California Policy and Politics Saturday

Newsom, California Legislature reach $351.7-billion budget deal -- Gov. Gavin Newsom and Democratic lawmakers struck a $351.7-billion budget deal that taps an income-tax windfall to avert major cuts while boosting childcare and affordable housing programs. The plan increases revenue through taxes on corporations, software and managed-care organizations, saves billions in a new reserve account, and asks voters to expand California’s rainy day fund in November. Taryn Luna in the Los Angeles Times$ Stephen Hobbs in the Sacramento Bee$ Kaitlyn Schallhorn in the Orange County Register$ -- 6/27/26

State Superintendent will no longer manage California schools under deal Newsom cuts with Legislature -- The department’s control will shift in January to a new Director of Education, who will report to the governor, under a deal announced Friday as part of budget negotiations between legislative leaders and Gov. Gavin Newsom. The Legislature is expected to approve the plan, along with the 2026-27 state budget bills, on Monday or Tuesday. John Fensterwald EdSource -- 6/27/26

 

Newsom’s populist pivot runs into a wealth-tax fight at home -- Gavin Newsom is using a proposal to tax the ultra-wealthy to stake out economic populist ground in the emerging Democratic presidential primary. But first he’ll have to get past a levy on billionaires he opposes in California, and backlash from the left in his home state. Melanie Mason and Jeremy B. White Politico -- 6/27/26

 

Voters nearly had a chance to gut the ‘mansion tax.’ Now, L.A. approves $544 million in spending -- The spending plan, set to be distributed during the 2026 fiscal year, is the largest allocation of Measure ULA funds so far — roughly 28% higher than last year’s budget. It calls for $381 million toward affordable housing programs and $163.3 million for homelessness prevention programs. Jack Flemming in the Los Angeles Times$ -- 6/27/26

Bianco’s silence on primary results tests GOP unity in tough governor’s race -- More than three weeks after Republican Chad Bianco placed a distant fourth in the crowded primary, the Riverside County sheriff has yet to formally acknowledge his loss or back rival Steve Hilton, who will face Becerra in the November election. Ben Paviour in the Sacramento Bee$ -- 6/27/26

Quicker count, bigger turnout: L.A. County certifies 2026 primary election ballots -- Twenty-four days after the polls closed on election day, Los Angeles County officials have certified the results from the 2,227,461 ballots cast. Despite questions raised about the pace of the vote count, a Times analysis found ballots this June were tallied faster than in previous cycles. Vanessa Martínez in the Los Angeles Times$ -- 6/27/26

 

The oil company pivoting to carbon storage and data centers -- California’s biggest oil producer is trying to become a carbon storage company. And maybe a data center company, too. Camille Von Kaenel, Alex Nieves Politico -- 6/27/26

California is getting ready to increase a health insurance tax. Will it affect your premium? -- A family of four could pay $400 more a year in premiums — but the tax still needs federal approval from the Trump administration to take effect. Ana B. Ibarra Calmatters in the Los Angeles Times$ -- 6/27/26

An explosion scare, then a warehouse fire: Californians want answers about hazardous chemicals -- The Boyle Heights and Garden Grove emergencies are raising questions about emergency planning, inspections and accountability. The real test of California’s chemical safety system comes after the smoke clears, experts say. Alejandra Reyes-Velarde Calmatters -- 6/27/26

California Forever, aided by ex-Sacramento mayor, push Newsom, Leg to fast track megacity -- Supporters of an initial plan to create a megacity in Solano County are pressuring Gov. Gavin Newsom and the Legislature to fast-track development via legislation, claiming failure to move quickly would cause California to lose a major shipyard employer and hundreds of thousands of jobs to Texas. Lia Russell in the Sacramento Bee$ -- 6/27/26

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L.A. finally reaches a deal for recovering its Olympic costs -- Los Angeles officials have reached a tentative agreement with organizers of the 2028 Olympic Games laying out the process for reimbursing the city for potentially hundreds of millions of dollars in public services. David Zahniser in the Los Angeles Times$ -- 6/27/26

Marketplace

Meta asks California lawmakers for shield from child harm penalties -- Social media giant Meta is pushing California state lawmakers to shield it from pending legislation that would increase legal penalties in child-harm cases, according to two people familiar with the effort. Tyler Katzenberger Politico -- 6/27/26

Workplace

Cisco to lay off more than 400 workers in California -- Cisco’s layoffs in California impacted workers in its San José, Milpitas and San Francisco offices. The company cut a variety of roles in software engineering, product management, design, business operations and other areas, the notices show. Queenie Wong in the Los Angeles Times$ -- 6/27/26

Education

What California’s all-gender restroom law means for Sacramento schools this year -- California schools are required under state law to have at least one all-gender restroom on each school site by July 1. Passed in 2023, Senate Bill 760 was signed by Gov. Gavin Newsom as part of a set of legislation supporting the state’s LGBTQ+ community. Chaewon Chung in the Sacramento Bee$ -- 6/27/26

San Jose school district weighs buying downtown tower for employee housing -- A South Bay school district that closed five elementary schools earlier this year because of declining enrollment is exploring whether to buy a 337-unit downtown San Jose condo tower and turn it into housing for its workers. George Avalos in the San Jose Mercury$ -- 6/27/26

Also

Search Teams From California, Virginia and Florida Head to Venezuela -- The groups that include firefighters, doctors and structural engineering specialists began arriving on Friday to join the race to find survivors. Billy Witz and Shawn Hubler in the New York Times$ -- 6/27/26

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Trump Threatens 100% Tariff on European Countries That Impose Digital Services Tax -- Threat comes a day after European Union approved tariff reductions on U.S. goods. Gavin Bade and Kim Mackrael in the Wall Street Journal$ -- 6/27/26

How the Reflecting Pool Turned Green: Missing ‘Bubblers’ and a Rush Job -- Bulky “nanobubbler” machines were carted off ahead of a promotional event for President Trump’s Ultimate Fighting Championship birthday party. Maxine Joselow and Luke Broadwater in the New York Times$ -- 6/27/26

JD Vance Compares Himself to Richard Nixon and Plays Down Watergate -- Vice President JD Vance minimized the Watergate scandal, stating it would be a “12-hour news story” today. Natalie Andrews in the Wall Street Journal$ Emily Davies in the New York Times$ -- 6/27/26

Trump Administration to Investigate California’s Powerful Coastal Agency -- Howard Lutnick, the commerce secretary, has accused the state of “environmental extremism” amid a federal push for oil production. Soumya Karlamangla in the New York Times$ -- 6/27/26