Gov. Gavin Newsom, legislative leaders set to return to work after state budget agreement
SACRAMENTO – Gov. Gavin Newsom and legislative leaders will return to work with an agreement in hand on a state budget on Monday.
For state workers, it means no furloughs or lay-offs. Republican leaders are already questioning whether the cuts go far enough.
Newsom and Democratic leaders reached an agreement to solve California's massive $47 billion deficit.
It calls for an 8% reduction to all state operations, permanently cuts thousands of vacant positions and cuts back funding to the California Department of Corrections and Rehabilitation (CDCR) as well as to student and affordable housing.
"This agreement sets the state on a path for long-term fiscal stability, addressing the current shortfall and strengthening budget resilience down the road," the California governor said in a statement.
"I learned about the deal that the democratic leadership came up with and announced on Saturday through a post on X, formerly known as Twitter," Republican Senator Roger Niello said.
Niello, the vice chair of the budget committee, was not in the final negotiations and believes the 8% cuts to state agencies will not be reached.
"There's no oversight, no follow-up to that," Niello said.
SEIU Local 1,000, the largest state worker union, supports the budget deal, which did not cut back on monthly $50 stipends state workers receive for working at home.
"We're definitely good with it because it means no furloughs for our people, right? It also retains the telework stipends that many of our members benefit from," said Anica Walls, the president-elect for SEIU Local 1,000.
The agreement includes a billion dollars for the homeless, the expansion of Medi-Cal services, and maintains K-12 school funding.
This budget deal now goes before legislators this week in a series of bills.
The deadline to get it passed and signed is next Sunday before the start of the fiscal year, July 1.
