California closes $12B deficit by cutting back immigrants access to health care

California Gov.Gavin Newsom signed on Friday a budget that pares back a number of progressive priorities, including a landmark health care expansion for low-income adult illegal immigrants, to close a $12 billion deficit.It’s the third year in a row the nation’s most populous state has been forced to slash funding or stop some of the programs championed by Democratic leaders.Lawmakers passed the budget earlier in the day following an agreement of a $321 billion spending plan between Newsom and Democratic leaders.But the whole budget will be void if lawmakers don’t send him legislation to make it easier to build housing by Monday.The budget avoids some of the most devastating cuts to essential safety net programs, state leaders said.

They mostly relied on using state savings, borrowing from special funds and delaying payments to plug the budget hole.“It’s balanced, it maintains substantial reserves, and it’s focused on supporting Californians,” Newsom said in a statement about the budget.California also faces potential federal cuts to health care programs and broad economic uncertainty that could force even deeper cuts.Newsom in May estimated that federal policies — including on tariffs and immigration enforcement — could reduce state tax revenue by $16 billion.“We’ve had to make some tough decisions,” Senate President Pro Tempore Mike McGuire said Friday.“I know we’re not going to please everyone, but we’re doing this without any new taxes on everyday Californians.”Republican lawmakers said they were left out of budget negotiations.

They also criticized Democrats for not doing enough to address future deficits, which could range between $17 billion to $24 billion annually.“We’re increasing borrowing, we’re taking away from the rainy day fund, and we’re not reducing our spending,” said Republican state Sen.Tony Strickland prior to the vote.

“And this budget also does nothing about affordability in California.”Her...