Leaders in California's Democratically dominated Legislature said on Wednesday that have reached agreement on a budget deal for the 2020-21 fiscal year that fills a $54.3 billion deficit left by the COVID-19 pandemic shutdown. At the same time, the lawmakers are rejecting the proposed $14 billion in budget cuts to public education and health care services laid out by Governor Gavin Newsom last month.
Assembly Speaker Anthony Rendon, Senate President Pro Tem Toni Atkins, and the chairs of the legislative budget committees say their spending plan, "ensures full funding of K-12 schools." However, they are resigned to the fact that some cutting will have to place elsewhere.
The Legislature appears to be counting on federal money to deal with the economic impact of the pandemic, but Congress has yet to approve an aid package. Senate Majority Leader Mitch McConnell and President Trump have both publicly balked at the idea of paying for what they call failed economic policies in state run by Democratic majorities.
Lawmakers did agree with the Governor on the notion of a tax increase for some businesses, which they believe will generate $4.4 billion annually.
Both the Senate and the Assembly will have to approve the budget plan before sending it to Newsom's desk for his signature.
Prior to the pandemic, the state was looking at a $6 billion surplus Democrats hoped to use to boost social safety net programs and other projects.
The spending plan comes a little less than two weeks before the June 15th deadline to have balanced budget.