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Loaded With “Comeback” Support, Lawmakers OK California’s $267 Billion Budget

Although California lawmakers approved the budget in time for the state reopening, “and while we proudly embrace the California comeback, this last year reminds us that we need to plan for the unexpected,” said Gov. Newsom.

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The California Legislature approved Gov. Gavin Newsom’s $267 billion state budget for fiscal year 2021-22. It is packed with support for programs and policy initiatives intended to drive California’s economy out of the downturn caused by the global COVID-19 pandemic. 

Cash that will be pumped into the general fund accounts for the major share of the budget, with a total of $96 billion directed to K-12 education and community colleges. That amount is based on minimum funding requirements set by Proposition 98, a ballot initiative that voters approved in 1998. 

Although California lawmakers approved the budget in time for the state reopening, “and while we proudly embrace the California comeback, this last year reminds us that we need to plan for the unexpected,” said Gov. Newsom.

“We must maintain a strong fiscal foundation that does not overcommit the state to long-term spending it cannot afford, which could lead to future cuts,” he said.

Newsom first proposed the budget in January of this year, and added some revisions in May, including funding to address issues affecting Black and Brown communities. Although lawmakers say they aim to prioritize long-term issues such as childcare and public health, Newsom says he wants to focus on reviving the job market by supporting the tourism industry and small businesses to amend California’s economic crisis. 

Newsom announced the full reopening of the state on June 15 at Universal Studios Hollywood as nearly half of California’s population is fully vaccinated. The state also lifted COVID-19 restrictions, including social distancing, mask requirements, and county tiers in most public settings statewide. The state continues to offer cash prizes to newly vaccinated residents as part of its “Vax for the Win” incentive program which started this month.

The state’s fiscal year starts, “with the largest surplus in California history,” Newsom said. “We’re using this once-in-a-generation opportunity to create an economic recovery that will leave nobody behind – with money going directly back to Californians, the nation’s largest small business relief programs, and unprecedented investments to address California’s most persistent challenges such as homelessness, climate change and equity in our education system.”

Assemblymember Chris Holden (D-Pasadena), who is a member of the California Legislative Black Caucus, shared the governor’s optimism about the newly approved budget. He highlighted the economic inequality accelerated by COVID-19 and its impact on low-income families in California. Holden expressed confidence that the budget makes investments in priorities that will address the state’s most important issues.

“This time last year, we feared the pandemic would destroy our economy and leave the state in a deep hole,” said Holden referring to the Legislature’s decision.

“Even though the outlook for beating the virus is in sight, we know families continue to struggle in this pandemic,” he said.

However, since the Legislature approved the budget, “we are in a much better position than we ever thought given the circumstances. We are making robust investments for priority issues including our economic recovery, education, and homelessness while contributing at a record level to our reserves,” said Holden.

Most Democratic lawmakers gave the budget a thumbs up, but some Republicans remained hesitant about the certainty of California’s economic recovery based on the newly approved budget.

Republican lawmakers claim that the state’s budget is a “placeholder budget” used by legislators to take advantage of loopholes in California’s Constitution.

California’s Constitution mandates that the Legislature pass the budget by midnight each year on June 15 — or lawmakers forfeit their salaries.

The day before the state’s reopening, Republican Sen. James Nielsen was vocal about his opposition to the newly approved budget in a Senate Budget and Fiscal Review Committee meeting. 

“This is a fake budget. It’s a feel-good budget. It’s a ‘let us get paid’ budget. But, what we’re voting on is not going to be the [real] budget,” said Nielsen.

“We already know what they’re voting on today, it’s kind of a fraud on the people to make them think, ‘Oh, look at all these wonderful things we’re getting,’” said Nielsen.

The pushback from Republican lawmakers raised questions about the state’s final budget as Newsom and California legislators negotiate and modify how funds will be allocated.  This process has to be completed by July 1, when the budget goes into effect. 

Last week, Newsom also eliminated executive orders he implemented at the start of the COVID-19 pandemic to prevent the spread of the coronavirus.  New executive orders he signed lifted the stay-at-home order and the county tier system following the approval of the budget and the reopening of the state.

