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SACRAMENTO, Calif. (AP) — California's state auditor says the California State Lottery skimped on giving million in revenue to fund public education funding and spent 0,000 on food and travel expenses without considering cheaper options. The auditor's report made public Tuesday says the lottery agency should have accounted for an increase in profits for the fiscal year that ended in June 2018 by providing million in public education financing.The auditor also recommended that the state legislature amend the Lottery Act to ensure audits of the lottery's procurement process at least once every three years.The California State Lottery says in a written response accompanying the audit that it disagrees with the auditor's findings and that the agency gives the most money it can for education.“Lottery revenues and contributions to education were declining in the years prior to the passage of AB 142. The year before this change, the Lottery’s contributions to education were approximately .05 billion. In contrast, last year the Lottery provided .8 billion–the highest contribution to date. Had the Lottery utilized CSA’s interpretation of the law, it would have had to intentionally suppress sales for certain games, resulting in fewer dollars to public education," CA Lottery wrote. “The Lottery disagrees with CSA’s underlying conclusions of the value of its Fairs and Festivals program. The Lottery must continually raise brand awareness, incentivize and persuade California adults to voluntarily purchase Lottery products to meet its mandate to provide supplemental funding to education." 1623

SACRAMENTO, Calif. (AP) — California wants to give more benefits to people living in the country illegally as lawmakers in the state Senate advanced a 4 billion spending proposal Wednesday that would expand health coverage and tax credits for immigrants.The proposal would let low-income immigrants living in the country illegally get government-funded health coverage if they are 65 and older or between the ages of 19 and 25.The Senate's budget writing-panel also agreed to let some people who don't have Social Security numbers qualify for the state's earned income tax credit — a program for the poor that boosts people's tax refunds. The credit would apply to people who have an individual tax identification number, which includes immigrants in the country legally and illegally."These are people who are working, who are paying taxes," Senate Budget Committee chairwoman Holly Mitchell, D-Los Angeles, said. "That's a population we ought not leave behind."Some Republicans have opposed the proposals, especially since the state is also considering imposing a tax penalty on people in the country legally who refuse to purchase health insurance. But they likely don't have the votes to stop it.The proposals build on the spending plan Democratic Gov. Gavin Newsom released earlier this year that would extend Medi-Cal eligibility to young adults and double the tax credit to ,000 for every family with at least one child under the age of 6, making about 3 million households eligible to receive it.Newsom's proposal did not include expanding eligibility for the tax credit to immigrants. It's unclear how much money that would cost.Newsom wanted to pay for the expanded tax credit by selectively conforming California's tax code with portions of the tax changes President Donald Trump signed into law in 2017. That would have generated about .7 billion in new revenue for the state, mostly from businesses taxes.The Senate rejected those tax changes."We've just got to figure out where else to get that money from," Mitchell said.The Senate proposal is the first indication how the Democratic-controlled legislature will react to Newsom, who took office in January. The Assembly plans to finalize its budget proposal on Friday, which trigger negotiations with the Newsom administration.Lawmakers must pass a budget by June 15. If they don't, state law requires them to forfeit their salaries.The Senate plan does not deviate much from Newsom's proposal, adopting his revenue projections that include a .5 billion surplus.The Senate plan rejects a proposed new tax on most residential water bills to pay for drinking water improvements. Instead, they opted to use 0 million of existing tax dollars to help some struggling public water systems make improvements.In 2017, more than 450 public water systems covering more than half a million people failed to comply with safety standards. That number doesn't include people who use private wells or public systems with fewer than 15 connections, which are not regulated by the state.Newsom has argued for the tax, saying it would protect the money by making it harder for lawmakers to divert the spending elsewhere. But lawmakers from both parties have balked at implementing a new tax while the state has a projected surplus of .5 billion.Still, some Republicans were wary the tax could return once Democratic leaders conclude their budget negotiations next month."My issue is trust," said Sen. Jim Nielsen, R-Gerber. "Republicans have been duped, at their political peril, by placing and misplacing their trust." 3590

