California State Budget:
WHILE YOU SLEPT, THEY RAISED YOUR TAXES

California Democrats approved a $355 billion state budget during an overnight legislative session, drawing criticism from Republican lawmakers who argue the spending plan raises costs on working families while failing to adequately address public safety concerns.

Assembly Republicans Criticize Overnight Budget Vote

California Assembly Republicans issued a statement criticizing Democrats for passing the budget late at night.  “If Democrats were proud of this budget, they would not have passed it while most Californians were asleep,” Assembly Republican Leader Heath Flora said.

Flora argued that the governor and legislative leaders continue to increase spending without sufficient accountability.  “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. We need a budget that cuts taxes, fully funds Proposition 36, and puts affordability first.”

Assembly Republicans also argued that the budget increases healthcare costs, expands spending on services for undocumented immigrants, and fails to fully fund Proposition 36, the voter-approved crime measure passed in 2024.

Senator Valladares: “California Has a Spending Problem”

According to State Senator Suzette Valladares, the $355 billion budget represents a record level of state spending and includes more than $14 billion in new taxes and fees identified by the California Taxpayers Association.

“California does not have a revenue problem, it has a spending problem,” Valladares said.

She argued that state spending has doubled over the past decade while affordability continues to worsen.

Valladares cited several potential impacts:

• • Approximately $1.5 billion in additional commercial health insurance costs.
  • Higher gasoline prices due to refinery supply requirements.
  • New taxes affecting software and technology services.
  • Permanent limitations on certain business tax credits, including research and development incentives.
  • Insufficient funding for Proposition 36 implementation despite voter approval.

Valladares noted that Proposition 36 received nearly 60 percent support from California voters and argued that local governments may lack the resources necessary to implement the measure.

Where Were the Moderate Democrats?

Questions have also emerged regarding moderate Democrats who often claim they oppose raising taxes.

According to California Playbook:  “Moderate Assembly Democrats overcame their distaste for revenue-raising by voting for new fees on health insurers and software companies…Moderates made it possible for Democrats to get the two-thirds support needed for tax legislation…”

California Playbook noted that some lawmakers facing reelection in more competitive districts were allowed to avoid taking politically difficult votes.

“While allowing lawmakers running for reelection in purple districts … to lay off the votes.”

Voters Should Remember

The budget debate will likely become a major political issue heading into the November elections.

Assemblymember David Tangipa stated:  “This budget is a reflection of the majority’s values. 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.”

Republican gubernatorial candidate Steve Hilton also criticized the proposed increases.  “They’ve just put up your taxes in Sacramento even though we already have the highest cost of living in the country. The best way to fight the cost of living crisis is for government to take less of your money in the first place.”

Legislative negotiations with Governor Gavin Newsom remain ongoing, and Republicans have stated they will continue efforts to remove or reduce the proposed taxes and fees.

Californians Deserve Better

Senator Valladares summarized the concerns expressed by Republican lawmakers: “The people of California deserve so much better than this.”