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Transit, Child Care Are Among The Sticking Points In California’s $300 Billion Budget Negotiations

By Guest Author - June 16, 2023

California lawmakers passed a budget Thursday to ensure they keep getting paid, but it’s a blueprint unlikely to become law because the Democrat-controlled Legislature is still negotiating with Gov. Gavin Newsom. At stake is how to spend more than $300 billion for the fiscal year that starts July 1.

Legislative leaders and Newsom, who is also a Democrat, have until the end of June to agree on a spending plan. Lawmakers must pass a budget by June 15 to keep their paychecks, a requirement voters approved in 2010 to try to keep the budget process from dragging on.

Here’s a look at the sticking points:

THE NUMBERS Newsom’s budget is $306.5 billion. The Legislature’s is $311.7 billion. Both sides agree the state will have a $31.5 billion budget deficit, to be covered through a combination of delayed spending, some cuts and borrowing. Once those actions are taken, both sides end up with about $37 billion in reserve.

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