After a restful holiday break I’m returning to your inboxes — and state lawmakers are also returning to Sacramento today to begin the new legislative session in earnest. CalMatters’ Alexei Koseff dives into some of the most prominent issues on their to-do list, such as:
State budget: Gov. Gavin Newsom has until the end of the week to submit his state budget proposal to the Legislature. The estimated $2 billion shortfall for 2025-26 means the budget could be “roughly balanced” with minor spending-related solutions, according to the nonpartisan Legislative Analyst’s Office. But with higher deficits projected in the years to come; warnings against major new spending from the analyst’s office; and an incoming president who repeatedly threatens to withhold federal aid, the Legislature will need to be shrewd about what programs to prioritize or cut as it negotiates a final budget by the end of June.
Newsom plans to preview key takeaways from his budget proposal today during an event in Northern San Joaquin Valley focused on economic development.
Affordability: One of the top concerns for Democratic legislative leaders is addressing the state’s high cost of living — a problem they believe helped bring about the party’s underwhelming November election results. So far, their colleagues have introduced bills that aim to spur more housing development and lower the price of gas. But Republicans, who argue that the supermajority’s approach is no longer working, have proposed ending gas and electricity taxes plus other sweeping measures.
Trump 2.0: Amid the budget crunch, legislators plan to fast-track Newsom’s proposal to allocate $25 million for potential legal battles against President-elect Donald Trump before his return to the White House in two weeks. California is expected to come to blows with the administration over mass deportations, abortion access and other issues.
Read more about what lawmakers are expected to tackle in Alexei’s story.
Digital Democracy: As the Legislature returns, CalMatters is updating and improving Digital Democracy, which uses the latest technologies to help Californians understand state government and hold their representatives accountable.
Other Stories You Should Know
Businesses push back against CA law
It’s been six days since a spate of new state laws went into effect Jan. 1, and California business groups are already trying to block one from being enforced.
As CalMatters’ Jeanne Kuang explains, employers are now banned from requiring workers to attend anti-union meetings and could be fined $500 a day for violations. Labor groups say these “captive audience” meetings are often used to intimidate employees.
But the California Chamber of Commerce and California Restaurant Association filed a federal lawsuit last week claiming the legislation violates employers’ right to free speech. They also argue it prevents employers from “sharing true facts” about unions with workers.
Learn more about the labor lawsuit in Jeanne’s story.
Meanwhile, check out CalMatters’ rundown on other new laws that could impact your life, which include:
Growth in CA homelessness slows
The state’s homelessness population is still the largest in the nation, but new federal data shows the number of unhoused people grew more slowly in California last year than the rest of the country, reports CalMatters’ Marisa Kendall.
With more than 187,000 people in California experiencing homelessness as of January 2024, homelessness in California rose by 3.1% compared to 2023, according to the federal department of housing. This is one of the smallest increases of any state; nationwide, homelessness climbed by 18%.
This data is compiled through the most recent point-in-time count, which was conducted in early 2024 and is federally mandated. The count is somewhat inexact, but it does guide homelessness policy and helps determine federal and state funding for the issue.
California is home to nearly a quarter of all unhoused people in the country.
Read more about the latest homelessness data in Marisa’s story.
New Senate committee leaders
The state Senate has new leaders who hold huge sway over whether bills pass or are even heard — with some who are serving in the Legislature for the first time.
On Friday Senate President Pro Tem Mike McGuire of Santa Rosa announced committee chair appointments for the latest legislative session. (FYI: The Assembly finalized its reorganized committee leadership in December.)
One notable takeaway: Leading the education committee is freshman Sen. Sasha Renée Pérez, a Glendale Democrat and currently California’s youngest state senator. Pérez, who held a senior position at an influential state advocacy group on college issues, succeeds Josh Newman of Fullerton. He lost his Senate seat after a typically Democratic-friendly union of university workers targeted him for opposing a bill it sponsored.
Other appointments remain unchanged, including the chairpersons of the powerful appropriations and budget committees, led by Democratic Sens. Anna Caballero of Merced and Scott Wiener of San Francisco, respectively.
California Voices
Amazon, Google and Microsoft dominate the computing infrastructure driving artificial intelligence development — but this technology should be a public resource, writes Natalie Foster, president and co-founder of the Economic Security Project.
Other things worth your time:
Can CA keep ICE away from schools? Lawmakers want to try // CalMatters
As CA tribes sue their gambling rivals, cities could be the losers // CalMatters
CA almost legalized psychedelics. Now, supporters are looking for a good test case // CalMatters
How CA’s insurance crisis could impact your ability to get a mortgage // San Francisco Chronicle
Federal court decision won’t change CA net neutrality law // Los Angeles Times
After months of delay, Northern CA crabbing season takes sail // The Mercury News
Berkeley is legalizing a type of housing that could add thousands of units // San Francisco Chronicle
Circling Waymo traps LA man on way to airport // Los Angeles Times
UCSD plans to use AI cameras in hospital rooms // The San Diego Union-Tribune
AI spots wildfire in Orange County, promptly alerts firefighters // The Orange County Register