Cinema News: Big state budget questions linger about crime, Medi-Cal, Delta tunnel

June 23, 2025 | View in browser

By George Skelton

Capitol Journal Columnist

California really does still have a Legislature, even if you haven't been reading or hearing much about it. In fact, it's currently making a ton of weighty decisions.

They'll affect many millions of Californians — with a gamut of new laws and hefty spending.

But the lawmakers' moves have been slipping under the news radar because of our focus on more compelling non-Sacramento events — including protests against overzealous federal immigration raids in Los Angeles, President Trump's power trip of calling up the California National Guard over Gov. Gavin Newsom's objections and Democratic Sen. Alex Padilla's being shoved to the floor and handcuffed for simply trying to ask Homeland Security Secretary Kristi Noem a question.

Plus congressional wrangling over Trump's "Big Beautiful" ugly, debt-hiking bill — and the eruption of a Middle East war.

Meanwhile, it's one of the busiest and most important periods of the year in the state Capitol. This is budget time, when the Legislature and governor decide how to spend our tax dollars.

The Legislature passed a $325-billion so-called budget June 13, beating its constitutional deadline by two days. If it hadn't, the lawmakers would have forfeited their pay. But although that measure counted legally as a budget, it lacked lots of details that still are being negotiated between legislative leaders and Newsom.

The final agreements will be tucked into a supplementary measure amending the main budget bill. That will be followed by a long line of "trailer bills" containing even more policy specifics — all currently being hammered out, mostly in back rooms.

The target date for conclusion of this Byzantine process is Friday. The annual budget will take effect July 1.

Some budget-related issues are of special interest to me and I've written about them previously. So, the rest of this column is what we call in the news trade a "follow" — a report on where those matters stand.

Prop. 36

For starters, there's Proposition 36 funding.

Californians cast more votes for Proposition 36 last year than anything else on the ballot. The measure passed with 68% of the vote, carrying all 58 counties.

Inspired by escalating retail theft, the initiative toughened penalties for certain property and hard-drug crimes, such as peddling deadly fentanyl. But it offered a carrot to drug-addicted serial criminals. Many could be offered treatment rather than jail time.

Proposition 36 needs state money for the treatment, more probation officers to supervise the addicts' progress and additional law enforcement costs. The measure's backers estimate a $250-million annual tab.

Newsom, however, was an outspoken opponent of the proposition. He didn't provide any funding for it in his original budget proposal and stiffed it again last month when revising the spending plan.

But legislative leaders insisted on some funding and agreed on a one-time appropriation of $110 million.

Woefully inadequate, the measure's backers contend. They're pushing for more. But some fear Newsom might even veto the $110 million, although this seems doubtful, given the public anger that could generate.

Greg Totten, chief executive of the California District Attorneys Assn., which sponsored the initiative, says more money is especially needed to hire additional probation officers. Treatment without probation won't work, he insists.

Sen. Catherine Blakespear (D-Encinitas) is trying to change the $110-million allocation mix. There's nothing earmarked for county sheriffs who now are handling lots more arrests, she says.

"I want to make sure we uphold the voters' wishes and are getting people into drug treatment," Blakespear says. "This passed by such a high percentage, it should be a priority for elected officials."

Sen. Tom Umberg (D-Santa Ana) predicts the Legislature will still be fiddling with the budget until it adjourns in September and vows: "I'll continue to advocate for adequate funding for 36." He asserts the budget now being negotiated won't hold up because of chaos under Trump, who's constantly threatening to withhold federal money due California.

Healthcare for immigrants

Another sticky issue is state-provided healthcare for immigrants living here illegally.

Newsom and the Democratic-controlled Legislature decided a few years ago to generously offer all low-income undocumented immigrants access to Medi-Cal, California's version of federal Medicaid for the poor.

But unlike Medi-Cal for legal residents, the federal government doesn't kick in money for undocumented people. The state foots the entire bill. And it didn't set aside enough. Predictably, state costs ran several billion dollars over budget.

The Newsom administration claims that more adults enrolled in the program than expected. But, come on! When free healthcare is offered to poor people, you should expect a race to enroll.

To help balance the books, Newsom proposed $100 monthly premiums. The Legislature reduced that to $30. They both agreed to freeze enrollments for adults starting Jan. 1.

The Legislature also wants to freeze Medi-Cal enrollment for even more people who are non-citizens: those with what it considers "unsatisfactory immigration status." What does that mean? Hopefully it's being negotiated.

Delta tunnel

And there's the matter of the governor's proposed water tunnel in the Sacramento-San Joaquin River Delta. Newsom tried to squeeze the controversial issue into the budget process, although it had nothing to do with the budget. But as a budget trailer bill, it could avoid substantive public hearings in the Legislature.

The governor wants to "fast-track" construction of the $20-billion, 45-mile tunnel that would transmit more Northern California water to Southern California. Delta farmers, local residents and coastal salmon interests are adamantly opposed. Fast-track means making it simpler to obtain permits and seize property.

Legislative leaders told the governor absolutely "No": come back later and run his proposal through the ordinary committee process. Don't try to fast-track the Legislature.

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