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California's substantial budget shortfall is forcing the Legislature to reevaluate and scale back its agenda this session. This financial strain is evident in the recent 'suspense file' hearings conducted by the Assembly and Senate appropriations committees, where many bills with significant costs were either shelved or amended.
State leaders are grappling with an estimated $56 billion deficit over the next two fiscal years. As a result, bills proposing the legalization of psychedelic therapy, reparations for descendants of enslaved people, and increased transparency around legislative travel expenses are among the casualties.
Senator Anna Caballero, who leads the Senate appropriations committee, emphasized the impact of the budget on their decisions, stating, "We were trying to keep costs down and really trying to live within our means." Out of 341 bills on the Senate suspense file, 87 were held and another 121 amended to reduce costs.
Similarly, the Assembly's appropriations committee held 233 of the 668 bills on its suspense file, slightly higher than last May. Notable among these were Assembly Bill 2751, which would have limited employers from contacting workers outside scheduled hours, and AB 2808, aimed at restricting exclusive resale of event tickets by companies like Ticketmaster.
Assemblymember Buffy Wicks, chair of the Assembly appropriations committee, reiterated the need for fiscal responsibility, saying, "We needed to be responsible with taxpayers’ money, so that’s why we had to make some tough calls today."
Among the shelved bills was a significant proposal for a single-payer healthcare system in California. Assemblymember Ash Kalra, the bill's author, expressed disappointment, highlighting the potential cost-saving benefits of the system.
Governor Gavin Newsom's proposed spending plan underscores the severity of the budget crunch, with over $30 billion in cuts to education, public health, and environmental programs projected for the next two years. This fiscal prudence reflects a broader trend as California navigates its economic challenges, urging legislative discipline and careful consideration of new spending.
The Senate also shelved a bill to legalize psychedelic drugs for therapeutic use and another that aimed to enhance transparency around lawmakers' sponsored travel. These decisions reflect the Legislature's focus on reducing expenses amid a challenging financial landscape.