Brace yourselves, here comes another CA budget proposal

Gov. Gavin Newsom’s office is unveiling its 2025-26 state budget proposal today, laying the groundwork for negotiations between the governor and legislative leaders over the state’s fiscal priorities, write CalMatters’ Mikhail Zinshteyn and Yue Stella Yu. 

Following last year’s endeavor to close a $46 billion budget shortfall, Newsom on Monday said lawmakers are working to make this year’s budget “a non-event.” So far his administration anticipates:

• The general fund to hit $229 billion in 2025-26;
• A “modest” surplus of $17 billion;
• A total budget of $322 billion — the second largest state spending plan ever.

But there are major uncertainties: The incoming President Donald Trump administration could lead to pricey legal battles or the withholding of federal funds and assistance programs (like, say, disaster aid relief).

Despite the slight bump in revenue, the Legislature has been warned against any new spending. And Assembly Republicans — who pointed out that Newsom is sticking to last year’s deal with the Legislature to pull $7.1 billion from the state’s rainy day fund — said the governor’s “doubling down on the same failed programs” is to blame for record homelessness and unemployment rates.

Read more here.

Speaking of the budget: To sign up for Medi-Cal, many low-income seniors in California must meet tight income restrictions that allow them to keep only $600 of their monthly income. The rest of their income must go toward medical care, writes CalMatters Ana B. Ibarra.

In 2022, California raised the cap so seniors could keep about $1,500. But that law never went into effect because it was never funded. Advocates are now urging Newsom to allocate $33 million in this year’s budget to finally implement the law, as well as $80 million for ongoing funding.

• Tiffany Huyenh-Cho, a staff attorney with Justice in Aging: “It has been a disappointment for a lot of people. There was a light at the end of the tunnel … due to budget reasons, it’s not happening, but the need is still there.”

Read more here.

Fires in Los Angeles County continue to rage as the biggest one, the Palisades Fire, grows to 17,000 acres and is 0% contained as of Thursday evening. Thousands of structures, including homes, have been destroyed — throwing into sharp relief the state’s home and fire insurance market crises, writes CalMatters’ Levi Sumagaysay.

As more property owners turn to the FAIR Plan, California’s insurer of last resort, concerns about the plan’s solvency have grown, and experts anticipate that premiums will rise dramatically. 

California Insurance Commissioner Ricardo Lara has begun a series of rule changes to reform the insurance market, but the Southern California fires are “going to complicate an already complicated market,” said Lara. 

The FAIR Plan will likely have to pay tens of billions of dollars in claims due to the fires, as some experts estimate the economic toll of the fires to be as high as $150 billion.

Read more here.

More fire news: The state has deployed thousands of firefighters to battle the current blazes — 800 of whom are state prisoners. For the physical and mental health risks they must endure on the job, incarcerated firefighters are paid between $5.80 and $10.24 per day, with an additional $1 a day during active emergencies, reports CalMatters’ Cayla Mihalovich. 

The measure voters rejected in November, Prop. 6, would not have changed conditions for these prisoners because the measure concerned involuntary assignments, and joining firefighting crews is voluntary.

Read more here.

A day after Congress certified Trump’s election victory, U.S. Customs and Border Protection agents conducted unannounced raids throughout Bakersfield on Tuesday, writes CalMatters’ Sergio Olmos. 

Agents rounded up people in vans in what appeared to be the first large-scale Border Patrol raid in California since the election of Trump, who has promised mass deportations once in office.

• Antonio De Loera-Brust, director of communication for the United Farm Workers: “They were stopping cars at random, asking people for papers. They were going to gas stations and Home Depot where day laborers gather.”

De Loera-Brust added that the raid generated anxiety and fear in the community. The next day, a majority of workers stayed away from the fields, underscoring the potential economic impact of raids: Undocumented workers comprise half of the agricultural industry’s workforce in the U.S., and the industry makes up 10% of Kern County’s gross domestic product.

One Cal State-Bakersfield associate professor of economics predicts “absolute economic devastation” if raids intensify, with homebuilders, restaurants and small businesses standing to hurt the most financially. 

Read more here.

One of the most predominant issues keeping women out of the workforce is the lack of affordable childcare. But some large employers are using one perk to attract workers. Find out what it is from Zayna Syed.