfills Newsom’s ongoing promise that state funding for the UC and CSU grow by 5% each it won’t be enough money to address the CSU’s&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/cal-state-tuition/" target="_blank" rel="noreferrer noopener">recent revelation</a>&nbsp;that they take in far less revenue than they need to support their students.&nbsp;

While the budget deal fulfills Newsom’s ongoing promise that state funding for the UC and CSU grow by 5% each it won’t be enough money to address the CSU’s&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/cal-state-tuition/" target="_blank" rel="noreferrer noopener">recent revelation</a>&nbsp;that they take in far less revenue than they need to support their students.&nbsp;

No matter what your inclinations, we have you covered with these 10 ideas for end-of-year fun. 

<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2022/02/021022-Fresno-State-Students-LV-CM-0-2.jpg?resize=780%2C519&amp;ssl=1" alt="Students walk through the Fresno State campus in Fresno, on Feb. 9, 2022. Photo by Larry Valenzuela for CalMatters" class="wp-image-228034"/><figcaption class="wp-element-caption">Students walk through the Fresno State campus on Feb. 9, 2022. &nbsp;|&nbsp;Photo by Larry Valenzuela for CalMatters</figcaption></figure>

The Middle Class Scholarship is also set to get a previously promised $227 million this fall, which should net most in-state UC and CSU undergraduate students&nbsp;<a href="https://calmatters.org/education/2022/04/uc-cal-state-middle-class-scholarship/" target="_blank" rel="noreferrer noopener">several hundred more dollars</a>&nbsp;toward their education this fall.&nbsp;

The Middle Class Scholarship is also set to get a previously promised $227 million this fall, which should net most in-state UC and CSU undergraduate students&nbsp;<a href="https://calmatters.org/education/2022/04/uc-cal-state-middle-class-scholarship/" target="_blank" rel="noreferrer noopener">several hundred more dollars</a>&nbsp;toward their education this fall.&nbsp;

The deal so far also ensures&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/california-student-housing/" target="_blank" rel="noreferrer noopener">$2.2 billion in affordable student housing grants</a>&nbsp;is on the way — enough for at least 11,000 beds. The UC, CSU and community colleges were going to receive state funding directly, but will now be expected to issue bonds that the state will pay off. The funding switch shouldn’t slow down campus construction, an analyst at Newsom’s Department of Finance told CalMatters.&nbsp;

The deal so far also ensures&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/california-student-housing/" target="_blank" rel="noreferrer noopener">$2.2 billion in affordable student housing grants</a>&nbsp;is on the way — enough for at least 11,000 beds. The UC, CSU and community colleges were going to receive state funding directly, but will now be expected to issue bonds that the state will pay off. The funding switch shouldn’t slow down campus construction, an analyst at Newsom’s Department of Finance told CalMatters.&nbsp;

Finally, the three systems will gain access this year to another $200 million in&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/california-student-housing/#:~:text=The%20idea%20is%20that%20the%20campuses%20take%20the%20money" target="_blank" rel="noreferrer noopener">zero-interest loans</a>&nbsp;to build student and staff housing — part of a revised plan to ultimately receive $1.7 billion in state loans by 2028, short of the original $1.8 billion by 2024-25 promised last year.&nbsp;

Finally, the three systems will gain access this year to another $200 million in&nbsp;<a href="https://calmatters.org/education/higher-education/2023/05/california-student-housing/#:~:text=The%20idea%20is%20that%20the%20campuses%20take%20the%20money" target="_blank" rel="noreferrer noopener">zero-interest loans</a>&nbsp;to build student and staff housing — part of a revised plan to ultimately receive $1.7 billion in state loans by 2028, short of the original $1.8 billion by 2024-25 promised last year.&nbsp;

—&nbsp;<a href="https://calmatters.org/author/mikhailzinshteyn/" target="_blank" rel="noreferrer noopener">Mikhail Zinshteyn</a>

