5 things to know about CA Democrats' $356 billion state budge

Key Points:

• California lawmakers are set to approve a $356 billion state budget that largely delays or avoids the social service cuts initially proposed by Gov. Gavin Newsom, with final negotiations on key issues to continue before the fiscal year starts July 1.
• The Legislature plans to postpone healthcare cuts affecting undocumented immigrants and other vulnerable groups, rejecting some of Newsom’s proposals like stricter Medi-Cal asset tests and cuts to support services, while agreeing to subsidize private healthcare for low-income residents.
• Lawmakers aim to expand state-funded child care by adding 22,000 slots, increase funding for TK-12 schools and community colleges by $2.7 billion, and allocate more money to counties for food stamp and healthcare eligibility checks, as well as homelessness programs.
• The budget includes new tax measures targeting corporations, such as applying sales tax on company software and capping tax credits, to boost state revenue without requiring voter approval, amid recent local tax initiative failures.
• There is bipartisan agreement to raise the cap on the state’s rainy day fund deposits, with lawmakers considering a November ballot measure to allow higher savings for economic downturns, needing to finalize details by June 25.