Mike Ege

This week, the Board of Supervisors ended up kicking the can down the road on controversial housing legislation, including an upzoning plan that was <a href="https://sfstandard.com/housing-development/fourplexpalooza-continues-supes-wrestle-with-westside-development/">picked apart in committee</a>.&nbsp;

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This week, the Board of Supervisors ended up kicking the can down the road on controversial housing legislation, including an upzoning plan that was <a href="https://sfstandard.com/housing-development/fourplexpalooza-continues-supes-wrestle-with-westside-development/">picked apart in committee</a>.&nbsp;

They also heard about the pitfall-laden road to restoring Laguna Honda Hospital’s federal funding, new legislation targeting open-air drug dealing and some stark foreshadowing for the coming budget process. (As always, wonks looking for the full kit and caboodle can check out the <a href="https://sfbos.org/sites/default/files/bag061422_agenda.pdf">complete agenda</a>.)

They also heard about the pitfall-laden road to restoring Laguna Honda Hospital’s federal funding, new legislation targeting open-air drug dealing and some stark foreshadowing for the coming budget process. (As always, wonks looking for the full kit and caboodle can check out the <a href="https://sfbos.org/sites/default/files/bag061422_agenda.pdf">complete agenda</a>.)

<h2 class="wp-block-heading" id="h-housing-bills-back-to-development-hell">Housing Bills: Back to Development Hell</h2>

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<h2 id="h-housing-bills-back-to-development-hell">Housing Bills: Back to Development Hell</h2>

When District 8 Supervisor Rafael Mandelman introduced legislation last year to <a href="https://sfstandard.com/housing-development/a-fourplex-on-each-lot-in-debate-over-upzoning-sfs-westside-one-proposal-emerges-as-the-strongest/">legalize denser housing</a> in districts zoned for single-family homes, there was some optimism among housing advocates. Since that time, the legislation has endured the political equivalent of development hell, with multiple amendments in committee and at the Planning Commission.&nbsp;

When District 8 Supervisor Rafael Mandelman introduced legislation last year to <a href="https://sfstandard.com/housing-development/a-fourplex-on-each-lot-in-debate-over-upzoning-sfs-westside-one-proposal-emerges-as-the-strongest/">legalize denser housing</a> in districts zoned for single-family homes, there was some optimism among housing advocates. Since that time, the legislation has endured the political equivalent of development hell, with multiple amendments in committee and at the Planning Commission.&nbsp;

The bill, paired with another by District 3 Supervisor Aaron Peskin to curb certain “micro unit” developments, was expected to pass Tuesday, but Mandelman asked that the items be continued due to advice from the city attorney, who recommended further amendments.&nbsp;

The bill, paired with another by District 3 Supervisor Aaron Peskin to curb certain “micro unit” developments, was expected to pass Tuesday, but Mandelman asked that the items be continued due to advice from the city attorney, who recommended further amendments.&nbsp;

<ul class="wp-block-list"><li>Over time, supervisors offered affordability amendments which evolved into making new units developed under the ordinance subject to rent control, among other potentially onerous restrictions.</li><li>The Planning Commission suggested allowing duplexes in districts zoned for single-family housing, but in doing so also exempts San Francisco from state laws that expedite approval for such projects, allowing a return to the discretionary permitting model favored by NIMBYs.</li><li>The Peskin bill would essentially ban certain kinds of studio apartments in the Tenderloin and Chinatown. It’s also being continued since state law won’t allow it to be enacted without the density bill also passing.</li><li>The two bills are the latest round in the city’s <a href="https://sfstandard.com/politics/city-hall/housing-shell-game-supes-latest-actions-set-to-slow-new-housing-as-state-mandate-looms/">housing policy shell game</a> that housing advocates—including Mayor London Breed and California lawmakers like state Sen. Scott Wiener—say supervisors have been playing against their wishes and those of the public.&nbsp;</li><li>Another showdown over the future of housing in the city is <a href="https://sfstandard.com/politics/rent-control-on-new-units-sped-up-construction-and-new-housing-governance-at-city-hall-promised-by-supes-in-raft-of-fall-ballot-measures/">coming to the November ballot</a>. The mayor and a coalition of housing advocates are gathering support for Affordable Homes Now, which aims to speed up many affordable and market-rate housing projects.</li><li>District 1 Supervisor Connie Chan has fielded a rival measure with more stringent affordability requirements. Meanwhile, Peskin has proffered a measure to expand rent control to some new housing, and District 5 Supervisor Dean Preston wants to spin off and reorganize the Mayor’s Office of Housing.</li></ul>

