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"content": "\u003cp>After eight years of wild swings between record surpluses and perilous shortfalls, Gov. \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gavin Newsom\u003c/a> touted a state of equilibrium on Thursday with his final \u003ca href=\"https://ebudget.ca.gov/budget/m/2026-27/BudgetSummary\">budget proposal\u003c/a>: a $350 billion, fully balanced spending plan that aims to backfill deep federal spending cuts but proposes no new programs and some spending reductions.\u003c/p>\n\u003cp>Newsom’s fiscal swan song comes as he gears up for a possible presidential run, as \u003ca href=\"https://www.kqed.org/voterguide/california/governor\">a crowded field of candidates\u003c/a> jockey to succeed him and as the state weathers ongoing attacks from the Trump administration.\u003c/p>\n\u003cp>But those federal cuts are offset in part by state revenues that came in $16.5 billion higher than the governor’s office projected in January, when Newsom released his initial spending plan. Income tax revenue was higher than expected and Silicon Valley stocks showed a strong performance, driving projected surplus for the next two fiscal years.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>That includes $4.5 billion in excess funds next year, as well as nearly $10 billion more Newsom wants to set aside in a savings account for use the following year.\u003c/p>\n\u003cp>“It shows the nature of the economy in the state, the nature of that growth engine,” he said, though he cautioned that the state’s revenue streams remain volatile. “It spikes from year to year, it collapses. When the nation gets a cold, we get the flu.”\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">In an unusual move, Newsom administration officials did not provide a clear projection of the surplus or deficit that the governor’s plan was solving for. Joe Stephenshaw, director of the Department of Finance, said he could not provide an “apples to apples” comparison with the $2.9 billion shortfall Newsom projected in his January budget.\u003c/span>\u003c/p>\n\u003cfigure id=\"attachment_12070222\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12070222\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom and Mayor Daniel Lurie listen to speakers during a press conference at the Friendship House Association of American Indians in San Francisco on Jan. 16, 2026. Behind them stands a sculpture of Helen Waukazoo, the founder of the Friendship House Association of American Indians. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In his revised proposal, Newsom unveiled new plans to help Californians facing higher Affordable Care Act premiums and Medi-Cal cuts, and to ease the tax burden on new businesses. He also proposed more money for K-12 education and universities, and a new $100 million fund to help homeowners rebuild after a natural disaster, including the January 2025 Los Angeles wildfires.\u003c/p>\n\u003cp>But Newsom resisted calls from fellow Democrats to raise taxes in order to offset federal cuts and rising health care costs, though he does want to cap the amount large corporations can claim on tax credits.\u003c/p>\n\u003cp>He used his opening remarks to attack the president’s agenda and to tout California’s economic strength in key economic areas, including manufacturing, agriculture, innovation and job creation.[aside postID=news_12069177 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/HJA_2939_SOTS_001-2000x1333.jpg']“Dominance. That’s the way to describe, in one word, the state of California. We simply have no peers. We are the tentpole of the American economy,” Newsom said, before launching into a series of slides to back up his point, including one featuring a picture of Fox News host Sean Hannity with the words “California Derangement Syndrome” plastered below.\u003c/p>\n\u003cp>He went on to slam Trump’s “illegal” tariffs, the president’s deep cuts to science and medical research grants and the economic effects of his deportation push and the war in Iran. Then he showed an AI-generated image of Trump and Treasury Secretary Scott Bessent superimposed as the characters in the movie “Dumb and Dumber.”\u003c/p>\n\u003cp>“I think this captures in so many respects the remarkable, remarkable work that these two have done and the impacts had on American people and the economy since they got into office,” he said sarcastically.\u003c/p>\n\u003cp>Republican leaders in the Legislature, though, were quick to slam the governor’s spending priorities.\u003c/p>\n\u003cp>“If there is truly a budget surplus, priorities should focus on providing things like real cost-of-living relief for Californians, fully funding Proposition 36, and paying off the federal unemployment insurance debt so job creators are no longer stuck paying for Newsom’s lack of leadership,” said Sen. Tony Strickland, R-Huntington Beach.\u003c/p>\n\u003ch2>Medi-Cal and health care\u003c/h2>\n\u003cp>Spending on Medi-Cal, the state’s health care safety net, is declining by $3.7 billion compared to the previous state budget. That’s in part a result of Trump’s plan to impose work requirements on Medi-Cal recipients — a move expected to reduce enrollment — but also due to cuts Newsom is proposing.\u003c/p>\n\u003cp>Newsom is proposing to implement an asset limit for seniors and disabled adults on Medi-Cal and increase the monthly premiums for undocumented adults on Medi-Cal, from $30 to $50. The change will apply to residents between the ages of 19 and 59, effective in 2027.\u003c/p>\n\u003cp>Federal rule changes under Trump are forcing California to change how it insures undocumented immigrants.\u003c/p>\n\u003cfigure id=\"attachment_12053886\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053886\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1.jpg\" alt=\"\" width=\"1999\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">Protesters gather outside Glendale Memorial Hospital, where federal immigration agents wait for Milagro Solis Portillo to recover in Glendale, on July 17, 2025. \u003ccite>(J.W. Hendricks/NurPhoto via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“No one has done better to address their anxiety and needs,” Newsom said of the state’s undocumented population.\u003c/p>\n\u003cp>But immigrant advocates immediately lashed out. California Pan-Ethnic Health Network executive director Kiran Savage-Sangwan called the Medi-Cal changes for undocumented “devastatingly cruel,” especially when considered alongside last year’s elimination of dental care for undocumented Medi-Cal recipients, and other fees the state began imposing based on immigration status in order to close a shortfall last year.\u003c/p>\n\u003cp>“In light of the state’s surge of revenues, continuing to advance these brutal cuts, despite a nine-month delay, is further evidence that they aren’t a matter of math but a matter of values,” Savage-Sangwan said.\u003c/p>\n\u003cp>The federal health care changes, enacted in the One Big Beautiful Bill Act, created requirements for Medi-Cal recipients to prove they are working or volunteering. Newsom projects that change will result in 44,000 Californians losing coverage in the next fiscal year.\u003c/p>\n\u003cp>But the federal bill will also reduce some Medicaid payments to California and limit the state’s ability to raise health care dollars through a tax on health care providers.\u003c/p>\n\u003cp>In response, Democrats in the state Senate are advocating for a new tax on the largest 2% of corporations to close the Medi-Cal funding gap.\u003c/p>\n\u003cfigure id=\"attachment_12057897\" class=\"wp-caption aligncenter\" style=\"max-width: 1998px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12057897 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3.jpg\" alt=\"\" width=\"1998\" height=\"1332\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3.jpg 1998w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1998px) 100vw, 1998px\">\u003cfigcaption class=\"wp-caption-text\">Lester Johnson (left), a restaurant owner in Richmond, Virginia, stands next to a sign that reads “Affordable Care Act Premiums Will Rise More Than 75%” during a news conference to call on Republicans to pass Affordable Care Act tax breaks on Capitol Hill on Sept. 16, 2025, in Washington, D.C. Democratic Senators joined Protect Our Care and advocates to call on the GOP to protect health care for Americans and stop premium hikes. \u003ccite>(Andrew Harnik/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Newsom is pushing instead to limit the tax credits that businesses can claim to $5 million or 50% of the company’s tax liability — a move the administration projects will raise $850 million in the upcoming fiscal year and $1.7 billion the following year.\u003c/p>\n\u003cp>“I mean, some folks are never going to pay taxes for years and years and years, and they’re just hoarding these tax credits. So we’re going to put a little cap on that,” he said, adding that the change will affect large corporations, not small businesses.\u003c/p>\n\u003cp>In a separate health care move, Newsom is proposing to spend $300 million to cover health care premiums for low-income Californians to purchase health care through the Covered California exchange.\u003c/p>\n\u003cp>In December, Affordable Care Act subsidies \u003ca href=\"https://www.kqed.org/forum/2010101912213/congress-scrambles-to-address-healthcare-funding-before-year-end\">expired\u003c/a> for millions of Americans after Congress failed to reach a deal to extend the tax credits.\u003c/p>\n\u003ch2>Taxes and fees\u003c/h2>\n\u003cp>Other Newsom proposals echo calls from candidates in the wide-open race to succeed him as governor.\u003c/p>\n\u003cp>Newsom wants to cut in half the $800 minimum franchise tax that businesses pay each year, regardless of their profit. Steve Hilton, the leading Republican in the governor’s race, has \u003ca href=\"https://www.kqed.org/news/12079441/heres-how-californias-next-governor-will-change-your-taxes\">called to eliminate the tax entirely\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_12072282\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12072282\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">From left, Xavier Becerra, Steve Hilton, Matt Mahan, Tom Steyer, Tony Thurmond, Antonio Villaraigosa and Betty Yee stand on the stage during the California gubernatorial candidate debate on Tuesday, Feb. 3, 2026, in San Francisco. \u003ccite>(Laure Andrillon/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The governor is also taking aim at the fees that local governments charge housing developers for their projects’ anticipated impact on roads and parks.\u003c/p>\n\u003cp>The fees have been a target of both Republicans and two moderate Democrats in the race: San José Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa.\u003c/p>\n\u003cp>Newsom’s proposal would block local governments from charging impact fees on affordable housing developments that tap state funds.[aside postID=news_12083461 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/05/260428-VallejoChildCare-37-BL_qed.jpg']The legislature will now hold hearings on Newsom’s budget plan and negotiate a final spending agreement with the administration before June 15.\u003c/p>\n\u003cp>Asked if he has any regrets in \u003ca href=\"https://www.kqed.org/news/12068929/in-final-year-gov-gavin-newsom-looks-to-finish-what-he-started\">his final year in office\u003c/a>, the governor hinted that he would have liked to move sooner on changes to expand the state’s rainy day fund.\u003c/p>\n\u003cp>In 2021 and 2022, Newsom touted budget surpluses of $75 billion and $97 billion — only to see those windfalls turn into deficits in subsequent years. The governor said he is still negotiating a deal with legislative leaders to potentially expand the rainy day fund.\u003c/p>\n\u003cp>But Newsom, who has studiously avoided weighing in on the messy race for governor, did make sure everyone knows he’s thinking about the next person in his seat.\u003c/p>\n\u003cp>“I am not just trying to get out of Dodge,” he said. “This is a balanced budget structurally for the next 18 months, after I am gone. I am not just planning for next fiscal year.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"title": "Newsom Touts ‘Dominance’ of California in Final Budget Proposal | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>After eight years of wild swings between record surpluses and perilous shortfalls, Gov. \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gavin Newsom\u003c/a> touted a state of equilibrium on Thursday with his final \u003ca href=\"https://ebudget.ca.gov/budget/m/2026-27/BudgetSummary\">budget proposal\u003c/a>: a $350 billion, fully balanced spending plan that aims to backfill deep federal spending cuts but proposes no new programs and some spending reductions.\u003c/p>\n\u003cp>Newsom’s fiscal swan song comes as he gears up for a possible presidential run, as \u003ca href=\"https://www.kqed.org/voterguide/california/governor\">a crowded field of candidates\u003c/a> jockey to succeed him and as the state weathers ongoing attacks from the Trump administration.\u003c/p>\n\u003cp>But those federal cuts are offset in part by state revenues that came in $16.5 billion higher than the governor’s office projected in January, when Newsom released his initial spending plan. Income tax revenue was higher than expected and Silicon Valley stocks showed a strong performance, driving projected surplus for the next two fiscal years.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>That includes $4.5 billion in excess funds next year, as well as nearly $10 billion more Newsom wants to set aside in a savings account for use the following year.\u003c/p>\n\u003cp>“It shows the nature of the economy in the state, the nature of that growth engine,” he said, though he cautioned that the state’s revenue streams remain volatile. “It spikes from year to year, it collapses. When the nation gets a cold, we get the flu.”\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400;\">In an unusual move, Newsom administration officials did not provide a clear projection of the surplus or deficit that the governor’s plan was solving for. Joe Stephenshaw, director of the Department of Finance, said he could not provide an “apples to apples” comparison with the $2.9 billion shortfall Newsom projected in his January budget.\u003c/span>\u003c/p>\n\u003cfigure id=\"attachment_12070222\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12070222\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NEWSOMLURIEPRESSER-06-BL-KQED-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom and Mayor Daniel Lurie listen to speakers during a press conference at the Friendship House Association of American Indians in San Francisco on Jan. 16, 2026. Behind them stands a sculpture of Helen Waukazoo, the founder of the Friendship House Association of American Indians. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In his revised proposal, Newsom unveiled new plans to help Californians facing higher Affordable Care Act premiums and Medi-Cal cuts, and to ease the tax burden on new businesses. He also proposed more money for K-12 education and universities, and a new $100 million fund to help homeowners rebuild after a natural disaster, including the January 2025 Los Angeles wildfires.\u003c/p>\n\u003cp>But Newsom resisted calls from fellow Democrats to raise taxes in order to offset federal cuts and rising health care costs, though he does want to cap the amount large corporations can claim on tax credits.\u003c/p>\n\u003cp>He used his opening remarks to attack the president’s agenda and to tout California’s economic strength in key economic areas, including manufacturing, agriculture, innovation and job creation.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Dominance. That’s the way to describe, in one word, the state of California. We simply have no peers. We are the tentpole of the American economy,” Newsom said, before launching into a series of slides to back up his point, including one featuring a picture of Fox News host Sean Hannity with the words “California Derangement Syndrome” plastered below.\u003c/p>\n\u003cp>He went on to slam Trump’s “illegal” tariffs, the president’s deep cuts to science and medical research grants and the economic effects of his deportation push and the war in Iran. Then he showed an AI-generated image of Trump and Treasury Secretary Scott Bessent superimposed as the characters in the movie “Dumb and Dumber.”\u003c/p>\n\u003cp>“I think this captures in so many respects the remarkable, remarkable work that these two have done and the impacts had on American people and the economy since they got into office,” he said sarcastically.\u003c/p>\n\u003cp>Republican leaders in the Legislature, though, were quick to slam the governor’s spending priorities.\u003c/p>\n\u003cp>“If there is truly a budget surplus, priorities should focus on providing things like real cost-of-living relief for Californians, fully funding Proposition 36, and paying off the federal unemployment insurance debt so job creators are no longer stuck paying for Newsom’s lack of leadership,” said Sen. Tony Strickland, R-Huntington Beach.\u003c/p>\n\u003ch2>Medi-Cal and health care\u003c/h2>\n\u003cp>Spending on Medi-Cal, the state’s health care safety net, is declining by $3.7 billion compared to the previous state budget. That’s in part a result of Trump’s plan to impose work requirements on Medi-Cal recipients — a move expected to reduce enrollment — but also due to cuts Newsom is proposing.\u003c/p>\n\u003cp>Newsom is proposing to implement an asset limit for seniors and disabled adults on Medi-Cal and increase the monthly premiums for undocumented adults on Medi-Cal, from $30 to $50. The change will apply to residents between the ages of 19 and 59, effective in 2027.\u003c/p>\n\u003cp>Federal rule changes under Trump are forcing California to change how it insures undocumented immigrants.\u003c/p>\n\u003cfigure id=\"attachment_12053886\" class=\"wp-caption aligncenter\" style=\"max-width: 1999px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12053886\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1.jpg\" alt=\"\" width=\"1999\" height=\"1334\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1.jpg 1999w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/08/HealthCareICECalMatters1-1536x1025.jpg 1536w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\">\u003cfigcaption class=\"wp-caption-text\">Protesters gather outside Glendale Memorial Hospital, where federal immigration agents wait for Milagro Solis Portillo to recover in Glendale, on July 17, 2025. \u003ccite>(J.W. Hendricks/NurPhoto via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“No one has done better to address their anxiety and needs,” Newsom said of the state’s undocumented population.\u003c/p>\n\u003cp>But immigrant advocates immediately lashed out. California Pan-Ethnic Health Network executive director Kiran Savage-Sangwan called the Medi-Cal changes for undocumented “devastatingly cruel,” especially when considered alongside last year’s elimination of dental care for undocumented Medi-Cal recipients, and other fees the state began imposing based on immigration status in order to close a shortfall last year.\u003c/p>\n\u003cp>“In light of the state’s surge of revenues, continuing to advance these brutal cuts, despite a nine-month delay, is further evidence that they aren’t a matter of math but a matter of values,” Savage-Sangwan said.\u003c/p>\n\u003cp>The federal health care changes, enacted in the One Big Beautiful Bill Act, created requirements for Medi-Cal recipients to prove they are working or volunteering. Newsom projects that change will result in 44,000 Californians losing coverage in the next fiscal year.