| By Shane LaVigne, LaVigne Strategies State Budget Finalized as Legislature Breaks for Summer Recess Governor Gavin Newsom and legislative leaders finalized California’s 2026–27 State Budget at the end of June, with the final agreement announced on June 26 and signed by the Governor on June 29. The approximately $352 billion spending plan was described by state leaders as balanced and preserves funding for many core state programs. However, reaching an agreement required several compromises and short-term budget maneuvers. The final package relies heavily on stronger-than-anticipated tax revenues, including revenue associated with growth in the technology and artificial-intelligence sectors, as well as new taxes and limits on certain business tax credits. The budget also uses several familiar accounting strategies to balance the books, including delaying certain Medi-Cal reductions, deferring payments to schools, and suspending some planned reserve deposits. While these actions avoided deeper immediate cuts, questions remain about whether the state has fully addressed its longer-term structural deficit. Among the major sticking points during negotiations were Medi-Cal funding, proposed reductions to health and human-services programs, education spending, the use of reserves, new taxes, and the extent to which the state should rely on delayed spending or other one-time solutions. Ultimately, the final agreement reflected a compromise between the Governor and legislative leaders over how much spending to preserve while limiting the size of future budget shortfalls. Quick Legislative Update AB 1088 (Bains) — Kratom CSLEA took the lead in opposing AB 1088, working closely with our very own Joel Lambert from the California Department of Public Health. The bill would have created a comprehensive regulatory structure authorizing the legal sale of kratom products in California, including product registration, testing, labeling, packaging, and age restrictions. It also proposed a new 15 percent tax on kratom sales. CSLEA raised serious concerns regarding the public health and enforcement consequences of establishing a state-sanctioned marketplace for kratom. Through sustained advocacy and direct engagement with legislators, CSLEA, Joel Lambert, and Samantha Mauldin helped lead the opposition effort and were successful in stopping the bill from moving forward this year. SB 1004 (Wiener) — Law Enforcement Face Coverings CSLEA also took the lead in opposing SB 1004 by Senator Scott Wiener. The measure would expand existing restrictions on law enforcement officers wearing masks or other facial coverings while performing their duties. It would specifically bring peace officers employed by state agencies under the law’s criminal provisions and impose additional restrictions on how otherwise permissible face coverings may be used. CSLEA has led the law enforcement opposition, emphasizing that the bill could place officers at risk, interfere with legitimate undercover and surveillance operations, and subject officers to criminal liability for making necessary operational and personal safety decisions. SB 1004 remains active and will continue to be a major CSLEA priority when lawmakers return. Legislature Begins Summer Recess The Legislature has adjourned for its annual summer recess and will reconvene on August 3, the first week of August. When lawmakers return, they will face an accelerated schedule as fiscal committees act on remaining legislation and both houses prepare for the August 31 end-of-session deadline. |
