It’s been a busy week at the state Capitol so far. A budget deal was reached over the weekend and signed into law today, and yesterday, Gov. Gavin Newsom gave us his less-than-traditional, pre-recorded version of a State of the State address.
First, the budget deal and resultant law. The ongoing legislative saga that was budgeting around the state’s nearly $46.8 billion deficit came to an official end today with the governor’s signature on AB 107. During the weekend, lawmakers and Newsom reached a two-year deal to address the deficit into the 2025-26 fiscal year.
This deal centers on some $16 billion in program reduction, which includes a roughly 8 percent reduction across all department budgets, according to the agreement. Vacant positions across the state will also be permanently swept to the tune of $1.5 billion.
Broadband last-mile efforts will take a hit under the newly inked budget plan. Some $550 million in delays will stretch to the 2027-28 fiscal year. However, the plan “preserves $250 million for the Middle Mile Broadband Initiative in 2024-25 and allows the director of finance to augment the budget for an additional $250 million with concurrence from the Legislature.”
As for Newsom’s pre-recorded State of the State address, the governor took the opportunity to paint an idyllic picture of a thriving state, targeting the laundry list of criticisms from what he labeled as “delusional California bashers” and Republicans. His message painted a stark and politically charged picture of a state standing against what he called the “poisonous populism of the right.”
Newsom covered many of his standard talking points — the ongoing homelessness and mental health crisis, public safety, reproductive rights and the state’s economic strength. But he spoke to private-sector innovation in areas like clean energy, technology and artificial intelligence.
“It’s no mistake that California is the epicenter of what is called the fourth industrial revolution: artificial intelligence,” Newsom said. “In fact, 35 of the world’s 50 most exciting and largest market cap companies in AI are right here in California.”
Beyond that, technology had little to do with the address. Industry Insider — California will continue to unpack the full impacts of the state’s new budget in the coming weeks.
After Negotiations, Newsom Signs Budget and Gives State of the State
There’s been a flurry of activity this week around the state budget, and the state finally has a signed law. The governor also gave his long-awaited State of the State address.
Image courtesy of Gov. Gavin Newsom (screenshot)
