California Legislature and Gov. Newsom at Impasse Over Budget Cuts

As the new fiscal year approaches, lawmakers and the governor clash over spending priorities and deficit solutions.

California's Legislature passed a placeholder budget to meet a mandatory deadline, but significant negotiations with Gov. Newsom remain.
Key disagreements include proposed cuts to prisons, health care, and education versus alternative tax measures and spending priorities.
The Legislature's plan rejects many of Newsom's proposed cuts, opting to accelerate a temporary tax increase on businesses to generate additional revenue.
Both sides are under pressure to finalize the budget before the new fiscal year begins on July 1, with transparency and public input being contentious points.
Republicans criticize the budget as unsustainable and out of touch, while Democrats defend it as a necessary compromise to address the state's deficit.