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California leaders approve budget to close $12bn deficit in blow to progressive causes
California leaders approve budget to close $12bn deficit in blow to progressive causes

The Guardian

timean hour ago

  • Business
  • The Guardian

California leaders approve budget to close $12bn deficit in blow to progressive causes

California lawmakers on Friday approved a budget that pares back a number of progressive priorities, including a landmark healthcare expansion for low-income adult immigrants without legal status, to close a $12bn deficit. It is the third year in a row the nation's most populous state has been forced to slash funding or stop some of the programs championed by Democratic leaders. This year's $321bn spending plan was negotiated by legislative leaders and the Democratic governor, Gavin Newsom. Newsom is expected to sign the budget. But it will be void if lawmakers don't send him legislation to make it easier to build housing by Monday. The budget avoids some of the most devastating cuts to essential safety net programs, state leaders said. They mostly relied on using state savings, borrowing from special funds and delaying payments to plug the budget hole. California also faces potential federal cuts to healthcare programs and broad economic uncertainty that could force even deeper cuts. Newsom in May estimated that federal policies – including on tariffs and immigration enforcement – could reduce state tax revenue by $16bn. 'We've had to make some tough decisions,' Mike McGuire, the senate president pro tempore, said on Friday. 'I know we're not going to please everyone, but we're doing this without any new taxes on everyday Californians.' Republican lawmakers said they were left out of budget negotiations. They also criticized Democrats for not doing enough to address future deficits, which could range between $17bn to $24bn annually. 'We're increasing borrowing, we're taking away from the rainy day fund, and we're not reducing our spending,' said Tony Strickland, a Republican state senator, before the vote. 'And this budget also does nothing about affordability in California.' Here's a look at spending in key areas: Under the budget deal, California will stop enrolling new adult patients without legal status in its state-funded healthcare program for low-income people starting in 2026. The state will also implement a $30 monthly premium in July 2027 for immigrants remaining on the program, including some with legal status. The premiums would apply to adults under 60 years old. The changes to the program, known as Medi-Cal, are a scaled-back version of Newsom's proposal in May. Still, it is a major blow to an ambitious program started last year to help the state inch closer to a goal of universal healthcare. A Democratic state senator, María Elena Durazo, broke with her party and voted 'no' on the healthcare changes, calling them a betrayal of immigrant communities. The deal also removes $78m in funding for mental health phone lines, including a program that served 100,000 people annually. It will eliminate funding that helps pay for dental services for low-income people in 2026 and delay implementation of legislation requiring health insurance to cover fertility services by six months to 2026. But lawmakers also successfully pushed back on several proposed cuts from Newsom that they called 'draconian'. The deal secures funding for a program providing in-home domestic and personal care services for some low-income residents and Californians with disabilities. It also avoids cuts to Planned Parenthood. Lawmakers agreed to let the state tap $1bn from its cap-and-trade program to fund state firefighting efforts. The cap-and-trade program is a market-based system aimed at reducing carbon emissions. Companies have to buy credits to pollute, and that money goes into a fund lawmakers are supposed to tap for climate-related spending. Newsom wanted to reauthorize the program through 2045, with a guarantee that $1bn would annually go to the state's long-delayed high-speed rail project. The budget does not make that commitment, as lawmakers wanted to hash out spending plans outside of the budget process. The rail project currently receives 25% of the cap-and-trade proceeds, which is roughly $1bn annually depending on the year. Legislative leaders also approved funding to help transition part-time firefighters into full-time positions. Many state firefighters only work nine months each year, which lawmakers said harms the state's ability to prevent and fight wildfires. The deal includes $10m to increase the daily wage for incarcerated firefighters, who earn $5.80 to $10.24 a day currently. The budget agreement will provide $80m to help implement a tough-on-crime initiative voters overwhelmingly approved last year. The measure makes shoplifting a felony for repeat offenders, increases penalties for some drug charges and gives judges the authority to order people with multiple drug charges into treatment. Most of the fund, $50m, will help counties build more behavioral health beds. Probation officers will get $15m for pre-trial services and courts will receive $20m to support increased caseloads. Advocates of the measure – including sheriffs, district attorneys and probation officers – said that was not enough money. Some have estimated it would take about $400m for the first year of the program. Newsom and lawmakers agreed to raise the state's film tax credit from $330m to $750m annually to boost Hollywood. The program, a priority for Newsom, will start this year and expire in 2030. The budget provides $10m to help support immigration legal services, including deportation defense. But cities and counties will not see new funding to help them address homelessness next year, which local leaders said could lead to the loss of thousands of shelter beds. The budget also does not act on Newsom's proposal to streamline a project to create a vast underground tunnel to reroute a big part of the state's water supply.