\u003c/p>\n\u003cp>But the federal bill will also reduce some Medicaid payments to California and limit the state’s ability to raise health care dollars through a tax on health care providers.\u003c/p>\n\u003cp>In response, Democrats in the state Senate are advocating for a new tax on the largest 2% of corporations to close the Medi-Cal funding gap.\u003c/p>\n\u003cfigure id=\"attachment_12057897\" class=\"wp-caption aligncenter\" style=\"max-width: 1998px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12057897 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3.jpg\" alt=\"\" width=\"1998\" height=\"1332\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3.jpg 1998w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/09/image3-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1998px) 100vw, 1998px\">\u003cfigcaption class=\"wp-caption-text\">Lester Johnson (left), a restaurant owner in Richmond, Virginia, stands next to a sign that reads “Affordable Care Act Premiums Will Rise More Than 75%” during a news conference to call on Republicans to pass Affordable Care Act tax breaks on Capitol Hill on Sept. 16, 2025, in Washington, D.C. Democratic Senators joined Protect Our Care and advocates to call on the GOP to protect health care for Americans and stop premium hikes. \u003ccite>(Andrew Harnik/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Newsom is pushing instead to limit the tax credits that businesses can claim to $5 million or 50% of the company’s tax liability — a move the administration projects will raise $850 million in the upcoming fiscal year and $1.7 billion the following year.\u003c/p>\n\u003cp>“I mean, some folks are never going to pay taxes for years and years and years, and they’re just hoarding these tax credits. So we’re going to put a little cap on that,” he said, adding that the change will affect large corporations, not small businesses.\u003c/p>\n\u003cp>In a separate health care move, Newsom is proposing to spend $300 million to cover health care premiums for low-income Californians to purchase health care through the Covered California exchange.\u003c/p>\n\u003cp>In December, Affordable Care Act subsidies \u003ca href=\"https://www.kqed.org/forum/2010101912213/congress-scrambles-to-address-healthcare-funding-before-year-end\">expired\u003c/a> for millions of Americans after Congress failed to reach a deal to extend the tax credits.\u003c/p>\n\u003ch2>Taxes and fees\u003c/h2>\n\u003cp>Other Newsom proposals echo calls from candidates in the wide-open race to succeed him as governor.\u003c/p>\n\u003cp>Newsom wants to cut in half the $800 minimum franchise tax that businesses pay each year, regardless of their profit. Steve Hilton, the leading Republican in the governor’s race, has \u003ca href=\"https://www.kqed.org/news/12079441/heres-how-californias-next-governor-will-change-your-taxes\">called to eliminate the tax entirely\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_12072282\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12072282\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/02/CAGovDebateAP1-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">From left, Xavier Becerra, Steve Hilton, Matt Mahan, Tom Steyer, Tony Thurmond, Antonio Villaraigosa and Betty Yee stand on the stage during the California gubernatorial candidate debate on Tuesday, Feb. 3, 2026, in San Francisco. \u003ccite>(Laure Andrillon/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The governor is also taking aim at the fees that local governments charge housing developers for their projects’ anticipated impact on roads and parks.\u003c/p>\n\u003cp>The fees have been a target of both Republicans and two moderate Democrats in the race: San José Mayor Matt Mahan and former Los Angeles Mayor Antonio Villaraigosa.\u003c/p>\n\u003cp>Newsom’s proposal would block local governments from charging impact fees on affordable housing developments that tap state funds.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The legislature will now hold hearings on Newsom’s budget plan and negotiate a final spending agreement with the administration before June 15.\u003c/p>\n\u003cp>Asked if he has any regrets in \u003ca href=\"https://www.kqed.org/news/12068929/in-final-year-gov-gavin-newsom-looks-to-finish-what-he-started\">his final year in office\u003c/a>, the governor hinted that he would have liked to move sooner on changes to expand the state’s rainy day fund.\u003c/p>\n\u003cp>In 2021 and 2022, Newsom touted budget surpluses of $75 billion and $97 billion — only to see those windfalls turn into deficits in subsequent years. The governor said he is still negotiating a deal with legislative leaders to potentially expand the rainy day fund.\u003c/p>\n\u003cp>But Newsom, who has studiously avoided weighing in on the messy race for governor, did make sure everyone knows he’s thinking about the next person in his seat.\u003c/p>\n\u003cp>“I am not just trying to get out of Dodge,” he said. “This is a balanced budget structurally for the next 18 months, after I am gone. I am not just planning for next fiscal year.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Education officials across \u003ca href=\"https://www.kqed.org/news/tag/california\">California\u003c/a> are calling on the governor and state Legislature to scrap a plan to withhold billions in education funding that they say means more cuts for students and continues a harmful trend of underfunding.\u003c/p>\n\u003cp>Ahead of Gov. Gavin Newsom’s revised budget proposal, expected next week, school district leaders across the state are pushing for him to allocate the full amount of Proposition 98 funding required by the state.\u003c/p>\n\u003cp>“The proposed withholding would trigger real reductions to student services, academic interventions, mental health services, staffing, and programs that our students rely on every single day,” said Edgar Zazueta, the executive director of the Association of California School Administrators, at a press conference this week. “California has a responsibility right now. It’s to honor the commitment that they’ve made to public education, to protect students and to fully fund Prop. 98.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Proposition 98 requires an annual minimum guarantee of funding for K-12 schools and community colleges, which equates to about 40% of the state’s general fund. In his draft budget released in January, Newsom proposed holding back $5.6 billion earmarked for schools, based on general fund revenue for the 2025-2026 year.\u003c/p>\n\u003cp>While Newsom said the deferral would mitigate the risk of appropriating more resources than end up being available, due to “persistent uncertainty in revenue projections,” school boards, district officials and unions across the state said delaying the funding violates the state constitution, and will mean real losses for districts already strapped for cash.\u003c/p>\n\u003cfigure id=\"attachment_12070630\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12070630\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom speaks during a press conference at the Friendship House Association of American Indians in San Francisco on Jan. 16, 2026. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Though the governor has touted “historic” education allocations over recent years — including an unexpected $22 billion in additional funding for next year — school districts across the Bay Area and beyond are facing massive, multi-year budget shortfalls.\u003c/p>\n\u003cp>Many have lost per-pupil funding due to enrollment declines, and California School Board Association spokesperson Troy Flint said rising costs — for teacher compensation, pension and health care contributions and special education — are outpacing funding gains.\u003c/p>\n\u003cp>“When you add all that up, the idea that schools have more money is, while it’s intuitive, not reflective of reality,” Flint said.\u003c/p>\n\u003cp>According to Barrett Snider, an education lobbyist with Capitol Advisors, the state sees withholding this pool of money, which is an excess of the projected funding for last year, as “No harm, no foul” for school districts, and a possible solution to pay for higher-than-anticipated costs elsewhere in the state budget. The education community disagrees.[aside postID=news_12077803 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2026/03/260326-SJSchoolClosures-02-BL.jpg']“This is a chronically underfunded system,” Snider said. “We’ve got declining enrollment all over the state. We’ve got pressure from labor because the cost of living has gone up everywhere. We need to solve that problem, so you want to borrow money from us?”\u003c/p>\n\u003cp>CSBA estimates that the delay means losing about $900 per student across the state. Every $1 billion withheld equates to about 9,500 educators who could lose their jobs, according to Doug Knepp, president of the West Sacramento Teachers Association.\u003c/p>\n\u003cp>“We take the position that a dollar deferred is a dollar denied, and IOU is not a guarantee,” Flint said. “The Prop. 98 monies are intended for the current budget year, which is being developed, not for an indeterminate date in the future.”\u003c/p>\n\u003cp>In March, San Francisco Unified School District board leadership sent a letter to Newsom, urging him to restore the Proposition 98 funding. That letter was signed by other district leaders across the Bay Area and state, who said the withholding “represents tens of millions of dollars from each of our districts and will directly harm our schools and the students they serve as soon as next school year.”\u003c/p>\n\u003cp>On Thursday, district officials from Oakland are also expected to join a statewide lobbying day hosted by the California Teachers Association in favor of restoring Proposition 98 funding.\u003c/p>\n\u003cp>As education officials push for Newsom to release the funding in his final budget proposal ahead of the July 1 deadline, Snider and Flint both said, to some extent, the “damage” has already been done.\u003c/p>\n\u003cfigure id=\"attachment_12072507\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12072507 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1.jpg\" alt=\"\" width=\"2000\" height=\"1331\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1-1536x1022.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Wooden blocks and tiny jackets rest on the rug during playtime at a transitional kindergarten class at Cesar Chavez Elementary School in East San José on Feb. 17, 2023. \u003ccite>(Kori Suzuki/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We’re already seeing school districts have had to develop their budget on the assumption that the withholding will go through,” Flint said. “No matter how this resolves, it’s already had a negative impact as school districts have to reduce staffing support and services.”\u003c/p>\n\u003cp>Still, the advocates said it’s not too late to stop the withholding from becoming a precedent. Last year, the state withheld $1.9 billion from schools, which will be repaid in this year’s budget, under similar circumstances.\u003c/p>\n\u003cp>“Precedent is an issue,” Snider said. “Because the effect is that it effectively neuters Prop. 98 from its intent, which is to protect the school portions of the budget from the non-education side pressures.\u003c/p>\n\u003cp>“What’s being proposed by the governor is sort of a clever workaround to that. And if the education community doesn’t speak up and push back, they’ll just keep doing it,” he continued.\u003c/p>\n\u003cp>Currently, CSBA is suing the state over funds withheld last year, and Flint said if this year’s delay is approved in the final state budget, the organization is very likely to litigate again.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Proposition 98 requires an annual minimum guarantee of funding for K-12 schools and community colleges, which equates to about 40% of the state’s general fund. In his draft budget released in January, Newsom proposed holding back $5.6 billion earmarked for schools, based on general fund revenue for the 2025-2026 year.\u003c/p>\n\u003cp>While Newsom said the deferral would mitigate the risk of appropriating more resources than end up being available, due to “persistent uncertainty in revenue projections,” school boards, district officials and unions across the state said delaying the funding violates the state constitution, and will mean real losses for districts already strapped for cash.\u003c/p>\n\u003cfigure id=\"attachment_12070630\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12070630\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/260116-NewsomLuriePresser-32-BL_qed-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom speaks during a press conference at the Friendship House Association of American Indians in San Francisco on Jan. 16, 2026. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Though the governor has touted “historic” education allocations over recent years — including an unexpected $22 billion in additional funding for next year — school districts across the Bay Area and beyond are facing massive, multi-year budget shortfalls.\u003c/p>\n\u003cp>Many have lost per-pupil funding due to enrollment declines, and California School Board Association spokesperson Troy Flint said rising costs — for teacher compensation, pension and health care contributions and special education — are outpacing funding gains.\u003c/p>\n\u003cp>“When you add all that up, the idea that schools have more money is, while it’s intuitive, not reflective of reality,” Flint said.\u003c/p>\n\u003cp>According to Barrett Snider, an education lobbyist with Capitol Advisors, the state sees withholding this pool of money, which is an excess of the projected funding for last year, as “No harm, no foul” for school districts, and a possible solution to pay for higher-than-anticipated costs elsewhere in the state budget. The education community disagrees.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“This is a chronically underfunded system,” Snider said. “We’ve got declining enrollment all over the state. We’ve got pressure from labor because the cost of living has gone up everywhere. We need to solve that problem, so you want to borrow money from us?”\u003c/p>\n\u003cp>CSBA estimates that the delay means losing about $900 per student across the state. Every $1 billion withheld equates to about 9,500 educators who could lose their jobs, according to Doug Knepp, president of the West Sacramento Teachers Association.\u003c/p>\n\u003cp>“We take the position that a dollar deferred is a dollar denied, and IOU is not a guarantee,” Flint said. “The Prop. 98 monies are intended for the current budget year, which is being developed, not for an indeterminate date in the future.”\u003c/p>\n\u003cp>In March, San Francisco Unified School District board leadership sent a letter to Newsom, urging him to restore the Proposition 98 funding. That letter was signed by other district leaders across the Bay Area and state, who said the withholding “represents tens of millions of dollars from each of our districts and will directly harm our schools and the students they serve as soon as next school year.”\u003c/p>\n\u003cp>On Thursday, district officials from Oakland are also expected to join a statewide lobbying day hosted by the California Teachers Association in favor of restoring Proposition 98 funding.\u003c/p>\n\u003cp>As education officials push for Newsom to release the funding in his final budget proposal ahead of the July 1 deadline, Snider and Flint both said, to some extent, the “damage” has already been done.\u003c/p>\n\u003cfigure id=\"attachment_12072507\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-12072507 size-full\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1.jpg\" alt=\"\" width=\"2000\" height=\"1331\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2026/01/02172023_ksuzuki_tkprogress-157_qed-1-1536x1022.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Wooden blocks and tiny jackets rest on the rug during playtime at a transitional kindergarten class at Cesar Chavez Elementary School in East San José on Feb. 17, 2023. \u003ccite>(Kori Suzuki/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We’re already seeing school districts have had to develop their budget on the assumption that the withholding will go through,” Flint said. “No matter how this resolves, it’s already had a negative impact as school districts have to reduce staffing support and services.”\u003c/p>\n\u003cp>Still, the advocates said it’s not too late to stop the withholding from becoming a precedent. Last year, the state withheld $1.9 billion from schools, which will be repaid in this year’s budget, under similar circumstances.\u003c/p>\n\u003cp>“Precedent is an issue,” Snider said. “Because the effect is that it effectively neuters Prop. 98 from its intent, which is to protect the school portions of the budget from the non-education side pressures.\u003c/p>\n\u003cp>“What’s being proposed by the governor is sort of a clever workaround to that. And if the education community doesn’t speak up and push back, they’ll just keep doing it,” he continued.\u003c/p>\n\u003cp>Currently, CSBA is suing the state over funds withheld last year, and Flint said if this year’s delay is approved in the final state budget, the organization is very likely to litigate again.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Advocates Raise Alarms Over California Budget’s Restrictions on Immigration Legal Aid",
