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On the night of Tuesday, June 27, Governor Newsom announced signing SB 101 (Skinner), the legislative budget bill for 2023-2024. The announcement brings an end to weeks of intense negotiations between the Governor and the Legislature, particularly regarding infrastructure proposals and an expedited permit process which would make changes to the California Environmental Quality Act. Notably, legislators insisted that these infrastructure matters should be addressed through separate legislation rather than being included in the state budget. 

Governor Newsom highlighted the budget agreement as one that upholds investments in areas such as healthcare, public education, public safety, climate adaptation, and clean energy projects. Although the spending plan omits some of the Governor’s personal priorities, such as expediting the proposed Sacramento-San Joaquin River Delta water conveyance tunnel, both the Governor and legislative leadership praised the budget as forward-looking while noting that this agreement will bolster California’s economy and protect essential programs without dipping into the state’s reserve fund.

Additionally, the agreement between the Governor and the Legislature is anticipated to encompass a series of trailer and budget policy bills, covering various areas. Examples include:

·        AB 122 – Joshua Tree (Committee on Budget)

·        AB 124 – Green Bank and Energy (Committee on Budget)

·        AB 126 – Clean transportation (Reyes)

·        SB 145 – Caltrans Advanced Mitigation and I-15 Wildlife Crossings (Newman)

·        SB 146 – Progressive Design Build, Job Order Contracting, NEPA Assignment (Gonzalez and Friedman)

·        SB 147 – Fully Protected Species (Ashby)

·        SB 149 – Expedited Judicial Review, Administrative Record Reform (Caballero and Becker)

·        SB 150 – Equity (Durazo, Smallwood Cuevas, Gonzalez, Cortese, and L. Rivas)

This year’s Budget is markedly distinct from the past two years, as it lacks the record surpluses that allowed for increased spending on social programs and investments in mental health and homelessness initiatives. The budget agreement reflects the collaborative effort between Governor Newsom and the Legislature to allocate funds strategically, considering both the immediate needs of the state and the long-term vision for California’s growth.