California Assembly Democrats are disagreeing with Governor Newsom on budget cuts to health care, business tax breaks, homelessness grants, and prison closures as they try to fix a $45 billion deficit before the June 15 deadline.
California Assembly Democrats Clash with Governor Newsom Over Budget Cuts to Health Care and Business Tax Breaks
According to the published article in The Sacramento Bee, as California deals with a $45 billion budget gap Assembly Democrats are arguing with Governor Newsom over cuts to important programs. One major issue is Governor Newsom’s plan to cut $6.7 billion from Medi-Cal provider rate increases set for January 2025. This decision affects the state’s Medicaid program which helps low-income residents get health care. Assemblywoman Akilah Weber said lawmakers had agreed to raise taxes on managed care organizations to fund these increases and now feel betrayed by the cuts. She warned that hospitals and clinics are already struggling and these cuts will make things worse.
Another disagreement is over Governor Newsom’s proposal to stop certain tax deductions for businesses and limit how much tax credit they can use. Assemblyman Chris Ward thinks these changes might help in the short term but could hurt the economy in the long run by making businesses unsure about their future. He believes this uncertainty could reduce future tax revenues and hurt economic growth.
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$45 Billion Budget Deficit: California Lawmakers Clash with Governor Newsom over Cuts to Medi-Cal, Business Taxes, and Homeless Housing (PHOTO: Sacramento Bee)
California Assembly Democrats Oppose Governor Newsom’s Budget Cuts to Homelessness Programs and Push for More Prison Closures
Furthermore, Governor Newsom also wants to cut $260 million from a program that gives money to cities and counties to help with homelessness. Homeless Housing, Assistance and Prevention (HHAP) grant is crucial for funding shelters and services. Assemblywoman Sharon Quirk-Silva and others are trying to keep this money in the budget. Meanwhile, some lawmakers want Governor Newsom to close more prisons as suggested by the Legislative Analyst’s Office to save $1 billion each year. With a June 15 deadline to pass the budget, Governor Newsom and legislative leaders need to quickly agree on a solution to these issues.
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