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"content": "\u003cp>With lawmakers poised to vote on the \u003ca href=\"https://www.kqed.org/news/12040025/newsom-blames-trump-california-budget-deficit-aims-cap-undocumented-health-care\">state budget\u003c/a> bill on Friday, California legal aid groups that serve immigrants are raising alarms over some fine print that they say could seriously restrict \u003ca href=\"https://www.kqed.org/news/11979997/concords-new-immigration-court\">access to deportation defense\u003c/a>.\u003c/p>\n\u003cp>Legislators included language in the bill saying that the state funding that has long gone to immigration legal aid cannot be used to assist people who have any sort of felony conviction. Advocates and legal aid administrators say that’s a problem at a moment when the Trump administration is ramping up immigration raids — most recently in Los Angeles \u003ca href=\"https://www.kqed.org/news/12043885/increased-ice-raids-send-shock-waves-through-farm-worker-community\">and the Central Valley\u003c/a> — and as \u003ca href=\"https://www.kqed.org/news/12016037/california-is-a-sanctuary-state-how-much-protection-will-that-give-immigrants-from-trumps-deportation-plans\">state leaders have vowed\u003c/a> to vigorously protect California’s immigrants.\u003c/p>\n\u003cp>“The timing couldn’t be worse,” said Doan Nguyen, director for the Office of Access & Inclusion at the State Bar of California, which administers the state’s funding for legal services. “With the current atmosphere and the ICE raids … we just think that this is really going to add to the chilling effect.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Since 1999, the state has supported legal assistance for low-income Californians dealing with issues such as housing discrimination, wage theft at work and navigating the immigration system. Last year, the Equal Access Fund distributed more than $31 million to nonprofit legal service providers, according to the State Bar.\u003c/p>\n\u003cp>This year’s budget bill \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB101\">currently says\u003c/a> the funds “shall not be used for legal services defending an immigrant against removal from the United States or another immigration remedy based on a documented felony conviction.”\u003c/p>\n\u003cfigure id=\"attachment_12040027\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040027\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom stands in front of a state flag during a press conference about President Donald Trump’s tariffs on Wednesday, April 16, 2025, at an almond farm in Ceres, California. \u003ccite>(Noah Berger/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That comes after a winter special session at which the Legislature approved an extra $25 million to fund immigration legal services, including $10 million channeled through the State Bar. \u003ca href=\"https://www.kqed.org/news/12024851/california-legislature-approves-50m-to-fight-trump-administration-in-court\">Under pressure from Republicans\u003c/a>, the Democratic authors of that bill included a caveat, reflected in \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2025/02/SBx1-2-Signing-Message.pdf\">Gov. Gavin Newsom’s signing statement\u003c/a>, that those funds were not to be used for “individuals with serious or violent felony convictions.”\u003c/p>\n\u003cp>Given that history, Nguyen said she and her colleagues were expecting some kind of restrictive language in the budget bill for the next year, but they were taken aback at how broad it was, excluding even people who’ve committed nonviolent crimes such as theft or vandalism from getting help with immigration matters.[aside postID=news_12043582 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/06/250610-LEGAL-AID-HUNGER-STRIKE-MD-01-KQED.jpg']“It raises a lot of concern,” she said. “It’s going to stoke fears and create a chilling effect on low-income communities that are in need of vital legal services, even beyond immigration, say public benefits or housing-related.”\u003c/p>\n\u003cp>Nguyen added that she also worried that any new requirement to screen clients’ criminal histories would create an administrative burden on already stretched legal clinics.\u003c/p>\n\u003cp>Hamid Yazdan Panah, who leads Immigrant Defense Advocates, said he was frustrated that Democratic lawmakers opted to include what he called a \u003cstrong>“\u003c/strong>criminalizing exemption.”\u003c/p>\n\u003cp>“If they spent more time understanding the importance of legal resources, they would understand that it ultimately helps our state to invest in legal infrastructure and protect due process, especially when it’s being attacked in the manner that we see right now in the streets in L.A.,” he said. “The majority of the funding goes to long-term California residents. And California reaps the benefits of keeping households together and having a strong immigrant workforce that has work permits.”\u003c/p>\n\u003cp>Panah said he’s also worried that the syntax of the bill is sloppy, fearing that the language could be interpreted to mean that the funds may not be used to provide deportation defense for anyone at all.\u003c/p>\n\u003cp>Legislative staffers say that’s not the intention.\u003c/p>\n\u003cfigure id=\"attachment_12040807\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040807\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The California State Capitol in Sacramento on May 6, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Though the Legislature is required to pass the budget by June 15, there are still two weeks in which they are expected to hammer out final language in talks with the governor before the new fiscal year begins July 1.\u003c/p>\n\u003cp>“The Legislature doubled down on investments in legal aid this year, because immigrant workers, students and parents need support more than ever in the face of Trump’s raids and terror,” said Nick Miller, communications director for Assembly Speaker Robert Rivas. “The Governor’s message from January regarding aid and felons, and any draft language, will be discussed during ongoing budget negotiations.”\u003c/p>\n\u003cp>In 2024, roughly $8 million of the Equal Access Fund was spent on immigration legal services, and of the nearly 42,000 low-income Californians who got legal help, more than 11,000 were immigration clients, according to State Bar officials. Additional funds for immigration legal aid flow through the state Department of Social Services.\u003c/p>\n\u003cp>One of the nonprofits that receives funding from the Equal Access program is the Oakland-based California Collaborative for Immigrant Justice. Co-Executive Director Lisa Knox urged lawmakers to remove the restriction and once again allow groups like hers to serve anyone who needs a lawyer to fight deportation or apply for protection.\u003c/p>\n\u003cp>“Legal representation is the most important factor in whether someone facing deportation is able to remain in their community with their family,” she said. “At a time when the Trump administration is sending in the military to make sure ICE can violently detain as many people as possible in California, it is unconscionable that our state Legislature would pull the rug out from under people who need legal representation.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>With lawmakers poised to vote on the \u003ca href=\"https://www.kqed.org/news/12040025/newsom-blames-trump-california-budget-deficit-aims-cap-undocumented-health-care\">state budget\u003c/a> bill on Friday, California legal aid groups that serve immigrants are raising alarms over some fine print that they say could seriously restrict \u003ca href=\"https://www.kqed.org/news/11979997/concords-new-immigration-court\">access to deportation defense\u003c/a>.\u003c/p>\n\u003cp>Legislators included language in the bill saying that the state funding that has long gone to immigration legal aid cannot be used to assist people who have any sort of felony conviction. Advocates and legal aid administrators say that’s a problem at a moment when the Trump administration is ramping up immigration raids — most recently in Los Angeles \u003ca href=\"https://www.kqed.org/news/12043885/increased-ice-raids-send-shock-waves-through-farm-worker-community\">and the Central Valley\u003c/a> — and as \u003ca href=\"https://www.kqed.org/news/12016037/california-is-a-sanctuary-state-how-much-protection-will-that-give-immigrants-from-trumps-deportation-plans\">state leaders have vowed\u003c/a> to vigorously protect California’s immigrants.\u003c/p>\n\u003cp>“The timing couldn’t be worse,” said Doan Nguyen, director for the Office of Access & Inclusion at the State Bar of California, which administers the state’s funding for legal services. “With the current atmosphere and the ICE raids … we just think that this is really going to add to the chilling effect.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Since 1999, the state has supported legal assistance for low-income Californians dealing with issues such as housing discrimination, wage theft at work and navigating the immigration system. Last year, the Equal Access Fund distributed more than $31 million to nonprofit legal service providers, according to the State Bar.\u003c/p>\n\u003cp>This year’s budget bill \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB101\">currently says\u003c/a> the funds “shall not be used for legal services defending an immigrant against removal from the United States or another immigration remedy based on a documented felony conviction.”\u003c/p>\n\u003cfigure id=\"attachment_12040027\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040027\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">Gov. Gavin Newsom stands in front of a state flag during a press conference about President Donald Trump’s tariffs on Wednesday, April 16, 2025, at an almond farm in Ceres, California. \u003ccite>(Noah Berger/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>That comes after a winter special session at which the Legislature approved an extra $25 million to fund immigration legal services, including $10 million channeled through the State Bar. \u003ca href=\"https://www.kqed.org/news/12024851/california-legislature-approves-50m-to-fight-trump-administration-in-court\">Under pressure from Republicans\u003c/a>, the Democratic authors of that bill included a caveat, reflected in \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2025/02/SBx1-2-Signing-Message.pdf\">Gov. Gavin Newsom’s signing statement\u003c/a>, that those funds were not to be used for “individuals with serious or violent felony convictions.”\u003c/p>\n\u003cp>Given that history, Nguyen said she and her colleagues were expecting some kind of restrictive language in the budget bill for the next year, but they were taken aback at how broad it was, excluding even people who’ve committed nonviolent crimes such as theft or vandalism from getting help with immigration matters.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“It raises a lot of concern,” she said. “It’s going to stoke fears and create a chilling effect on low-income communities that are in need of vital legal services, even beyond immigration, say public benefits or housing-related.”\u003c/p>\n\u003cp>Nguyen added that she also worried that any new requirement to screen clients’ criminal histories would create an administrative burden on already stretched legal clinics.\u003c/p>\n\u003cp>Hamid Yazdan Panah, who leads Immigrant Defense Advocates, said he was frustrated that Democratic lawmakers opted to include what he called a \u003cstrong>“\u003c/strong>criminalizing exemption.”\u003c/p>\n\u003cp>“If they spent more time understanding the importance of legal resources, they would understand that it ultimately helps our state to invest in legal infrastructure and protect due process, especially when it’s being attacked in the manner that we see right now in the streets in L.A.,” he said. “The majority of the funding goes to long-term California residents. And California reaps the benefits of keeping households together and having a strong immigrant workforce that has work permits.”\u003c/p>\n\u003cp>Panah said he’s also worried that the syntax of the bill is sloppy, fearing that the language could be interpreted to mean that the funds may not be used to provide deportation defense for anyone at all.\u003c/p>\n\u003cp>Legislative staffers say that’s not the intention.\u003c/p>\n\u003cfigure id=\"attachment_12040807\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040807\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/250506-SACRAMENTOFILE-11-BL-KQED-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">The California State Capitol in Sacramento on May 6, 2025. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Though the Legislature is required to pass the budget by June 15, there are still two weeks in which they are expected to hammer out final language in talks with the governor before the new fiscal year begins July 1.\u003c/p>\n\u003cp>“The Legislature doubled down on investments in legal aid this year, because immigrant workers, students and parents need support more than ever in the face of Trump’s raids and terror,” said Nick Miller, communications director for Assembly Speaker Robert Rivas. “The Governor’s message from January regarding aid and felons, and any draft language, will be discussed during ongoing budget negotiations.”\u003c/p>\n\u003cp>In 2024, roughly $8 million of the Equal Access Fund was spent on immigration legal services, and of the nearly 42,000 low-income Californians who got legal help, more than 11,000 were immigration clients, according to State Bar officials. Additional funds for immigration legal aid flow through the state Department of Social Services.\u003c/p>\n\u003cp>One of the nonprofits that receives funding from the Equal Access program is the Oakland-based California Collaborative for Immigrant Justice. Co-Executive Director Lisa Knox urged lawmakers to remove the restriction and once again allow groups like hers to serve anyone who needs a lawyer to fight deportation or apply for protection.\u003c/p>\n\u003cp>“Legal representation is the most important factor in whether someone facing deportation is able to remain in their community with their family,” she said. “At a time when the Trump administration is sending in the military to make sure ICE can violently detain as many people as possible in California, it is unconscionable that our state Legislature would pull the rug out from under people who need legal representation.”\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>As Bay Area transit systems ride on the edge of financial catastrophe, some state leaders and transit advocates were disappointed to see that Gov. Gavin Newsom did not include a funding boost in his \u003ca href=\"https://www.kqed.org/news/12040025/newsom-blames-trump-california-budget-deficit-aims-cap-undocumented-health-care\">revised budget proposal\u003c/a> on Wednesday.\u003c/p>\n\u003cp>State Sens. Scott Wiener, D-San Francisco, and Jesse Arreguín, D-Berkeley, had asked for $2 billion in \u003ca href=\"https://www.kqed.org/news/12039394/last-ditch-effort-fund-bay-area-transit-tries-pick-up-support\">emergency funding\u003c/a> for transit agencies, a stopgap solution ahead of their proposed sales tax measure for the November 2026 ballot that would raise much-needed money.\u003c/p>\n\u003cp>Bay Area transit agencies, including BART, Muni, AC Transit and Caltrain, face a combined budget deficit of more than $800 million in the next fiscal year. Without immediate funding, some supporters are worried that the agencies may be forced to reduce operations before a sales tax measure can be voted on.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“It’s critical that we include in the adopted budget funding to keep transit agencies in operation in California,” Arreguín said. “We’re at the edge of a fiscal cliff, and the impact this will have on our state and particularly the Bay Area, will be significant.”\u003c/p>\n\u003cp>He added, however, that Newsom’s decision not to include transit funds in the revised state budget was not surprising. California now faces a $12 billion budget deficit in the coming fiscal year, according to the governor’s revised proposal, and the Trump administration’s hostilities threaten to further exacerbate the state’s economic uncertainty.\u003c/p>\n\u003cfigure id=\"attachment_12040183\" class=\"wp-caption aligncenter\" style=\"max-width: 1533px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040183\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED.jpg\" alt=\"\" width=\"1533\" height=\"1154\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED.jpg 1533w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-800x602.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-1020x768.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-160x120.jpg 160w\" sizes=\"auto, (max-width: 1533px) 100vw, 1533px\">\u003cfigcaption class=\"wp-caption-text\">A banner reading “Gavin: Fund Transit” hangs from the pedestrian bridge over US-101 at Utah and 18th streets in San Francisco on Tuesday, May 13, 2025. Public transit advocates in 12 cities across California dropped banners over highway overpasses to demand that Gov. Newsom include $2 billion in the upcoming state budget revision to keep transit systems running over the next two years. \u003ccite>(Courtesy of Fund California Public Transit.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We knew when we submitted our budget request that it would be challenging,” Arreguín said. “We’re not going to expect that the federal government’s going to save us here, so it’s up to the state. We’re going to work harder over the next few weeks to make our case.”\u003c/p>\n\u003cp>While Newsom’s revised budget proposal does not include the emergency transit funding, the state Legislature may decide to add it before the budget is finalized in June, Arreguín noted.\u003c/p>\n\u003cp>If the money doesn’t come through, Arreguín warned that problems like last week’s \u003ca href=\"https://www.kqed.org/news/12039472/bart-shuts-down-entire-train-service-due-to-computer-networking-problem\">hourslong BART outage\u003c/a> that resulted in massive traffic jams and frustrated commuters could become more common.[aside postID=news_12040025 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/GavinNewsom2025AP2-1020x680.jpg']Cyrus Hall, a transportation activist, urged state legislators to reconsider the emergency funding. Without the $2 billion requested by Wiener and Arreguín, transit agencies are going to struggle to survive, he said. Many of them, such as BART and Muni, will have to drastically reduce services, which could mean slashing weekend operations and running fewer trains.\u003c/p>\n\u003cp>Alternatively, transit agencies could also decide to sustain themselves by reallocating funds, Hall said, adding that money typically spent on upkeep may be moved around in order to keep buses running, which could lead to unexpected failures. It’s not sustainable, he said.\u003c/p>\n\u003cp>“Public transit is that linchpin that allows people to get to work, to get to school. Without it, particularly here in the Bay Area with our geography, transportation will collapse,” Hall said. “We need to find the money in order to keep the system running.”\u003c/p>\n\u003cp>Rebecca Long, director of legislation and public affairs at the Metropolitan Transportation Commission, said that because state funding is unreliable, Bay Area residents should prioritize long-term solutions such as the tax measure proposed by Wiener and Arreguín.\u003c/p>\n\u003cp>According to Long, while funds resulting from the measure wouldn’t be available until 2027, transit agencies could take out loans against the anticipated funding to prevent service reductions in the meantime.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003c/em>\u003ca href=\"https://www.kqed.org/author/jlara\">\u003cem>Juan Carlos Lara\u003c/em>\u003c/a>\u003cem> contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n",
