Gov. Gavin Newsom signs California budget to close major deficit and provide spending for year

California Gov. Gavin Newsom on Saturday officially signed the 2024 budget, closing a roughly $47 billion deficit for the state.

Newsom’s signature was expected as he and Democratic lawmakers agreed on a spending plan last week. California’s Legislature approved most of the bills that make up the budget Wednesday night.

The $298 billion spending plan includes many of Democratic priorities such as funding for homelessness grants, in-home supportive services for undocumented immigrants and affordable housing programs. It also dips into the reserves, cuts state operations by nearly 8%, delays a new health care worker minimum wage law and pulls back California Department of Corrections and Rehabilitation spending by $750 million.

“This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day,” Newsom said in a written statement on Saturday.

Last week’s agreement between legislative leaders and Newsom follows some disagreement over spending priorities. The governor and both leaders of the Legislature — Assembly Speaker Robert Rivas, D-Hollister, and Senate President Pro Tem Mike McGuire, D-Healdsburg — had been apart on some issues. The projected deficit had made negotiations even more challenging.

The budget will provide spending for the 2024-25 fiscal year. It is set to begin Monday.