Overview
- The California Legislature approved a roughly $355.9–$356 billion procedural budget on Monday to meet the June 15 constitutional deadline and begin final talks with the governor.
- The plan postpones the governor’s proposed Medi‑Cal cuts to July 1, 2027 and rejects several other social‑service reductions to shield beneficiaries in the near term.
- Lawmakers increased investments in education and care by adding about 22,000 state‑funded child care slots and proposing roughly $2.7 billion more for TK‑12 schools and community colleges than the governor sought.
- The legislative outline boosts homelessness funding to about $900 million, endorses three of Newsom’s tax measures to raise revenue, and still faces a Legislative Analyst’s Office projection of a $16.9 billion deficit.
- Negotiations now move to intensive talks with Gov. Newsom before the new fiscal year; lawmakers must resolve the deficit, decide on rainy‑day fund changes that need voter approval, and sort county support for federally required eligibility checks.