California lawmakers announce placeholder budget agreement

(KYMA, KECY/ AP News) - In California, legislative leaders said they want to return nearly $10 billion of the state’s record-setting budget to taxpayers, setting up a month of intense negotiations with Governor Gavin Newsom over how to best help a weary public battered by soaring inflation.

Leaders of the state Senate and Assembly announced an operating budget of more than $300 billion. It includes $8 billion in rebates for most taxpayers, $1.3 billion in aid for small businesses and nonprofits and $400 million to expand assistance for Californians with little to no income.

But the agreement does not include Governor Newsom, who has the power to veto anything he doesn’t like. 

That means the proposal lawmakers announced Wednesday is more of a placeholder budget since it likely won’t be the final version that becomes law.