California Democrats aren’t sold on Gavin Newsom’s plan to cut the budget deficit. How they disagree [The Sacramento Bee]
Assembly
Rivas, McGuire and Newsom administration officials are not talking publicly about any deals. But some lawmakers and budget subcommittee chairs have been more open about their feelings toward Newsom’s proposed budget.Here are some of the potential budget debates Assembly members are already having.
Changes to
Newsom’s revised budget, which he presented earlier in the month, cuts
The rate hikes were to come from higher taxes on managed care organizations, or insurers, that lawmakers approved last year and in March. The MCO tax allows
Assemblywoman
Weber asked for solutions from
“So, we know it’s happening,” Weber said. “This was one part of the solution to that issue, and we’re taking that away.”
Suspending tax deductions
The governor’s revised budget would suspend a net operating loss tax deduction for businesses with
Assemblyman
He said the deduction suspension “solves something in the short run,” but it “creates, I think, incredible uncertainty for the business community that translates into potential impact for future economic opportunity, which itself is going to generate tax base for future years as well.”
Ward expressed similar concerns about the tax credit cap.
“Something’s got to give, of course, in this budget,” he said. “And a broad brush sort of overture — that we’re going to suspend all of these credits — I worry might be a little bit of penny wise, pound foolish.”
Discontinuing homelessness grants
Newsom wants to cut
His revised budget also does not contain money for a sixth round of the program, worrying local leaders who have come to rely on the funding to pay for shelters and other services.
Fullerton Assemblywoman
Declining to close additional prisons
The LAO in February said closing five additional prisons would save
His revised budget would deactivate 46 prison housing units with 4,600 beds, resulting in
The LAO reported prisons will operate with 15,000 empty beds during the 2024-2025 fiscal year, reaching 19,000 by 2028.
Assemblyman
He and other lawmakers would like to see Newsom close more facilities rather than cut funding from subsidized child care and social safety net programs.
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