Legislature Passes Budget, But Negotiations With Governor Continue

The California Legislature passed its version of a state budget Monday, but that doesn’t mean the spending discussion is over.

State lawmakers met their constitutionally-required responsibility of passing a balanced budget by June 15. Failure to do so would have resulted in lawmakers losing their pay.

But Senate leader Toni Atkins, D-San Diego, acknowledged the Legislature is still negotiating with Gov. Gavin Newsom over exactly how to close a projected $54 billion deficit brought on by the COVID-19 pandemic.

“Just as we didn’t agree with every detail of the governor’s proposal, he has not yet agreed to every detail of the budget the Legislature is passing today,” Atkins said.

Newsom’s proposal includes $14 billion in so-called trigger cuts that would take effect next month unless the state gets more money from the federal government. The Legislature would give national lawmakers more time, delaying trigger cuts until October. It also rejects Newsom’s proposed cuts to education and health programs.

This year’s budget process was complicated by a delayed tax filing deadline. The state won’t know exactly how much money it has to work with until July 15.

At a press conference Monday, Newsom said he and his staff are in the throes of negotiations with the Legislature.

“I’m not going to say anything publicly that puts any of those conversations at risk,” Newsom said. “Except to say, deep respect, deep admiration for the task at hand. Deep realization of the pressures that the Legislature is under and all of us are under, to meet the needs at a time when people demand more, not less, of their government.”

Many Republicans were not enthusiastic about the budget. Assemblyman Jay Obernolte, R-Big Bear Lake, said Democrats are using gimmicks to make the budget appear balanced.

“We have not cut government spending  hardly at all,” Obernolte said. “Of that $54 billion in deficit — even in the worst-case scenario, when we get no money from the federal government — we’re cutting state spending in this budget by less than $8 billion.”

Atkins said she hopes to have a final agreement with the governor by July 1, the start of the new fiscal year.