California Legislature gets the budget done

Five days before the new fiscal year begins, California lawmakers voted Wednesday night to approve the budget deal announced by the Legislature’s Democratic leaders and Gov. Gavin Newsom.

The outcome was never in doubt since the agreement was unveiled Saturday: Democrats control both the Assembly and Senate and don’t need any Republican votes to pass budgets. 

But that didn’t stop some Republicans from taking the opportunity to complain about the closed-door decision-making on how the state will spend nearly $300 billion over the next year. 

• Roseville Sen. Roger Niello, budget committee vice chairperson: “This is the majority’s party budget. … (It) ignores the priorities of 8 million residents of this state because none of my Republican colleagues were involved.”

In his criticisms, Republican Sen. Brian Dahle of Redding focused on the struggles of small businesses, arguing that increasing costs and regulations will negatively impact subsequent generations.

Democrats, including Senate leader Mike McGuire of Santa Rosa, defended the budget process and the deal, saying the Legislature held more than a hundred public hearings.

• McGuire: “No matter if you’re a Democrat or a Republican or no party preference, you’re going to benefit from this budget because it puts people first. … This budget is responsible and it’s deserving of our support.”

The budget covers a $56 billion shortfall over the next two years by cutting some programs, delaying others and dipping into reserves. To take money from the state’s rainy day fund, Newsom on Wednesday issued the official proclamation declaring a budget emergency. The budget bills now go to the governor for his signature.

In other legislative happenings: 

• Jobless benefits: The Assembly insurance committee on Wednesday blocked a bill to provide unemployment aid to workers on strike — a top priority for labor and strongly opposed by business. Several committee members criticized the California Labor Federation’s support for academic workers who went on strike to protest the University of California’s response to pro-Palestinian demonstrations. But Lorena Gonzalez, the federation’s leader, said in a statement that “the failure to pass this bill only punishes grocery workers, janitors, hotel housekeepers and other workers on strike demanding a better life for themselves and their families.” The bill narrowly passed the Senate last month; a similar proposal was vetoed last year by Gov. Newsom.

• Doxxing: Although sharing another person’s private information online with the intent to harm is already illegal, the Legislature is considering a bill to enable victims of “doxxing” to sue in civil court for as much as $30,000, writes CalMatters politics intern Jenna Peterson. LGBTQ+ advocacy groups are backing the measure, as 45% of transgender respondents in a 2024 Anti-Defamation League report said they experienced severe online harassment, including doxxing. The Senate appropriations committee is scheduled to consider the measure Monday. Read more about the bill in Jenna’s story.

• Youth treatment facilities: The Assembly’s human services committee advanced a bill Wednesday to bring greater transparency to the treatment of young adults living in state-run facilities, specifically expanding reporting requirements over the facilities’ use of restraints and “seclusion rooms.” Media personality Paris Hilton is a proponent of the bill, saying it will help ensure no children “endures the trauma of being restrained or secluded without proper oversight and public awareness.”

• Facial recognition: A bill is advancing to ban facial recognition as the only reason for arrests or searches by police. But some advocates and wrongly arrested Black men say it doesn’t go far enough. CalMatters tech reporter Khari Johnson and producer Robert Meeks have a video version of the story. Watch it here. The segment is part of SoCalMatters, which airs at 5:58 p.m. weekdays on PBS SoCal and is available on YouTube.

A bill to automatically register eligible Californians to vote at the Department of Motor Vehicles when they apply for a driver’s license or ID advanced out of the Assembly elections committee Wednesday — but with notable changes, writes CalMatters Capitol reporter Sameea Kamal.

The measure originally sought to register people if they indicate they’re eligible to vote and notify them afterward. But civil rights groups argued that the bill, if passed, would put noncitizens at risk for committing a crime if they’re mistakenly registered as voters, received ballots and voted. 

In response to these criticisms, the bill would instead just allow the Secretary of State to create a list of people who are “preapproved” for registration. It remains unclear what would prompt the people on this list to then be registered as voters. Some opponents of the bill also argue that these changes did not resolve their concerns.

Read the latest in Sameea’s update.

Pay to play: A bill that would water down a 2022 law aimed to curb “pay to play” in local politics is headed to the Assembly floor, also after several amendments in the Assembly election committee on Wednesday, explains CalMatters politics reporter Yue Stella Yu.

The measure would allow local officials to accept more campaign contributions than currently allowed from developers and contractors whose business is pending before them. The bill would quadruple the limit from $250 to $1,000 and exempt unions, chambers of commerce and the developers whose contracts are up for renewal from the limit. 

The bill is backed by unions, several counties and business trade associations, including many that challenged the 2022 law in court but failed. Supporters argue the state law is hard to enforce and encourages donors to funnel money to desired candidates in less transparent ways. But transparency watchdog groups argue the bill would boost corruption and weaken public trust in the government.

Another bill by Sen. Steve Glazer, an Orinda Democrat who wrote the 2022 law, would keep the $250 limit and apply that limit to the total amount each donor and their associates give to local officials, instead of allowing them to each give the maximum amount, which Dodd’s bill would do.

A measure to borrow $20 billion to expand affordable housing is expected to appear on the November ballot for nine Bay Area counties. But whether the largest housing bond in California history passes may depend on another ballot measure, explains CalMatters housing reporter Ben Christopher.

On Wednesday, the Bay Area Housing Finance Authority approved putting the $20 billion bond before voters. The money would go towards constructing new subsidized housing projects, housing-related infrastructure and buying up existing units to either make or keep them affordable. If voters approve, paying off the bond is estimated at nearly $50 billion, which is expected to be paid through higher property taxes.

Recent polling by the housing agency found that 54% of likely voters support the bond — below the two-thirds majority needed to pass for most local bonds. But a proposed state constitutional amendment to lower the voting threshold for local housing and infrastructure borrowing to 55% is also headed for the November ballot. If that amendment is approved, it would apply to the Bay Area bond.

A statewide housing bond, however, doesn’t appear likely. Instead, lawmakers are still considering bond issues for school construction and climate change programs and have given themselves until July 3 to decide. 

Learn more about the Bay Area housing bond in Ben’s story.

A federal program that helps fund rural schools is about to expire unless Congress acts by Sept. 30. Find out why the money is an “absolute lifeline” for some California schools from CalMatters K-12 education reporter Carolyn Jones.