Capitol Alert

As Newsom prepares to unveil his budget, activists want one thing, Republicans another

California news

Good morning and welcome to the A.M. Alert!

AHEAD OF NEWSOM’S BUDGET PROPOSAL, PROTESTERS STAGE A TUG-OF-WAR

California Gov. Gavin Newsom unveils his 2023-24 budget today, a blueprint that is expected to address a widely anticipated shortfall of as much as $24 billion.

The governor faces the unenviable task of determining where to cut and how deeply to draw down “rainy day” savings to make everything pencil out this summer.

As Newsom grapples with the budget, protesters gathered Monday in Sacramento, Los Angeles and San Diego to wage a literal tug-of-war to get the governor’s attention.

The street theater, sponsored by labor-backed California Common Good, was intended to symbolize the back-and-forth tussle between billionaires and corporations on one side and communities on the other.

The group called on Newsom and the Legislature to pursue progressive revenue solutions, not cuts to essential services.

“Instead of debating when to tap into reserves or which expenditures to cut, these labor and community groups call on the state to compel the ultra-wealthy to pay what they owe in order to fully fund public education, meet the housing needs of Californians, and strengthen other vital services,” it said in a statement.

SENATE REPUBLICANS OFFER A BUDGET ALTERNATIVE

In other budget news, the Senate Republican Caucus Monday released a letter urging Newsom and his Democratic allies in the Legislature to exercise caution as they navigate a shortfall of billions.

“Now, after three years of surpluses, California’s budget appears to be taking an unfortunate turn to deficits. While California’s budget surplus has disappeared, the problems facing Californians have not,” said the letter, from Senate Republican Leader Brian Jones and signed by the entire caucus.

The letter warned that projected deficits could grow even worse, “by potentially tens of billions of dollars,” in the event of a recession later this year. The GOP lawmakers urged Newsom to spend “smarter” instead of more.

“We believe that the current budget outlook provides an opportunity to evaluate whether those spending increases have actually achieved results in the effort to combat California’s major challenges, or should instead be redirected or adjusted,” the letter said.

If the Senate GOP had its way, the budget priorities for this year would be to lower the cost of transportation, reduce costs for renters, curb wildfires, provide water to families and farms, avoid cuts to education, fight crime, empower job creators and improve the effectiveness of mental health and homelessness spending.

“In summary, far too many hardworking Californians continue to struggle to pay for rent, food, and other bills. They worry about practical needs like water and safe communities. As we move forward, the state budget should focus on fixing these basic issues,” the letter concludes.

QUOTE OF THE DAY

“Katie Porter and Adam Schiff as future CA Senators is like catnip for white progressives. It’s one of the most diverse states in America. Think bigger.”

- Mike Madrid, California GOP consultant, via Twitter.

Best of The Bee:

  • Assembly Speaker Anthony Rendon is finally facing his lame duck era, via Mathew Miranda and Lindsey Holden.

  • President Joe Biden Monday issued an emergency declaration for California to help people and local officials coping with the storms that have battered the state, an action that will speed federal help, via David Lightman and Maggie Angst.

  • During his first term as California governor, Gavin Newsom’s January budget briefings would run two-to-three hours, much of the time devoted to exulting in the state’s strong economic position and touting his plans to pour new money into ambitious policies. But when he unveils his proposal Tuesday for the 2023-24 fiscal year, it will likely be marked by a shift in tone, if not length, via Maggie Angst and Lindsey Holden.

  • Unions representing most of California’s state employees will negotiate new contracts this year, and early signs suggest the deals could be lean ones. Both ends of the bargaining table face formidable obstacles, via Maya Miller.

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