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A Look At Governor Newsom's Latest Compromises On The State Budget

California Governor Gavin Newsom
California Governor Gavin Newsom
Alex Edelman/Getty Images

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After concessions from both sides, Gov. Gavin Newsom and California Democrats announced a deal on the state budget Sunday afternoon.

State Democrats rolled back their demand that California provide healthcare to all residents, regardless of immigration status. Instead, Medi-Cal will be available to undocumented immigrants up to the age of 25 – which still makes California the first state to give adults living in the U.S. illegally access to government-funded healthcare.  

The proposal also does not include Gov. Newsom’s controversial tax on water users, which would have raised about $140 million a year to support clean water in low-income communities. Instead, lawmakers will fund clean water with greenhouse gas dollars raised by the state’s cap-and-trade program.

Some details, however, still need to be ironed out. The proposal includes placeholder language in several places, and lawmakers have not yet reached a deal on Gov. Newsom’s plan to adjust state tax law to match federal tax law after the Trump administration’s changes in 2017. That proposal would raise $1.7 billion to increase a tax credit for low-income Californians, but it doesn’t have enough support in the state Assembly, according to the Los Angeles Times.

State lawmakers are expected to vote on the budget this week, ahead of the June 15 constitutional deadline.

Larry sits down with L.A. Times Sacramento bureau chief John Myers to talk about the deal and what to expect moving forward.


John Myers, Sacramento bureau chief for the Los Angeles Times; he tweets @johnmyers