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SACRAMENTO, Calif. (AP) -- California Gov. Gavin Newsom and the Democratic-controlled state Legislature agreed on a budget deal that would to cover the state's estimated .3 billion budget deficit.Newsom and legislative leaders announced the agreement Monday. No details were immediately available about what's in the agreement.But in a joint statement, Newsom and the leaders of the Senate and Assembly say the agreement protects core services including education, health care and the social safety net.The full statement:“The COVID-19 global pandemic has caused a sudden and dramatic change in our nation’s and state’s economic outlook – and has had a cascading effect on our state budget. California was better positioned for this sudden change than at almost any time in its history, building out record reserves following years of responsible budgeting. Even still, the size and scope of the pandemic and the accompanying economic crisis have been unprecedented – leaving California to make hard choices and figure out how to sustain critical services with much less.“In the face of these challenges, we have agreed on a budget that is balanced, responsible and protects core services – education, health care, social safety net and emergency preparedness and response. This budget also invests in California small businesses harmed by the pandemic.“This agreement reflects our shared commitment to supporting schools, and is built on a foundation of equity – allocating billions of dollars for students most affected by learning loss and continuing our state’s leadership toward reforming the criminal justice system.“To be clear, this budget required some tough decisions and more work remains ahead. But they were necessary steps for keeping California on firm fiscal footing while we continue to meet the COVID-19 challenge, protect vital services and our most vulnerable communities, and build a strong fiscal bridge to a safe, speedy economic resurgence. Californians are doing their part – now it’s imperative for our federal partners to pass a responsible and comprehensive relief plan so states and local communities can continue to keep Americans safe while leading our national economic recovery.”California's revenue has tanked during the coronavirus pandemic as a statewide stay-at-home order forced many businesses to close and caused millions of people to lose their jobs. 2402

SACRAMENTO, Calif. (AP) — As the political battle to overturn California's gas tax increase intensified, the state transportation agency coordinated frequently with the public affairs firm working to block the repeal on behalf of unions, construction companies and local government groups, emails obtained by The Associated Press show.The California State Transportation Agency and Sacramento-based Bicker, Castillo & Fairbanks organized news conferences and other efforts to promote legislation to raise the tax to fund road and bridge repairs, which passed the Legislature in April 2017. After Gov. Jerry Brown signed it, the agency and firm continued planning events and coordinating social media posts as opponents gathered signatures for repeal.Three ethics experts interviewed by the AP said the emails raise concerns that the agency's relationship with the firm was too close, but none saw a clear violation of campaign laws, which prohibit the use of public resources for political campaigns.REPORT: Gas tax funds reportedly being used to campaign against Prop 6The repeal qualified for the November ballot in June. The firm, BCF, continues to work for the anti-repeal coalition, which includes the League of California Cities and the California Chamber of Commerce.Some communications between BCF and the state agency involved politics, according to more than 200 emails from 2017 and the first half of this year obtained by the AP through the California Public Records Act.Last fall, the agency and firm discussed opinion pieces "targeting" U.S. Rep. Darrell Issa and three other vulnerable Republicans in Congress. National Democratic leaders see those seats as key to winning control of the U.S. House.RELATED: Caltrans' gas tax freeway signs raise concerns with FedsIn January, a BCF partner, Kathy Fairbanks, communicated with the agency about designing a campaign logo for Proposition 69, a June ballot measure involving how gas tax proceeds are spent. And an undated memo shows the agency and firm also planned to coordinate efforts for several months through the primary.Loyola Law School Professor and government ethics expert Jessica Levinson said the relationship between the firm and agency appears too close, and the exchange about the congressmen crossed an ethical line.RELATED: California campaign watchdog investigates gas tax campaign"I mean way over the line," she said.BCF and agency officials said the communications were appropriate to educate the public about the law and that they ramped down coordination when the firm took an official campaign role."Clearly the agency was trying to coordinate with the campaign, and they shouldn't have," said Bob Stern, a government ethics expert who helped write California's