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom on Monday asked President Donald Trump to approve more housing vouchers as Trump's administration weighs in on the most populous state's massive homelessness problem.Members of the administration visited Los Angeles last week to view the city's sprawling homeless encampments after Trump told his staff to develop policy options to address the national crisis of people living on the streets.The Democratic governor and officials representing California cities and counties sent the Republican president a letter asserting that "shelter solves sleep, but only housing solves homelessness."Their letter asks Trump to provide 50,000 more housing vouchers through two existing programs and to increase the value of the vouchers to account for high rents. That would help "a significant proportion of our unsheltered population," including thousands of military veterans, they wrote.Los Angeles Mayor Eric Garcetti, a Democrat, invited Trump in July to tour the city's streets. Garcetti estimated that 36,000 people in the city are homeless on any given night, while thousands sleep on streets in other California cities.Newsom's office could not immediately say how much more the voucher proposal would cost.U.S. Housing and Urban Development officials did not immediately comment.The California officials also asked Trump to create a program to encourage landlords to work better with voucher holders."Pairing more vouchers with an increase in the fair market rent value of the vouchers, you have the ability to make a meaningful difference in the lives of so many who suffer on our streets," the officials wrote.They defended California's attempts to deal with poverty while contrasting the administration's "significant cuts" to public housing and community grant programs. They asked Trump to also work with Congress to increase funding for 300,000 new housing vouchers nationwide. 1945

Russian President Vladimir Putin boasted Thursday of new weaponry that will render NATO defenses "completely useless" -- and delivered a warning to the world about Russia's resurgent military might.In an annual address to the Russian parliament, the Kremlin leader said Russia had developed a new, nuclear-capable cruise missile with "unlimited" range that is capable of eluding air-defense systems.He also said Russia had developed an "invincible" missile that can deliver a warhead at hypersonic speed.Putin is running for reelection in mid-March on a platform that emphasizes his strength as a leader. And Thursday's speech was an occasion for the Russian President to showcase his country's strides in military technology."Russia still has the greatest nuclear potential in the world, but nobody listened to us," he said. "Listen now."One new development: The creation of a low-flying cruise missile capable of stealthy operation. Putin said the missile would be nuclear-powered and showed a video simulating its flight."Since the range is unlimited, it can maneuver as much as necessary," Putin said.Another military development, Putin said, was a weapon capable of flying "like a meteorite" at several times the speed of sound."It will be practically invulnerable," he said. "The speed will be hypersonic."Putin has long fumed over the decision of President George W. Bush to withdraw from the 1972 Anti-Ballistic Missile Treaty and deploy missile defenses. In his remarks, the Russian president said Moscow's new arsenal had been developed in response to Washington's moves."We are creating state-of-the-art systems for Russia's strategic weapons in response to the unilateral US withdrawal from the ABM Treaty," Putin said.Putin said Russia has developed other new weaponry, including unmanned underwater vehicles capable of moving at great speeds. The Russian President also responded to the Trump administration's recent Nuclear Posture Review, which calls for enhancing the flexibility of the US nuclear deterrent.The US review is "of great concern," Putin said, asserting that it potentially lowers the bar for the use of nuclear weapons.The United States remains the world's largest military spender. According to the Stockholm International Peace Research Institute, the US outspends Russia by a factor of around 10, according to its latest figures online.Russia's foreign policy has been much muscular in recent years, however. Putin deployed his air force to Syria in the autumn of 2015 to back the forces of Syrian President Bashar al-Assad, turning the tide of war in favor of the regime. Russia's Syria intervention has also become an occasion for Russia to showcase some of its latest conventional weaponry, including new aircraft.But in his remarks, Putin maintained that Russia's military posture is purely defensive in nature."We've never had an intention of attacking anybody," he said. "Russia will only retaliate if it is attacked."Russia remains "interested in normal constructive relationship with the EU and America," he added.  3070

SACRAMENTO, Calif. (AP) — California's Democratic legislative leaders have reached an agreement on the state budget. The plan would cover the state's estimated .3 billion shortfall while avoiding most of Gov. Gavin Newsom's proposed budget cuts to public education and health care services. The agreement is similar to a plan the state Senate released last week. That plan avoids the most painful cuts by delaying billions of dollars in spending into future years. The agreement reached Wednesday includes more money for homeless services and universities. Senate President Pro Tem Toni Atkins says the plan ensures full funding for public schools. 659

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