Governor Gavin Newsom’s budget for the upcoming fiscal year was signed and passed last night.
The budget represents a deal between Governor Gavin Newsom and the legislature after months of negotiations. It zeros out the state’s deficit the next two fiscal years.
This final version rejects many of the social services cuts Newsom originally proposed, like for healthcare for immigrants without legal status and in-home supportive service workers.
The spending plan also caps corporate tax credits and taxes digital software sales to bring in more revenue. It also directs the Department of Finance to present options to the legislature next year for taxing corporations to subsidize Medi-Cal coverage for their lower earning employees.
Counties and election officials also got more funding to be able to purchase new tabulation equipment and hire additional staff ahead of the November election.
The final spending plan amounts to $351 billion. That’s up from the $215 billion budget Newsom approved during his first year in office.