There's been a rare sighting now two days in a row at the state capitol: Gov. Gavin Newsom. Newsom, whose office is in a separate building, has spent the last two days walking across the street and up a flight of the capitol steps to meet with legislative leaders about the state's budget situation. Depending on who you ask, state leaders are bracing for a budget deficit that is either $38 billion (according to Newsom) or $73 billion (according to the state's independent Legislative Analyst, Gabe Petek). Lawmakers have said the discrepancy makes sorting out the state spending plan even more complicated. Typically, budget conversations begin to ramp up in June as lawmakers and the governor face a constitutional deadline to pass a state spending plan in time for the new budget year on July 1. This year is different. To soften the impact of a significant deficit in the upcoming year, Newsom and state lawmakers want to open up the books on the current budget year and make some changes before those bigger summer budget talks. But what exactly that action entails and how much money it attempts to save is still to be determined. As of Tuesday, it appeared they were still at an impasse on how to move forward. "Directionally, we're moving so we're hoping that we can address any sort of issues and details and nuances between the two houses," Newsom said after meeting with Senate Pro Tem Mike McGuire on Tuesday. "The general direction is to move on some early action that we think is meaningful and purposeful. That was the purpose of the meeting was to express that with the Senate, we had meetings yesterday as you may know, with leadership in the Assembly, we've been working through the weekend and look forward to making announcements shortly with more details on where we are," the governor said. Newsom has not provided specifics on the early action he's pushing. McGuire didn't respond to a request for comment after the meeting. Assembly Speaker Robert Rivas did not comment after his meeting with Newsom on Monday. The governor and state lawmakers have publicly agreed on one piece of early budget action. On Tuesday, lawmakers in the State Senate moved forward with a plan to raise the state's managed care organization tax to draw down about $1.5 Billion from the federal government. The legislature is expected to send this to Newsom's desk before it leaves Sacramento for spring break on Thursday. "This will be a first step towards bringing our budget into balance, which will be a lot of work between now and June," said Budget Committee Chairman and State Sen. Scott Wiener, D-San Francisco. State leaders plan to deposit the extra federal cash into the state's general fund to help pay for healthcare costs. Republicans have questioned how exactly the money will be used, as they remain critical of the state's recent expansion to provide state health insurance to undocumented immigrants.Republican State Sen. Brian Dahle expressed frustration that members of his party will be left out of key budget negotiations. "I know the Democrats who run this place are going to meet with the governor and I'm going to be forced to vote probably no because we don't get to engage," Dahle said. The State Senate has rolled out its own plan to "shrink the shortfall." The proposal tries to cut the deficit to $9 billion to $24 billion for the upcoming year by making cuts, delaying spending and borrowing funds that would impact a variety of programs including climate and transportation. The plan does not include tax increases on Californians, according to McGuire. Newsom has indicated he supports the plan. The Assembly's Budget Chairman, Jesse Gabriel, said his side of the state capitol would review the plan over the next few weeks. He has said he's anticipating cuts to areas in which the state has invested heavily, including housing, homelessness and climate programs. Gabriel said the Assembly is not considering any new taxes on individuals and families. KCRA 3 asked the governor on Tuesday night if he felt the legislature was moving fast enough on the early action. "I'm feeling very good about the prospects of moving early," Newsom said.Will he be back Wednesday for a third day in a row? "I'm looking forward to progress," Newsom said as he made his way out of the state capitol.
SACRAMENTO, Calif. —
There's been a rare sighting now two days in a row at the state capitol: Gov. Gavin Newsom.
Newsom, whose office is in a separate building, has spent the last two days walking across the street and up a flight of the capitol steps to meet with legislative leaders about the state's budget situation.
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Depending on who you ask, state leaders are bracing for a budget deficit that is either $38 billion (according to Newsom) or $73 billion (according to the state's independent Legislative Analyst, Gabe Petek). Lawmakers have said the discrepancy makes sorting out the state spending plan even more complicated.
Typically, budget conversations begin to ramp up in June as lawmakers and the governor face a constitutional deadline to pass a state spending plan in time for the new budget year on July 1. This year is different.
To soften the impact of a significant deficit in the upcoming year, Newsom and state lawmakers want to open up the books on the current budget year and make some changes before those bigger summer budget talks. But what exactly that action entails and how much money it attempts to save is still to be determined. As of Tuesday, it appeared they were still at an impasse on how to move forward.
"Directionally, we're moving so we're hoping that we can address any sort of issues and details and nuances between the two houses," Newsom said after meeting with Senate Pro Tem Mike McGuire on Tuesday.
"The general direction is to move on some early action that we think is meaningful and purposeful. That was the purpose of the meeting was to express that with the Senate, we had meetings yesterday as you may know, with leadership in the Assembly, we've been working through the weekend and look forward to making announcements shortly with more details on where we are," the governor said.
Newsom has not provided specifics on the early action he's pushing. McGuire didn't respond to a request for comment after the meeting. Assembly Speaker Robert Rivas did not comment after his meeting with Newsom on Monday.
The governor and state lawmakers have publicly agreed on one piece of early budget action. On Tuesday, lawmakers in the State Senate moved forward with a plan to raise the state's managed care organization tax to draw down about $1.5 Billion from the federal government. The legislature is expected to send this to Newsom's desk before it leaves Sacramento for spring break on Thursday.
"This will be a first step towards bringing our budget into balance, which will be a lot of work between now and June," said Budget Committee Chairman and State Sen. Scott Wiener, D-San Francisco.
State leaders plan to deposit the extra federal cash into the state's general fund to help pay for healthcare costs. Republicans have questioned how exactly the money will be used, as they remain critical of the state's recent expansion to provide state health insurance to undocumented immigrants.
Republican State Sen. Brian Dahle expressed frustration that members of his party will be left out of key budget negotiations.
"I know the Democrats who run this place are going to meet with the governor and I'm going to be forced to vote probably no because we don't get to engage," Dahle said.
The State Senate has rolled out its own plan to "shrink the shortfall." The proposal tries to cut the deficit to $9 billion to $24 billion for the upcoming year by making cuts, delaying spending and borrowing funds that would impact a variety of programs including climate and transportation.
The plan does not include tax increases on Californians, according to McGuire. Newsom has indicated he supports the plan.
The Assembly's Budget Chairman, Jesse Gabriel, said his side of the state capitol would review the plan over the next few weeks. He has said he's anticipating cuts to areas in which the state has invested heavily, including housing, homelessness and climate programs. Gabriel said the Assembly is not considering any new taxes on individuals and families.
KCRA 3 asked the governor on Tuesday night if he felt the legislature was moving fast enough on the early action.
"I'm feeling very good about the prospects of moving early," Newsom said.
Will he be back Wednesday for a third day in a row?
"I'm looking forward to progress," Newsom said as he made his way out of the state capitol.