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"excerpt": "Two Bay Area lawmakers had urged Gov. Gavin Newsom to include $2 billion in emergency transit funding in his revised budget proposal. He declined, but the Legislature could still add it.",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As Bay Area transit systems ride on the edge of financial catastrophe, some state leaders and transit advocates were disappointed to see that Gov. Gavin Newsom did not include a funding boost in his \u003ca href=\"https://www.kqed.org/news/12040025/newsom-blames-trump-california-budget-deficit-aims-cap-undocumented-health-care\">revised budget proposal\u003c/a> on Wednesday.\u003c/p>\n\u003cp>State Sens. Scott Wiener, D-San Francisco, and Jesse Arreguín, D-Berkeley, had asked for $2 billion in \u003ca href=\"https://www.kqed.org/news/12039394/last-ditch-effort-fund-bay-area-transit-tries-pick-up-support\">emergency funding\u003c/a> for transit agencies, a stopgap solution ahead of their proposed sales tax measure for the November 2026 ballot that would raise much-needed money.\u003c/p>\n\u003cp>Bay Area transit agencies, including BART, Muni, AC Transit and Caltrain, face a combined budget deficit of more than $800 million in the next fiscal year. Without immediate funding, some supporters are worried that the agencies may be forced to reduce operations before a sales tax measure can be voted on.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“It’s critical that we include in the adopted budget funding to keep transit agencies in operation in California,” Arreguín said. “We’re at the edge of a fiscal cliff, and the impact this will have on our state and particularly the Bay Area, will be significant.”\u003c/p>\n\u003cp>He added, however, that Newsom’s decision not to include transit funds in the revised state budget was not surprising. California now faces a $12 billion budget deficit in the coming fiscal year, according to the governor’s revised proposal, and the Trump administration’s hostilities threaten to further exacerbate the state’s economic uncertainty.\u003c/p>\n\u003cfigure id=\"attachment_12040183\" class=\"wp-caption aligncenter\" style=\"max-width: 1533px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12040183\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED.jpg\" alt=\"\" width=\"1533\" height=\"1154\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED.jpg 1533w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-800x602.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-1020x768.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/05/IMAGE-6-KQED-160x120.jpg 160w\" sizes=\"auto, (max-width: 1533px) 100vw, 1533px\">\u003cfigcaption class=\"wp-caption-text\">A banner reading “Gavin: Fund Transit” hangs from the pedestrian bridge over US-101 at Utah and 18th streets in San Francisco on Tuesday, May 13, 2025. Public transit advocates in 12 cities across California dropped banners over highway overpasses to demand that Gov. Newsom include $2 billion in the upcoming state budget revision to keep transit systems running over the next two years. \u003ccite>(Courtesy of Fund California Public Transit.)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“We knew when we submitted our budget request that it would be challenging,” Arreguín said. “We’re not going to expect that the federal government’s going to save us here, so it’s up to the state. We’re going to work harder over the next few weeks to make our case.”\u003c/p>\n\u003cp>While Newsom’s revised budget proposal does not include the emergency transit funding, the state Legislature may decide to add it before the budget is finalized in June, Arreguín noted.\u003c/p>\n\u003cp>If the money doesn’t come through, Arreguín warned that problems like last week’s \u003ca href=\"https://www.kqed.org/news/12039472/bart-shuts-down-entire-train-service-due-to-computer-networking-problem\">hourslong BART outage\u003c/a> that resulted in massive traffic jams and frustrated commuters could become more common.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Cyrus Hall, a transportation activist, urged state legislators to reconsider the emergency funding. Without the $2 billion requested by Wiener and Arreguín, transit agencies are going to struggle to survive, he said. Many of them, such as BART and Muni, will have to drastically reduce services, which could mean slashing weekend operations and running fewer trains.\u003c/p>\n\u003cp>Alternatively, transit agencies could also decide to sustain themselves by reallocating funds, Hall said, adding that money typically spent on upkeep may be moved around in order to keep buses running, which could lead to unexpected failures. It’s not sustainable, he said.\u003c/p>\n\u003cp>“Public transit is that linchpin that allows people to get to work, to get to school. Without it, particularly here in the Bay Area with our geography, transportation will collapse,” Hall said. “We need to find the money in order to keep the system running.”\u003c/p>\n\u003cp>Rebecca Long, director of legislation and public affairs at the Metropolitan Transportation Commission, said that because state funding is unreliable, Bay Area residents should prioritize long-term solutions such as the tax measure proposed by Wiener and Arreguín.\u003c/p>\n\u003cp>According to Long, while funds resulting from the measure wouldn’t be available until 2027, transit agencies could take out loans against the anticipated funding to prevent service reductions in the meantime.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003c/em>\u003ca href=\"https://www.kqed.org/author/jlara\">\u003cem>Juan Carlos Lara\u003c/em>\u003c/a>\u003cem> contributed to this report.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"title": "Citing ‘Trump Slump,’ Newsom Unveils Budget Gap, Aims to Cap Undocumented Health Care",
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"content": "\u003cp>\u003cem>Updated 3:35 p.m. Wednesday\u003c/em>\u003c/p>\n\u003cp>California’s fiscal outlook has taken a turn for the worse, \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gov. Gavin Newsom\u003c/a> said as he unveiled an updated 2025–26 state budget plan on Wednesday with a projected $11.9 billion shortfall.\u003c/p>\n\u003cp>The governor said President Donald Trump’s tariffs and market volatility, combined with rising state health care costs, have derailed what appeared to be a relatively \u003ca href=\"https://www.kqed.org/news/12020389/newsom-projects-slight-budget-surplus-with-focus-on-saving-accountability\">healthy budget\u003c/a> just a few months ago. In response, he is proposing cuts that include scaling back the state’s offer of \u003ca href=\"https://www.kqed.org/news/12031544/providing-health-care-for-immigrants-is-costing-california-more-than-expected-is-coverage-at-risk\">health insurance\u003c/a> to low-income undocumented immigrants.\u003c/p>\n\u003cp>And he pledged to continue pushing back against the president’s agenda in court. California has already filed more than a dozen lawsuits against this Trump administration, \u003ca href=\"https://www.kqed.org/news/12036199/trumps-tariffs-could-wreck-californias-economy-the-state-is-suing\">including one last month targeting the tariffs.\u003c/a>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“California is under assault,” Newsom said, arguing that the uncertainty caused by the tariffs, in particular, has made it difficult to plan ahead. “The impacts of these tariffs … are being felt disproportionately in the fourth-largest economy in the world that has so much goods, volume and trade.”\u003c/p>\n\u003cp>Newsom’s proposal kicks off a month of high-stakes negotiations with leaders of the state Legislature, which must pass a budget plan by June 15. In a statement, Assembly Speaker Robert Rivas echoed the governor’s blame of Trump for revenue shortfalls.\u003c/p>\n\u003cp>“The Assembly will thoroughly review the Governor’s May budget revision during public hearings, and we will continue to stand up to the chaotic actions of Trump and his Republican allies,” Rivas said.\u003c/p>\n\u003cfigure id=\"attachment_11753593\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11753593\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS5067_NurseChecksBloodPressure-e1747249186287.jpg\" alt=\"As part of a budget deal, low-income adults between the ages of 19 and 25 living in California illegally could become eligible for California's Medicaid program, Medi-Cal.\" width=\"2000\" height=\"1333\">\u003cfigcaption class=\"wp-caption-text\">Under the governor’s plan, Medi-Cal will stop enrolling new undocumented immigrants starting Jan. 1. Those already covered can keep their benefits, but adults over 18 will face a $100 monthly premium beginning in 2027. \u003ccite>(David McNew/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Under the governor’s plan, Medi-Cal, the state’s Medicaid program for Californians with low incomes or disabilities, will stop enrolling new undocumented adults beginning on Jan. 1. Californians without legal status currently on the program will maintain coverage, but beginning in 2027, enrollees older than 18 will be charged a $100 monthly premium.\u003c/p>\n\u003cp>“We believe that people should have some skin in the game as it relates to contributions,” Newsom said.\u003c/p>\n\u003cp>The changes will save the state an estimated $5.4 billion by 2028–29, but advocates for immigrants are already warning that they will result in hundreds of thousands of Californians losing health care coverage.\u003c/p>\n\u003cp>“We are outraged,” said Joshua Stehlik, policy director for the California Immigrant Policy Center. “We feel like the governor is abandoning his legacy with this proposed rollback.”[aside postID=news_12039730 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/08/080924-ENCAMPMENT-SWEEP-MD-01-KQED-1020x680.jpg']“It feels like a particularly difficult moment to target vulnerable immigrants when they’re under such relentless attacks by the Trump administration,” Stehlik added.\u003c/p>\n\u003cp>Republicans in the state legislature said Newsom should have acted earlier to rein in healthcare spending on undocumented Californians.\u003c/p>\n\u003cp>“I urged the governor to immediately freeze his reckless Medi-Cal expansion for illegal immigrants a year and a half ago, before it buried our healthcare system and bankrupted the state,” said Senate Republican Leader Brian Jones in a statement. “Had he listened, we wouldn’t be in this crisis — breaking promises, scrambling for loans, and cutting services for legal Californians just to keep this broken program afloat.”\u003c/p>\n\u003cp>Newsom blamed Trump’s increased tariffs for what he dubbed a “Trump Slump” in the stock market. California’s progressive tax system leaves the state’s revenue heavily reliant on high-income earners and especially vulnerable to dips in the market.\u003c/p>\n\u003cp>The governor said Trump’s protectionist policies have led to an estimated $16 billion decline in state revenues through the next fiscal year — $10 billion of it from losses in expected capital gains tax. And he cited declines in tourism and port activity as further evidence of how the president’s trade policy is hurting the Golden State.\u003c/p>\n\u003cfigure id=\"attachment_12034427\" class=\"wp-caption aligncenter\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034427\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg\" alt=\"\" width=\"1600\" height=\"1067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled “Make America Wealthy Again” at the White House in Washington, D.C., on April 2, 2025. \u003ccite>(Brendan Smialowski/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As Trump has eased the tariffs he announced in early April, major stock indexes have recovered their losses, with the S&P 500 returning to positive territory for the year this week.\u003c/p>\n\u003cp>Before the April downturn, an extended surge in the stock market had filled California’s budget coffers. Newsom’s initial January spending plan projected a modest $363 million surplus and no spending cuts — although the governor proposed using $7.1 billion from the state’s rainy day reserve fund.[aside postID=science_1996769 hero='https://cdn.kqed.org/wp-content/uploads/sites/35/2025/05/DeltaGetty-1020x574.jpg']During a two-hour press conference announcing his spending plan, Newsom pinned responsibility for revenue declines on Trump’s trade agenda, but maintained he was “not blaming the president for the deficit.”\u003c/p>\n\u003cp>“I certainly am attaching those revenue concerns directly to the activities of the administration, unquestionable,” Newsom said. “But not the totality of the deficit.”\u003c/p>\n\u003cp>Despite the downturn in revenues, Newsom labeled the current deficit “pretty mild,” as it accounts for just 5.8% of the total $226 billion general fund budget.\u003c/p>\n\u003cp>But the budget picture could get worse.\u003c/p>\n\u003cp>Republicans in Congress are considering a budget bill that cuts funding to programs such as Medicaid, which is paid for jointly by the federal government and states. Those cuts could require Newsom and legislative leaders to amend their spending plan later this year.\u003c/p>\n\u003cp>“I wouldn’t be surprised if we’re talking about significant revisions to the state budget in August,” said Chris Hoene, executive director of the California Budget & Policy Center.\u003c/p>\n\u003cfigure id=\"attachment_12030841\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12030841\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A “Save Medicaid” sign is affixed to the podium for the House Democrats’ press event to oppose the Republicans’ budget on the House steps of the Capitol on Feb. 25, 2024. \u003ccite>(Bill Clark/CQ-Roll Call, Inc., via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>One proposal in the current House spending plan would reduce federal Medicaid funding to states, such as California, that provide health coverage to undocumented immigrants. That change could cost California $27 billion between 2028 and 2034, according to \u003ca href=\"https://www.cbpp.org/research/health/house-republican-bill-would-cut-medicaid-funding-to-states-providing-own-health\">an estimate\u003c/a> from the Center on Budget and Policy Priorities.\u003c/p>\n\u003cp>As governor, Newsom has pushed the expansion of Medi-Cal to cover California residents regardless of legal status. He has championed the initiative as a way to save the state money in the long run, but the program’s full rollout has cost $2.7 billion more than his administration expected.\u003c/p>\n\u003cp>“No state has done more than the state of California, no state will continue to do more than the state of California, by a long shot,” Newsom said about the undocumented health care program. “That’s a point of pride and it’s a point of privilege to be [a] governor that’s been part of that effort.”\u003c/p>\n\u003cp>In addition to the changes to undocumented health care, Newsom is proposing to close the shortfall by shifting more than $5 billion in from special funds, capping overtime for in-home supportive service workers and paying for $1.7 billion in state firefighting costs with revenue raised from polluters through the state’s cap-and-trade program — which he proposed extending through 2045.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/tychehendricks\">Tyche Hendricks\u003c/a> contributed to this report. \u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"excerpt": "Gov. Gavin Newsom said tariffs, market volatility and rising state health care costs have led to a projected $12 billion budget gap after projecting a modest surplus a few months ago. ",
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"title": "Citing ‘Trump Slump,’ Newsom Unveils Budget Gap, Aims to Cap Undocumented Health Care | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Updated 3:35 p.m. Wednesday\u003c/em>\u003c/p>\n\u003cp>California’s fiscal outlook has taken a turn for the worse, \u003ca href=\"https://www.kqed.org/news/tag/gavin-newsom\">Gov. Gavin Newsom\u003c/a> said as he unveiled an updated 2025–26 state budget plan on Wednesday with a projected $11.9 billion shortfall.\u003c/p>\n\u003cp>The governor said President Donald Trump’s tariffs and market volatility, combined with rising state health care costs, have derailed what appeared to be a relatively \u003ca href=\"https://www.kqed.org/news/12020389/newsom-projects-slight-budget-surplus-with-focus-on-saving-accountability\">healthy budget\u003c/a> just a few months ago. In response, he is proposing cuts that include scaling back the state’s offer of \u003ca href=\"https://www.kqed.org/news/12031544/providing-health-care-for-immigrants-is-costing-california-more-than-expected-is-coverage-at-risk\">health insurance\u003c/a> to low-income undocumented immigrants.\u003c/p>\n\u003cp>And he pledged to continue pushing back against the president’s agenda in court. California has already filed more than a dozen lawsuits against this Trump administration, \u003ca href=\"https://www.kqed.org/news/12036199/trumps-tariffs-could-wreck-californias-economy-the-state-is-suing\">including one last month targeting the tariffs.\u003c/a>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“California is under assault,” Newsom said, arguing that the uncertainty caused by the tariffs, in particular, has made it difficult to plan ahead. “The impacts of these tariffs … are being felt disproportionately in the fourth-largest economy in the world that has so much goods, volume and trade.”\u003c/p>\n\u003cp>Newsom’s proposal kicks off a month of high-stakes negotiations with leaders of the state Legislature, which must pass a budget plan by June 15. In a statement, Assembly Speaker Robert Rivas echoed the governor’s blame of Trump for revenue shortfalls.\u003c/p>\n\u003cp>“The Assembly will thoroughly review the Governor’s May budget revision during public hearings, and we will continue to stand up to the chaotic actions of Trump and his Republican allies,” Rivas said.\u003c/p>\n\u003cfigure id=\"attachment_11753593\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11753593\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2019/06/RS5067_NurseChecksBloodPressure-e1747249186287.jpg\" alt=\"As part of a budget deal, low-income adults between the ages of 19 and 25 living in California illegally could become eligible for California's Medicaid program, Medi-Cal.\" width=\"2000\" height=\"1333\">\u003cfigcaption class=\"wp-caption-text\">Under the governor’s plan, Medi-Cal will stop enrolling new undocumented immigrants starting Jan. 1. Those already covered can keep their benefits, but adults over 18 will face a $100 monthly premium beginning in 2027. \u003ccite>(David McNew/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Under the governor’s plan, Medi-Cal, the state’s Medicaid program for Californians with low incomes or disabilities, will stop enrolling new undocumented adults beginning on Jan. 1. Californians without legal status currently on the program will maintain coverage, but beginning in 2027, enrollees older than 18 will be charged a $100 monthly premium.\u003c/p>\n\u003cp>“We believe that people should have some skin in the game as it relates to contributions,” Newsom said.\u003c/p>\n\u003cp>The changes will save the state an estimated $5.4 billion by 2028–29, but advocates for immigrants are already warning that they will result in hundreds of thousands of Californians losing health care coverage.\u003c/p>\n\u003cp>“We are outraged,” said Joshua Stehlik, policy director for the California Immigrant Policy Center. “We feel like the governor is abandoning his legacy with this proposed rollback.”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“It feels like a particularly difficult moment to target vulnerable immigrants when they’re under such relentless attacks by the Trump administration,” Stehlik added.\u003c/p>\n\u003cp>Republicans in the state legislature said Newsom should have acted earlier to rein in healthcare spending on undocumented Californians.\u003c/p>\n\u003cp>“I urged the governor to immediately freeze his reckless Medi-Cal expansion for illegal immigrants a year and a half ago, before it buried our healthcare system and bankrupted the state,” said Senate Republican Leader Brian Jones in a statement. “Had he listened, we wouldn’t be in this crisis — breaking promises, scrambling for loans, and cutting services for legal Californians just to keep this broken program afloat.”\u003c/p>\n\u003cp>Newsom blamed Trump’s increased tariffs for what he dubbed a “Trump Slump” in the stock market. California’s progressive tax system leaves the state’s revenue heavily reliant on high-income earners and especially vulnerable to dips in the market.\u003c/p>\n\u003cp>The governor said Trump’s protectionist policies have led to an estimated $16 billion decline in state revenues through the next fiscal year — $10 billion of it from losses in expected capital gains tax. And he cited declines in tourism and port activity as further evidence of how the president’s trade policy is hurting the Golden State.\u003c/p>\n\u003cfigure id=\"attachment_12034427\" class=\"wp-caption aligncenter\" style=\"max-width: 1600px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12034427\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg\" alt=\"\" width=\"1600\" height=\"1067\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4.jpg 1600w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-800x534.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/04/npr.brightspotcdn-copy-4-1536x1024.jpg 1536w\" sizes=\"auto, (max-width: 1600px) 100vw, 1600px\">\u003cfigcaption class=\"wp-caption-text\">President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event in the Rose Garden entitled “Make America Wealthy Again” at the White House in Washington, D.C., on April 2, 2025. \u003ccite>(Brendan Smialowski/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As Trump has eased the tariffs he announced in early April, major stock indexes have recovered their losses, with the S&P 500 returning to positive territory for the year this week.