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<ul><li>Over time, supervisors offered affordability amendments which evolved into making new units developed under the ordinance subject to rent control, among other potentially onerous restrictions.</li><li>The Planning Commission suggested allowing duplexes in districts zoned for single-family housing, but in doing so also exempts San Francisco from state laws that expedite approval for such projects, allowing a return to the discretionary permitting model favored by NIMBYs.</li><li>The Peskin bill would essentially ban certain kinds of studio apartments in the Tenderloin and Chinatown. It’s also being continued since state law won’t allow it to be enacted without the density bill also passing.</li><li>The two bills are the latest round in the city’s <a href="https://sfstandard.com/politics/city-hall/housing-shell-game-supes-latest-actions-set-to-slow-new-housing-as-state-mandate-looms/">housing policy shell game</a> that housing advocates—including Mayor London Breed and California lawmakers like state Sen. Scott Wiener—say supervisors have been playing against their wishes and those of the public.&nbsp;</li><li>Another showdown over the future of housing in the city is <a href="https://sfstandard.com/politics/rent-control-on-new-units-sped-up-construction-and-new-housing-governance-at-city-hall-promised-by-supes-in-raft-of-fall-ballot-measures/">coming to the November ballot</a>. The mayor and a coalition of housing advocates are gathering support for Affordable Homes Now, which aims to speed up many affordable and market-rate housing projects.</li><li>District 1 Supervisor Connie Chan has fielded a rival measure with more stringent affordability requirements. Meanwhile, Peskin has proffered a measure to expand rent control to some new housing, and District 5 Supervisor Dean Preston wants to spin off and reorganize the Mayor’s Office of Housing.</li></ul>

Laguna Honda’s “Kafkaesque” Road to Recertification

<h2 class="wp-block-heading" id="h-laguna-honda-s-kafkaesque-road-to-recertification">Laguna Honda’s “Kafkaesque” Road to Recertification</h2>

<h2 id="h-laguna-honda-s-kafkaesque-road-to-recertification">Laguna Honda’s “Kafkaesque” Road to Recertification</h2>

The meeting also included a hearing on the crisis at Laguna Honda Hospital, which revealed the dilemma the facility now faces: in order to be recertified for federal funding, the hospital has to close down temporarily, forcing close to 700 patients to be transferred or be discharged.&nbsp;

The meeting also included a hearing on the crisis at Laguna Honda Hospital, which revealed the dilemma the facility now faces: in order to be recertified for federal funding, the hospital has to close down temporarily, forcing close to 700 patients to be transferred or be discharged.&nbsp;

Here’s some of what was uncovered:

<ul class="wp-block-list"><li>Laguna Honda’s patients receive different kinds of long-term care, from rehabilitation to hospice care. It’s the kind of facility that most other cities have given up on. The hospital has been in operation in one form or another for over 150 years.&nbsp;</li><li>Federal regulators <a href="https://sfstandard.com/public-health/the-last-alms-house-laguna-honda-faces-daunting-overhaul-to-satisfy-federal-regulators/">issued warnings</a> to the facility over incidents involving resident patients who left the hospital during the day and then returned suffering from drug overdoses, as well as isolated safety and sanitation violations.</li><li>The incidents reflect a change in the patient population at Laguna Honda, where younger people—often in conservatorship or other behavioral health care—are increasingly admitted.</li><li>The violations culminated in a decision by the Centers for Medicare and Medicaid Services to terminate Laguna Honda’s participation in its programs, which account for up to two-thirds of the hospital’s budget. That is, up to $15 million a month.</li><li>Health Network and interim hospital director Roland Pickens outlined the process, which revealed good news and bad news. First, the good news: recertification could happen by year’s end. The bad news? The hospital will have to transfer or discharge patients, and there are only a handful of beds available in the city—most would have to be transferred elsewhere in the state.&nbsp;</li><li>Mandelman deemed the process “Kafkaesque” and “mind boggling.” Preston called it “bonkers.” Board President Shamann Walton questioned any assurances that the hospital has a chance of regaining certification.</li><li>Representatives of the hospital union SEIU 1021, as well as public commenters, urged the city to take the issue up the chain of command—anything to avoid shutting down the hospital.&nbsp;</li><li>In 1999, the last time the facility fell under federal scrutiny, 73% of San Francisco <a href="https://www.sfgate.com/news/article/Laguna-Honda-launches-campaign-for-bond-measure-3068420.php">voters approved a $300 million bond</a> to rebuild it.</li><li>The hearing has been continued to Sept. 13.</li></ul>