campaign laws. But he added the actual amount of time government workers spent coordinating with the firm was likely minimal.Ann Ravel, who served on the Federal Election Commission and California's Fair Political Practices Commission, said the volume of emails raises questions about whether the agency aided one side.RELATED: Poll: Support strong for Proposition 6, which repeals California's gas tax"It seems like maybe it's a little too cozy, but I wouldn't say that it's clearly inappropriate," Ravel said.The legislation approved last year raised gas taxes by 12 cents per gallon and added diesel and vehicle fees to generate billion annually. Proposition 6 would repeal the increase and require voters approve gas and vehicle tax increases.The ballot measure is a centerpiece of California Republicans' efforts to boost turnout. GOP Congress members — including House Speaker Paul Ryan of Wisconsin, Majority Leader Kevin McCarthy of Bakersfield and Orange County's Mimi Walters — are among the repeal's biggest financial backers.Leaders of the repeal campaign have asked the federal government to investigate their claims that public resources have been used against them, based on emails and other documents that show local government workers discussing the repeal effort. Those documents are different from the ones the AP obtained. Opponents also circulated a video of a Caltrans contractor passing out anti-Proposition 6 fliers to drivers.The California Department of Transportation, known as Caltrans, falls under the state transportation agency.Melissa Figueroa, the agency's deputy secretary for communications and strategic planning, said it's the agency's job to inform the public about the impact of laws, and it has done so in the past, including for California's "motor voter" registration law."We're trying to be good stewards of taxpayer dollars," Figueroa said.The agency communicated much less frequently with the firm and stopped coordinating social media posts once the official anti-Proposition 6 campaign started, Figueroa said."Prior to that point, it was more of a collaborative effort because they were not in campaign mode," Figueroa said.BCF partner Brandon Castillo said the coalition registered as a fundraising committee in December and officially became a ballot measure campaign in March to support Proposition 69.BCF and other gas tax supporters routinely asked the agency for information, but they did not coordinate on creating campaign materials, Figueroa said. The agency also fulfilled numerous public records requests filed by gas tax opponents, she said.However, an undated memo outlining agency and coalition plans from March through the primary election shows the firm and the agency coordinated the timing of announcements and events. It details plans for the state to tout new construction projects while the coalition campaigned for Proposition 69.The agency and coalition coordinated their schedules, but the agency wasn't involved in campaigning for Proposition 69, Figueroa said.Castillo sent the email about op-eds focused on GOP candidates Sept. 20, 2017."Hey Melissa — We're penning opeds (sic) targeting the following congressional republicans," he wrote. He identified Reps. Jeff Denham, Steve Knight, Walters and Issa and asked Figueroa for information about projects funded by the gas tax increase in their districts.At the time, the coalition was working to persuade California's influential Republican congressional delegates to reject the repeal.Several days after Castillo's email, Figueroa suggested she or Brian Kelly, then the agency's leader, help find an author for the piece targeting Issa, considered the most vulnerable California incumbent before he decided against seeking re-election.Castillo responded saying coalition members were working on it and asked: "Do you have anyone in mind that could influence Republicans/Issa?"The documents obtained by the AP don't include further exchanges on the issue. In interviews, Castillo and Figueroa said the agency never suggested an author. Figueroa said she offered help because the op-ed would educate people in Issa's district.The piece ultimately was written by the mayor of Encinitas, a suburb north of San Diego, and ran the following month in the San Diego Union-Tribune. It touted projects in the district funded by the gas tax increase but didn't mention Issa.Levinson found the exchange surprising because it seemed to directly reference campaign activities."I don't want to say it's a smoking gun, but that is so much more explicit than I ever would have predicted they would be," she said.Prominent gas tax repeal supporters, including gubernatorial candidate John Cox and conservative activist Carl DeMaio, criticized the agency's activity."It's against the law, and it also shows that you can't trust them with money," DeMaio said. "I think that what you're seeing is just the tip of the iceberg." 7732

