CA budget woes are hitting hard

On Friday, Gov. Gavin Newsom delivered sobering news to lots of groups that rely on state funding, proposing billions in budget cuts to ongoing programs.

Later this week, more bad tidings are on the way: Dozens of bills with new spending will get killed in the Legislature’s “suspense file.” 

That process is scheduled to unfold after floor sessions on Thursday, with about 530 bills in the Assembly suspense file, and about 250 in the Senate’s. The new Assembly and Senate appropriations committee chairpersons both suggest fewer bills will get through because of the state’s financial woes. 

Typically in the first round of “suspense file,” when each legislative chamber is culling its own bills, the committees advance a higher proportion. Last May, the Senate approved 326 measures, or 78%, and the Assembly 535 measures, or 71%. 

Back to the revised budget proposed by Newsom — it will be sliced and diced by legislators before they pass their own version by June 15. This is followed by a 12-day stretch in which legislative leaders and the governor hammer out a final budget deal. The governor can then sign the budget, or veto some or all of it. (Though more budget-related bills are voted on throughout the summer).

As CalMatters Capitol reporter Alexei Koseff explains in his overview, Newsom projects a budget shortfall of about $56 billion over the next two fiscal years, which he plans to balance through $30 billion in ongoing and one-time spending cuts. He is also proposing to use $12.2 billion in rainy-day funds and $900 million from a safety net reserve across those two years.

Core programs and social services — such as income assistance for elderly and disabled residents, and health coverage to low-income undocumented immigrants — would remain mostly untouched. Newsom also assured that there will be “no new taxes.”

Some other notable highlights of the governor’s plan: 

• Homelessness: Newsom proposes wiping out a total of $325 million from the state’s Multifamily Housing Program, write CalMatters homelessness reporter Marisa Kendall and housing reporter Ben Christopher. He also wants to slash $152 million from a state program for first-time homebuyers and $260 million from the Homeless Housing, Assistance and Prevention program.

• Financial aid: As CalMatters community college reporter Adam Echelman explains, the governor has signaled that he proposes to not expand the state’s key financial aid program, Cal Grant, to more students. Newsom also proposes a $510 million cut to another financial aid program that serves more than 300,000 students.

• Prisons: Since the start of his administration, Newsom has moved to close four prisons — a shift he has said will save the state $3.4 billion by 2027. And while analysts say $1 billion more could be saved if as many as five more prisons closed, Newsom is opting to take smaller steps as part of his budget plan. Instead, he proposes the state’s corrections department to shutter 46 housing blocks inside 13 state prisons, which will save about $80 million, according to CalMatters criminal justice reporter Nigel Duara.

For the last couple of years, California’s Democratic leaders took steps to make the state a refuge for transgender Americans as they came under attack elsewhere.

Those moves apparently have public support. The latest signpost: Three proposed initiatives to limit transgender rights all failed to qualify for the November ballot, the Secretary of State announced Friday. Sponsored by Protect Kids California, they all didn’t collect the minimum 546,651 valid signatures required. 

One would have required schools to notify parents if their student identifies as transgender. The second would have banned female transgender students from girls’ athletic teams. And the third would have prohibited children from medically transitioning.

A fourth initiative from the same parents’ rights group is still alive, but faces an uphill battle after a judge sided last month with Attorney General Rob Bonta that “Restricts Rights of Transgender Youth” is a fair title. It has until May 28 to collect enough signatures.

That means six weeks before the June 27 target date to set the final lineup of ballot measures for Nov. 5, there are 11 that have qualified and 15 that didn’t qualify or have been withdrawn.

Several others are at various stages of the signature process, but some of those that have qualified could be taken off, including a tax limit measure before the state Supreme Court.

Also, there are three bond issues for climate infrastructure, low-income housing and school construction that Gov. Newsom and legislative leaders are discussing. Friday, the governor acknowledged that the close call for Proposition 1 — his March mental health initiative that barely passed with 50.2% of the vote — has “sobered” deliberations of voters’ appetite for more borrowing. 

When California adopted a “housing-first” model in 2016 to prioritize giving homeless people a place to live, the state didn’t require the residents to be sober. 

But with more than 180,000 unhoused residents in the state, that policy is under increasing scrutiny, writes CalMatters’ Marisa Kendall. Now, two bills would allow state money to go to housing providers that require sobriety.

Bills by Democratic Assemblymembers Matt Haney of San Francisco and Chris Ward of San Diego would allow up to 25% of state funds in each county to go toward sober housing. Haney’s proposal would also mandate counties to ensure that there are as many people housed in sober facilities as there were in facilities that didn’t require sobriety.

Both legislators say that everyone deserves housing, including those struggling with addictions. But residents who want to be sober should also be given more choices, they argue.

• Haney: “If people want to get off of drugs and away from drugs, we should give them that option. They shouldn’t be forced to live next to people who are using drugs.”

These policies may also have backing from the public: In San Francisco this year, voters passed a mandate to screen state welfare recipients for drugs.

But some homelessness advocates argue that legislators, who are under pressure to reduce the homelessness crisis, are scapegoating the state’s housing-first policy. They argue that immediate housing should come with low barriers because only after someone is housed can they then focus their energy on other issues, such as addiction.

For more on the issue, read Marisa’s story.

Los Angeles County declared “Jane Fonda Day” to honor the actress’ environmental activism. But three angry state lawmakers are pressuring local officials to take back the recognition. Find out why from CalMatters Digital Democracy reporter Ryan Sabalow.