Governor Gavin Newsom unveils his first budget plan for the state since being elected

SACRAMENTO, Calif. (KGO) -- Just four days into his term, Governor Gavin Newsom released his $209-billion budget plan for the state. It would expand public spending for schools and healthcare and to fight homelessness.

Newsom's first state budget proposal is $8-billion bigger than the previous year's but he wants it spent wisely.

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"The message we are advancing here is discipline," he said.

In Newsom's mind, that means paying down more than $13.5 billion in debt and back pension contributions. Also, putting aside $4.8 billion for the state's rainy day fund.

"We are going to more than quadruple that safety net reserve if the budget is approved," Newsom said.
K through 12 education would get $80.7 billion-- an all-time high. The budget also tackles homelessness, which is a huge problem in parts of the Bay Area, by putting up $500-million for local governments to build new homeless shelters that Newsom calls Navigation Centers.

"Where we bring social services into the shelters. So it's a new type of shelter," Newsom said.

But, Newsom's plan will be closely examined by leaders in the legislature. Republican Assemblyman Jay Obernolte of Big Bear Lake liked the Governor's tone but didn't like plans to expand Medi-Cal enrollment.

"We have an obligation to fix the system we already have before we expand eligibility for it," Obernolte said.
Even Democrats like Assemblyman Phil Ting of San Francisco are a little wary.

"The devil is in the details. We have to go through each of these items not just at a high level or broad brush stroke but how the money will actually be spent."

The budget also anticipates losing $25-billion if a recession should start.

RELATED: California Gov. Gavin Newsom offers $144 billion budget, ups savings

This is just the beginning of the process. After negotiating with the legislature, the governor will revise the budget in May. The thing that's likely to affect you most in your everyday life isn't specifically in the budget.

Newsom says under his administration, the DMV will begin taking credit cards.
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