\u003c/p>\n\u003cp>Before the April downturn, an extended surge in the stock market had filled California’s budget coffers. Newsom’s initial January spending plan projected a modest $363 million surplus and no spending cuts — although the governor proposed using $7.1 billion from the state’s rainy day reserve fund.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>During a two-hour press conference announcing his spending plan, Newsom pinned responsibility for revenue declines on Trump’s trade agenda, but maintained he was “not blaming the president for the deficit.”\u003c/p>\n\u003cp>“I certainly am attaching those revenue concerns directly to the activities of the administration, unquestionable,” Newsom said. “But not the totality of the deficit.”\u003c/p>\n\u003cp>Despite the downturn in revenues, Newsom labeled the current deficit “pretty mild,” as it accounts for just 5.8% of the total $226 billion general fund budget.\u003c/p>\n\u003cp>But the budget picture could get worse.\u003c/p>\n\u003cp>Republicans in Congress are considering a budget bill that cuts funding to programs such as Medicaid, which is paid for jointly by the federal government and states. Those cuts could require Newsom and legislative leaders to amend their spending plan later this year.\u003c/p>\n\u003cp>“I wouldn’t be surprised if we’re talking about significant revisions to the state budget in August,” said Chris Hoene, executive director of the California Budget & Policy Center.\u003c/p>\n\u003cfigure id=\"attachment_12030841\" class=\"wp-caption aligncenter\" style=\"max-width: 2000px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12030841\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740.jpg\" alt=\"\" width=\"2000\" height=\"1333\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740.jpg 2000w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2025/03/GettyImages-2201320740-1920x1280.jpg 1920w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\">\u003cfigcaption class=\"wp-caption-text\">A “Save Medicaid” sign is affixed to the podium for the House Democrats’ press event to oppose the Republicans’ budget on the House steps of the Capitol on Feb. 25, 2024. \u003ccite>(Bill Clark/CQ-Roll Call, Inc., via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>One proposal in the current House spending plan would reduce federal Medicaid funding to states, such as California, that provide health coverage to undocumented immigrants. That change could cost California $27 billion between 2028 and 2034, according to \u003ca href=\"https://www.cbpp.org/research/health/house-republican-bill-would-cut-medicaid-funding-to-states-providing-own-health\">an estimate\u003c/a> from the Center on Budget and Policy Priorities.\u003c/p>\n\u003cp>As governor, Newsom has pushed the expansion of Medi-Cal to cover California residents regardless of legal status. He has championed the initiative as a way to save the state money in the long run, but the program’s full rollout has cost $2.7 billion more than his administration expected.\u003c/p>\n\u003cp>“No state has done more than the state of California, no state will continue to do more than the state of California, by a long shot,” Newsom said about the undocumented health care program. “That’s a point of pride and it’s a point of privilege to be [a] governor that’s been part of that effort.”\u003c/p>\n\u003cp>In addition to the changes to undocumented health care, Newsom is proposing to close the shortfall by shifting more than $5 billion in from special funds, capping overtime for in-home supportive service workers and paying for $1.7 billion in state firefighting costs with revenue raised from polluters through the state’s cap-and-trade program — which he proposed extending through 2045.\u003c/p>\n\u003cp>\u003cem>KQED’s \u003ca href=\"https://www.kqed.org/author/tychehendricks\">Tyche Hendricks\u003c/a> contributed to this report. \u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"title": "Here's What You Should Know About California's Budget Deal",
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"content": "\u003cp>California will make widespread cuts to state government operations, prisons, housing programs and health care workforce development in order to maintain its social safety net as it moves to close a multibillion-dollar budget deficit.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2024/06/2024-Budget-Agreement-.pdf\">$297.9 billion spending plan\u003c/a>, announced on Saturday by Gov. Gavin Newsom, Senate President Pro Tem \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/mike-mcguire-93\">Mike McGuire\u003c/a> and Assembly Speaker \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/robert-rivas-165041\">Robert Rivas\u003c/a>, also relies on reserves and pauses some business tax credits to address a remaining revenue gap estimated at $56 billion over the next two years.\u003c/p>\n\u003cp>“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Newsom \u003ca href=\"https://www.gov.ca.gov/2024/06/22/california-leaders-announce-2024-state-budget-agreement/\">said in a statement\u003c/a>. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness.”\u003c/p>\n\u003cp>The Legislature \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/california-budget-deficit-legislature-newsom/\">passed a budget more than a week ago\u003c/a> to meet a statutory deadline, but it did not represent a final deal with Newsom as they continued to negotiate over whether to repurpose billions of dollars \u003ca href=\"https://calmatters.org/health/2024/05/medi-cal-health-care-budget/\">earmarked to increase payments\u003c/a> for health care providers who treat low-income patients and whether to further delay \u003ca href=\"https://calmatters.org/health/2024/05/minimum-wage-health-care-deadline/\">minimum wage increases for health care workers\u003c/a>, among other issues.\u003c/p>\n\u003cp>\u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2024/06/2024-Budget-Agreement-.pdf\">Their agreement\u003c/a> — which the Democratic-controlled Legislature is expected to vote on \u003ca href=\"https://jasonsisney.substack.com/p/governor-and-legislative-leaders-588\">through a series of bills this week\u003c/a> ahead of the July 1 start of the new fiscal year — does claw back the funding intended for Medi-Cal provider rates. It pushes back the \u003ca href=\"https://calmatters.org/health/2024/06/health-care-minimum-wage/\">health care wage hikes\u003c/a> until at least October and potentially until next year, depending on the strength of revenue collections in the coming months. Despite heavy opposition from labor unions, the move could save California hundreds of millions of dollars.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The plan makes $16 billion in cuts, including a blanket 7.95% reduction in funding for nearly all state departments and the elimination of thousands of vacant positions, which are collectively expected to save nearly $3.7 billion. The Department of Corrections and Rehabilitation will take an additional $385 million cut at the urging of progressive lawmakers, far higher than what Newsom had originally sought \u003ca href=\"https://calmatters.org/justice/2024/05/californa-prison-closures-deficit/\">for the shrinking prison system\u003c/a>.\u003c/p>\n\u003cp>Other major reductions include $1.1 billion from various affordable housing programs, $746 million for health care workforce development and $500 million to build student housing. A scholarship program for middle-class college students will lose $110 million annually, about a fifth of \u003ca href=\"https://calmatters.org/education/higher-education/2024/06/financial-aid-california-budget/\">what the governor had originally sought to cut\u003c/a>.\u003c/p>\n\u003cp>More than $3 billion in previously promised funding to expand food benefits to undocumented immigrants, increase pay for providers who care for people with developmental disabilities, add new subsidized child care slots and \u003ca href=\"https://calmatters.org/economy/technology/2024/05/california-broadband-funding/\">build out broadband internet\u003c/a> will be delayed.\u003c/p>\n\u003cp>[aside postID=\"news_11986893,news_11990465,news_11985798\" label=\"Related Stories\"]This will allow the state to protect what Newsom and legislative leaders touted in their announcement as “core programs,” including an expansion of Medi-Cal, California’s health care program for the poor, to all adults regardless of their immigration status, as well as increased funding for behavioral health, welfare grants and supplemental income for seniors. Local governments will receive another \u003ca href=\"https://calmatters.org/housing/homelessness/2022/11/california-homeless-newsom-funding-reversal/\">$1 billion to address homelessness\u003c/a>.\u003c/p>\n\u003cp>The budget deal shrinks a proposed cut to school funding following a \u003ca href=\"https://calmatters.org/newsletter/california-budget-schools-funding/\">tense negotiation with education groups\u003c/a> during which teachers unions ran a television advertising campaign criticizing Newsom. About $5.5 billion will be delayed until future years.\u003c/p>\n\u003cp>“\u003ca href=\"https://abgt.assembly.ca.gov/system/files/2024-06/floor-report-of-the-2024-25-budget-june-22-2024.pdf\">The Assembly\u003c/a> fought hard to protect the public services that matter most to Californians, and we are delivering a budget that prioritizes affordability and long-term stability,” Rivas, a Salinas Democrat, said in a statement.\u003c/p>\n\u003cp>As part of their agreement, Newsom and the Legislature will pursue several additional measures to address the circumstances that led to California’s steep deficit. While the state experienced a \u003ca href=\"https://calmatters.org/explainers/california-budget-whiplash/\">historic surplus just two years ago\u003c/a>, a delay in tax collections last year caused by winter storms shielded the extent of California’s weakening fiscal condition until after the governor and lawmakers had already committed to too much new spending.\u003c/p>\n\u003cp>The budget deal proposes legislation, to be taken up in August, that will require the state to set aside a portion of future projected surpluses so that it cannot be spent until the money is collected. It also suggests putting a constitutional amendment before voters in 2026 to grow California’s main reserve account.\u003c/p>\n\u003cp>In the meantime, the state plans to dip into that rainy day fund, pulling out more than $12 billion over the next two years to address the fiscal shortfall. It will also suspend the net operating loss for companies with more than $1 million in taxable income and limit business tax credits to $5 million annually — strategies that it previously employed at the height of the coronavirus pandemic — to raise an estimated nearly $15 billion in new revenue over the next three years.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“Make no mistake: This is a tough budget year, but it also isn’t the budget situation we were originally fearing,” McGuire, a Healdsburg Democrat, said in a statement. “\u003ca href=\"https://sbud.senate.ca.gov/system/files/2024-06/budget-act-of-2024-key-highlights.pdf\">This balanced budget\u003c/a> helps tackle some of our toughest challenges with resources to combat the homelessness crisis, investments in housing, and funding to fight wildfires and retail theft.”\u003c/p>\n\n",
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"excerpt": "Gov. Newsom and legislative leaders announced an agreement to bridge the state budget deficit by dipping into reserves and reducing some spending. ",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>California will make widespread cuts to state government operations, prisons, housing programs and health care workforce development in order to maintain its social safety net as it moves to close a multibillion-dollar budget deficit.\u003c/p>\n\u003cp>The \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2024/06/2024-Budget-Agreement-.pdf\">$297.9 billion spending plan\u003c/a>, announced on Saturday by Gov. Gavin Newsom, Senate President Pro Tem \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/mike-mcguire-93\">Mike McGuire\u003c/a> and Assembly Speaker \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/robert-rivas-165041\">Robert Rivas\u003c/a>, also relies on reserves and pauses some business tax credits to address a remaining revenue gap estimated at $56 billion over the next two years.\u003c/p>\n\u003cp>“This agreement sets the state on a path for long-term fiscal stability — addressing the current shortfall and strengthening budget resilience down the road,” Newsom \u003ca href=\"https://www.gov.ca.gov/2024/06/22/california-leaders-announce-2024-state-budget-agreement/\">said in a statement\u003c/a>. “We’re making sure to preserve programs that serve millions of Californians, including key funding for education, health care, expanded behavioral health services, and combatting homelessness.”\u003c/p>\n\u003cp>The Legislature \u003ca href=\"https://calmatters.org/politics/capitol/2024/06/california-budget-deficit-legislature-newsom/\">passed a budget more than a week ago\u003c/a> to meet a statutory deadline, but it did not represent a final deal with Newsom as they continued to negotiate over whether to repurpose billions of dollars \u003ca href=\"https://calmatters.org/health/2024/05/medi-cal-health-care-budget/\">earmarked to increase payments\u003c/a> for health care providers who treat low-income patients and whether to further delay \u003ca href=\"https://calmatters.org/health/2024/05/minimum-wage-health-care-deadline/\">minimum wage increases for health care workers\u003c/a>, among other issues.\u003c/p>\n\u003cp>\u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2024/06/2024-Budget-Agreement-.pdf\">Their agreement\u003c/a> — which the Democratic-controlled Legislature is expected to vote on \u003ca href=\"https://jasonsisney.substack.com/p/governor-and-legislative-leaders-588\">through a series of bills this week\u003c/a> ahead of the July 1 start of the new fiscal year — does claw back the funding intended for Medi-Cal provider rates. It pushes back the \u003ca href=\"https://calmatters.org/health/2024/06/health-care-minimum-wage/\">health care wage hikes\u003c/a> until at least October and potentially until next year, depending on the strength of revenue collections in the coming months. Despite heavy opposition from labor unions, the move could save California hundreds of millions of dollars.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The plan makes $16 billion in cuts, including a blanket 7.95% reduction in funding for nearly all state departments and the elimination of thousands of vacant positions, which are collectively expected to save nearly $3.7 billion. The Department of Corrections and Rehabilitation will take an additional $385 million cut at the urging of progressive lawmakers, far higher than what Newsom had originally sought \u003ca href=\"https://calmatters.org/justice/2024/05/californa-prison-closures-deficit/\">for the shrinking prison system\u003c/a>.\u003c/p>\n\u003cp>Other major reductions include $1.1 billion from various affordable housing programs, $746 million for health care workforce development and $500 million to build student housing. A scholarship program for middle-class college students will lose $110 million annually, about a fifth of \u003ca href=\"https://calmatters.org/education/higher-education/2024/06/financial-aid-california-budget/\">what the governor had originally sought to cut\u003c/a>.\u003c/p>\n\u003cp>More than $3 billion in previously promised funding to expand food benefits to undocumented immigrants, increase pay for providers who care for people with developmental disabilities, add new subsidized child care slots and \u003ca href=\"https://calmatters.org/economy/technology/2024/05/california-broadband-funding/\">build out broadband internet\u003c/a> will be delayed.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>This will allow the state to protect what Newsom and legislative leaders touted in their announcement as “core programs,” including an expansion of Medi-Cal, California’s health care program for the poor, to all adults regardless of their immigration status, as well as increased funding for behavioral health, welfare grants and supplemental income for seniors. Local governments will receive another \u003ca href=\"https://calmatters.org/housing/homelessness/2022/11/california-homeless-newsom-funding-reversal/\">$1 billion to address homelessness\u003c/a>.\u003c/p>\n\u003cp>The budget deal shrinks a proposed cut to school funding following a \u003ca href=\"https://calmatters.org/newsletter/california-budget-schools-funding/\">tense negotiation with education groups\u003c/a> during which teachers unions ran a television advertising campaign criticizing Newsom. About $5.5 billion will be delayed until future years.\u003c/p>\n\u003cp>“\u003ca href=\"https://abgt.assembly.ca.gov/system/files/2024-06/floor-report-of-the-2024-25-budget-june-22-2024.pdf\">The Assembly\u003c/a> fought hard to protect the public services that matter most to Californians, and we are delivering a budget that prioritizes affordability and long-term stability,” Rivas, a Salinas Democrat, said in a statement.\u003c/p>\n\u003cp>As part of their agreement, Newsom and the Legislature will pursue several additional measures to address the circumstances that led to California’s steep deficit. While the state experienced a \u003ca href=\"https://calmatters.org/explainers/california-budget-whiplash/\">historic surplus just two years ago\u003c/a>, a delay in tax collections last year caused by winter storms shielded the extent of California’s weakening fiscal condition until after the governor and lawmakers had already committed to too much new spending.\u003c/p>\n\u003cp>The budget deal proposes legislation, to be taken up in August, that will require the state to set aside a portion of future projected surpluses so that it cannot be spent until the money is collected. It also suggests putting a constitutional amendment before voters in 2026 to grow California’s main reserve account.\u003c/p>\n\u003cp>In the meantime, the state plans to dip into that rainy day fund, pulling out more than $12 billion over the next two years to address the fiscal shortfall. It will also suspend the net operating loss for companies with more than $1 million in taxable income and limit business tax credits to $5 million annually — strategies that it previously employed at the height of the coronavirus pandemic — to raise an estimated nearly $15 billion in new revenue over the next three years.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“Make no mistake: This is a tough budget year, but it also isn’t the budget situation we were originally fearing,” McGuire, a Healdsburg Democrat, said in a statement. “\u003ca href=\"https://sbud.senate.ca.gov/system/files/2024-06/budget-act-of-2024-key-highlights.pdf\">This balanced budget\u003c/a> helps tackle some of our toughest challenges with resources to combat the homelessness crisis, investments in housing, and funding to fight wildfires and retail theft.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Newsom's Budget Proposal Cuts $200 Million from UC and Cal State Funding",
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"headTitle": "Newsom’s Budget Proposal Cuts $200 Million from UC and Cal State Funding | KQED",