<ul><li>Laguna Honda’s patients receive different kinds of long-term care, from rehabilitation to hospice care. It’s the kind of facility that most other cities have given up on. The hospital has been in operation in one form or another for over 150 years.&nbsp;</li><li>Federal regulators <a href="https://sfstandard.com/public-health/the-last-alms-house-laguna-honda-faces-daunting-overhaul-to-satisfy-federal-regulators/">issued warnings</a> to the facility over incidents involving resident patients who left the hospital during the day and then returned suffering from drug overdoses, as well as isolated safety and sanitation violations.</li><li>The incidents reflect a change in the patient population at Laguna Honda, where younger people—often in conservatorship or other behavioral health care—are increasingly admitted.</li><li>The violations culminated in a decision by the Centers for Medicare and Medicaid Services to terminate Laguna Honda’s participation in its programs, which account for up to two-thirds of the hospital’s budget. That is, up to $15 million a month.</li><li>Health Network and interim hospital director Roland Pickens outlined the process, which revealed good news and bad news. First, the good news: recertification could happen by year’s end. The bad news? The hospital will have to transfer or discharge patients, and there are only a handful of beds available in the city—most would have to be transferred elsewhere in the state.&nbsp;</li><li>Mandelman deemed the process “Kafkaesque” and “mind boggling.” Preston called it “bonkers.” Board President Shamann Walton questioned any assurances that the hospital has a chance of regaining certification.</li><li>Representatives of the hospital union SEIU 1021, as well as public commenters, urged the city to take the issue up the chain of command—anything to avoid shutting down the hospital.&nbsp;</li><li>In 1999, the last time the facility fell under federal scrutiny, 73% of San Francisco <a href="https://www.sfgate.com/news/article/Laguna-Honda-launches-campaign-for-bond-measure-3068420.php">voters approved a $300 million bond</a> to rebuild it.</li><li>The hearing has been continued to Sept. 13.</li></ul>

<h2 class="wp-block-heading" id="h-new-business-and-budget-foreshadowing">New Business and Budget Foreshadowing</h2>

<h2 id="h-new-business-and-budget-foreshadowing">New Business and Budget Foreshadowing</h2>

Supervisor Hillary Ronen, center, advanced legislation Monday in the Rules Committee to bar San Francisco police from storing crime victim DNA for more than 60 days in an effort to make sure this evidence is not used as a tool to investigate the victims as suspects in other cases. I File photo by Camille Cohen

<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/04/IA7A6776-2500x1667.jpg" alt="" class="wp-image-45966"/><figcaption>Supervisor Hillary Ronen, center I File photo by Camille Cohen</figcaption></figure>

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<figure class="wp-block-image size-large"><img src="https://content.sfstandard.com/wp-content/uploads/2022/04/IA7A6776-2500x1667.jpg" alt="" class="wp-image-45966"/><figcaption>Supervisor Hillary Ronen, center I File photo by Camille Cohen</figcaption></figure>

Supervisors held an emergency hearing on yet another beleaguered behavioral health provider: the recently merged Baker Places and Positive Resource Center. The facility provides drug treatment and care for AIDS patients at a number of locations, including a recently built “Hummingbird Center” psychiatric respite center in the Mission.&nbsp;

Supervisors held an emergency hearing on yet another beleaguered behavioral health provider: the recently merged Baker Places and Positive Resource Center. The facility provides drug treatment and care for AIDS patients at a number of locations, including a recently built “Hummingbird Center” psychiatric respite center in the Mission.&nbsp;

The nature of the hearing prompted District 9 Supervisor and Budget Chair Hillary Ronen to let slip a bit of a shocker about the coming budget process.&nbsp;

The nature of the hearing prompted District 9 Supervisor and Budget Chair Hillary Ronen to let slip a bit of a shocker about the coming budget process.&nbsp;

