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Gavin Newsom’s California budget rises to $213 billion as projected surplus grows

Gov. Gavin Newsom wants to spend $1 billion on programs to help the homeless in a $213 billion revised budget he released on Thursday.

The updated proposal unveiled Thursday builds on the $209 billion budget the governor laid out in January. It keeps in place spending to expand health coverage for undocumented immigrants and $1.75 billion to spur housing construction.

Newsom still wants to fine Californians who don’t buy health insurance and raise taxes to clean up drinking water in communities with unhealthy water sources.

His revised proposal adds $130 million for child care — mostly from taxes raised on legal marijuana sales — and doubles a proposed tax credit for families with children under 6 from $500 to $1,000. It also would eliminate sales taxes on diapers and tampons.

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Newsom’s budget adds an extra $150 million in grants for communities to build programs that help the homeless, setting aside a total of $650 million for those efforts. It has extra money that would help the homeless through college programs, workforce grants and mental health resources. All together, the budget has $1 billion for homeless programs.

Following a deadly shooting at a Southern California synagogue, Newsom also added $15 million for security to prevent hate crimes at places of worship and other nonprofit organizations.

Newsom and his team are predicting a $21.5 billion surplus, up slightly from the $21 billion they predicted in January. If trends hold, the state would have a $16.5 billion rainy day fund by next year to help it weather a recession.

The budget includes $81.1 billion for education spending.

“This budget fortifies California’s fiscal position while making long-sighted investments to increase affordability for California families,” Newsom said in a written statement.

His updated proposal kicks off the final weeks of negotiations with the Legislature ahead of the June 15 deadline for lawmakers to pass a spending plan for the 2019-20 fiscal year.

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Sophia Bollag covers California politics and government. Before joining The Bee, she reported in Sacramento for the Associated Press and the Los Angeles Times. She grew up in California and is a graduate of Northwestern University.
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