Sacramento, California (AP)-California will reduce the scope of Medicaid for immigrants without law, will eliminate the coverage for certain medicines for weight loss and use money from a key climate program to help financing the state-of-the-art budget proposal for $ 322 billion.
The democratic governor’s plan aims to fill the estimated budget hole of $ 12 billion, which he attributes to the economic policies of the Trump administration, a variable stock market that causes a decline in revenue from wealthy taxpayers and a decrease in global tourism.
“The basic values of California do not change just because the federal winds have shifted,” Newsom says in a statement. “Even when Trump’s decline slows the economy and hits our revenue, we provide bold suggestions for the construction of more housing, less expenses for working families and investing in our children.”
California is required by law to balance its budget every year. NEWSOM first revealed a plan in January with no predictive shortage. His revised proposal is now directed to the legislators of the state who have until mid -June to negotiate before the Law on the Final Budget is passed.
Here’s a look at some of what Newsom offers:
Health and Human Services
NEWSOM plans to freeze freezing for low -income adult immigrants without legal status and requires adult adults to pay $ 100 a month. He said the proposed changes to the program will save the country $ 5.4 billion by the 2028-2029 fiscal year.
Newsom also wants to stop using tobacco tax revenue to pay dental, family planning and female health providers. Tax revenue has decreased nearly 40% between 2017 and 2024 and can no longer make these payments without using the General Fund, said a spokesman for the State Department of Finance. The proposal will save at least $ 500 million a year.
But this will also reduce the budget of California planned parenting by one -third, the organization said. The group is highly critical of the proposed abbreviation.
“It is cruel, honestly, especially during that time, that we are also fighting at the federal level,” said Jody Hicks, president and CEO of the planned parenting of California and Newsom ally.
The governor also proposed the elimination of the state health coverage for certain medicines used for weight loss in January 2026, which will save approximately $ 85 million for the upcoming fiscal year and $ 680 million by the fiscal year 2028-2029.
The state will also delay the $ 3.4 billion loan for Medicaid state suppliers under the Newsom plan.
NEWSOM plans to reduce the cost of a program providing domestic and personal home care services for some residents and low -incomes with disabled, limiting overtime workers and travel hours to 50 hours a week. This move will reduce costs by nearly $ 708 million for the upcoming fiscal year.
Environment
NEWSOM wants to authorize the regime of the State Program for Restriction and Trade in 2045. The program aims to reduce emissions from industrial sources over time through market mechanisms and it is due to expire in 2030.
The money generated through loan auctions needed for pollution is included in a fund that legislators use for climate -related costs and the high -speed rail project of the state.
NEWSOM has suggested that you eavesdrop on $ 1.5 billion from this State Fire Service Fund. He said the change would help ensure that carbon emitters help pay for the state’s reaction in fires intensified by climate change.
His proposal will also guarantee $ 1 billion a year for the country’s long -standing rail project. The project now receives 25% of the money from the restriction and trading fund, which is ultimately a little more or a little less than a billion annually depending on the year.
Environmental groups have called on Newsom to support proposals aimed at causing fossil fuel companies to pay the state for damage related to climate change. The money will be used in part to support the reaction of the country to natural disasters governed by the climate.
Newsom has also announced a plan to optimize a project to create a massive underground tunnel to redirect much of the state’s water supply.
Public safety
NEWSOM offered to end another state prison by October 2026 to save $ 150 million a year. NEWSOM has already approved the closure of three prisons from 2019. The country’s prisons has declined over the years, even after voters have passed a measure of ballots with a difficult crime that can raise more people, according to the Newsom budget plan. Newsom did not specify which facility would close.
The budget proposal does not include funding for the implementation of the voter -approved initiative, which makes the theft of a crime for recurring violators, increases penalties for some drug allegations and gives judges the power to order people with multiple drug fees.
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The screenwriter of the Associated Press Trdle Nguyễn contributed to this report.
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