The Latest: California governor signs $214.8 billion budget
SACRAMENTO, Calif. (AP) — The Latest on California’s budget negotiations (all times local):
California Gov. Gavin Newsom has signed the state’s $214.8 billion operating budget.
Newsom signed the budget on Thursday, hours before the midnight deadline.
The signing comes after Newsom and state legislative leaders announced a final budget agreement on spending for housing and homelessness. That deal still needs approval from the full Legislature.
While the Legislature passed the main budget bill earlier this month, lawmakers and the governor’s office have been negotiating on several other bills that will direct how to spend the money.
The budget includes a $21.5 billion surplus, expanded health care for people living in the country illegally and a penalty for people who don’t purchase health insurance.
California’s governor and legislative leaders have agreed to reward local governments that make it easier to build houses faster and punish those who don’t.
The proposal finalized on Thursday is in response to the state’s housing shortage, which is driving up costs and sending more people to the streets.
The plan would reward local governments deemed to be “pro-housing” with more than $1 billion in housing and transportation grants. It would also let the state sue local governments who do not comply, which could include court-imposed fines of up to $100,000 per month. The court could impose additional penalties.
The proposal still must pass both houses of the state Legislature.
The agreement is part of the final package of bills around the state budget. Newsom has until midnight Thursday to act on the budget bill.
California’s governor is running out of time to act on the state’s nearly $215 billion operating budget.
Democratic Gov. Gavin Newsom has until midnight Thursday to make a decision on the budget, which lawmakers passed earlier this month.
This is Newsom’s first budget since he took office in January. It includes a $21.5 billion surplus, the largest in at least two decades following years of budget cuts because of shrinking revenues.
Newsom has not said whether he will sign the budget. He could also veto it entirely or veto parts of it. Newsom and state lawmakers are still negotiating about other bills that direct how the money will be spent. But Newsom called those outstanding bills “small issues.”