—&nbsp;<a href="https://calmatters.org/author/mikhailzinshteyn/" target="_blank" rel="noreferrer noopener">Mikhail Zinshteyn</a>

Fixing a Typo on Community College Funding

<h2 class="wp-block-heading" id="community-college">Fixing a Typo on Community College Funding</h2>

In addition to a financing change for student housing—instead of cash financing, community colleges will have to issue bonds, which will free up more money this year—the budget deal fixed the governor’s prior typo:&nbsp;<a href="https://calmatters.org/education/higher-education/2023/06/rural-lgbtq-college-students/" target="_blank" rel="noreferrer noopener">All colleges—not just Los Angeles—will see new funding for LGBTQ students</a>.&nbsp;

In addition to a financing change for student housing—instead of cash financing, community colleges will have to issue bonds, which will free up more money this year—the budget deal fixed the governor’s prior typo:&nbsp;<a href="https://calmatters.org/education/higher-education/2023/06/rural-lgbtq-college-students/" target="_blank" rel="noreferrer noopener">All colleges—not just Los Angeles—will see new funding for LGBTQ students</a>.&nbsp;

The deal also includes new reporting requirements about CalFresh in an effort to promote more collaboration between county agencies and the UC, CSU, and community college administrators who sign students up for food benefits. The requirements come after a change from the federal government has put&nbsp;<a href="https://calmatters.org/education/higher-education/2023/03/calfresh-college-students/" target="_blank" rel="noreferrer noopener">some students in jeopardy of losing their benefits.</a>

The deal also includes new reporting requirements about CalFresh in an effort to promote more collaboration between county agencies and the UC, CSU, and community college administrators who sign students up for food benefits. The requirements come after a change from the federal government has put&nbsp;<a href="https://calmatters.org/education/higher-education/2023/03/calfresh-college-students/" target="_blank" rel="noreferrer noopener">some students in jeopardy of losing their benefits.</a>

—&nbsp;<a href="https://calmatters.org/author/adam-echelman/" target="_blank" rel="noreferrer noopener">Adam Echelman</a>

—&nbsp;<a href="https://calmatters.org/author/adam-echelman/" target="_blank" rel="noreferrer noopener">Adam Echelman</a>

<h2 class="wp-block-heading" id="homelessness">Status Quo on Homelessness</h2>

The proposed budget also allocates funding to one of the state’s most pressing problems — its massive homelessness crisis. It pours $1 billion into round five of the state’s Homeless Housing, Assistance and Prevention program, which doles out money local officials can use for housing, outreach at encampments, emergency shelters and more.&nbsp;

The proposed budget also allocates funding to one of the state’s most pressing problems — its massive homelessness crisis. It pours $1 billion into round five of the state’s Homeless Housing, Assistance and Prevention program, which doles out money local officials can use for housing, outreach at encampments, emergency shelters and more.&nbsp;

This marks the third year in a row the program would receive $1 billion from the state budget. Collectively, the state has&nbsp;<a href="https://lao.ca.gov/handouts/socservices/2023/2023-24-Budget-Housing-Homelessness-Proposed-Budget-Changes-032923.pdf" target="_blank" rel="noreferrer noopener">allocated nearly $21 billion to housing and homelessness</a>&nbsp;since the 2018-19 fiscal year, according to the Legislative Analyst’s Office.

This marks the third year in a row the program would receive $1 billion from the state budget. Collectively, the state has&nbsp;<a href="https://lao.ca.gov/handouts/socservices/2023/2023-24-Budget-Housing-Homelessness-Proposed-Budget-Changes-032923.pdf" target="_blank" rel="noreferrer noopener">allocated nearly $21 billion to housing and homelessness</a>&nbsp;since the 2018-19 fiscal year, according to the Legislative Analyst’s Office.

