SACRAMENTO >> California lawmakers on Thursday approved a $125 billion budget that gives more money to schools, expands a tax credit for low-wage workers and imposes historically tight oversight on the University of California’s central administration.
Top lawmakers and Gov. Jerry Brown reached an agreement early in the week, with details announced Tuesday. Brown called the agreement “balanced and progressive,” while Senate Leader Kevin de León framed it as an example of California’s leaders protecting its residents from the Trump administration.
“This state budget will keep California strong, protect our fiscal stability and empower our communities at a time when Washington is determined to undermine them,” de León wrote.
The budget deal also resolves a long-simmering dispute over how to spend the more than $1 billion in tobacco tax revenue the state expects to collect each year. Brown had proposed using the money to cover increased expenses in the Medi-Cal program, while doctors and other providers said the money would go to improve access to health services by increasing rates for providers who treat Medi-Cal patients.
“Today we sent a State Budget to the Governor that will benefit local students with the largest boost in education funding in California history, we’re investing in medical and dental services that will expand programs for the most vulnerable, nearly $3 billion for our crumbling roads will be put to work and our rainy day fund remains strong at $8.5 billion,” Senator Mike McGuire said.
The budget provides the largest increases in public education funding in California history. School funding has increased $4,500 per student, over the last six years. Schools will now receive $11,058 per student which is the highest the figure has been in California history.
In addition, it directs $2.8 billion to fix our state’s crumbling highways and local streets and roads.
McGuire applauded the expansion of the Earned Income Tax Credit, which he said will benefit tens of thousands of low income workers across the North Coast and throughout California. In addition, he praised the over $460 million for physician and dental rate increases. These increases will expand Medi-Cal for the state’s most vulnerable residents.
Other provisions in the budget include:
$50 million will be included for family planning services, which will be met with a 9-1 federal match, which will benefit programs such as Planned Parenthood.
Keeping the state’s Rainy Day Fund whole at $8.5 billion. The rainy day fund is anticipated to increase to $12 billion by 2021.
The California Senior Legislature is receiving $375,000 from the General Fund to bridge their funding gap until new legislation goes into effect for its long-term funding sustainability, allowing the CSL to continue advocating on behalf of California’s senior community.
The two sides compromised, with $546 million going to boost the payments of doctors, dentists, women’s health providers and others.
Along with the main budget bill, which easily passed each house, lawmakers passed more than a dozen budget-related bills addressing everything from cannabis regulation to an overhaul of the troubled Board of Equalization by creating a new agency in its place.
The cannabis budget bill is one Senator McGuire helped craft to develop solutions to some of the biggest challenges impacting the North Coast.
“Passing the cannabis budget bill is a big win for the North Coast as it makes our communities safer, enhances protections for our environment and protects patients and consumers,” McGuire said.
Cannabis budget bill highlights:
Enhancing environmental rules and regulations, including creating an organic standards program for cannabis
Opening a desperately needed North Coast one stop shop for tax and license collections which will be fully staffed
Implementing appellations for cannabis growing regions
Recognizing agricultural co-ops for cannabis growers, ensuring that small family cultivators can thrive in the new regulatory system
Preserving the ability for cities and counties to maintain local control and regulation of businesses in their hometowns
South Bay lawmakers also secured $5.4 million to help those displaced by the February flooding of San Jose’s Coyote Creek with home repairs and other assistance.
“It was crucial to ensure the state stepped up to the plate to help the victims of this devastating disaster,” said Assemblyman Kansen Chu, D-San Jose.
Another bill passed by the Legislature Thursday includes provisions that would retroactively change the rules for recall elections, a move Republicans call a shameless political power grab.
The changes were apparently made in response to a campaign to unseat Sen. Josh Newman, a freshman Democrat from Fullerton who in November narrowly won an open seat previously held by a Republican. His victory gave Democrats a supermajority in both houses of the Legislature.
The bills now go to Brown’s office for his signature.
Lake County Record-Bee staff contributed to this report
