Local legislators weigh in on state budget as the clock ticks toward deadline.

How to balance the state budget in a deficit year? Depends on who you ask. 

The clock is ticking for the California Legislature to approve a budget bill for fiscal year 2025-26 by June 15, and the governor has until June 30 to sign it, before the new fiscal year begins on July 1. That means negotiations aren't over until they're over, but a legislative counter to the governor's latest proposal is out, and in committee hearings this week.

The plan relies on a $7.1 billion withdrawal from the state's rainy day fund (about 40 percent of the balance), leaving behind $11.2 billion in reserves, according to an Assembly summary. 

"I feel like the agreement threads the needle, with the caveat that we don't know what we're facing down with Trump," says Assemblymember Dawn Addis, D-Morro Bay, who chairs the Assembly Budget Subcommittee on Health. "We have tried to respond to the governor's proposal, which was really, truly, incredibly draconian. He was doing things such as proposing requiring pre-authoriziation for hospice services if you are on Medi-Cal."

Health care is a big area where the legislature pushed back on, among others. On matters of health, the legislative budget rejects the governor's cuts to in-home supportive supportive services for undocumented immigrants. It delays a freeze on new enrollment into the state's expanded Medi-Cal for undocumented immigrants from taking effect immediately to July 2027, and reduces monthly premiums for enrollees in that program from $100 to $30 (and to $0 for those ages 60 and older). 

Addis emphasizes that delays are important given the uncertain climate in Washington, D.C. and what federal cuts may or may not come to pass: "We don't want to cut things before they need to be cut." 

State Sen. John Laird, D-Santa Cruz, chairs the Senate Budget Subcommittee on Education in his chamber, and in an emailed statement similarly emphasizes the uncertainty looming. 

“The Legislature has taken a thoughtful and strategic approach to this budget to protect Californians from the reckless and inconsistent actions of the Trump administration,” he says. “This plan helps reverse harmful cuts that would have deeply impacted our most vulnerable residents, while still making the tough choices needed to keep our budget balanced."

In his education subcommittee role, he emphasizes restoration of education funding as compared to the governor's proposal, including rejecting Gov. Gavin Newsom's proposed 3-percent cuts to the CSU and UC systems. 

Laird also shouts out the inclusion of $15 million in the legislature's proposed budget to fund a new two-year cohort of early-career journalists in the California Local News Fellowship. (A disclosure: The Weekly newsroom currently hosts a fellow, Katie Rodriguez, through the state program.) 

The legislative proposal also includes funding for initiatives Assembly Speaker Robert Rivas, D-Hollister, has advocated for, including housing. Specifically is includes $500 million in state tax credits for affordable housing and a new round of $500 million in homelessness prevention and assistance funding.

In a joint statement issued by Rivas and Senate President Pro Team Mike McGuire, they said: “California’s workers and businesses power our nation-leading economy, and our legislative budget prepares the Golden State for deep uncertainty in the face of chaotic and vengeful attacks, and the cuts and tariffs pushed by Republicans and the Trump administration.  

“While we have made many tough but necessary decisions to achieve a balanced budget, we will never waver in our commitment to all Californians. This budget fights to protect health care access for millions of the most vulnerable families, speeds-up housing construction, and makes homes more affordable. It advances historic investments in Cal Fire to make our state more fire safe, and prioritizes our kids and public schools."