What to Know – Orange County Register


The California legislature formally sent a $300 billion budget proposal to Governor Gavin Newsom this week — but the job is far from done.

“The budget passed by the Legislative Assembly today is the result of months of often strenuous work and negotiation by our budget committees, subcommittees and staff and includes elements of the Governor’s Budget Proposals from January and May.” , pro Tempore Senate Speaker Toni Atkins, D-San Diego and Assembly Speaker Anthony Rendon, D-Lakewood, said in a joint statement Monday.

The legislature faced an impending deadline of June 15 to pass the budget.

From housing to gas relief to further negotiations, here’s a look at five things to know about the legislative proposal.

gas discharge

The Legislature’s proposal includes $8 billion for what it calls a “Better For Families (BFF) Rebates” program to offset skyrocketing gas costs. The refund would provide $200 per taxpayer and dependent for those with incomes below $125,000 or $250,000 for joint filers.

A family of four in this income category, for example, would receive $800.

Newsom’s plan, however, would provide a one-time $400 reimbursement to each eligible owner of a registered vehicle with a cap of $800 per person.


More than $40 billion is earmarked for infrastructure needs, including housing, in the legislature’s proposal.

The Legislature wants to establish a new $1 billion annual program, called California Dream For All, to help first-time home buyers buy a home with lower down payments and monthly mortgage costs.

The Legislature’s budget funds many of the Newsom administration’s housing proposals, including $150 million over two years for the preservation of existing affordable housing.

Additionally, it is investing $2 billion over three years for student housing projects across the University of California, California State University and California Community College systems.


The governor had proposed spending $22.5 billion over five years on investments in education, energy, drought, health, transportation and more. His project specifically detailed how and where the money should be spent.

The legislature also said about $21 billion should be spent on climate and energy initiatives. However, the details of how the money will be allocated are yet to be determined, according to the budget summary.


Although the legislature has sent its budget to the governor, negotiations are underway with a final budget package not expected until the end of the month.

And even then, don’t expect all the details of larger packages, such as the $21 billion climate and energy plan, to be worked out before the start of California’s new fiscal year on July 1, according to a Legislative Budget staffer. These small details will probably still be worked on until July or even August.

Anthony York, Newsom’s senior communications adviser, said the legislature’s initial package was “an important step forward” but “there is still work to be done”.

“Governor Newsom would like to see more immediate and direct relief to help millions more families with rising gas, grocery and rent prices,” York said in a statement. “The governor’s plan includes an additional $3.5 billion beyond what legislative leaders have proposed to help millions more people with day-to-day expenses.”

“And given the financial storm clouds on the horizon, a final budget must be fiscally responsible. The governor remains opposed to the massive spending underway and wants a budget that pays more of the government’s long-term debts. state and pump more money into state reserves,” York said.

The Governor’s May budget package allocated 94% of discretionary funds to one-time projects. Meanwhile, the legislature’s proposal said about 91% of discretionary resources were earmarked for temporary purposes or reserves.

Newsom has 12 working days to sign or veto the budget bill once it is on his desk. The legislator can override a veto with a two-thirds vote in each chamber.

Republican Opposition

Predictably, legislative Republicans expressed apprehension with the fiscal framework.

Assembly Budget Committee Deputy Chairman Vince Fong of R-Kern County said the package did not adequately address drought, inflation or wildfires, for example. Fong called for more transparency as budget talks continue.

“This budget is incomplete and unsustainable. It’s kabuki political theater to meet a constitutional deadline, and Californians should be rightly frustrated,” Fong said. “It’s a framework that doesn’t deal with urgent crises of the state.”

And Senate Republican Leader Scott Wilk, R-Santa Clarita, continued to push the GOP calls for gas tax suspension.

“With a surplus of nearly $100 billion, rising gas prices and soaring inflation, the best relief offered by legislative Democrats is a $200 refund that will reach you months longer. late. It’s $16.66 a month, which, for the record, won’t even cover your gas taxes paid this year,” Wilk said. “The White House is seriously considering a federal gasoline tax exemption. We all know the quickest way to help Californians is to suspend the gas tax, but instead we’re stuck with months-long supermajority bickering and broken promises.


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