Asking Eric: Longtime friends ignore friend's daughter's wedding
Asking Eric: Longtime friends ignore friend's daughter's wedding

Washington Post

time4 hours ago

  • General
  • Washington Post

Asking Eric: Longtime friends ignore friend's daughter's wedding

Dear Eric: My daughter got married a year ago and decided to have a wedding with immediate family members only due to the huge family on the groom's side (the wedding was still about 100 people). It was planned on the West Coast (we are on the East Coast). Some of my friends sent them a gift, knowing why they were not invited but three of my close friends didn't send anything (even a card would have been thoughtful). I've sent their kids very generous gifts.

Newsom Signs Budget That Relies on Health Care Cuts for Undocumented Immigrants
Newsom Signs Budget That Relies on Health Care Cuts for Undocumented Immigrants

New York Times

time4 hours ago

  • Health
  • New York Times

Newsom Signs Budget That Relies on Health Care Cuts for Undocumented Immigrants

Gov. Gavin Newsom signed a California budget on Friday that relied on scaling back health care for undocumented immigrants, even as he and other California Democrats in recent weeks have condemned the Trump administration for cracking down on immigrant workers. In signing the budget, Mr. Newsom backtracked on his earlier pledge to insure all low-income residents, regardless of their immigration status. But it came as the state faced a $12 billion deficit, driven in part by a large cost overrun in the state's insurance plan for undocumented immigrants, and it would have been politically difficult to cut programs for citizens without reducing benefits for undocumented immigrants. When Mr. Newsom initially proposed the cuts in May, it was seen as a centrist pivot for a governor who is a potential presidential candidate in 2028. But after President Trump sent National Guard troops to Los Angeles nearly three weeks ago to thwart protesters, Mr. Newsom returned to his role as a liberal antagonist of the Republican administration and accused Mr. Trump of endangering American democracy. The California budget for the fiscal year that starts Tuesday relies on prohibiting new enrollment of undocumented immigrants in the state's Medicaid program, known as Medi-Cal, starting in January. Adults between the ages of 19 and 59 who were already enrolled will have to pay a new $30 monthly premium beginning in 2027. And the state will eliminate dental care in July 2026 for undocumented adults and other noncitizens. Medi-Cal serves roughly 15 million people, including 1.6 million undocumented immigrants. Because the federal government does not pay for most health care for undocumented immigrants, it costs California more to insure noncitizens than it does to cover citizens. Democrats have argued that the state has a moral responsibility to provide health care to its immigrant work force, and they have said that preventative treatment can avert more costly emergency care down the road. Democrats who control the State Capitol cast their decisions on Friday as a necessary move to help close the budget deficit and said it was not an ideological shift away from supporting immigrants. Some choked back tears in emotional floor speeches about their undocumented family members as they voted for cuts to Medi-Cal. Want all of The Times? Subscribe.

AFL live updates: Gold Coast vs Melbourne, Hawthorn vs North Melbourne, Collingwood vs West Coast blog, scores and highlights
AFL live updates: Gold Coast vs Melbourne, Hawthorn vs North Melbourne, Collingwood vs West Coast blog, scores and highlights

ABC News

time5 hours ago

  • Sport
  • ABC News

AFL live updates: Gold Coast vs Melbourne, Hawthorn vs North Melbourne, Collingwood vs West Coast blog, scores and highlights

Gold Coast is eyeing a return to the top eight as it faces off against Melbourne, before Hawthorn and North Melbourne clash in Tasmania. Tonight, ladder-leading Collingwood takes on bottom-placed West Coast at Docklands. Follow the live blog below, keep up to date with all the latest stats in our ScoreCentre, and tune in to our live radio coverage.

California energy regulator recommends pause on plan to penalize excess oil profits
California energy regulator recommends pause on plan to penalize excess oil profits

The Independent

time7 hours ago

  • Business
  • The Independent

California energy regulator recommends pause on plan to penalize excess oil profits

California should pause Gov. Gavin Newsom 's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___

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