{"id":510,"date":"2026-06-15T12:30:16","date_gmt":"2026-06-15T12:30:16","guid":{"rendered":"https:\/\/californiamovingreport.com\/index.php\/2026\/06\/15\/california-democrats-have-a-budget-deal-heres-where-they-want-to-spend-more-than-newsom\/"},"modified":"2026-06-15T12:30:16","modified_gmt":"2026-06-15T12:30:16","slug":"california-democrats-have-a-budget-deal-heres-where-they-want-to-spend-more-than-newsom","status":"publish","type":"post","link":"https:\/\/californiamovingreport.com\/index.php\/2026\/06\/15\/california-democrats-have-a-budget-deal-heres-where-they-want-to-spend-more-than-newsom\/","title":{"rendered":"California Democrats have a budget deal. Here\u2019s where they want to spend more than Newsom"},"content":{"rendered":"
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California lawmakers are expected to adopt a $356 billion state budget today that would largely avoid or delay billions of dollars in social service cuts Gov. Gavin Newsom proposed last month.<\/p>\n

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Then, the (real) budget negotiations can begin.<\/p>\n

Today\u2019s vote is only a formality, because lawmakers are constitutionally required to pass a balanced budget by June 15 each year to continue collecting their pay. They have until the end of the month to strike a deal with Newsom before the new fiscal year starts July 1.\u00a0\u00a0<\/p>\n

In the next two weeks, legislators will have to settle their differences with Newsom on health care cuts, funding for schools and homelessness and more.\u00a0<\/p>\n

Here are five takeaways from the Legislature\u2019s spending plan:<\/p>\n

Punt and soften healthcare cuts<\/h2>\n

Faced with federal funding cuts under the tax and spending law President Donald Trump signed last year, Newsom proposed several measures to limit healthcare coverage for undocumented immigrants as well as refugees, asylees and human trafficking survivors.<\/p>\n

Top legislative Democrats want to delay those cuts by a year while looking for alternatives to soften the impact.<\/p>\n

Newsom also wants to raise the monthly Medi-Cal premium undocumented immigrants pay from $30 to $50. But lawmakers prefer waiting him out, proposing to leave the decision to the next governor.<\/p>\n

\u201cI don\u2019t think it\u2019s about Gavin Newsom,\u201d said Sen. John Laird, a Santa Cruz Democrat who chairs the budget committee. \u201cIt\u2019s really about trying to stretch as far as we can in the hope that we don\u2019t have to make those cuts.\u201d<\/p>\n

The Legislature rebuked Newsom\u2019s proposal to reinstate stringent Medi-Cal asset tests for seniors and adults with disabilities by July, instead pitching a less restrictive limit to take effect in fiscal year 2027-28. With bipartisan support, the lawmakers also rejected Newsom\u2019s proposed cuts to the In-Home Supportive Services program.<\/p>\n

They did, however, agree to Newsom\u2019s plan to spend $300 million to subsidize private healthcare for low-income Californians.<\/p>\n

Restoring some child care, TK-12 money<\/h2>\n

Democratic lawmakers want to add 22,000 state-funded child care slots over the next few years. They also rejected Newsom\u2019s proposed reduction of 6,800 state-supported spaces due to declining federal and state funding.\u00a0<\/p>\n

The new slots would prioritize children ages 3 and under. Advocates who applauded the proposal say it would address a gap left unfilled by Newsom\u2019s transitional kindergarten expansion to reach 4-year-olds.\u00a0<\/p>\n

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Banking on a rosier revenue forecast, state lawmakers proposed $2.7 billion more in funding for TK-12 schools and community colleges than Newsom did in May.<\/p>\n

Schools and educators were hoping for more. They wanted the Legislature to reject Newsom\u2019s proposal to withhold $3.9 billion in constitutionally guaranteed school money \u2014 an accounting mechanism to prevent overpaying schools in case the projected revenue doesn\u2019t materialize.<\/p>\n

\u201cWe demand that the Legislature and the governor follow the law, stop with the gimmicks and the shell games, and fully fund our schools,\u201d said David Goldberg, president of the California Teachers Association. \u201cOur union is prepared to do whatever it takes to hold them accountable if they don\u2019t. Our students deserve no less.\u201d<\/p>\n

More generous with counties<\/h2>\n

The Legislature\u2019s spending plan would give counties more money to step up eligibility checks for Californians applying for food stamps and health care benefits, reviews that are now required under Trump\u2019s spending bill.\u00a0<\/p>\n

It would also allocate $125 million to help counties reestablish indigent care \u2014 a program serving low-income Californians that largely went away under Obamacare.<\/p>\n

State lawmakers also want to set aside $900 million for the state\u2019s homelessness fund, whereas Newsom included just $500 million in his proposal.<\/p>\n

More revenue, please<\/h2>\n

Newsom proposed three new tax measures and lawmakers are on board with them:<\/p>\n