TL/DR –
California Governor Gavin Newsom’s $348.9 billion budget proposal is facing criticism for not providing additional funding to offset cuts to Medicaid and other public assistance programs by President Trump and the Republican-led Congress. The proposal also divides healthcare provision for immigrants, with restrictions put on certain immigrant groups. On the other hand, the budget proposes a $350 million increase for the University of California and a $365 million increase for the California State University system, alongside plans to centralize the oversight of the Department of Education.
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California’s artificial intelligence-driven revenue surge has allowed Gov. Gavin Newsom to propose a $348.9-billion budget with a modest $3-billion deficit, $15 billion less than November estimates. Despite earlier warnings of an $18-billion shortfall, the Newsom administration now foresees smaller deficits due to projected higher revenues over the next three fiscal years.
However, rising costs and federal funding cuts in Washington introduce uncertainty for California’s state-funded programs. The budget proposal does not offer additional funding to offset Medicaid and other public assistance cuts, which could see millions of low-income Californians lose healthcare coverage and other benefits. Immigrants will be most affected, as the proposal would differentiate care levels they receive.
The California budget proposal does, however, promise good news for the state’s education system. It includes $350 million extra for the University of California and $365 million more for the California State University system. It also features plans to reshape management of the state’s schools, aiming to centralize oversight of the Department of Education, which could better align education efforts across all levels.
The week’s biggest stories include mixed emotions surrounding the one-year anniversary of the deadly Palisades and Altadena fires, with survivors gathering for memorials and protests. Meanwhile, the investigation continues into the fatal shooting of Keith Porter Jr. by an off-duty ICE agent on New Year’s Eve. Internationally, President Trump’s use of the U.S. military in Venezuela has seen opposition from five Senate Republicans.
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