Kids, Housing and Rainy Day Fund Are Winners in State Budget Deal

Democratic leaders in the Legislature and California Gov. Jerry Brown have reached an agreement on a $122 billion general fund budget.

Senate budget chair Mark Leno, acknowledging that Democrats didn't get everything they wanted, said deals are always a compromise.

“Working with the administration, we have been able to restore and improve upon not only our investments in the social safety net, which was completely tattered through the depths of the recession, but also ... adjust public policy to meet a better end as well," Leno said.

The budget deal would put an additional $2 billion into the state’s rainy day fund. It also provides a rate increase for child care workers and funds about 9,000 additional full-day state preschool slots to be phased in over four years.

Child care was a major priority of the Legislative Women's Caucus. The chair, Sen. Hannah-Beth Jackson, says the caucus is pleased with the funding.

"An investment in child care is prudent, keeps children learning and parents working, and prevents costly academic interventions later on," she said in a statement.

Additionally, the deal repeals the decades-old maximum family grant rule, which limited welfare aid for children.

The budget compromise also includes $400 million for affordable housing. But the money is contingent on lawmakers reaching an agreement on controversial legislation put forward by Brown that would remove local oversight on some development projects.

Assembly Budget Committee Vice Chair Jay Obernolte says Republicans are pleased with the deposit into the rainy day fund and that spending was reined in.

"However, the Department of Finance projects that even at our current level of spending, the state will have a $4 billion budget deficit by 2019," he said in a statement. "Failure to address this looming problem is not good governance. California should have balanced budgets for both today and for tomorrow.”

The deal will now move to the full Assembly and Senate for approval. The Legislature must pass a final budget by next Wednesday.