But this year’s figure is sure to disappoint homeless advocates and local government leaders who wanted more from the Newsom administration.&nbsp;

But this year’s figure is sure to disappoint homeless advocates and local government leaders who wanted more from the Newsom administration.&nbsp;

Busloop buses enter and exit through this entrance, which leads to the company’s Oakland bus yard, as seen on Aug. 23, 2024. Current and former employees Busloop, a charter bus company that has a contract with Oakland Unified School District to ferry kids to football games and field trips, allege that the company has had numerous safety issues in the past: a bus caught on fire, occurrences of illegal dumping, deferred maintenance on buses, and other dangerous forms of misconduct. This is the third such company for the owner, Avtar “Avi” Josen, with his past two companies also seeing serious issues.

<figure class="wp-block-image"><img src="https://i0.wp.com/calmatters.org/wp-content/uploads/2023/06/110822-LA-StreetMedicine-LV_CM_22.jpg?resize=780%2C519&amp;ssl=1" alt="A person walks by a homeless encampment in downtown Los Angeles on Nov. 18, 2022. Photo by Larry Valenzuela for CalMatters/CatchLight Local" class="wp-image-304504"/><figcaption class="wp-element-caption">A person walks by a homeless encampment in downtown Los Angeles on Nov. 18, 2022. |&nbsp;Larry Valenzuela for CalMatters/CatchLight Local</figcaption></figure>

With an estimated 171,521 unhoused residents, California is&nbsp;<a href="https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-Part-1.pdf" target="_blank" rel="noreferrer noopener">home to nearly one-third of the country’s entire homeless population</a>. And local leaders and activists say Newsom’s current approach—handing out one-time grants every year instead of guaranteed ongoing funding—is hampering their efforts to make a dent in the problem. The League of California Cities, which&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/04/california-homeless-cities/" target="_blank" rel="noreferrer noopener">asked for a guaranteed $3 billion a year</a>, earlier this month said it’s “incredibly disappointed” in the budget’s lack of ongoing funding.&nbsp;

With an estimated 171,521 unhoused residents, California is&nbsp;<a href="https://www.huduser.gov/portal/sites/default/files/pdf/2022-AHAR-Part-1.pdf" target="_blank" rel="noreferrer noopener">home to nearly one-third of the country’s entire homeless population</a>. And local leaders and activists say Newsom’s current approach—handing out one-time grants every year instead of guaranteed ongoing funding—is hampering their efforts to make a dent in the problem. The League of California Cities, which&nbsp;<a href="https://calmatters.org/newsletters/whatmatters/2023/04/california-homeless-cities/" target="_blank" rel="noreferrer noopener">asked for a guaranteed $3 billion a year</a>, earlier this month said it’s “incredibly disappointed” in the budget’s lack of ongoing funding.&nbsp;

—&nbsp;<a href="https://calmatters.org/author/marisa-kendall/" target="_blank" rel="noreferrer noopener">Marisa Kendall</a>

—&nbsp;<a href="https://calmatters.org/author/marisa-kendall/" target="_blank" rel="noreferrer noopener">Marisa Kendall</a>

<h2 class="wp-block-heading" id="housing">New Money for Down Payments</h2>

In the final hours of negotiations, a few big-ticket spending programs on housing were saved from the chopping block.&nbsp;

In the final hours of negotiations, a few big-ticket spending programs on housing were saved from the chopping block.&nbsp;

Earlier this year, the governor proposed closing the deficit in part by clawing back funds set aside for a&nbsp;<a href="https://calmatters.org/housing/2023/04/california-first-time-homebuyer-assistance-demographics/" target="_blank" rel="noreferrer noopener">downpayment assistance program</a>. The California “Dream For All” program was open for just 11 days this spring buyers hoovered up its initial $300 million allocation. But over Newsom’s earlier objections, the fund will be reinflated with another $200 million.&nbsp;

