Governor Gavin Newsom signed the state budget bill this week, but many other components of the state spending plan must still come together.
The final agreement will be voted on by this weekend and will reflect updated deals negotiated among legislative leaders and the Governor, as well as separate policy legislation included as sweeteners or urgent priorities.
The total budget tops $310 billion and bridges an earlier-estimated shortfall of $32 billion between projected revenues and programmed spending. Much of the solution to solve this shortfall was to eliminate or delay short-term spending promised from earlier budgets when surpluses ran in the tens of millions.
The budget plan will not dip into rainy day reserves, prudently saving those for any further economic slowdowns. Nor does the budget comprise any general tax increases.
Key legislation under consideration by the Legislature will include the Governor’s infrastructure streamlining package, extension of the film and television tax credit, and funding to re-start the Industrial Welfare Commission, which updates and adopts regulations on wages, hours of work and other workplace conditions.