California state budget hinges on unwritten housing bill as deadline looms
Deadline day is coming fast for California's state budget, and there is still uncertainty over a housing bill that Gov. Gavin Newsom says must be passed or he won't sign any part of this year's budget agreement.
That housing bill still has not been put into print, and it needs to be in print 72 hours before lawmakers can even vote on it. With the budget deadline set for Monday, that sets up a budget vote likely right down to the wire.
Newsom is tying more California housing construction to this year's budget battle with a poison pill.
Matthew Lewis represents California YIMBY, a sponsor of the legislation the governor is backing that would create more residential construction in cities by exempting the California Environmental Quality Act from urban infill housing projects.
He said that California is short 2 million homes.
"This is not an amount of housing that would get built in one year," Lewis said, "what we need is to build around 200,000 homes per year to catch up. We've been building less than half that."
The governor and legislative leaders have agreed that if the urban housing CEQA exemptions are not signed into law, the whole budget would become inoperable.
The 11th-hour legislation is paired with proposed tiered minimum wage requirements for construction jobs, tied to the CEQA-exempt projects that are lower than the prevailing wage.
Lawmakers expressed confusion over the proposed language Wednesday.
"I noticed that there are new construction minimum wage standards put in there that I had not seen beforehand," (D-Fremont) Assemblymember Alex Lee said.
"It doesn't make sense to me," (D) Paramount Assemblymember Jose Luis Solache, Jr. said. "It sounds like a logistical nightmare to be honest with you."
Lobbyists for labor groups lined up in opposition of the wage changes.
"This is the most outrageous abuse of process that I've ever witnessed," lobbyist Scott Wetch said.
If this housing bill goes into print Friday, the soonest lawmakers could vote on it would be deadline day.
If they miss that Monday deadline, the state would start the fiscal year with no budget, leaving the state controller unable to make some state payments.