Earlier this year, the governor proposed closing the deficit in part by clawing back funds set aside for a&nbsp;<a href="https://calmatters.org/housing/2023/04/california-first-time-homebuyer-assistance-demographics/" target="_blank" rel="noreferrer noopener">downpayment assistance program</a>. The California “Dream For All” program was open for just 11 days this spring buyers hoovered up its initial $300 million allocation. But over Newsom’s earlier objections, the fund will be reinflated with another $200 million.&nbsp;

The final budget also restores $50 million each for two grant programs — one to help homeowners get started on&nbsp;<a href="https://www.calhfa.ca.gov/adu/" target="_blank" rel="noreferrer noopener">building secondary units</a>&nbsp;and another for&nbsp;<a href="https://www.hcd.ca.gov/grants-and-funding/programs-active/calhome" target="_blank" rel="noreferrer noopener">first-time homebuyers</a>.&nbsp;

The final budget also restores $50 million each for two grant programs — one to help homeowners get started on&nbsp;<a href="https://www.calhfa.ca.gov/adu/" target="_blank" rel="noreferrer noopener">building secondary units</a>&nbsp;and another for&nbsp;<a href="https://www.hcd.ca.gov/grants-and-funding/programs-active/calhome" target="_blank" rel="noreferrer noopener">first-time homebuyers</a>.&nbsp;

And the city of&nbsp;<a href="https://calmatters.org/california-divide/2023/06/downtown-fresno/" target="_blank" rel="noreferrer noopener">Fresno will be getting $250 million</a>&nbsp;to update and revitalize its downtown infrastructure, but over three years, and not all at once as Newsom initially proposed.

And the city of&nbsp;<a href="https://calmatters.org/california-divide/2023/06/downtown-fresno/" target="_blank" rel="noreferrer noopener">Fresno will be getting $250 million</a>&nbsp;to update and revitalize its downtown infrastructure, but over three years, and not all at once as Newsom initially proposed.

But budgets aren’t just about spending money. Sometimes they’re used to make — or, in this case, underscore — policy.

But budgets aren’t just about spending money. Sometimes they’re used to make — or, in this case, underscore — policy.

Case in point: The city of Santa Ana was called out in all but name in the final budget.

Case in point: The city of Santa Ana was called out in all but name in the final budget.

Just last week, the Orange County city opted to exempt vast swaths from two state laws designed to make it easier for developers to convert old strip malls, parking lots and defunct office buildings near public transit into new apartments. The Legislature passed the&nbsp;<a href="https://calmatters.org/housing/2022/08/california-housing-crisis-labor-deal/" target="_blank" rel="noreferrer noopener">streamlining bills last year</a>&nbsp;and they are set to go into effect on July 1.

Just last week, the Orange County city opted to exempt vast swaths from two state laws designed to make it easier for developers to convert old strip malls, parking lots and defunct office buildings near public transit into new apartments. The Legislature passed the&nbsp;<a href="https://calmatters.org/housing/2022/08/california-housing-crisis-labor-deal/" target="_blank" rel="noreferrer noopener">streamlining bills last year</a>&nbsp;and they are set to go into effect on July 1.

On June 20, the Santa Ana City Council exempted more than 600 parcels, instead putting forward alternative sites for fast-tracked development. That was over the objections of state housing regulators, who questioned whether the new proposed sites&nbsp;<a href="https://voiceofoc.org/2023/06/ocs-most-progressive-city-follows-surf-city-questioning-sacramento-housing-mandates/" target="_blank" rel="noreferrer noopener">would actually allow for enough new housing to make up for the exempted parcels.</a>

On June 20, the Santa Ana City Council exempted more than 600 parcels, instead putting forward alternative sites for fast-tracked development. That was over the objections of state housing regulators, who questioned whether the new proposed sites&nbsp;<a href="https://voiceofoc.org/2023/06/ocs-most-progressive-city-follows-surf-city-questioning-sacramento-housing-mandates/" target="_blank" rel="noreferrer noopener">would actually allow for enough new housing to make up for the exempted parcels.</a>

