Gov. Gavin Newsom (D-CA) and leaders in the California legislature announced late Monday that a deal had been struck on the budget for the upcoming fiscal year.
The $310.8 billion budget comes after Newsom announced in May that the state had a $31.5 billion budget deficit. Here are some of the notable allocations in the Golden State's budget for the coming year.
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Climate change funds reduced
In Newsom's May budget proposal, he looked at reducing the $54 billion allocated toward climate change, over a five-year period in the 2021 and 2022 budgets, down to $48 billion, a reduction of approximately 11%.
"The 2021 and 2022 Budget Acts allocated approximately $54 billion over five years to advance the state’s climate and opportunity agenda. The May Revision continues to prioritize the state’s climate agenda and maintains approximately $48 billion (89 percent) of these investments," Newsom said.
The amount negotiated allows for $51.4 billion toward climate proposals, a compromise that reduces funds by less than $3 billion, per the Los Angeles Times.
Struggling public transit agencies get funds
The budget deal provides $5.1 billion over four years for public transit agencies, despite Newsom previously not allocating any funds toward the struggling agencies in his proposal.
Local public transit systems, including the Bay Area Rapid Transit, have struggled financially in their recovery from the COVID-19 pandemic. BART was averaging 400,000 riders on a weekday prior to the pandemic but is now only averaging 100,000 and 150,000 per weekday, per ABC 7 Bay Area.
Funds to revamp state prison
The project to turn the San Quentin State Prison, which is outside of San Francisco, into a rehabilitation-centered facility also secured funding from the deal struck between Newsom and the legislature.
"In March 2023, the Administration announced the state’s plan to transform San Quentin from a maximum-security prison into a one-of-a-kind facility focused on improving public safety through rehabilitation and education. The prison, which will be renamed 'San Quentin Rehabilitation Center,' will be transformed under the vision and recommendations of a multidisciplinary Advisory Council announced by the Governor in early May," Newsom said in his May budget proposal.
"This effort will help build and inform the California Model, which will serve as a nationwide model to advance a more effective justice system that builds safer communities and reduces recidivism," he added.
Newsom requested $360.6 million for the demolition and construction of new buildings at the prison site, in addition to $20 million for "various improvement projects." The legislators agreed to Newsom's requests to fund a renovation of the facility.
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The California governor has touted that the agreement will raise the budget reserves in the Golden State to $38 billion.
The deal between legislators and Newsom came just days before the beginning of the fiscal year for California on July 1.