California lawmakers and the governor on Monday night approved the state’s $351.7 billion budget.The massive budget is how state leaders plan to use taxpayer dollars for the financial year that begins July 1. California’s government spends most of its money on public education, followed by health and human services, then corrections and rehabilitation, the legislative, judicial and executive branches of government and natural resources. Newsom’s administration has said the plan eliminates budget shortfalls this year and next. The state has been spending more money than it’s bringing in, creating a structural budget problem. State financial experts have said California is facing budget deficits of about $8 billion a year after Newsom leaves office. The plan does set aside billions in rainy day funds, putting the state’s total reserves at $28.8 billion. California’s budget process also allows state lawmakers and the governor to fast-track major law changes and new policies. Here’s a look at what’s included in this year’s plan. New taxes Californians will face two new taxes this year. The first will be a tax on health plans, which is expected to raise rates for those who have private health insurance. This will take effect in January. Another is a new tax on purchases of digital software as a service, such as Outlook and QuickBooks. Business and tech groups have warned this will raise the cost of everyday goods and services in California. This takes effect in July. Critics like State Sen. Roger Niello, R-Fair Oaks, say taken together, it could mean $14 billion in new taxes that will be passed onto working families. The budget does not include any money toward the principal of the state’s unemployment insurance debt to the federal government for COVID-19 era benefits. California is the only state in the nation that has not paid off the loan. Employee payroll taxes for every business in the state will increase significantly in the upcoming year and years to come. Healthcare California’s Medi-Cal program, which provides health insurance to low-income people, is expected to cost $219.7 billion this year (about $46.9 billion of that from the state’s general fund). Lawmakers and the governor agreed to continue providing health insurance to about 2 million low-income undocumented people, which will cost taxpayers about $12 billion this year. Starting July of 2027, people with “unsatisfactory immigration status” will need to pay up to $50 dollars a month to maintain their coverage.Lawmakers have directed the next governor of California (whoever is elected in November) to come up with solutions to hold large corporations accountable for their workers who are on the state’s Medi-Cal program. The budget includes $90 million in grants for distressed hospitals at risk of closure. It also provides $40 million to abortion providers and $26 million for providers of gender affirming care. Counties will also have access to $197 million in funds to hire eligibility workers to help with people who may lose safety net services as a result of the federal government’s cuts. Homelessness and HousingThe budget provides $900 million for the state’s Homelessness Housing Assistance and Prevention program, which provides funds to large cities and counties. Legal Services The budget this year provides another $10 million to the California Department of Justice to continue court battles against President Donald Trump’s administration. For immigration services, state lawmakers and the governor have agreed to add another $10.5 million to a grant program that provides legal services including deportation defense. Public SafetyState lawmakers say the budget this year includes $375 million to help fund and implement Prop 36, a ballot measure voter overwhelmingly passed to ramp up the consequences for repeat thieves and drug dealers while also providing them the option of a “treatment mandated felony.” Critics say the funding is not enough. The budget also includes $80 million for the state’s nonprofit security grant program. To fight human trafficking, the budget includes $20 million total for prosecution grants and victim programs.The budget also provides $141.9 million to support the latest version of the state’s NextGen 911 system. This comes with audit and oversight rules. Childcare and public schoolsCalifornia’s constitution requires 40% of the state’s general fund to be spent on K-12 public schools. The state this year is expected to spend an estimated $21,129 per student. The budget includes a record $2.4 billion in increased spending for special education. The budget includes funds to allow up to 14 weeks of paid pregnancy leave for employees working in the state’s TK-12 and community college systems. Lawmakers and the governor agreed to spend $228 million this year and then $349 million every year after to provide 22,770 new childcare slots to low-income families. Commercial Driver’s License Info Sharing The spending plan also includes a change to state law that allows the state Department of Motor Vehicles to join the national verification system under the Trump administration. Lawmakers and the governor established safeguards to limit the information shared to the minimum necessary and include annual reporting to the Legislature. According to the Department of Finance the legislation also requires the development of a “monitoring plan” to detect, prevent, and respond to unauthorized use of the system informed by an advisory group; a compliance audit; and referral of suspected misuse to the Department of Justice.Major change to the Department of Education Through the budget process by fast-tracking a state bill, lawmakers and the governor have agreed to take the Department of Education away from the state’s independent, elected superintendent of public instruction and have it overseen by the governor’s office. Elections The budget includes $29 million for more staff, technology and equipment upgrades to help speed up ballot counting. Also, $5 million for counties to do voter outreach and education, plus $5 milion for voter outreach and education at the statewide level via Secretary of State The budget also includes $750,000 to support statewide efforts to “combat mis- and disinformation.” Transportation and the environment $135.5 million in the budget will provide zero-emissions vehicles incentives for cars and $135.5 million for heavy-duty vehicles, rules to be set by the California Air Resources Board. The budget also includes a state policy requiring the California High-Speed Rail’s independent Inspector General to publish investigations, with exceptions, and develop a framework on how to retain and protect work papers and communications. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel | Make KCRA a preferred news source in Google

SACRAMENTO, Calif. —

California lawmakers and the governor on Monday night approved the state’s $351.7 billion budget.