The resolution in Santa Ana passed easily, so any disagreement the state still has may have to be resolved in court. But if any other cities are planning to try the same maneuver, California’s budget-making legislators are one step ahead of them.&nbsp;

The resolution in Santa Ana passed easily, so any disagreement the state still has may have to be resolved in court. But if any other cities are planning to try the same maneuver, California’s budget-making legislators are one step ahead of them.&nbsp;

Call it the&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB129" target="_blank" rel="noreferrer noopener">city of Santa Ana honorary anti-loophole amendment</a>: The budget now stresses that if a city exempts a commercial parcel from fast-tracked conversion, it has to make up for it by fast-tracking permitting at an alternative site that realistically could provide just as much housing, if not more.

Call it the&nbsp;<a href="https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB129" target="_blank" rel="noreferrer noopener">city of Santa Ana honorary anti-loophole amendment</a>: The budget now stresses that if a city exempts a commercial parcel from fast-tracked conversion, it has to make up for it by fast-tracking permitting at an alternative site that realistically could provide just as much housing, if not more.

—&nbsp;<a href="https://calmatters.org/author/ben-christopher/" target="_blank" rel="noreferrer noopener">Ben Christopher</a>

—&nbsp;<a href="https://calmatters.org/author/ben-christopher/" target="_blank" rel="noreferrer noopener">Ben Christopher</a>

The final budget deal provides more detail on how the state will use revenue from its Managed Care Organization tax, levied on Medi-Cal and commercial health insurance plans and that helps the state receive matching federal dollars. (Health plans agree to this tax because they are eventually paid back.)&nbsp;

The final budget deal provides more detail on how the state will use revenue from its Managed Care Organization tax, levied on Medi-Cal and commercial health insurance plans and that helps the state receive matching federal dollars. (Health plans agree to this tax because they are eventually paid back.)&nbsp;

This MCO tax is set to generate $19.4 billion for the state from April 2023 through the end of 2026. About $11 billion of that will be used in part to boost pay for Medi-Cal providers, who have long criticized the state for its low reimbursement rates that they say limits the number of low-income people they can serve. The rest will be used to help cover shortfalls in the upcoming and future state budgets.&nbsp;

This MCO tax is set to generate $19.4 billion for the state from April 2023 through the end of 2026. About $11 billion of that will be used in part to boost pay for Medi-Cal providers, who have long criticized the state for its low reimbursement rates that they say limits the number of low-income people they can serve. The rest will be used to help cover shortfalls in the upcoming and future state budgets.&nbsp;

In the 2023-24 budget, specifically, the state will receive $4.4 billion from the MCO tax, of which $3.4 billion will go to the General Fund. The remaining $1 billion will go toward:

In the 2023-24 budget, specifically, the state will receive $4.4 billion from the MCO tax, of which $3.4 billion will go to the General Fund. The remaining $1 billion will go toward:

<ul class="wp-block-list">
<li><a href="https://calmatters.org/health/2023/05/medi-cal-providers-pay/" target="_blank" rel="noreferrer noopener">Increasing reimbursements for Medi-Cal providers</a>&nbsp;in primary care, maternity care and non-specialty mental health starting in 2024. This group will see a new Medi-Cal reimbursement floor — 87.5% of what Medicare, the federal health insurance program for seniors and people with disabilities, pays for the same services. In Medi-Cal, some of these services are currently reimbursed at 60% of what Medicare pays;</li>



<li>$50 million to help rural hospitals come into compliance with the&nbsp;<a href="https://calmatters.org/health/2023/01/seismic-safety-hospitals-california/" target="_blank" rel="noreferrer noopener">state’s seismic mandate</a>, due in 2030;&nbsp;</li>



<li>$150 million to the&nbsp;<a href="https://calmatters.org/health/2023/05/hospital-closures-california-2/" target="_blank" rel="noreferrer noopener">distressed hospital loan program</a>&nbsp;for public and nonprofit hospitals in financial trouble, bringing the total available for that purpose to $300 million;&nbsp;</li>



