May Revise reactions + Rob Bonta endorses in the U.S. Senate race (again)

Good morning and welcome to the A.M. Alert!

LEGISLATIVE LEADERS RESPOND TO NEWSOM’S MAY REVISE BUDGET

On Friday, California Gov. Gavin Newsom held court with the press and unveiled his 2023-24 May Revise budget.

Unsurprisingly, reactions were mixed.

On the Democratic side, Senate President pro Tem Toni Atkins and Sen. Nancy Skinner, who chairs the Senate Budget and Fiscal Review Committee, issued a joint statement acknowledging that this budget will be challenging.

Atkins and Skinner had released a “Protect Our Progress” plan that was at odds with Newsom’s January proposal — calling for a tax increase on major corporations, for example — and the two said that they will be updating their plan “to take into account the latest economic data, and remain committed to preserving transit, broadband, and other infrastructure investments, and addressing our long-term child care and homelessness needs.”

Assembly Speaker Antony Rendon, meanwhile, said in a statement that “public transit is the vanguard of California’s fight against climate change, and it will be important to restore the transit capital funding the governor and Legislature approved last year.”

Assemblyman Phil Ting, who chairs the Assembly Budget Committee, said in a statement that the state’s robust general fund and rainy day fund “have positioned our state well to weather downturns.”

“At the same time, we should also support the economy by stabilizing the child care industry and restoring the infrastructure funding agreed to last year for public transit. Investing in both sectors will help people go to work,” Ting said.

As for Republicans, reactions ranged from skeptical to critical.

“Governor Newsom pointed out numerous economic uncertainties, but he is still assuming no recession. Senate Republicans hope he is right, but we are concerned that his crystal ball may be cloudy,” said Sen. Roger Niello, who vice-chairs the Senate Budget and Fiscal Review Committee. “We would recommend that the state take a more sustainable path on spending, and reduce the desire to borrow during this time of high and increasing interest rates.”

Assembly Republican Leader James Gallagher released a statement that “only Gavin Newsom could turn a $100 billion budget surplus into a $31 billion deficit in less than a year.”

“His approach to closing this budget gap is more of the same. His cuts to the drought programs are dangerous, his fiscal ‘gimmicks’ are shortsighted, and his words about good government and efficiency are yet another empty promise,” Gallagher said.

The clock is ticking for Newsom and lawmakers; the Legislature has until June 15 to pass a budget.

BONTA ENDORSES PORTER, LEE, SNUBS SCHIFF

There’s one Democrat in the race to replace retiring U.S. Sen. Dianne Feinstein that California Attorney General Rob Bonta is not endorsing: Burbank Congressman Adam Schiff.

Earlier this year, Bonta issued an endorsement for Oakland Congresswoman Barbara Lee. Then, last week, he issued a second endorsement for Irvine Congresswoman Katie Porter.

“Katie doesn’t back down. She is the people’s champion, ensuring transparency and holding the powerful accountable,” Bonta said in a statement.

Porter’s campaign touted the endorsement, releasing a statement from the candidate about her working relationship with the attorney general.

“Together, we’ve taken on Big Oil and fought to protect consumers who have been cheated by predatory special interests,” Porter said.

That leaves Schiff, whose claim to fame includes prosecuting former President Donald Trump during his first impeachment, out in the cold.

Coinciding with the endorsement, Porter’s camp released a new survey from David Binder Research winning the support of 30% of non-Republican voters, compared to Schiff’s 29% and Lee’s 9%.

In a head-to-head contest between Porter and Schiff, the survey showed Porter with 37% of likely voters, a double-digit lead over Schiff’s 26%, with 18% saying they were undecided.

QUOTE OF THE DAY

“California’s budget deficit has grown to $32 billion. That’s the same amount Julie Su squandered in unemployment fraud.”

- Rep. Kevin Kiley, R-Rocklin, via Twitter.

Best of The Bee:

• Gov. Gavin Newsom on Friday released a $306.5 billion California budget with a growing shortfall he plans to address by shifting money and retaining previously-proposed cuts and deferrals — all with the goal of maintaining social safety net programs and other policy priorities, via Lindsey Holden.

• Gov. Gavin Newsom’s latest budget moves up the issuance of food benefits for older undocumented Californians after months of criticism from advocates, via Mathew Miranda.

• Gov. Gavin Newsom is restoring some proposed cuts to funding for foster care youth, in response to bi-partisan pressure and criticism from advocates, via Mathew Miranda.

• Gov. Gavin Newsom’s outlook for California’s economy: Slow growth, less inflation, but higher unemployment and a lot of uncertainty, via David Lightman.

• Despite a larger than projected shortfall in the 2023-24 budget, California Gov. Gavin Newsom on Friday reaffirmed substantial investments in addressing homelessness and housing in the state, via Andrew Sheeler.