SACRAMENTO, Calif. (AP) — The enthusiasm both parties say exists in the electorate hasn't yet translated into early voting in California, where the percentage of people who have voted so far is similar to this time four years ago.Voters who are Republican, white and older are sending in their ballots early at a higher rate, which is typical in California elections, said Paul Mitchell of Political Data Inc., a firm that collects voter data from the counties.About 570,000 Californians had cast ballots as of early Monday. That's about 100,000 more than voted at this point in the 2014 election. About 12.5 million people received mail-in ballots, compared to 9.2 million four years ago.RELATED: What you need to know about voting this NovemberThe early numbers are just a fraction of the total voters expected to cast ballots by mail. California voters can send in their ballots through Election Day, on Nov. 6, and ballots are counted as long as they are received by the Friday after the election.In 2014 roughly 4.5 million people cast mail ballots."Right now it's hard to tell exactly how much we're measuring enthusiasm and how much we're measuring changes in the mechanics of the elections," Mitchell said.Monday is the deadline to register to vote, although people can register conditionally through Election Day. Their ballots will be treated like provisional ballots that are counted after the voter information is verified.Statewide, Republicans count for just a quarter of registered voters. But they make up 34 percent of early voters.RELATED: See your sample ballot for the November 2018 electionEighty percent of already returned mail ballots are from voters older than 50, even though they make up only about half of the electorate.Democrats need strong turnout to win U.S. House seats in Orange County and the Central Valley that have long been held by Republicans. They're banking on increased enthusiasm among voters angry at President Donald Trump or concerned about issues such as health care and immigration to drive turnout."For Democrats to win these competitive congressional races they need atypical," Mitchell said.Drew Godinich, a spokesman for the Democratic Congressional Campaign Committee, said Latinos and young voters are "outpacing expectations" in key districts and that it's too early to jump to conclusions about turnout."In these tight races, every vote counts — and Democrats have been organizing since last year to turn out our voters in these crucial midterms," he said in a statement.More than 19 million people registered to vote as of early September, a record in a California gubernatorial election.Mitchell predicts a 56 percent voter turnout. That would be higher than the 2014 election but lower than 2010. 2774

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 voters could decide in 2020 whether it should be easier for their local governments to raise taxes and issue bonds for affordable housing, road improvements and other public projects.A constitutional amendment proposed Wednesday would lower how much voter support communities need to raise money for infrastructure projects from two-thirds to 55 percent.Assembly Democrats say the current threshold allows a minority of voters to derail needed projects."These two-thirds thresholds are meant to enable a boisterous minority to impede progress," said Assemblyman Todd Gloria of San Diego.But taxpayer advocates said it would make things more expensive for homeowners in particular because it could lead to more parcel taxes, a flat tax levied on property owners."If this passes it's going to be devastating for property owners," said David Wolfe, legislative director for the Howard Jarvis Taxpayers Association.Constitutional amendments need support from two-thirds of lawmakers to land on the ballot, and the backing of a simple majority of voters to become law.Assemblywoman Cecilia Aguiar-Curry, a Democrat sponsoring the amendment, said she hopes to place it on the November 2020 ballot. That would coincide with the presidential election, which usually draws the highest voter turnout and millions more Democrats than Republicans.It would apply to projects including affordable housing, wastewater treatment, fire and police buildings, parks, public libraries, broadband expansion, hospitals and more.Local governments typically fund those projects through bonds or special taxes, like the parcel tax or a dedicated sales tax.The 55 percent threshold would still be higher than the simple majority communities need to raise general taxes, such as sales taxes not dedicated to special projects.Democrats highlighted projects that have narrowly missed the two-thirds threshold to make their case, such as a recreation center restoration in Millbrae and road repairs in Eureka."I have heard about deteriorating buildings, decrepit community facilities and our extreme lack of affordable housing," said Aguiar-Curry, a former mayor of a small rural California city. "This will empower communities to take action at the local level to improve the economies, neighborhoods and residents' quality of life."But Wolfe, of the taxpayers association, said the list of allowable projects is broad and could lead to a slew of new tax and bond proposals from cities and counties that could saddle taxpayers for years."These are pretty encompassing categories and there's no limit," he said. "You're talking about long-term debt that lasts for decades." 2688