California's New Budget Covers $32 Billion Deficit Without Touching Reserves

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California's New Budget Covers $32 Billion Deficit Without Touching Reserves
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Gov. Newsom and state legislative leaders have reached an agreement on how to spend the state’s tax dollars over the next year.

Budget talks stalled over the weekend as Newsom sought major changes to the state's building and permitting process. The governor said the changes are needed to speed up vital construction projects, including expanding the state's energy capacity and upgrading its aging water infrastructure.

Still, some San Francisco Bay-area lawmakers said the spending wasn't enough to forestall painful service cuts over the next few years. Monday, they proposed legislation that would increase tolls on seven state-owned bridges — including the San Francisco-Oakland Bay Bridge — by $1.50 over the next five years. State Sen. Scott Wiener, a Democrat from San Francisco who supports the proposal, said it would generate $180 million in revenue.

“In good years, we buckled down so that in tough years like this one, we could meet our needs,” Senate President Pro Tempore Toni Atkins said. “That pragmatic approach works for household budgeting, and it works for state budgeting.”

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