Golden State Today

Governor Gavin Newsom signed the 2024 state budget legislation today, aiming to stabilize state finances while preserving investments in key programs such as safety nets, education, homelessness, and mental health care reform.

The agreement announced by Governor Newsom and legislative leaders balances the budget for fiscal years 2024-25 and 2025-26. It maintains $22.2 billion in total reserves at the end of the 2024-25 fiscal year. The state has managed revenue volatility through several measures, including setting aside record reserves, focusing surplus on one-time spending, and addressing long-term debt.

“This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day,” said Governor Gavin Newsom. “Thanks to careful stewardship of the budget over the past few years, we’re able to meet this moment while protecting our progress on housing, homelessness, education, health care and other priorities that matter deeply to Californians. I thank the Legislature for their partnership in delivering this sound and balanced plan.”

The budget addresses a $46.8 billion shortfall with a balanced package of solutions, including $16 billion in spending reductions. It avoids deep program cuts and maintains service levels for priority issues such as Proposition 98 funding for education and investments in Medi-Cal expansion, encampment resolution grants, nonprofit security grants, summer food assistance, updated foster care rates among others.

California remains the fifth-largest economy globally. For the first time in years, its population is increasing and tourism spending recently hit a record high. California leads the nation in new business starts, access to venture capital funding, manufacturing, high-tech industries, and agriculture.

Governor Newsom also announced signing several bills:

AB 160 by the Committee on Budget – Medi-Cal managed care organization provider tax.

AB 2927 by Assemblymember Kevin McCarty (D-Sacramento) – Pupil instruction: high school graduation requirements: personal finance.

SB 108 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2024.

SB 109 by Senator Scott Wiener (D-San Francisco) – Budget Act of 2023.

SB 153 by the Committee on Budget and Fiscal Review – Education finance: education omnibus budget trailer bill.

SB 159 by the Committee on Budget and Fiscal Review – Health.

SB 164 by the Committee on Budget and Fiscal Review – State government.

SB 175 by the Committee on Budget and Fiscal Review – Taxation.

SB 1524 by Senator Bill Dodd (D-Napa) – Consumers Legal Remedies Act: advertisements: restaurant, bar, and other food services.

For full text of today’s bills visit: http://leginfo.legislature.ca.gov