California Budget Deal Hinges on Housing Reform | JQJO

California Governor Gavin Newsom and the Legislature reached a tentative budget agreement, contingent on passing housing reform to ease environmental regulations hindering construction. The $321.1 billion budget addresses a $12 billion deficit primarily through borrowing, reserve use, and funding shifts. While some cuts were made, including to Medi-Cal, many proposed reductions were lessened due to legislative pushback. The agreement also includes funding for homeless housing and film tax credits. Future financial challenges remain, particularly concerning potential federal funding losses.