What’s holding up a California budget for Newsom and lawmakers? Here’s what they’re negotiating
Lawmakers on Monday passed a series of budget bills that lay out a $262 billion framework for the state’s 2021-22 spending plan, but don’t represent a final deal with Gov. Gavin Newsom.
Legislative leaders and Newsom are expected to announce a so-called three-party agreement among Newsom, Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon in the coming days when they’ve reached a deal on key parts of the budget, even as negotiations on various details of the spending plan continue later into the year.
Here’s a look at some significant parts of the budget still to be finalized:
Child care
Legislative leaders say they’re still hammering out the details of the child care part of the budget, particularly related to payment rates for child care providers whom the state pays to provide child care for low-income families.
Legislative leaders have identified the child care negotiations as the main stumbling block to reaching the “three-party agreement” on the budget.
Late last week, a union representing providers announced it had struck a deal with the Newsom administration on a contract to increase pay. Lawmakers had sided with the providers in pushing for higher rates, so the contract agreement signaled resolution of a key sticking point in budget negotiations. But legislative leaders say they’re still working out details related to the rate increase and other aspects related to child care in the budget.
Public health
In a committee hearing Monday, lawmakers and Newsom administration representative Erika Li said they had agreed to add $300 million in public health spending starting in the 2022-23 budget year and committed to hashing out the details later.
Public health officials had pushed Newsom to include $200 million in ongoing funding starting in the 2021-22 budget year, while lawmakers proposed doubling that amount to $400 million. But that funding didn’t make it into the 2021-22 budget bill lawmakers passed Monday evening.
Wildfire prevention and drought
Lawmakers and Newsom say they’ve agreed in principle to spend $1 billion over several years on wildfire prevention, but haven’t settled all the details.
California faces another devastating wildfire season this year as temperatures rise and drought conditions intensify, drying out vegetation that fuels fires.
Summary documents created by the Legislature also identify about $3 billion in drought spending and $3.7 billion over three years in “climate resiliency” spending as areas where negotiations will continue.
Broadband and transportation infrastructure
Newsom and lawmakers have identified expanding access to broadband internet as a critical priority. The Legislature identified $6 billion in spending on broadband, but lawmakers and Newsom have not yet settled on an exact plan for how to divvy up the money.
The partial budget agreement lawmakers say they’ve already reached with Newsom includes $3 billion for transportation infrastructure projects that will require additional negotiation over the spending details. Funding for the state’s high-speed rail project is also still up in the air at this point in negotiations.
This story was originally published June 30, 2021 at 5:00 AM.