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Governor, lawmakers reach deal on new California budget

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Governor, lawmakers reach deal on new California budget

(Rich Pedroncelli / Associated Press)
(Rich Pedroncelli / Associated Press)
(Rich Pedroncelli / Associated Press)

With six days left before the deadline, Gov. Jerry Brown and top lawmakers have agreed on a new state budget that would increase funding for child care and repeal a controversial limit on welfare benefits.

The budget would also set aside $400 million for affordable housing, which would only be spent if a separate deal can be reached on streamlining the process for new construction.

Lawmakers are scheduled to convene a hearing on Thursday night to begin approving the new spending plan .

The possibility of another economic downturn has loomed over negotiations, and the budget deal includes an extra deposit of $2 billion into the state's rainy-day fund.

There's also more money for social services. Because California is increasing the minimum wage , rates paid to state-subsidized child care providers are also being ramped up. The extra funding is expected to total $500 million annually starting in 2019.

In addition, the budget would repeal a rule known as the maximum family grant, which prevents mothers from receiving additional benefits if they have another child while on welfare.


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