California Legislature rejects many of Gov. Gavin Newsom’s budget cuts as negotiations continue

SACRAMENTO, Calif. (AP) — The California Legislature on Thursday rejected many of Gov. Gavin Newsom’s most difficult budget cuts, choosing instead to speed-up a temporary tax increase on some businesses to help pay off an estimated $45 billion deficit while preserving spending on many social safety net programs.

Thursday’s vote was not really a public rebuke of Newsom, a Democrat who for the most part has had a good relationship with a Legislature dominated by members of his own party. Lawmakers had to pass a balanced budget before Saturday in order to keep getting paid while negotiations on a final spending plan continue.

Instead, the Legislature’s proposal outlines the differences between Newsom, a second-term governor who many believe holds presidential aspirations, and a liberal state Legislature that is often more willing to take risks.

While Newsom’s budget proposal preserved most of the state’s major assistance programs, he included a number of smaller cuts that angered his Democratic allies. He proposed to stop paying for in-home caretakers for some disabled immigrants on Medicaid. He wants to eliminate a program that helps provide housing for families with incomes less than $13,000 per year. And he suggested delaying a rate increase for organizations that care for people with intellectual disabilities.

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