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SACRAMENTO, Calif. (AP) — California lawmakers and Gov. Gavin Newsom broadly agree on a proposed 3 billion state budget that would spend more on immigrants and the poor by expanding tax credits, health care and child care.But they're still debating how far those program expansions should go and how best to pay for them.They're now in the final days of negotiations ahead of a June 15 deadline for lawmakers to approve the budget or stop getting paid.California law requires legislation to be in print for 72 hours before lawmakers take a vote, which means any deal would have to be struck by Wednesday.TAX CREDITNewsom wants to spend roughly 0 million to expand a tax credit program for low-income people with children under the age of 6. The program is known as the earned income tax credit, but Newsom prefers to call it a "cost-of-living refund."His plan would increase the credit to ,000 a year and allow more people to access it. He wants the state to pay it out on a monthly basis, something no state has won federal approval to do.He acknowledged it might not happen this year if California can't win approval from the Trump administration.The Senate and Assembly want to expand the credit even further by allowing people living in the country illegally to claim it. Newsom has suggested that would be too expensive.TAX LAW CHANGESTo pay for a tax credit expansion, Newsom wants California to adopt some of the changes to the federal tax code signed in 2017 by President Donald Trump. California is one of three states that haven't yet conformed.Newsom wants to generate about billion a year through changes that would mostly raise taxes on businesses. Lawmakers have not included the changes in their version of the budget and want to use existing tax dollars to cover the expanded program. State officials have predicted a surplus of .5 billion.Changing the tax code would require a two-thirds vote in each chamber, and many lawmakers are skittish to approve a tax increase.Newsom tried to ease those concerns by getting the head of the California Taxpayers Association to publicly declare his organization is neutral on the proposal.HEALTH CARE FOR IMMIGRANTSCalifornia Democrats say they want to reduce the state's uninsured rate to zero, a goal that would require opening Medicaid — the joint federal and state health insurance program for the poor and disabled — to people living in the country illegally.Newsom's proposal would do that for adults 19 to 25. The state Senate went a step further and expanded the plan to include people 65 and older.Newsom opposes the Senate plan, saying it puts too much pressure on the general fund.INDIVIDUAL MANDATENewsom wants to spend nearly 0 million to make California the first state to expand subsidies for premiums under the federal health care law to people who make at least six times the U.S. poverty level.That would make a family of four earning up to 0,600 a year eligible for help.To pay for it, Newsom wants to tax people who don't have health insurance.The Senate wants to double Newsom's proposed spending to expand subsidies for people making less than twice the federal poverty limit. They already get help from the federal government and the state Senate's proposal would also give them state dollars.The Senate proposal also calls for keeping the tax on the uninsured, but it does not tie that money to subsidies.HEALTH PROVIDER TAXA health provider tax would affect companies that manage the California Medicaid program. Those companies, called managed care organizations, pay a tax for every person they enroll.The tax could bring the state about .8 billion next year, but it's set to expire June 30.California would need permission from the Trump administration to extend the tax. Newsom is not sure that will happen, so he did not include the money in his budget proposal. The state Senate and Assembly did.DRINKING WATERActivists say more than 1 million Californians don't have clean drinking water.Newsom wants to impose a 95-cent tax on most monthly residential water bills, as well as fees on dairies, animal farms and fertilizer sellers, to help water districts pay for improvements and boost supplies.The Senate has rejected the tax that Newsom estimates would generate 4 million a year. The Senate does want to clean up water systems and would use existing money to do it.The Assembly says lawmakers should delay action until later in the year.DIAPER AND TAMPON TAXNewsom and the Senate want to exempt diapers, tampons and other menstrual hygiene products from the state sales tax for two years. Assembly lawmakers say the tax exemption should last a decade.PAID FAMILY LEAVENewsom and the Senate want to expand paid family leave from six weeks to eight weeks, beginning July 1, 2020. The Assembly did not put the expansion in its budget proposal, preferring to debate the issue later this year. 4911

SACRAMENTO, Calif. (AP) — Companies affiliated with Gov. Gavin Newsom received nearly million in loans designed to help small businesses survive the pandemic. Newly released information from the federal government reveals more than eight times the amount of loans originally reported. The governor put his business holdings into a blind trust before he took office and so would not have participated in the decision. But the disclosure comes as he already is battling criticism that he is elitist despite his protests that he is a proud small businessman and entrepreneur. Nine businesses tied to Newsom’s PlumpJack Group split the nearly .9 million in loans. The watchdog group Project On Government Oversight says it was a surprisingly large loan. 762

SACRAMENTO, Calif. (AP) — California had a near-record number of daily coronavirus deaths as pandemic cases strained hospitals and reduced normal intensive care space to a record low. Yet Gov. Gavin Newsom said Wednesday that there are hints residents may be heeding medical officials’ increasingly desperate calls for caution during the holidays. The transmission rate has been slowing for nearly two weeks. The rate of positive cases reached a new high of 12.3% over a two-week period but was starting to trend down. Yet the state's worst surge is taking a horrendous toll that threatens to only worsen if people gather during the holidays. 650

SACRAMENTO, Calif. (AP) — California lawmakers are abandoning a proposal by Gov. Jerry Brown to shield electrical utilities from some financial liability for wildfires. For now.There's not enough time to settle the contentious and complex issues involved before the legislative session ends Aug. 31, Napa Democratic Sen. Bill Dodd told the San Francisco Chronicle on Saturday."It was a tough fight ... so we are pivoting," said Dodd, co-chairman of the legislative conference committee on wildfire preparedness and response.Brown's proposal would have let judges decide how much utilities pay when their equipment causes wildfires. It would have softened a legal standard that generally holds them entirely responsible for the costs of fires triggered by their power lines or other infrastructure.Current California law holds utilities responsible for damage from fires ignited by their equipment even if they have followed safety rules.Those who want to change the law fear utilities could go bankrupt or significantly raise prices for California residents as climate change makes wildfires even more severe.Lawmakers raised concerns about Brown's plan at an Aug. 9 hearing on the proposal. They said it would give utility companies too much protection without ensuring they safely maintain equipment.The issue was raised last fall when Pacific Gas and Electric Co. launched a lobbying campaign with other big utility companies to change the system.It's unlikely they'll drop their fight but they will lose a key ally in Brown, whose term ends in January. 1574

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

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