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"content": "\u003cp>Chalk it up to California dreaming: Not even three years ago, Gov. Gavin Newsom promised California’s public universities five years of annual growth in state support totalling more than $2 billion.\u003c/p>\n\u003cp>But the governor’s updated budget plan for next year instead aims to cut the University of California and California State University by a combined $200 million in response to the \u003ca href=\"https://calmatters.org/politics/2024/05/california-budget-deficit-newsom-may-proposal/\">state’s project multi-billion-dollar budget deficit\u003c/a>.\u003c/p>\n\u003cp>The five-year compact is at risk of turning into a humbler two-year vow, underscoring the difficulty of projecting multiple years of support for California’s top generators of bachelor’s degree recipients — a state particularly at the mercy of large revenue swings.\u003c/p>\n\u003cp>[aside postID=\"news_11985798,news_11983823\" label=\"Related Stories\"]The UC would see a $125 million base funding cut in 2024-25, with plans to restore that dip in 2025-26. For Cal State, the governor’s May budget revision includes a $75 million cut that’ll be restored in 2025-26.\u003c/p>\n\u003cp>The numbers were shared with CalMatters after it sought more detail from the California Department of Finance about its higher-education plans that are part of the annual May Revise process. It’s an update to the governor’s initial January proposal and sets the stage for intense budget negotiations with the Legislature to finalize a \u003ca href=\"https://calmatters.org/tag/budget/\">state budget\u003c/a> by late June. The 2024-25 budget year begins July 1.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The fiscal outlook gets modestly rosier later for the two systems, which combined run 33 universities that enroll around 750,000 students.\u003c/p>\n\u003cp>Each system would receive a modest bump of 2.05% in 2025-26 — a far cry from the 10% the governor projected in his January budget proposal. That 10% itself was a compromise. Each system was supposed to see a 5% bump in 2024-25 and the same in 2025-26. But in January, Newsom called for no bump in year one and to double-up in year two as a way to manage the state deficit.\u003c/p>\n\u003cp>That 10% for the two systems would have meant $1 billion combined in 2025-26, \u003ca href=\"https://lao.ca.gov/Publications/Report/4829#:~:text=%241%C2%A0billion%20ongoing%20General%20Fund%20augmentation\">according to the Legislative Analyst’s Office\u003c/a>. A mere 2% increase would total roughly $200 million.\u003c/p>\n\u003cp>The analyst’s office basically presaged the change of fortune for the universities. When Newsom unveiled his compact plan in 2022, a promise of increased spending in exchange for improvements in student academics, \u003ca href=\"https://lao.ca.gov/Publications/Report/4499#:~:text=Compacts%20Historically%20Have%20Not%20Been%20Accurate%20Guide%20for%20the%20Future\">the office wrote\u003c/a>: “We caution the Legislature against putting too much stake in the Governor’s outyear commitments to the universities.” Previous governors have rarely “been able to sustain their compacts over time,” the office noted.\u003c/p>\n\u003cp>One reason? “In some cases, changing economic and fiscal conditions in the state have led governors to suspend their compacts,” the office wrote then.\u003c/p>\n\u003cp>Whether lawmakers fight to restore these cuts is an open question. More money for campuses means they can pay to hire more faculty and offer more classes students need to graduate. The additional state support is also a particular lifeline for Cal State, which agreed to 5% raises for its roughly 60,000 unionized workers, including the \u003ca href=\"https://calmatters.org/education/higher-education/2024/02/cal-state-faculty-contract/\">nearly 30,000 faculty who went on strike\u003c/a> late last year and early this year demanding wage and benefits gains.\u003c/p>\n\u003cp>But a dollar spent one place means it’s not spent elsewhere, and the governor is also proposing to swing his budgetary scythe at student financial aid. Under his May revision, the Middle Class Scholarship would shrink by more than $500 million to $100 million \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/05/2024-25-May-Revision-General-Fund-Solutions.pdf#page=8\">each of the next two years\u003c/a>.\u003c/p>\n\u003cp>Around 300,000 students received that award this year, with average amounts between $2,000 and $3,000. If the governor’s plan becomes law, \u003ca href=\"https://calmatters.org/education/higher-education/2024/05/california-financial-aid-2/\">those amounts could shrink by 80%, on average\u003c/a>.\u003c/p>\n\u003cp>One higher-education watchdog worries the cuts and limited growth will affect low-income students most.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“With this funding being cut, I think it’s going to require a real concerted effort over multiple years to make sure that those students are brought back into higher education and have the supports that they need over multiple years to actually make it to graduation,” said Joshua Hagen, director of policy and advocacy at the Campaign for College Opportunity, a nonprofit advocacy group.\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Chalk it up to California dreaming: Not even three years ago, Gov. Gavin Newsom promised California’s public universities five years of annual growth in state support totalling more than $2 billion.\u003c/p>\n\u003cp>But the governor’s updated budget plan for next year instead aims to cut the University of California and California State University by a combined $200 million in response to the \u003ca href=\"https://calmatters.org/politics/2024/05/california-budget-deficit-newsom-may-proposal/\">state’s project multi-billion-dollar budget deficit\u003c/a>.\u003c/p>\n\u003cp>The five-year compact is at risk of turning into a humbler two-year vow, underscoring the difficulty of projecting multiple years of support for California’s top generators of bachelor’s degree recipients — a state particularly at the mercy of large revenue swings.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The UC would see a $125 million base funding cut in 2024-25, with plans to restore that dip in 2025-26. For Cal State, the governor’s May budget revision includes a $75 million cut that’ll be restored in 2025-26.\u003c/p>\n\u003cp>The numbers were shared with CalMatters after it sought more detail from the California Department of Finance about its higher-education plans that are part of the annual May Revise process. It’s an update to the governor’s initial January proposal and sets the stage for intense budget negotiations with the Legislature to finalize a \u003ca href=\"https://calmatters.org/tag/budget/\">state budget\u003c/a> by late June. The 2024-25 budget year begins July 1.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The fiscal outlook gets modestly rosier later for the two systems, which combined run 33 universities that enroll around 750,000 students.\u003c/p>\n\u003cp>Each system would receive a modest bump of 2.05% in 2025-26 — a far cry from the 10% the governor projected in his January budget proposal. That 10% itself was a compromise. Each system was supposed to see a 5% bump in 2024-25 and the same in 2025-26. But in January, Newsom called for no bump in year one and to double-up in year two as a way to manage the state deficit.\u003c/p>\n\u003cp>That 10% for the two systems would have meant $1 billion combined in 2025-26, \u003ca href=\"https://lao.ca.gov/Publications/Report/4829#:~:text=%241%C2%A0billion%20ongoing%20General%20Fund%20augmentation\">according to the Legislative Analyst’s Office\u003c/a>. A mere 2% increase would total roughly $200 million.\u003c/p>\n\u003cp>The analyst’s office basically presaged the change of fortune for the universities. When Newsom unveiled his compact plan in 2022, a promise of increased spending in exchange for improvements in student academics, \u003ca href=\"https://lao.ca.gov/Publications/Report/4499#:~:text=Compacts%20Historically%20Have%20Not%20Been%20Accurate%20Guide%20for%20the%20Future\">the office wrote\u003c/a>: “We caution the Legislature against putting too much stake in the Governor’s outyear commitments to the universities.” Previous governors have rarely “been able to sustain their compacts over time,” the office noted.\u003c/p>\n\u003cp>One reason? “In some cases, changing economic and fiscal conditions in the state have led governors to suspend their compacts,” the office wrote then.\u003c/p>\n\u003cp>Whether lawmakers fight to restore these cuts is an open question. More money for campuses means they can pay to hire more faculty and offer more classes students need to graduate. The additional state support is also a particular lifeline for Cal State, which agreed to 5% raises for its roughly 60,000 unionized workers, including the \u003ca href=\"https://calmatters.org/education/higher-education/2024/02/cal-state-faculty-contract/\">nearly 30,000 faculty who went on strike\u003c/a> late last year and early this year demanding wage and benefits gains.\u003c/p>\n\u003cp>But a dollar spent one place means it’s not spent elsewhere, and the governor is also proposing to swing his budgetary scythe at student financial aid. Under his May revision, the Middle Class Scholarship would shrink by more than $500 million to $100 million \u003ca href=\"https://dof.ca.gov/wp-content/uploads/sites/352/2024/05/2024-25-May-Revision-General-Fund-Solutions.pdf#page=8\">each of the next two years\u003c/a>.\u003c/p>\n\u003cp>Around 300,000 students received that award this year, with average amounts between $2,000 and $3,000. If the governor’s plan becomes law, \u003ca href=\"https://calmatters.org/education/higher-education/2024/05/california-financial-aid-2/\">those amounts could shrink by 80%, on average\u003c/a>.\u003c/p>\n\u003cp>One higher-education watchdog worries the cuts and limited growth will affect low-income students most.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“With this funding being cut, I think it’s going to require a real concerted effort over multiple years to make sure that those students are brought back into higher education and have the supports that they need over multiple years to actually make it to graduation,” said Joshua Hagen, director of policy and advocacy at the Campaign for College Opportunity, a nonprofit advocacy group.\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>Gov. Gavin Newsom and the Democrats who control the California Legislature agreed late Monday on how to spend $310.8 billion over the next year, endorsing a plan that covers a nearly $32 billion budget deficit without raiding the state’s savings account.\u003c/p>\n\u003cp>The state has had combined \u003ca href=\"https://www.kqed.org/news/11874125/californias-historic-budget-surplus-is-it-76-billion-or-38-billion\">budget surpluses\u003c/a> of well over $100 billion in the past few years, using that money to greatly expand government programs. But this year, \u003ca href=\"https://apnews.com/article/california-gavin-newsom-business-1035e53f9f5c0ebad2565a34192e2e13\">revenues slowed\u003c/a> as inflation soared and the stock market struggled. California gets most of its revenue from taxes paid by the wealthy, making it more vulnerable to changes in the economy than other states. Last month, \u003ca href=\"https://www.kqed.org/news/11949333/gov-newsom-says-california-budget-deficit-has-grown-to-nearly-32-billion\">the Newsom administration estimated the state’s spending would exceed revenues by over $30 billion\u003c/a>.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Chris Hoene, California Budget and Policy Center\"]‘They took one-time investments that they had made commitments to in earlier budget years … and they basically took some of that money back.’[/pullquote]The final budget, which lawmakers are scheduled to vote on later this week, covers that deficit by cutting some spending — about $8 billion — while delaying other spending and shifting certain expenses to other funds. The plan would borrow $6.1 billion and set aside $37.8 billion in reserves, the most ever.\u003c/p>\n\u003cp>“In the face of continued global economic uncertainty, this budget increases our fiscal discipline by growing our budget reserves to a record $38 billion, while preserving historic investments in public education, health care, climate and public safety,” Newsom said.\u003c/p>\n\u003cp>However, Republicans criticized the budget plan as unsustainable, noting it would leave the state with projected multibillion-dollar deficits over the next few years.\u003c/p>\n\u003cp>Here are some big takeaways from the deal:\u003c/p>\n\u003ch2>Closing the deficit\u003c/h2>\n\u003cp>Chris Hoene, executive director of \u003ca href=\"https://calbudgetcenter.org/\">the California Budget and Policy Center\u003c/a>, said lawmakers were able to balance the budget without tapping reserves or increasing taxes, by canceling some future spending plans.\u003c/p>\n\u003cp>“They took one-time investments that they had made commitments to in earlier budget years, big pots of funding that they had set aside for climate change investments and infrastructure investments — and they basically took some of that money back,” Hoene said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The trims include over $5 billion targeted toward infrastructure to reduce climate change, such as electric vehicle chargers. However, Hoene said, there’s still $40 billion in earlier years’ surplus committed to investments in climate change.\u003c/p>\n\u003cp>“Given that the state is confronting a deficit of $30-plus billion, state leaders did an adequate job of protecting the investments that they’ve made over the past decade,” he said.\u003c/p>\n\u003cp>While the budget does not raise income taxes to cover the deficit, it does impose a new tax on managed-care organizations — private companies that contract with the state to administer Medicaid benefits. The tax would generate an estimated $32 billion over the next four years, some of which would go toward increasing how much money doctors get for treating Medicaid patients. It would also offer $150 million in loans to hospitals that are at risk of failing.\u003c/p>\n\u003ch2>No fast track for Delta tunnel\u003c/h2>\n\u003cp>More contentious than any single spending issue was Newsom’s proposal to reform state environmental laws in order to expedite the construction of major infrastructure projects.\u003c/p>\n\u003cp>The governor argued that new clean energy developments and upgrades to water infrastructure were being derailed by the California Environmental Quality Act, and would lead to the state missing out on future federal funding. His plan would have required all CEQA court challenges to be resolved within 270 days, among other changes.[aside postID=science_1983092]Lawmakers, however, were wary of grappling with such major reforms against the rapidly-approaching budget deadline. And those representing the Sacramento Delta region feared the plan would fast-track approval of a giant tunnel to move Delta water to Southern California.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB149\">The final agreement\u003c/a> threads the needle with a single line, which specifies that a project qualifying for streamlined approval “does not include the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta.”\u003c/p>\n\u003cp>State Sen. Bill Dodd, a Napa Democrat whose district includes Delta communities in Solano and Yolo counties, said although he largely agreed with the governor’s reforms, “I really worked hard to make sure [the tunnel plan] wasn’t included in the package.”\u003c/p>\n\u003cp>“It’s a highly problematic proposal that has incredible environmental implications and impact on the Delta communities that I serve,” Dodd said.\u003c/p>\n\u003ch2>Survival funds for transit agencies\u003c/h2>\n\u003cp>The budget agreement incorporates \u003ca href=\"https://www.kqed.org/news/11950403/some-bay-area-public-transit-lines-could-be-cut-this-summer-as-california-budget-deficit-looms\">a long-debated emergency relief package for transit agencies across the state\u003c/a>, including BART and Muni, that the Legislature passed earlier this month.\u003c/p>\n\u003cp>The funding is designed to help those agencies maintain current operating levels as they develop strategies to deal with a deepening pandemic-related financial crisis — a situation that’s come to be known as the “\u003ca href=\"https://www.kqed.org/news/11952821/1-1-billion-state-bailout-proposed-for-transit-agencies-facing-fiscal-cliff\">transit fiscal cliff\u003c/a>.”\u003c/p>\n\u003cp>The deal includes $1.1 billion, from the state’s cap-and-trade program, that transit agencies can use over the next four years for day-to-day operating expenses like salaries, maintenance and supplies.[aside postID=news_11952821,news_11950403,forum_2010101891806 label='Transit Funding']The pact also scraps Newsom’s proposed $2 billion cut to the state’s Transit and Intercity Rail Capital Program. Those funds are typically used for long-term system improvements and infrastructure projects.\u003c/p>\n\u003cp>The TIRCP deal restores $400 million to Bay Area projects, including the VTA-BART extension through downtown San José. The agreement allows transit operators to use their TIRCP funds for operating expenses under certain circumstances. But spending those capital dollars to keep systems running would carry a high cost in the loss of matching federal funds.\u003c/p>\n\u003cp>“We pulled a rabbit out of the hat by getting the transit money back,” said Assemblymember Phil Ting (D-San Francisco), chair of the Budget Committee. “We should hopefully help the transit operators from not falling over the ‘fiscal cliff.’ So that was a major win.”\u003c/p>\n\u003cp>State Sen. Scott Wiener (D-San Francisco) led the campaign to secure those transit survival funds, which he called “a critical lifeline that will help transit agencies maintain service while making critical improvements to cleanliness and safety.”\u003c/p>\n\u003cp>Those improvements are spelled out in \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB125\">an accompanying trailer bill\u003c/a> listing “accountability” requirements for the Bay Area’s Metropolitan Transportation Commission and for transit operators who want a share of the state funding. The transit agencies must also detail plans to improve public safety and system cleanliness and simplify fare structures and payment systems.\u003c/p>\n\u003cp>Bay Area bus, rail and ferry operators still face a five-year deficit of $2.5 billion, according to MTC estimates, so the budget agreement is far from the last word the region will hear on transit funding.\u003c/p>\n\u003cp>On Monday, Wiener introduced \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB532\">SB 532\u003c/a>, a bill that would tack on $1.50 to tolls on the region’s seven state-owned bridges and earmark the proceeds for transit operations. Under the proposal, which requires a two-thirds vote in the Legislature to pass, the toll increase would take effect next Jan. 1, and continue through the end of 2028.\u003c/p>\n\u003cp>Wiener said that the toll hike, along with the emergency state cash and other funding the MTC has identified, would still leave the region about $900 million short of closing its five-year transit deficit. That means a broad range of public transportation advocates will likely join in a push for a 2026 ballot measure aimed at providing stable long-term funding.\u003c/p>\n\u003cp>\u003cem>For a more detailed breakdown of the budget proposals — including how it will affect childcare subsidies, education spending, and programs for homebuyers: \u003ca href=\"https://calmatters.org/politics/2023/06/california-budget-deal-what-you-need-to-know/\">What You Need to Know in the California Budget Deal\u003c/a>\u003c/em>\u003c/p>\n\u003cp>\u003cem>This article includes reporting from Adam Beam of The Associated Press.