SACRAMENTO, CA — Racing to meet tonight’s constitutional deadline, Assembly Democrats are moving to pass a $355 billion budget that hikes taxes on working families and employers while growing government spending to a record high.
Assembly Republicans oppose the plan, saying it taxes everyday business software, such as accounting and payroll, for the first time, raises health insurance premiums for families through a new tax on health plans, fails to fully fund Proposition 36, and closes another state prison.
Democratic leaders have spent months warning about fiscal uncertainty and budget challenges. Yet tonight they are advancing a record $355 billion spending plan while proposing new taxes and higher costs for Californians already struggling with affordability.
“This budget is a reflection of the majority’s values,” said Assemblymember David Tangipa (R-Fresno), Vice Chair of the Assembly Budget Committee. “If you’re a hard-working Californian or a business owner, your taxes are going up. If you pay for private insurance, your bill is going up.”
“$11 billion for illegal immigrant health care, while the average California family of four pays over $500 a month in insurance premiums and is bracing for another increase,” Tangipa added. “The majority had a choice between the people who follow the rules and the people who break them, and once again, working Californians come last.”
“The governor continues to spend with no accountability, and now he wants to raise taxes on working Californians while the cost of living is already at an all-time high,” said Assembly Republican Leader Heath Flora (R-Lodi). “We need a budget that cuts taxes, fully funds Proposition 36, and puts affordability first.”
Even after tonight’s deadline vote, negotiations with Governor Newsom will continue. Assembly Republicans are calling on Democratic leaders to drop the new taxes, protect families from higher health care costs, fully fund Proposition 36, and use the weeks ahead to deliver a budget that prioritizes affordability and public safety.