<ul class="wp-block-list"><li>Mayor London Breed, along with Mandelman and District 6 Supervisor Matt Dorsey, sponsored grant agreement amendments totaling $3.2 million to bail the nonprofit out of fiscal problems that threatened to shut it down. </li><li>Most of Mandelman and Dorsey’s colleagues were downright incredulous. Ronen, Peskin, Walton, along with District 7 Supervisor Myrna Melgar and District 11 Supervisor Ahsha Safai, demanded clearer answers from staffers at the Department of Public Health, which they didn’t get. </li><li>Ronen noted that $1.5 billion in add-backs to the city budget were being requested by departments. That’s right, $1.5 billion—the highest amount of requests received in city history. It’s pretty certain that not all would be granted, but Ronen said “she couldn’t sleep at night” because of the list. </li><li>Ronen moved that the combined aid in the related legislation be reduced to $1.25 million, as long as the funds be used only for staff pay and preventing patient displacement—at least until DPH could provide more information. The amended ordinances passed unanimously.</li><li>More budget foreshadowing was introduced when Supervisor Chan, along with Peskin and District 4 Supervisor Gordon Mar, said they want $118 million to create an “API Equity Fund” as reparations for past policies that discriminated against people of Asian descent. The funds, which would be used by nonprofit groups for community reinvestment, would come out of the city’s rainy day reserves. Read more about it <a href="https://sfstandard.com/community/118m-from-city-reserves-for-asian-american-reparations-four-supes-want-it-mayor-breed-is-against-it/">here</a>.</li><li>During Roll Call, Dorsey introduced legislation to create “Right to Recovery” drug enforcement zones where people looking for substance-use treatment can be shielded from drug use and dealing. Read more about that <a href="https://sfstandard.com/politics/city-hall/sup-dorsey-proposes-right-to-recovery-zones-with-targeted-drug-enforcement/">here</a>.</li><li>Finally Preston introduced a resolution urging alternative plans for the Plaza East public housing in the Western Addition, where Mayor Breed grew up. He voiced concern over MBS’ plans to include 300 market-rate units, and instead urged the builder to make any additions below market-rate where possible. </li></ul>

<ul><li>Mayor London Breed, along with Mandelman and District 6 Supervisor Matt Dorsey, sponsored grant agreement amendments totaling $3.2 million to bail the nonprofit out of fiscal problems that threatened to shut it down. </li><li>Most of Mandelman and Dorsey’s colleagues were downright incredulous. Ronen, Peskin, Walton, along with District 7 Supervisor Myrna Melgar and District 11 Supervisor Ahsha Safai, demanded clearer answers from staffers at the Department of Public Health, which they didn’t get. </li><li>Ronen noted that $1.5 billion in add-backs to the city budget were being requested by departments. That’s right, $1.5 billion—the highest amount of requests received in city history. It’s pretty certain that not all would be granted, but Ronen said “she couldn’t sleep at night” because of the list. </li><li>Ronen moved that the combined aid in the related legislation be reduced to $1.25 million, as long as the funds be used only for staff pay and preventing patient displacement—at least until DPH could provide more information. The amended ordinances passed unanimously.</li><li>More budget foreshadowing was introduced when Supervisor Chan, along with Peskin and District 4 Supervisor Gordon Mar, said they want $118 million to create an “API Equity Fund” as reparations for past policies that discriminated against people of Asian descent. The funds, which would be used by nonprofit groups for community reinvestment, would come out of the city’s rainy day reserves. Read more about it <a href="https://sfstandard.com/community/118m-from-city-reserves-for-asian-american-reparations-four-supes-want-it-mayor-breed-is-against-it/">here</a>.</li><li>During Roll Call, Dorsey introduced legislation to create “Right to Recovery” drug enforcement zones where people looking for substance-use treatment can be shielded from drug use and dealing. Read more about that <a href="https://sfstandard.com/politics/city-hall/sup-dorsey-proposes-right-to-recovery-zones-with-targeted-drug-enforcement/">here</a>.</li><li>Finally Preston introduced a resolution urging alternative plans for the Plaza East public housing in the Western Addition, where Mayor Breed grew up. He voiced concern over MBS’ plans to include 300 market-rate units, and instead urged the builder to make any additions below market-rate where possible. </li></ul>

Laguna Honda gets a health check, housing bills get a raincheck: Supervisors’ roundup

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;

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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https://twitter.com/Steve_Glazer/status/1673403568089616387
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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>

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>

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;

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