California lawmakers passed a $300 billion operating budget over the objections of Gov. Gavin Newsom, highlighting disagreements among Democrats about how to spend a record-breaking surplus that, by itself, is more than most other states spend in a year.
California lawmakers on Monday passed a $300 billion operating budget over the objections of Democratic Gov. Gavin Newsom, highlighting disagreements among Democrats about how to spend a record-breaking surplus that, by itself, is more than most other states spend in a year.
The Democratic-controlled Legislature wants to spend more money than Newsom does on education and housing. The lawmakers' plan would cover college tuition for 150,000 more students than Newsom would. Lawmakers say they can afford to do those things because California's revenues have soared throughout the pandemic as the rich have gotten richer and pay a higher percentage of their income in taxes compared to other states. This year, California's surplus — money left over once the state has fulfilled its existing commitments — is more than $97 billion.
“Given the financial storm clouds on the horizon, a final budget must be fiscally responsible,” said Anthony York, Newsom's senior advisor for communications. “The Governor remains opposed to massive ongoing spending, and wants a budget that pays down more of the state’s long-term debts and puts more money into state reserves.”
The Newsom administration has downplayed those concerns, noting their plan would spend 95% of the budget surplus on one-time expenses — money that could be pulled back in an emergency. Newsom's plan would cost $11.5 billion and taxpayers might get the checks a little faster because the money would come on a debit card. The Legislature's plan would cost $8 billion, but it wouldn't benefit the wealthy.