The alternative budget adopted by Senate Democrats differs from the governor's proposal to address the state's coronavirus fueled deficit in several key ways.
A sharp political and public policy rift emerged Thursday between Gov. Gavin Newsom and his fellow Democrats in the California Legislature over how to navigate the bleak economic road ahead after a state Senate panel rejected more than half of the spending cuts inThe alternative budget adopted by Senate Democrats differs from the governor’s proposal to address the state’s pandemic-generated deficit in several key ways.
Though most state lawmakers have downplayed any conflict, the Senate proposal presents Newsom with a significant test of his political leadership. The budget, his first after being elected in 2018, was the product of friendly conversations with legislative Democrats at the state Capitol over how best to divvy up that year’s multibillion-dollar tax windfall.
H.D. Palmer, the administration’s budget spokesman, said the effort to secure additional money from Washington is “ongoing.” Representatives of prominent education groups said Thursday that they appreciate the Senate’s effort but warned no plan under consideration would head off what they described as
Legislators also want to use more of California’s cash reserves. And their budget takes a more optimistic view of the economy than Newsom in its calculation of how many Californians will qualify for and seek services through Medi-Cal and the state’s welfare assistance program, CalWorks — an assumption that would alone lower spending relative to the governor’s plan by $3.6 billion.
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