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Gov. Gavin Newsom signs California budget to close large deficit, deliver spending for the year

Gov. Gavin Newsom signs California budget to close large deficit, deliver spending for the year
Gov. Gavin Newsom signs California budget to close large deficit, deliver spending for the year

Governor of California Gavin Newsom officially signed the 2024 budget on Saturday, closing the state’s deficit of about $47 billion.

Newsom’s signature was expected when he and Democratic lawmakers agreed to a spending plan last week. The California Legislature approved most of the bills that make up the budget on Wednesday night.

The $298 billion spending plan includes many Democratic priorities, such as funding for homelessness subsidies, in-home supportive services for undocumented immigrants and affordable housing programs. It also cuts reserves, reduces state operations by nearly 8 percent, delays a new minimum wage law for health care workers and cuts spending by $750 million for the California Department of Corrections and Rehabilitation.

“This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day,” Newsom said in a written statement on Saturday.

Last week’s agreement between legislative leaders and Newsom follows a disagreement over spending priorities. The governor and both leaders of the Legislature — House Speaker Robert Rivas, D-Hollister, and Senate President Pro Tem Mike McGuire, D-Healdsburg — were divided on a number of issues. The expected deficit had made negotiations even more challenging.

The budget will include expenditures for the 2024-25 fiscal year. The budget starts on Monday.