Gov. Newsom and Democratic lawmakers in California have reached a budget deal to address the projected $45 billion shortfall. The plan includes funding for a state homelessness grant program, cuts in prison spending, and a postponement of health care worker wage increases.
The budget gap will be filled by reducing state operations by almost 8% and tapping into state reserves. Disagreements between Newsom, Assembly Speaker Robert Rivas, and Senate President Pro Tem Mike McGuire were present on significant matters amidst the challenging negotiations.
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