There’s a heavy cloud over Sacramento when legislators return to work in the Capitol this week, one with a $68 billion price tag.
It’s no surprise that the state budget, which the governor will unveil on Jan. 10, is top of mind for lawmakers as they resume work on Wednesday. But the recently announced $68 billion budget deficit California faces only underscores the gravity of the issue.
This deficit, the largest by dollars in state history, has a ripple effect, altering everything from what Gov. Gavin Newsom will propose for the state’s budget down to the success or failure of any proposed legislation that has any fiscal impact.
“That’s the No. 1 thing we’re looking at right now,” Ben Golombek, the executive vice president of the California Chamber of Commerce, said of the budget deficit. “While the (final deficit) number might be different, we’re expecting it to be a substantial deficit. That will certainly color what’s going on in the legislature this year.”
The deficit will drive what the governor suggests in terms of state spending and cuts. And it’ll have the biggest effect on proposed laws in expensive categories, such as education and transportation, said Chris Micheli, a veteran lobbyist in Sacramento.
So with that in mind, what could the legislature tackle this year? We turned to Micheli and Golombek, who keep watchful eyes on the goings on in Sacramento, for a preview.
Artificial intelligence: In 2023, legislators began work on measures related to AI and privacy. Micheli said citizens should stay tuned for more this year, particularly when it comes to AI and its effects on employment.
“There will be a big AI bill,” he predicted based on conversations with legislators. “What exactly it looks like, that is yet to be determined. But California will enact some bill related to artificial intelligence.”
Golombek agrees that AI is a “hot topic” right now.
Already, Assemblymember Akilah Weber, D-La Mesa, said she will champion legislation cracking down on intentionally deceptive online content generated by AI. And Sen. Scott Weiner, D-San Francisco, has put forth a framework for developing AI models safely.
Retail theft: It’s not often you see the Assembly speaker sitting in on an information hearing while the legislature is on break. But new Speaker Robert Rivas, who in October formed a Select Committee on Retail Theft, did exactly that for most of a recent, hours-long meeting, Micheli said.
That’s clearly a sign, he said, that a legislative push to crack down on retail theft is a priority for leadership, at the very least in the lower chamber.
For his part, Rivas said the Assembly “understands we must do more to address root causes, protect business owners and fight criminal activity” when he launched the new committee.
Single-payer health care: An effort in 2022 to create a government-run health care system, known as single-payer, died in the legislature. Golombek expects it to be revived in 2024. And Politico has reported that Assemblymember Ash Kalra, D-San Jose, who pushed the 2022 effort, was in conversations with the California Nurses Association for a 2024 effort.
But Golombek is looking at how such a proposal would garner support with the expected budget deficit.
Homeowners’ insurance: It might be inevitable for the legislature to act on homeowners insurance, said Micheli, as large insurers have pulled back coverage in California.
The governor signed an executive order last year that allows Insurance Commissioner Ricardo Lara to take “prompt regulatory action to strengthen and stabilize California’s marketplace for homeowners insurance and commercial property insurance.” Still, people have struggled to find and afford insurance coverage, and Micheli said it might be time for the legislature to step in.
In other news
• Prior to the legislative session starting, Assembly Republicans pushed a resolution condemning Hamas and its October attack on Israel. The resolution also denounced antisemitism in California and around the world. Among the Republican Assemblymembers who signed on to the resolution are Phillip Chen of Yorba Linda, Laurie Davies of Laguna Niguel, Diane Dixon of Newport Beach, Kate Sanchez of Rancho Santa Margarita and Tri Ta of Westminster. Assembly Republican Leader James Gallagher said he is inviting all members to sign on as coauthors before the resolution is officially introduced this month.
• Sen. Dave Min, D-Irvine, plans to introduce legislation protecting victims of clergy abuse. His proposal — based on what’s already law in 13 other states and Washington, D.C. — would eliminate consent as a defense for clergy members accused of sexual abuse by someone who they have counseled or had a confessional relationship with. The idea is to protect adult victims of clergy sexual abuse.
The Associated Press contributed to this report.
Source: Orange County Register
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