SACRAMENTO, Calif. (CN) — A key California Assembly committee on Thursday adopted the 2024-25 legislative budget package, a first step toward meeting a June 15 deadline to pass a state budget.
Passage of the budget package by the Assembly Budget Committee appeared a certainty, with little discussion by committee members. Assemblymember Al Muratsuchi, a Torrance Democrat, called it “anticlimactic,” noting that budget subcommittees spent weeks over multiple hearings digging into the details, leaving little to discuss Thursday.
However, committee members did take time to question some proposed expenses, like adding $1 billion for the homeless housing assistance and prevention program. Democratic Governor Gavin Newsom had included no money in his 2024-25 budget for that program.
Assemblymember Heath Flora, a Lodi Republican, questioned the $24 billion spent on homelessness over the past several years, and a 20% increase in homelessness that happened over the same time.
“Are we setting tangible goals?” Flora asked.
Fellow Assemblymember Joe Patterson echoed those concerns. The Rocklin Republican asked about guardrails staff said would be added to the program. Those guardrails include data about homelessness that will be posted to a publicly accessible website. People will be able to see where money is going, how it’s used in a given year as well as its use over multiple years.
Local government leaders have praised the state program.
“Thank you to the Legislature for delivering a balanced budget proposal that preserves the crucial $1 billion in homeless housing assistance and prevention grant funding,” Sacramento Mayor Darrell Steinberg posted on X, formerly Twitter, on Wednesday. “(Sacramento) depends on HHAP to fund all of our 1,300 emergency shelter beds.”
The Assembly budget package touches on multiple aspects of state government. It has $500 million for the low-income housing tax credit program, which Newsom’s budget also included. The package also provides over $100 million to the Victims of Crime Act program, along with $80 million for nonprofit security grants.
However, the legislative package cuts over $1 billion to the Department of Corrections and Rehabilitation.
Erica Li, with the state Department of Finance, said her office is reviewing the details of the budget package and is encouraged that the Legislature’s and governor’s budgets share several similarities. She added that some $20 billion targeted for reserves will help in future years.
“We see this as an important tool,” Li said.
The budget committee’s hearing fell on the heels of a Wednesday announcement by state Assembly and Senate leaders that they’d reached an agreement on a joint legislative budget proposal. The process, which started on a sour note late last year when state officials revealed a massive deficit, will move quickly. The Legislature has just over two weeks to pass the 2024-25 budget.
The legislative plan pinpoints a $45 billion deficit in fiscal year 2024-25, with the 2025-26 year having a $30 billion shortfall. Those deficits are filled with reductions in programs, delayed spending, moving funds and reserves.
People waiting to give public comment to the committee extended out of the committee room and down a hallway, with comment taking over an hour before all had spoken. Many thanked the committee for including over $100 million to the Victims of Crime Act program. Others lamented millions of dollars in cuts to the California Arts Council.
In an unrelated move, the Senate on Thursday passed Senate Bill 828, which will delay the implementation of a $25 minimum wage for health care workers by a month. Initially slated to become effective on June 1, its start date will be July 1 — the first day of the new fiscal year.
State Senator Roger Niello, a Fair Oaks Republican, called the wage hike horrible policy. He wasn’t sure whether to vote for the delay, because he wants to delay policy he doesn’t like, or vote against it based on his general opposition.
Niello opted against voting on the bill, which has advanced to the governor’s desk. It will become law immediately after it’s signed.
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