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Gov. Gavin Newsom and the Democrats who control the California Legislature agreed late Monday on how to spend $310.8 billion over the next year, endorsing a plan that covers a nearly $32 billion budget deficit without raiding the state’s savings account.\u003c/p>\n\u003cp>The state has had combined \u003ca href=\"https://www.kqed.org/news/11874125/californias-historic-budget-surplus-is-it-76-billion-or-38-billion\">budget surpluses\u003c/a> of well over $100 billion in the past few years, using that money to greatly expand government programs. But this year, \u003ca href=\"https://apnews.com/article/california-gavin-newsom-business-1035e53f9f5c0ebad2565a34192e2e13\">revenues slowed\u003c/a> as inflation soared and the stock market struggled. California gets most of its revenue from taxes paid by the wealthy, making it more vulnerable to changes in the economy than other states. Last month, \u003ca href=\"https://www.kqed.org/news/11949333/gov-newsom-says-california-budget-deficit-has-grown-to-nearly-32-billion\">the Newsom administration estimated the state’s spending would exceed revenues by over $30 billion\u003c/a>.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The final budget, which lawmakers are scheduled to vote on later this week, covers that deficit by cutting some spending — about $8 billion — while delaying other spending and shifting certain expenses to other funds. The plan would borrow $6.1 billion and set aside $37.8 billion in reserves, the most ever.\u003c/p>\n\u003cp>“In the face of continued global economic uncertainty, this budget increases our fiscal discipline by growing our budget reserves to a record $38 billion, while preserving historic investments in public education, health care, climate and public safety,” Newsom said.\u003c/p>\n\u003cp>However, Republicans criticized the budget plan as unsustainable, noting it would leave the state with projected multibillion-dollar deficits over the next few years.\u003c/p>\n\u003cp>Here are some big takeaways from the deal:\u003c/p>\n\u003ch2>Closing the deficit\u003c/h2>\n\u003cp>Chris Hoene, executive director of \u003ca href=\"https://calbudgetcenter.org/\">the California Budget and Policy Center\u003c/a>, said lawmakers were able to balance the budget without tapping reserves or increasing taxes, by canceling some future spending plans.\u003c/p>\n\u003cp>“They took one-time investments that they had made commitments to in earlier budget years, big pots of funding that they had set aside for climate change investments and infrastructure investments — and they basically took some of that money back,” Hoene said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The trims include over $5 billion targeted toward infrastructure to reduce climate change, such as electric vehicle chargers. However, Hoene said, there’s still $40 billion in earlier years’ surplus committed to investments in climate change.\u003c/p>\n\u003cp>“Given that the state is confronting a deficit of $30-plus billion, state leaders did an adequate job of protecting the investments that they’ve made over the past decade,” he said.\u003c/p>\n\u003cp>While the budget does not raise income taxes to cover the deficit, it does impose a new tax on managed-care organizations — private companies that contract with the state to administer Medicaid benefits. The tax would generate an estimated $32 billion over the next four years, some of which would go toward increasing how much money doctors get for treating Medicaid patients. It would also offer $150 million in loans to hospitals that are at risk of failing.\u003c/p>\n\u003ch2>No fast track for Delta tunnel\u003c/h2>\n\u003cp>More contentious than any single spending issue was Newsom’s proposal to reform state environmental laws in order to expedite the construction of major infrastructure projects.\u003c/p>\n\u003cp>The governor argued that new clean energy developments and upgrades to water infrastructure were being derailed by the California Environmental Quality Act, and would lead to the state missing out on future federal funding. His plan would have required all CEQA court challenges to be resolved within 270 days, among other changes.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Lawmakers, however, were wary of grappling with such major reforms against the rapidly-approaching budget deadline. And those representing the Sacramento Delta region feared the plan would fast-track approval of a giant tunnel to move Delta water to Southern California.\u003c/p>\n\u003cp>\u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB149\">The final agreement\u003c/a> threads the needle with a single line, which specifies that a project qualifying for streamlined approval “does not include the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta.”\u003c/p>\n\u003cp>State Sen. Bill Dodd, a Napa Democrat whose district includes Delta communities in Solano and Yolo counties, said although he largely agreed with the governor’s reforms, “I really worked hard to make sure [the tunnel plan] wasn’t included in the package.”\u003c/p>\n\u003cp>“It’s a highly problematic proposal that has incredible environmental implications and impact on the Delta communities that I serve,” Dodd said.\u003c/p>\n\u003ch2>Survival funds for transit agencies\u003c/h2>\n\u003cp>The budget agreement incorporates \u003ca href=\"https://www.kqed.org/news/11950403/some-bay-area-public-transit-lines-could-be-cut-this-summer-as-california-budget-deficit-looms\">a long-debated emergency relief package for transit agencies across the state\u003c/a>, including BART and Muni, that the Legislature passed earlier this month.\u003c/p>\n\u003cp>The funding is designed to help those agencies maintain current operating levels as they develop strategies to deal with a deepening pandemic-related financial crisis — a situation that’s come to be known as the “\u003ca href=\"https://www.kqed.org/news/11952821/1-1-billion-state-bailout-proposed-for-transit-agencies-facing-fiscal-cliff\">transit fiscal cliff\u003c/a>.”\u003c/p>\n\u003cp>The deal includes $1.1 billion, from the state’s cap-and-trade program, that transit agencies can use over the next four years for day-to-day operating expenses like salaries, maintenance and supplies.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The pact also scraps Newsom’s proposed $2 billion cut to the state’s Transit and Intercity Rail Capital Program. Those funds are typically used for long-term system improvements and infrastructure projects.\u003c/p>\n\u003cp>The TIRCP deal restores $400 million to Bay Area projects, including the VTA-BART extension through downtown San José. The agreement allows transit operators to use their TIRCP funds for operating expenses under certain circumstances. But spending those capital dollars to keep systems running would carry a high cost in the loss of matching federal funds.\u003c/p>\n\u003cp>“We pulled a rabbit out of the hat by getting the transit money back,” said Assemblymember Phil Ting (D-San Francisco), chair of the Budget Committee. “We should hopefully help the transit operators from not falling over the ‘fiscal cliff.’ So that was a major win.”\u003c/p>\n\u003cp>State Sen. Scott Wiener (D-San Francisco) led the campaign to secure those transit survival funds, which he called “a critical lifeline that will help transit agencies maintain service while making critical improvements to cleanliness and safety.”\u003c/p>\n\u003cp>Those improvements are spelled out in \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB125\">an accompanying trailer bill\u003c/a> listing “accountability” requirements for the Bay Area’s Metropolitan Transportation Commission and for transit operators who want a share of the state funding. The transit agencies must also detail plans to improve public safety and system cleanliness and simplify fare structures and payment systems.\u003c/p>\n\u003cp>Bay Area bus, rail and ferry operators still face a five-year deficit of $2.5 billion, according to MTC estimates, so the budget agreement is far from the last word the region will hear on transit funding.\u003c/p>\n\u003cp>On Monday, Wiener introduced \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB532\">SB 532\u003c/a>, a bill that would tack on $1.50 to tolls on the region’s seven state-owned bridges and earmark the proceeds for transit operations. Under the proposal, which requires a two-thirds vote in the Legislature to pass, the toll increase would take effect next Jan. 1, and continue through the end of 2028.\u003c/p>\n\u003cp>Wiener said that the toll hike, along with the emergency state cash and other funding the MTC has identified, would still leave the region about $900 million short of closing its five-year transit deficit. That means a broad range of public transportation advocates will likely join in a push for a 2026 ballot measure aimed at providing stable long-term funding.\u003c/p>\n\u003cp>\u003cem>For a more detailed breakdown of the budget proposals — including how it will affect childcare subsidies, education spending, and programs for homebuyers: \u003ca href=\"https://calmatters.org/politics/2023/06/california-budget-deal-what-you-need-to-know/\">What You Need to Know in the California Budget Deal\u003c/a>\u003c/em>\u003c/p>\n\u003cp>\u003cem>This article includes reporting from Adam Beam of The Associated Press.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Every Thursday at the Fairfield Farmers’ Market, many customers don’t pay for their fruits and vegetables with cash, credit card or Apple Pay. Instead, they go to the information booth, swipe their CalFresh EBT card and receive paper vouchers to spend on produce.\u003c/p>\n\u003cp>Under Market Match, California food aid recipients get as much as $10 in matching money — meaning they have at least $20 to spend every week at their local farmers market.\u003c/p>\n\u003cp>“We already spend $200 on meat and cheese at Costco,” said Mitzi Castillo, who lives in Fairfield with two young daughters. “If I didn’t have Market Match, they would have to wait ’til next week to eat fruits and veggies when my husband gets paid.”\u003c/p>\n\u003cp>Castillo buys cherries, strawberries and blueberries from one of the many farmers who also reap benefits from the program, which brings customers and more cash to more than 270 farmers markets across the state.\u003c/p>\n\u003cp>“For me, I get more money, and for the people who use it, they can feed their family more,” said Salvador Navarro, a farmer from Stockton who said he makes as much as $300 from Market Match at the \u003ca href=\"https://www.pcfma.org/fairfield\">Fairfield Farmers’ Market\u003c/a>, more than enough to cover the cost of his stall.\u003c/p>\n\u003cp>[aside postID=news_11943420,news_11950312 label='Food Programs']Together with his stalls across the Bay Area, Navarro says he makes $50,000, or a fourth of his income every season, from CalFresh customers and Market Match.\u003c/p>\n\u003cp>\u003ca href=\"https://marketmatch.org/\">Market Match\u003c/a> is the largest funding beneficiary of the California Nutrition Incentive Program, which is run by the California Department of Food and Agriculture. In 2022, the program provided about 38 million servings of fruits and vegetables to CalFresh participants, accounting for $19.5 million in CalFresh and Market Match spending at farmers markets across the state.\u003c/p>\n\u003cp>However, like many initiatives, the fates of Market Match and other healthy food and nutrition programs are in flux as legislative leaders and Gov. Gavin Newsom \u003ca href=\"https://calmatters.org/explainers/california-budget-2023/\">negotiate the final state budget\u003c/a> while tackling \u003ca href=\"https://www.kqed.org/news/11949333/gov-newsom-says-california-budget-deficit-has-grown-to-nearly-32-billion\">a $31.5 billion deficit\u003c/a>.\u003c/p>\n\u003cp>Although \u003ca href=\"https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Budget%20Plan%20Step%203.1%20June%2012%209am%20Final.docx.pdf\">the plan that legislative Democrats pushed through on Thursday (PDF)\u003c/a> includes $35 million for the incentive program, advocates, CalFresh recipients and farmers worry that the money won’t be in the final budget.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“What we’re doing now is trying to get the ear of the governor,” said Minni Forman, director of Market Match, which also includes community groups coordinated by the nonprofit Ecology Center. If the program is not funded in the final budget, Forman says the program will return to fundraising in the philanthropic world, which could mean a major reduction and even the end to Market Match.\u003c/p>\n\u003cp>“I’m worried, and I’m fighting as hard as they are to make sure that it is (part of the final budget),” Assembly Budget Committee Chair Phil Ting told CalMatters.\u003c/p>\n\u003cp>The San Francisco Democrat authored \u003ca href=\"https://a19.asmdc.org/press-releases/20150904-ting-sends-governor-bill-expand-healthy-food-access-farmers-markets\">the 2015 law creating the incentive program\u003c/a> that now funds Market Match and also \u003ca href=\"https://a19.asmdc.org/press-releases/20180801-study-finds-california-program-boosts-healthy-eating-among-calfresh\">championed additional funding in 2018\u003c/a>.\u003c/p>\n\u003cp>Ting declined to comment on the status of ongoing negotiations between legislative leaders and the Newsom administration, as did Senate Budget Chair Nancy Skinner, an Oakland Democrat.\u003c/p>\n\u003cp>Sen. Melissa Hurtado, a Bakersfield Democrat, emphasized the importance of the $35 million for the nutrition incentive program, calling it a “priority” and highlighting \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB628\">her bill to make it official state policy for everyone to have access to enough healthy food\u003c/a>.\u003c/p>\n\u003cp>Keeping Market Match funded is also a priority for farmers across California promoting \u003ca href=\"https://ecologycenter.org/blog/state-budget-cuts-endanger-funding-for-ca-market-match-program-its-not-too-late-to-take-action/\">the #FundCNIP campaign\u003c/a>. They include Jeff Nielsen, an organic avocado farmer who manages the \u003ca href=\"https://www.cambriafarmersmarket.com/\">Cambria Farmers Market\u003c/a> and three other markets. He says that because of the program, people who don’t traditionally go to farmers markets find foods they like and keep coming back.\u003c/p>\n\u003cp>“They’ll get $10, $20, even $30 (in produce) from the market, which is a really big win,” said Nielsen. “For every local that comes every week, it supports them, the farmers, and the community.”\u003c/p>\n\u003cfigure id=\"attachment_11953432\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003ca href=\"https://ww2.kqed.org/news/2023/06/20/fresh-food-benefits-could-be-cut-in-state-budget/061523_fairfield-market-match_sn_cm_15/\" rel=\"attachment wp-att-11953432\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11953432 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15.jpg\" alt=\"A Latino man and a Latino girl, both smiling and with arms around each other, stand under a tent and behind a table of fruit, with a sign advertising cherries\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Farmer Salvador Navarro and his daughter Kimberly at the Fairfield Farmers’ Market. Most of Navarro’s customers use Market Match and other benefit programs to buy their produce. \u003ccite>(Semantha Norris/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The worries about the possible demise of Market Match and other healthy food incentive programs are growing amid broader concerns that California faces a “\u003ca href=\"https://calmatters.org/california-divide/2023/06/california-food-banks/\">catastrophic hunger crisis\u003c/a>” as pandemic-era extra CalFresh benefits come to an end. Even with those additional benefits, \u003ca href=\"https://www.ipr.northwestern.edu/apps/economicindicators.html\">20% of Californians experienced food insecurity in 2021\u003c/a>. This year, the number is expected to rise rapidly.\u003c/p>\n\u003cp>Last week, U.S. Health and Human Services Secretary Xavier Becerra visited Sacramento to address food insecurity and nutrition inequities.\u003c/p>\n\u003cp>“I know the governor has been moving in ways to try to address those social needs, including food insecurity for so many Californians,” Becerra, a former state attorney general and member of Congress, said at a press conference. “I don’t believe that my state, which I’m very proud of, is going to abandon the effort to try to keep people moving in the right direction, and that of course, has to include healthy foods.”\u003c/p>\n\u003ch2>Where food aid stands in budget\u003c/h2>\n\u003cp>So far, the Legislature has approved the governor’s more modest anti-hunger proposals, including the creation of a summer program for eligible households to receive \u003ca href=\"https://www.cde.ca.gov/ls/nu/smmr2023pebtannncmnt.asp\">$40 per month in food assistance benefits for each child\u003c/a>, a \u003ca href=\"https://www.cdss.ca.gov/home/pandemic-ebt\">substantial drop from the $125 per month\u003c/a> for each child that families received last summer. Lawmakers have also approved the expansion of California’s food assistance program for undocumented immigrants 55 and older, beginning in late 2025.\u003c/p>\n\u003cp>Overall, the governor’s May budget proposal included a total of $2.7 billion in state and federal funding for anti-hunger programs. However, the Legislature’s budget includes \u003ca href=\"https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Budget%20Plan%20Step%203.1%20June%2012%209am%20Final.docx.pdf\">a variety of food benefits (PDF)\u003c/a> that the governor did not include:\u003c/p>\n\u003cul>\n\u003cli>$35 million for the incentive program that funds Market Match and a handful of other incentive programs;\u003c/li>\n\u003cli>$30 million for a CalFresh $50 minimum benefit pilot program;\u003c/li>\n\u003cli>$9.9 million for a broader California Fruit & Vegetable EBT pilot program;\u003c/li>\n\u003cli>$3 million to extend a CalFresh program to buy safe drinking water.\u003c/li>\n\u003c/ul>\n\u003cp>The original proposal to increase the minimum CalFresh benefit from $23 to $50 per month statewide was estimated to cost $95 million. However, the Legislature’s budget deal includes only $30 million, enough for a pilot program in some counties. As budget negotiations continue, there is some doubt that even the reduced $30 million will make it.\u003c/p>\n\u003cp>“I recognize with the budget deficit that it’s going to be hard to include,” Sen. Caroline Menjivar, a Van Nuys Democrat who authored the minimum benefit bill, told CalMatters in a recent interview. “But the impact is so big, should this pass and get funding.”\u003c/p>\n\u003cp>While Market Match focuses on farmers markets and uses vouchers and tokens, \u003ca href=\"https://www.cdss.ca.gov/inforesources/ebt/california-fruit-vegetable-ebt-pilot-project\">the California Fruit and Vegetable EBT Pilot Project\u003c/a> borrows a model \u003ca href=\"https://farmdirectincentives.guide/resource/making-snap-incentives-a-snap-on-the-ebt-card/\">pioneered by Massachusetts\u003c/a> to promote nutritious shopping at grocery stores.\u003c/p>\n\u003cp>Eli Zigas, the food and agriculture policy director at \u003ca href=\"https://www.spur.org/about/our-mission-and-history\">SPUR\u003c/a>, a nonprofit policy research institute, says that CalFresh recipients predominantly shop at big-box stores and supermarkets. The test program allows recipients to get money rebated directly back on their EBT cards after buying fruits and vegetables at authorized grocery stores.