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CAPITOL UPDATE #27 – July 13, 2023

 July 13, 2023

California Federation of Republican Women
Janet Price, President

        Submitted by the CFRW Legislative Analyst Committee        
Karen Contreras,
Lou Ann Flaherty and Elaine Freeman, 


This year’s budget process was considerably more controversial than usual between the Legislature and the Governor due to the proposed budget deficit/shortfall of approximately $ 32 billion.  In past years with budget surpluses, every legislature basically received what they requested as well as agencies asking for an allocation.  This year required compromises and the new 2023-2024 budget contains $ 38 billion in reserves.

As you may remember, we reported in Capitol Update #3 that the budget surplus for 2021 and 2022 exceeded $ 90 billion.  The original proposed 2023-2024 deficit of $ 32 billion was really > $120 billion by absorbing the budget surplus!


BUT, Just in time for the start of a new fiscal year July 1, Gov. Gavin Newsom and legislative leaders announced that they have reached a deal on the state budget — a $310 billion spending plan that they say protects core programs and covers a $30 billion-plus deficit without dipping into key reserves. 

For exhaustive detail:

(Some detailed review below:  More to follow next week)

 This year there were on-going negotiations, and a particular area of disagreement was the Governor’s Infrastructure Streamlining package which promises to speed up clean energy and infrastructure projects.  Originally, the Governor included $16 billion for the tunnel beneath the Sacramento-San Joaquin River Delta to transport water south.  Originally, Governor Brown had proposed two tunnels.  The point of these was to reduce evaporation with the current system.  Governor Newsom reduced the proposal to one tunnel.  The tunnel was removed from the proposed Infrastructure Streamlining plan.

Within the plan, however, is funding for Green Bank Financing to work as a climate catalyst fund which is a way to leverage federal dollars ensuring that a state-wide processes for planning and development are taking place smoothly.

The Governor also signed an Executive Order creating a strike team focused on ensuring the state-wide processes for planning and development are running smoothly.

Also included in this Streamlining package is $237.41 million for the Southern California Association of Governments (SCAG) to kick start new affordable housing which the State says will be built with new environmental standards.  Sacramento Area Council of Governments got $31.83 million to fund new clean infill projects and the Bay Area Rapid Transit received $3.5 million to start building homes on land it owns.

Reductions of $ 8 billion which included such proposed items as $550 million to construct facilities for transitional and full day kindergarten and $750 million to pay back the federal government for the covid loan.  The Legislature increased the fees employers pay for unemployment insurance by .3% to pay for this debt.

Low-income families who receive subsidies to pay for childcare will see near elimination of co-payments known as “family fees”.  The fees, which can be hundreds of dollars, were waived during covid and the waiver was set to expire on 9/1.  Under tentative agreement families will not have to pay more than 1% of their incomes toward fees It also included raises for childcare providers.

Monies for communities to help recover from this year’s storms and flooding, total $ 20 million.  This will help residents recover regardless of citizenship or legal status.

There is a tentative agreement to include $500 million to make permanent a 10% increase in welfare benefits for recipients of CalWorks, the State’s cash aid program.  Work requirements were not changed.

Check out the Cal Matters website above to read areas of individual interest!

 Very busy week for the California Legislature before the scheduled Summer Recess July 14th through August 13th.  For hearings scheduled for July 10th -14th check:

To contact your U.S. Representatives, call the Capitol Switchboard at (202) 224-3121

Legislative Portal links- Express your support or opposition to a bill or directly to the Legislative committee currently reviewing it (as an individual, not as a member of RWF or CFRW)– click here, or the bill’s author- click here, enter your bill # and look for tab at top of the bill page labeled “Comments to Author”


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