The California Department of Public Health also released a new order that removed restrictions in public spaces, including at schools and during major events.

As of June 15, people in California are no longer required to wears masks or social distance. But state officials recommend that non-vaccinated people still protect themselves in public places to prevent infection.

California Black Media’s coverage of COVID-19 is supported by the California Health Care Foundation.

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Oakland Post: Week of June 18 – 24, 2025

The printed Weekly Edition of the Oakland Post: Week of June 18 – 24, 2025

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OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

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Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.
Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.

By Rev. Dr. Lawrence E. VanHook

As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.

Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.

Our community is hurting. Things have to change.

The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.

I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.

SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.

For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.

This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.

This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.

Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.

Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.

About the Author

Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.

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Air Quality Board Rejects Two Rules Written to Ban Gas Water Heaters and Furnaces

The proposal would have affected 17 million residents in Southern California, requiring businesses, homeowners, and renters to convert to electric units. “We’ve gone through six months, and we’ve made a decision today,” said SCAQMD board member Carlos Rodriguez. “It’s time to move forward with what’s next on our policy agenda.”

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By Antonio‌ ‌Ray‌ ‌Harvey‌
California‌ ‌Black‌ ‌Media‌ 

Two proposed rules to eliminate the usage of gas water heaters and furnaces by the South Coast Air Quality Management District (SCAQMD) in Southern California were rejected by the Governing Board on June 6.

Energy policy analysts say the board’s decision has broader implications for the state.

With a 7-5 vote, the board decided not to amend Rules 1111 and 1121 at the meeting held in Diamond Bar in L.A. County.

The proposal would have affected 17 million residents in Southern California, requiring businesses, homeowners, and renters to convert to electric units.

“We’ve gone through six months, and we’ve made a decision today,” said SCAQMD board member Carlos Rodriguez. “It’s time to move forward with what’s next on our policy agenda.”

The AQMD governing board is a 13-member body responsible for setting air quality policies and regulations within the South Coast Air Basin, which covers areas in four counties: Riverside County, Orange County, San Bernardino County and parts of Los Angeles County.

The board is made up of representatives from various elected offices within the region, along with members who are appointed by the Governor, Speaker of the Assembly, and Senate Rules Committee.

Holly J. Mitchell, who serves as a County Supervisor for the Second District of Los Angeles County, is a SCAQMD board member. She supported the amendments, but respected the board’s final decision, stating it was a “compromise.”

“In my policymaking experience, if you can come up with amended language that everyone finds some fault with, you’ve probably threaded the needle as best as you can,” Mitchell said before the vote. “What I am not okay with is serving on AQMD is making no decision. Why be here? We have a responsibility to do all that we can to get us on a path to cleaner air.”

The rules proposed by AQMD, Rule 1111 and Rule 1121, aim to reduce nitrogen oxide (NOx) emissions from natural gas-fired furnaces and water heaters.

Rule 1111 and Rule 1121 were designed to control air pollution, particularly emissions of nitrogen oxides (NOx).

Two days before the Governing Board’s vote, gubernatorial candidate Antonio Villaraigosa asked SCAQMD to reject the two rules.

Villaraigosa expressed his concerns during a Zoom call with the Cost of Living Council, a Southern California organization that also opposes the rules. Villaraigosa said the regulations are difficult to understand.

“Let me be clear, I’ve been a big supporter of AQMD over the decades. I have been a believer and a fighter on the issue of climate change my entire life,” Villaraigosa said. “But there is no question that what is going on now just doesn’t make sense. We are engaging in regulations that are put on the backs of working families, small businesses, and the middle class, and we don’t have the grid for all this.”

Rules 1111 and 1121 would also establish manufacturer requirements for the sale of space and water heating units that meet low-NOx and zero-NOx emission standards that change over time, according to SCAQMD.

The requirements also include a mitigation fee for NOx-emitting units, with an option to pay a higher mitigation fee if manufacturers sell more low-NOx water heating and space units.

Proponents of the proposed rules say the fees are designed to incentivize actions that reduce emissions.

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