\u003c/p>\n\u003cp>The pilot plans to have more than 80 locations running by the end of the summer, but Zigas worries that the final budget may delay efforts to make the program statewide and permanent. Last year, when the state had a record budget surplus, supporters asked for $240 million over two years, but the program wasn’t funded. This year, supporters asked for $94 million over two years, but received $9.9 million in the Legislature’s budget.\u003c/p>\n\u003cfigure id=\"attachment_11953433\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003ca href=\"https://ww2.kqed.org/news/2023/06/20/fresh-food-benefits-could-be-cut-in-state-budget/061523-fairfield-farmers-market-sn-cm-04/\" rel=\"attachment wp-att-11953433\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11953433\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04.jpg\" alt=\"a woman works outside behind a table covered in green vegetables, with a line of people of different races looking through the produce\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Customers pick produce at the Fairfield Farmers’ Market. \u003ccite>(Semantha Norris/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back at the Fairfield Farmers’ Market last week, 82-year-old Gurdial Singh walked from stand to stand, using his Market Match vouchers to buy vegetables. “My wife and I will cook dinner together tonight with the zucchini, eggplant and cucumbers,” he said. “We enjoy this program very much as senior citizens.”\u003c/p>\n\u003cp>Luis Nava, a market manager with the Pacific Coast Farmers’ Market Association who staffs the Fairfield Farmers’ Market, said he wants to send a message to the governor:\u003c/p>\n\u003cp>“We need this program to help low-income families, and if it goes away, it will take away food from our kids’ tables. We need it. We really, really need it.”\u003c/p>\n\u003cp>\u003cem>This story has been updated to accurately reflect state funding for the California Fruit and Vegetable EBT Pilot Project.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>Every Thursday at the Fairfield Farmers’ Market, many customers don’t pay for their fruits and vegetables with cash, credit card or Apple Pay. Instead, they go to the information booth, swipe their CalFresh EBT card and receive paper vouchers to spend on produce.\u003c/p>\n\u003cp>Under Market Match, California food aid recipients get as much as $10 in matching money — meaning they have at least $20 to spend every week at their local farmers market.\u003c/p>\n\u003cp>“We already spend $200 on meat and cheese at Costco,” said Mitzi Castillo, who lives in Fairfield with two young daughters. “If I didn’t have Market Match, they would have to wait ’til next week to eat fruits and veggies when my husband gets paid.”\u003c/p>\n\u003cp>Castillo buys cherries, strawberries and blueberries from one of the many farmers who also reap benefits from the program, which brings customers and more cash to more than 270 farmers markets across the state.\u003c/p>\n\u003cp>“For me, I get more money, and for the people who use it, they can feed their family more,” said Salvador Navarro, a farmer from Stockton who said he makes as much as $300 from Market Match at the \u003ca href=\"https://www.pcfma.org/fairfield\">Fairfield Farmers’ Market\u003c/a>, more than enough to cover the cost of his stall.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Together with his stalls across the Bay Area, Navarro says he makes $50,000, or a fourth of his income every season, from CalFresh customers and Market Match.\u003c/p>\n\u003cp>\u003ca href=\"https://marketmatch.org/\">Market Match\u003c/a> is the largest funding beneficiary of the California Nutrition Incentive Program, which is run by the California Department of Food and Agriculture. In 2022, the program provided about 38 million servings of fruits and vegetables to CalFresh participants, accounting for $19.5 million in CalFresh and Market Match spending at farmers markets across the state.\u003c/p>\n\u003cp>However, like many initiatives, the fates of Market Match and other healthy food and nutrition programs are in flux as legislative leaders and Gov. Gavin Newsom \u003ca href=\"https://calmatters.org/explainers/california-budget-2023/\">negotiate the final state budget\u003c/a> while tackling \u003ca href=\"https://www.kqed.org/news/11949333/gov-newsom-says-california-budget-deficit-has-grown-to-nearly-32-billion\">a $31.5 billion deficit\u003c/a>.\u003c/p>\n\u003cp>Although \u003ca href=\"https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Budget%20Plan%20Step%203.1%20June%2012%209am%20Final.docx.pdf\">the plan that legislative Democrats pushed through on Thursday (PDF)\u003c/a> includes $35 million for the incentive program, advocates, CalFresh recipients and farmers worry that the money won’t be in the final budget.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“What we’re doing now is trying to get the ear of the governor,” said Minni Forman, director of Market Match, which also includes community groups coordinated by the nonprofit Ecology Center. If the program is not funded in the final budget, Forman says the program will return to fundraising in the philanthropic world, which could mean a major reduction and even the end to Market Match.\u003c/p>\n\u003cp>“I’m worried, and I’m fighting as hard as they are to make sure that it is (part of the final budget),” Assembly Budget Committee Chair Phil Ting told CalMatters.\u003c/p>\n\u003cp>The San Francisco Democrat authored \u003ca href=\"https://a19.asmdc.org/press-releases/20150904-ting-sends-governor-bill-expand-healthy-food-access-farmers-markets\">the 2015 law creating the incentive program\u003c/a> that now funds Market Match and also \u003ca href=\"https://a19.asmdc.org/press-releases/20180801-study-finds-california-program-boosts-healthy-eating-among-calfresh\">championed additional funding in 2018\u003c/a>.\u003c/p>\n\u003cp>Ting declined to comment on the status of ongoing negotiations between legislative leaders and the Newsom administration, as did Senate Budget Chair Nancy Skinner, an Oakland Democrat.\u003c/p>\n\u003cp>Sen. Melissa Hurtado, a Bakersfield Democrat, emphasized the importance of the $35 million for the nutrition incentive program, calling it a “priority” and highlighting \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB628\">her bill to make it official state policy for everyone to have access to enough healthy food\u003c/a>.\u003c/p>\n\u003cp>Keeping Market Match funded is also a priority for farmers across California promoting \u003ca href=\"https://ecologycenter.org/blog/state-budget-cuts-endanger-funding-for-ca-market-match-program-its-not-too-late-to-take-action/\">the #FundCNIP campaign\u003c/a>. They include Jeff Nielsen, an organic avocado farmer who manages the \u003ca href=\"https://www.cambriafarmersmarket.com/\">Cambria Farmers Market\u003c/a> and three other markets. He says that because of the program, people who don’t traditionally go to farmers markets find foods they like and keep coming back.\u003c/p>\n\u003cp>“They’ll get $10, $20, even $30 (in produce) from the market, which is a really big win,” said Nielsen. “For every local that comes every week, it supports them, the farmers, and the community.”\u003c/p>\n\u003cfigure id=\"attachment_11953432\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003ca href=\"https://ww2.kqed.org/news/2023/06/20/fresh-food-benefits-could-be-cut-in-state-budget/061523_fairfield-market-match_sn_cm_15/\" rel=\"attachment wp-att-11953432\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11953432 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15.jpg\" alt=\"A Latino man and a Latino girl, both smiling and with arms around each other, stand under a tent and behind a table of fruit, with a sign advertising cherries\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523_Fairfield-Market-Match_SN_CM_15-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Farmer Salvador Navarro and his daughter Kimberly at the Fairfield Farmers’ Market. Most of Navarro’s customers use Market Match and other benefit programs to buy their produce. \u003ccite>(Semantha Norris/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The worries about the possible demise of Market Match and other healthy food incentive programs are growing amid broader concerns that California faces a “\u003ca href=\"https://calmatters.org/california-divide/2023/06/california-food-banks/\">catastrophic hunger crisis\u003c/a>” as pandemic-era extra CalFresh benefits come to an end. Even with those additional benefits, \u003ca href=\"https://www.ipr.northwestern.edu/apps/economicindicators.html\">20% of Californians experienced food insecurity in 2021\u003c/a>. This year, the number is expected to rise rapidly.\u003c/p>\n\u003cp>Last week, U.S. Health and Human Services Secretary Xavier Becerra visited Sacramento to address food insecurity and nutrition inequities.\u003c/p>\n\u003cp>“I know the governor has been moving in ways to try to address those social needs, including food insecurity for so many Californians,” Becerra, a former state attorney general and member of Congress, said at a press conference. “I don’t believe that my state, which I’m very proud of, is going to abandon the effort to try to keep people moving in the right direction, and that of course, has to include healthy foods.”\u003c/p>\n\u003ch2>Where food aid stands in budget\u003c/h2>\n\u003cp>So far, the Legislature has approved the governor’s more modest anti-hunger proposals, including the creation of a summer program for eligible households to receive \u003ca href=\"https://www.cde.ca.gov/ls/nu/smmr2023pebtannncmnt.asp\">$40 per month in food assistance benefits for each child\u003c/a>, a \u003ca href=\"https://www.cdss.ca.gov/home/pandemic-ebt\">substantial drop from the $125 per month\u003c/a> for each child that families received last summer. Lawmakers have also approved the expansion of California’s food assistance program for undocumented immigrants 55 and older, beginning in late 2025.\u003c/p>\n\u003cp>Overall, the governor’s May budget proposal included a total of $2.7 billion in state and federal funding for anti-hunger programs. However, the Legislature’s budget includes \u003ca href=\"https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/Protect%20Our%20Progress%20Budget%20Plan%20Step%203.1%20June%2012%209am%20Final.docx.pdf\">a variety of food benefits (PDF)\u003c/a> that the governor did not include:\u003c/p>\n\u003cul>\n\u003cli>$35 million for the incentive program that funds Market Match and a handful of other incentive programs;\u003c/li>\n\u003cli>$30 million for a CalFresh $50 minimum benefit pilot program;\u003c/li>\n\u003cli>$9.9 million for a broader California Fruit & Vegetable EBT pilot program;\u003c/li>\n\u003cli>$3 million to extend a CalFresh program to buy safe drinking water.\u003c/li>\n\u003c/ul>\n\u003cp>The original proposal to increase the minimum CalFresh benefit from $23 to $50 per month statewide was estimated to cost $95 million. However, the Legislature’s budget deal includes only $30 million, enough for a pilot program in some counties. As budget negotiations continue, there is some doubt that even the reduced $30 million will make it.\u003c/p>\n\u003cp>“I recognize with the budget deficit that it’s going to be hard to include,” Sen. Caroline Menjivar, a Van Nuys Democrat who authored the minimum benefit bill, told CalMatters in a recent interview. “But the impact is so big, should this pass and get funding.”\u003c/p>\n\u003cp>While Market Match focuses on farmers markets and uses vouchers and tokens, \u003ca href=\"https://www.cdss.ca.gov/inforesources/ebt/california-fruit-vegetable-ebt-pilot-project\">the California Fruit and Vegetable EBT Pilot Project\u003c/a> borrows a model \u003ca href=\"https://farmdirectincentives.guide/resource/making-snap-incentives-a-snap-on-the-ebt-card/\">pioneered by Massachusetts\u003c/a> to promote nutritious shopping at grocery stores.\u003c/p>\n\u003cp>Eli Zigas, the food and agriculture policy director at \u003ca href=\"https://www.spur.org/about/our-mission-and-history\">SPUR\u003c/a>, a nonprofit policy research institute, says that CalFresh recipients predominantly shop at big-box stores and supermarkets. The test program allows recipients to get money rebated directly back on their EBT cards after buying fruits and vegetables at authorized grocery stores.\u003c/p>\n\u003cp>The pilot plans to have more than 80 locations running by the end of the summer, but Zigas worries that the final budget may delay efforts to make the program statewide and permanent. Last year, when the state had a record budget surplus, supporters asked for $240 million over two years, but the program wasn’t funded. This year, supporters asked for $94 million over two years, but received $9.9 million in the Legislature’s budget.\u003c/p>\n\u003cfigure id=\"attachment_11953433\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003ca href=\"https://ww2.kqed.org/news/2023/06/20/fresh-food-benefits-could-be-cut-in-state-budget/061523-fairfield-farmers-market-sn-cm-04/\" rel=\"attachment wp-att-11953433\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11953433\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04.jpg\" alt=\"a woman works outside behind a table covered in green vegetables, with a line of people of different races looking through the produce\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/06/061523-Fairfield-Farmers-Market-SN-CM-04-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Customers pick produce at the Fairfield Farmers’ Market. \u003ccite>(Semantha Norris/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Back at the Fairfield Farmers’ Market last week, 82-year-old Gurdial Singh walked from stand to stand, using his Market Match vouchers to buy vegetables. “My wife and I will cook dinner together tonight with the zucchini, eggplant and cucumbers,” he said. “We enjoy this program very much as senior citizens.”\u003c/p>\n\u003cp>Luis Nava, a market manager with the Pacific Coast Farmers’ Market Association who staffs the Fairfield Farmers’ Market, said he wants to send a message to the governor:\u003c/p>\n\u003cp>“We need this program to help low-income families, and if it goes away, it will take away food from our kids’ tables. We need it. We really, really need it.”\u003c/p>\n\u003cp>\u003cem>This story has been updated to accurately reflect state funding for the California Fruit and Vegetable EBT Pilot Project.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "What kind of no sabo word is Hyphenación? For us, it’s about living within a hyphenation. Like being a third-gen Mexican-American from the Texas border now living that Bay Area Chicano life. Like Xorje! Each week we bring together a couple of hyphenated Latinos to talk all about personal life choices: family, careers, relationships, belonging … everything is on the table. ",
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"info": "The Political Mind of Jerry Brown brings listeners the wisdom of the former Governor, Mayor, and presidential candidate. Scott Shafer interviewed Brown for more than 40 hours, covering the former governor's life and half-century in the political game – and Brown has some lessons he'd like to share. ",
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"marketplace": {
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
"airtime": "MON-FRI 4pm-4:30pm, MON-WED 6:30pm-7pm",
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"mindshift": {
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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"order": 12
},
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"google": "https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkM1NzY0NjAwNDI5",
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"info": "\u003cem>Morning Edition\u003c/em> takes listeners around the country and the world with multi-faceted stories and commentaries every weekday. Hosts Steve Inskeep, David Greene and Rachel Martin bring you the latest breaking news and features to prepare you for the day.",
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"onourwatch": {
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"tagline": "Deeply-reported investigative journalism",
"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
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"perspectives": {
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"planet-money": {
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"info": "The economy explained. Imagine you could call up a friend and say, Meet me at the bar and tell me what's going on with the economy. Now imagine that's actually a fun evening.",
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"title": "Political Breakdown",
"tagline": "Politics from a personal perspective",
"info": "Political Breakdown is a new series that explores the political intersection of California and the nation. Each week hosts Scott Shafer and Marisa Lagos are joined with a new special guest to unpack politics -- with personality — and offer an insider’s glimpse at how politics happens.",
"airtime": "THU 6:30pm-7pm",
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"possible": {
"id": "possible",
"title": "Possible",
"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
"airtime": "SUN 2pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/Possible-Podcast-Tile-360x360-1.jpg",
"officialWebsiteLink": "https://www.possible.fm/",
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"source": "Possible"
},
"link": "/radio/program/possible",
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},
"pri-the-world": {
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"title": "PRI's The World: Latest Edition",
"info": "Each weekday, host Marco Werman and his team of producers bring you the world's most interesting stories in an hour of radio that reminds us just how small our planet really is.",
"airtime": "MON-FRI 2pm-3pm",
"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/The-World-Podcast-Tile-360x360-1.jpg",
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},
"radiolab": {
"id": "radiolab",
"title": "Radiolab",
"info": "A two-time Peabody Award-winner, Radiolab is an investigation told through sounds and stories, and centered around one big idea. In the Radiolab world, information sounds like music and science and culture collide. Hosted by Jad Abumrad and Robert Krulwich, the show is designed for listeners who demand skepticism, but appreciate wonder. WNYC Studios is the producer of other leading podcasts including Freakonomics Radio, Death, Sex & Money, On the Media and many more.",
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},
"reveal": {
"id": "reveal",
"title": "Reveal",
"info": "Created by The Center for Investigative Reporting and PRX, Reveal is public radios first one-hour weekly radio show and podcast dedicated to investigative reporting. Credible, fact based and without a partisan agenda, Reveal combines the power and artistry of driveway moment storytelling with data-rich reporting on critically important issues. The result is stories that inform and inspire, arming our listeners with information to right injustices, hold the powerful accountable and improve lives.Reveal is hosted by Al Letson and showcases the award-winning work of CIR and newsrooms large and small across the nation. In a radio and podcast market crowded with choices, Reveal focuses on important and often surprising stories that illuminate the world for our listeners.",
"airtime": "SAT 4pm-5pm",
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"officialWebsiteLink": "https://www.revealnews.org/episodes/",
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},
"link": "/radio/program/reveal",
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"rss": "http://feeds.revealradio.org/revealpodcast"
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