The massive budget is how state leaders plan to use taxpayer dollars for the financial year that begins July 1. California’s government spends most of its money on public education, followed by health and human services, then corrections and rehabilitation, the legislative, judicial and executive branches of government and natural resources.

Newsom’s administration has said the plan eliminates budget shortfalls this year and next. The state has been spending more money than it’s bringing in, creating a structural budget problem. State financial experts have said California is facing budget deficits of about $8 billion a year after Newsom leaves office.

The plan does set aside billions in rainy day funds, putting the state’s total reserves at $28.8 billion.

California’s budget process also allows state lawmakers and the governor to fast-track major law changes and new policies. Here’s a look at what’s included in this year’s plan.

New taxes

Californians will face two new taxes this year. The first will be a tax on health plans, which is expected to raise rates for those who have private health insurance. This will take effect in January.

Another is a new tax on purchases of digital software as a service, such as Outlook and QuickBooks. Business and tech groups have warned this will raise the cost of everyday goods and services in California. This takes effect in July.

Critics like State Sen. Roger Niello, R-Fair Oaks, say taken together, it could mean $14 billion in new taxes that will be passed onto working families.

The budget does not include any money toward the principal of the state’s unemployment insurance debt to the federal government for COVID-19 era benefits. California is the only state in the nation that has not paid off the loan. Employee payroll taxes for every business in the state will increase significantly in the upcoming year and years to come.

Healthcare

California’s Medi-Cal program, which provides health insurance to low-income people, is expected to cost $219.7 billion this year (about $46.9 billion of that from the state’s general fund).

Lawmakers and the governor agreed to continue providing health insurance to about 2 million low-income undocumented people, which will cost taxpayers about $12 billion this year. Starting July of 2027, people with “unsatisfactory immigration status” will need to pay up to $50 dollars a month to maintain their coverage.

Lawmakers have directed the next governor of California (whoever is elected in November) to come up with solutions to hold large corporations accountable for their workers who are on the state’s Medi-Cal program.

The budget includes $90 million in grants for distressed hospitals at risk of closure.

It also provides $40 million to abortion providers and $26 million for providers of gender affirming care.

Counties will also have access to $197 million in funds to hire eligibility workers to help with people who may lose safety net services as a result of the federal government’s cuts.

Homelessness and Housing

The budget provides $900 million for the state’s Homelessness Housing Assistance and Prevention program, which provides funds to large cities and counties.

Legal Services

The budget this year provides another $10 million to the California Department of Justice to continue court battles against President Donald Trump’s administration.

For immigration services, state lawmakers and the governor have agreed to add another $10.5 million to a grant program that provides legal services including deportation defense.

Public Safety

State lawmakers say the budget this year includes $375 million to help fund and implement Prop 36, a ballot measure voter overwhelmingly passed to ramp up the consequences for repeat thieves and drug dealers while also providing them the option of a “treatment mandated felony.” Critics say the funding is not enough.

The budget also includes $80 million for the state’s nonprofit security grant program.

To fight human trafficking, the budget includes $20 million total for prosecution grants and victim programs.

The budget also provides $141.9 million to support the latest version of the state’s NextGen 911 system. This comes with audit and oversight rules.

Childcare and public schools

California’s constitution requires 40% of the state’s general fund to be spent on K-12 public schools. The state this year is expected to spend an estimated $21,129 per student.

The budget includes a record $2.4 billion in increased spending for special education.

The budget includes funds to allow up to 14 weeks of paid pregnancy leave for employees working in the state’s TK-12 and community college systems.

Lawmakers and the governor agreed to spend $228 million this year and then $349 million every year after to provide 22,770 new childcare slots to low-income families.

Commercial Driver’s License Info Sharing

The spending plan also includes a change to state law that allows the state Department of Motor Vehicles to join the national verification system under the Trump administration.

Lawmakers and the governor established safeguards to limit the information shared to the minimum necessary and include annual reporting to the Legislature. According to the Department of Finance the legislation also requires the development of a “monitoring plan” to detect, prevent, and respond to unauthorized use of the system informed by an advisory group; a compliance audit; and referral of suspected misuse to the Department of Justice.

Major change to the Department of Education

Through the budget process by fast-tracking a state bill, lawmakers and the governor have agreed to take the Department of Education away from the state’s independent, elected superintendent of public instruction and have it overseen by the governor’s office.

Elections

The budget includes $29 million for more staff, technology and equipment upgrades to help speed up ballot counting.

Also, $5 million for counties to do voter outreach and education, plus $5 milion for voter outreach and education at the statewide level via Secretary of State

The budget also includes $750,000 to support statewide efforts to “combat mis- and disinformation.”

Transportation and the environment

$135.5 million in the budget will provide zero-emissions vehicles incentives for cars and $135.5 million for heavy-duty vehicles, rules to be set by the California Air Resources Board.

The budget also includes a state policy requiring the California High-Speed Rail’s independent Inspector General to publish investigations, with exceptions, and develop a framework on how to retain and protect work papers and communications.

See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel | Make KCRA a preferred news source in Google