"Governor Newsom's Budget and Infrastructure Actions: Key Takeaways and Implications"

During the budget negotiations, California Governor Gavin Newsom employed tactics such as using the budget process to enact significant policy changes late in the game, bluffing on certain proposals, and fighting with environmental groups while also aligning with oil companies. His willingness to veto the budget if he didn't get his way on the California Environmental Quality Act (CEQA) revealed rifts between his administration and Assembly negotiators. Newsom also emphasized the need for fiscal restraint due to the state's $32 billion deficit and indicated that he may seek additional changes to CEQA in the future.