California Legislature Passes Budget – Now the Real Negotiations Begin
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The California Legislature fulfilled its constitutional obligation of approving a state budget just ahead of the June 15 deadline. However, meeting this formal requirement is just the beginning of the process. Negotiations to finalize the comprehensive state spending plan are now happening in earnest. A final agreement will hinge on negotiations that satisfy political and policy demands in the face of an unprecedented level of tax revenues and federal assistance dollars. The $40 billion revenue windfall (compared to the January budget proposal) has created strong differences of opinion between the Gavin Newsom Administration and Legislature on which programs should receive funding.
While the goal is to have the major issues hammered out before the new fiscal year commences on July 1, it’s a near certainty that selected budget-related issues will drag on through the end of the legislative session in September and perhaps beyond that.
CLFP is monitoring the budget process closely and has specific interest in funding proposals related to drought assistance to agriculture and the industrial sector as well as clean energy funding for food processors and industrial manufacturers.
By Trudi Hughes, CLFP Government Affairs Director
