California's new budget covers $32 billion deficit while extending tax credits for film industry

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California lawmakers have passed a nearly $311 billion state budget.

State Sen. Brian Dahle, R-Bieber, works at his desk as legislators work on the state budget at the Capitol in Sacramento, Calif., Tuesday , June 27, 2023. Both houses approved the $310.8 billion spending plan that covers the nearly $32 billion budget deficit without raiding the state's saving account. – California lawmakers approved a $310.

“It’s real hard to justify doing this when we’re not doing that for a lot of people who are struggling in California,” Republican Assembly Leader James Gallagher said. California's budget reflects the partisan divisions that permeate the country's politics. Democrats praised the budget for avoiding painful cuts to health care and public education programs, two of the biggest areas of state spending. But Republicans criticized the budget as unsustainable. Republican Assemblymember Vince Fong noted the budget Democrats approved on Tuesday assumes much higher tax revenues than the projections from the nonpartisan Legislative Analyst's Office.

The state will charge a fee to developers who remove the trees, pledging to use the money to conserve the species. Chuck Bonham, director of the California Department of Fish and Wildlife, called the bill an “innovative approach” to balancing tree preservation and development efforts. Lawmakers agreed to impose a new tax on the private companies that contract with the state to administer Medicaid benefits. The tax will bring in an estimated $32 billion over the next four years, with some of the money going to doctors while other funding will go to rural hospitals“This will fundamentally help us change how we do health care,” Democratic state Sen. Anna Caballero said.

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