<li>$75 million to the University of California to expand its graduate medical education program, in an attempt to produce more physicians.&nbsp;</li>
</ul>

<a href="https://calmatters.org/health/2023/05/medi-cal-providers-pay/" target="_blank" rel="noreferrer noopener">Increasing reimbursements for Medi-Cal providers</a>&nbsp;in primary care, maternity care and non-specialty mental health starting in 2024. This group will see a new Medi-Cal reimbursement floor — 87.5% of what Medicare, the federal health insurance program for seniors and people with disabilities, pays for the same services. In Medi-Cal, some of these services are currently reimbursed at 60% of what Medicare pays;

core/list-item

<li><a href="https://calmatters.org/health/2023/05/medi-cal-providers-pay/" target="_blank" rel="noreferrer noopener">Increasing reimbursements for Medi-Cal providers</a>&nbsp;in primary care, maternity care and non-specialty mental health starting in 2024. This group will see a new Medi-Cal reimbursement floor — 87.5% of what Medicare, the federal health insurance program for seniors and people with disabilities, pays for the same services. In Medi-Cal, some of these services are currently reimbursed at 60% of what Medicare pays;</li>

$50 million to help rural hospitals come into compliance with the&nbsp;<a href="https://calmatters.org/health/2023/01/seismic-safety-hospitals-california/" target="_blank" rel="noreferrer noopener">state’s seismic mandate</a>, due in 2030;&nbsp;

<li>$50 million to help rural hospitals come into compliance with the&nbsp;<a href="https://calmatters.org/health/2023/01/seismic-safety-hospitals-california/" target="_blank" rel="noreferrer noopener">state’s seismic mandate</a>, due in 2030;&nbsp;</li>

$150 million to the&nbsp;<a href="https://calmatters.org/health/2023/05/hospital-closures-california-2/" target="_blank" rel="noreferrer noopener">distressed hospital loan program</a>&nbsp;for public and nonprofit hospitals in financial trouble, bringing the total available for that purpose to $300 million;&nbsp;

<li>$150 million to the&nbsp;<a href="https://calmatters.org/health/2023/05/hospital-closures-california-2/" target="_blank" rel="noreferrer noopener">distressed hospital loan program</a>&nbsp;for public and nonprofit hospitals in financial trouble, bringing the total available for that purpose to $300 million;&nbsp;</li>

$75 million to the University of California to expand its graduate medical education program, in an attempt to produce more physicians.&nbsp;

<li>$75 million to the University of California to expand its graduate medical education program, in an attempt to produce more physicians.&nbsp;</li>

core/list

<ul><li><a href="https://calmatters.org/health/2023/05/medi-cal-providers-pay/" target="_blank" rel="noreferrer noopener">Increasing reimbursements for Medi-Cal providers</a>&nbsp;in primary care, maternity care and non-specialty mental health starting in 2024. This group will see a new Medi-Cal reimbursement floor — 87.5% of what Medicare, the federal health insurance program for seniors and people with disabilities, pays for the same services. In Medi-Cal, some of these services are currently reimbursed at 60% of what Medicare pays;</li><li>$50 million to help rural hospitals come into compliance with the&nbsp;<a href="https://calmatters.org/health/2023/01/seismic-safety-hospitals-california/" target="_blank" rel="noreferrer noopener">state’s seismic mandate</a>, due in 2030;&nbsp;</li><li>$150 million to the&nbsp;<a href="https://calmatters.org/health/2023/05/hospital-closures-california-2/" target="_blank" rel="noreferrer noopener">distressed hospital loan program</a>&nbsp;for public and nonprofit hospitals in financial trouble, bringing the total available for that purpose to $300 million;&nbsp;</li><li>$75 million to the University of California to expand its graduate medical education program, in an attempt to produce more physicians.&nbsp;</li></ul>

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Newsom, state lawmakers throw transit a $5B lifeline in budget deal. Here’s what to know