California Democrats in the legislature are pushing forward with their own budget cuts, rejecting proposals from Governor Gavin Newsom and continuing negotiations. The deadline to pass a balanced budget is Saturday, to avoid a shutdown and still receive pay. Both the state Assembly and Senate passed a budget in favor of Newsom’s proposal, with proposed cuts to meet the deadline.
The legislative Democrats’ budget cuts include slashing $1 billion from the state’s prison budget, canceling a $400 million loan to an energy company to help the Diablo Canyon nuclear power plant, and starting a Newsom proposal to prevent some businesses from deducting losses from state income tax a year earlier than the governor had proposed.
The state Assembly passed the proposed budget 59-14, while the state Senate passed it 29-8, with opposition from Republicans. The Democratic supermajorities in both chambers give them significant power over the budget process.
“There’s a shared set of priorities,” said Democratic Assemblyman Jesse Gabriel, according to Cal Matters. “It’s more about what are the most effective solutions, what are the programs and services that we think are the best way to go forward versus others.”
Newsom’s original plan included other tactics to balance the budget, such as delaying an increase in the minimum wage for healthcare workers to $25 per hour over following years, which is scheduled to begin next month, and some cuts to state assistance plans. The state’s fiscal year begins July 1, as lawmakers and the governor seek to work out the final details of the state’s budget for the new year.
