Newsom Signs $352 Billion California Budget, Delaying Healthcare Cuts and Adding 23,000 Childcare Slots
Updated
Updated · KABC-TV · Jun 30
Newsom Signs $352 Billion California Budget, Delaying Healthcare Cuts and Adding 23,000 Childcare Slots
3 articles · Updated · KABC-TV · Jun 30
Summary
$352 billion in spending takes effect with delayed Medi-Cal-related cuts, nearly 23,000 new childcare spaces and election funding as Gavin Newsom signs his final California budget before leaving office in January.
Higher-than-expected tax revenue—helped by stock-market gains tied to AI enthusiasm—let lawmakers avoid some cuts approved last year, while the plan also raises billions through a healthcare provider tax overhaul, software sales taxes and limits on corporate tax breaks.
$29 million will go to speed California's vote count before November, plus $10 million for voter education and nearly $1 million to counter election misinformation as key U.S. House races and the contest to replace Newsom approach.
Major unresolved costs were pushed to Newsom's successor, including whether to raise Medi-Cal premiums further, how to reshape cap-and-trade spending and whether to penalize large employers whose workers rely on Medi-Cal.
Republicans called the budget a temporary fix that delays hard choices, while Democrats said it preserves reserves and softens federal healthcare cuts even as analysts still project multibillion-dollar gaps in coming years.