California was nearly $2 billion over forecast in corporate tax receipts this summer, including by $844 million in July. A tax change meant to help the budget deficit helped drive the surge.
Legislators blocked more than 270 bills, partly due to the budget crunch, in the second round of suspense file hearings this year. The 500 bills that survived must still win final approval by Aug. 31 to reach Gov. Gavin Newsom's desk.
Gov. Newsom and legislative leaders announce an agreement to bridge the state budget deficit by dipping into reserves and reducing some spending. The deal also calls for a bill in August to set aside more money and a 2026 constitutional amendment to grow the state’s rainy day fund.
The Legislature passes a placeholder state budget, but must still negotiate with Gov. Newsom on the final deal. How the state spends taxpayer money is largely being decided out of public view.
First-termers made the state Legislature the most diverse ever and racked up some policy wins for their constituents. But they also ran into a bill and budget process that wasn’t always transparent.
Unemployment is inching up, tech layoffs continue and IPOs are waning. Experts expect a downturn, but it’s still possible the state will avoid a recession.
Assembly Speaker Robert Rivas, a Hollister Democrat, says that when it became clear that tax revenues would be substantially below estimates, the Legislature should commit to a budget that protects classroom funding.
In his recent debate with Florida Gov. Ron DeSantis, Gov. Gavin Newsom declared that the state’s economy is “booming,” but a new report shows that it is actually slowing down.
The city’s shifting demographics, a continuing affordable housing shortage, endemic homelessness, a looming budget deficit and the reality of five council elections – plus another mayoral ballot – in just two years create additional uncertainties.
After years of record California budget surpluses, Gov. Newsom outlined a plan to deal with a deficit he projects at $22.5 billion and said he can keep his big promises despite the shortfalls.
The California Legislature reconvenes with record diversity, but with several key questions and many significant challenges. A soaring homeless population. A bitter battle with the oil industry over gasoline prices.
