Newsom Signs $352 Billion Budget

Gov. Gavin Newsom signed a $352 billion state budget Monday that delays many planned health care and social-service cuts to 2027.

State leaders say the plan leaves California with a balanced budget this year, reduces projected future deficits, and relies in part on stronger-than-expected tax revenue tied to the state’s AI-driven boom.

The budget adds 22,700 state-funded child care slots and gives counties $900 million for homelessness, nearly double what Newsom first wanted. It also delays most Medi-Cal cuts and preserves in-home care for low-income residents.

To balance the books, lawmakers approved new taxes on certain software products, capped business tax credits, and raised taxes on commercial health plans. Counties warned that dropping $125 million for indigent care could force cuts to core services.

California Gas Tax Rises Today

California’s gasoline excise tax rises 2.2 cents to 63.4 cents per gallon today, keeping the state’s fuel tax the highest in the nation.

The increase is automatic under Senate Bill 1, the 2017 Road Repair and Accountability Act, which requires the tax to be adjusted each July 1 for inflation. Revenue funds highway maintenance, road repairs, and transportation projects.

For a 15-gallon fill-up, the change adds about 33 cents. A weekly driver pays roughly $17 more a year. California’s average pump price sits near $5.46 a gallon, with San Diego County closer to $5.52.

State officials say the revenue is used to fund highway maintenance, road repairs, and transportation infrastructure. Critics argue the higher tax adds to the financial burden on drivers already facing some of the nation’s highest gasoline prices.

SF Archdiocese Reaches $395M Settlement

The Archdiocese of San Francisco agreed to pay $395 million to resolve roughly 530 claims from people who say Catholic clergy sexually abused them as children.

Attorneys for the survivors say it is the largest per-survivor settlement in any Catholic diocese bankruptcy, averaging about $745,000 per claim. The archdiocese filed for bankruptcy in 2023 after a 2019 California law briefly lifted the time limit on decades-old childhood sexual abuse claims.

The deal also requires Archbishop Salvatore Cordileone to write a personal apology to each survivor and to publish a partial list of accused clergy, which the archdiocese had long withheld.

Cordileone said the church accepts responsibility, saying it has “a moral obligation to bring some level of healing and reconciliation.” A bankruptcy judge and a survivor vote must still approve the plan.

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➤ San Jose: A gyrocopter crashed in a field near Reid-Hillview Airport on Monday, injuring both people aboard. One person was hospitalized with moderate injuries, while the other was treated and released at the scene. The Federal Aviation Administration is investigating. (More)

➤ San Francisco: Golden Gate Bridge tolls rise today under a multiyear funding plan. Electronic tolls increase to $10.25, while Golden Gate Ferry and Golden Gate Transit fares increase by 25 cents. (More)

➤ Willows: Officials declared a public safety emergency Monday after the city’s law enforcement contract with the Glenn County Sheriff’s Office expired with no replacement. Officials said Willows would lose regular patrols, while some residents opposed the move. (More)

➤ Delano: A man who pleaded guilty awaits sentencing in a nearly $10 million real estate fraud scheme directed by a federal inmate from prison after the group marketed Central Valley properties that weren’t actually for sale. (More)

➤ Northern California: “Safe and sane” fireworks are legal across much of Sacramento County and in cities like Stockton and Roseville this Fourth, but banned outright across Nevada and El Dorado counties and many unincorporated areas, where rules vary by community. (See List)

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➤ California City: A man whose three dogs chased a 12-year-old boy into a park lake, where he drowned trying to escape, has been charged with second-degree murder. Kenneth Dobbins, 68, refused to be transported to his Bakersfield arraignment Monday. (More)

➤ Avenal: City officials and recall organizers clashed outside the Kings County courthouse after a hearing on the contested recall of four council members was delayed two weeks. The recall effort grew out of proposed changes to fire services, with organizers alleging a lack of transparency. (More)

➤ Carmel-by-the-Sea: The seaside village adopted formal street addresses for the first time in more than a century to improve emergency response and navigation. Residents who prefer to receive their mail at the downtown post office can continue doing so. (More)

➤ Fresno County: A former couple was sentenced for stealing more than $800,000 from a vulnerable 74-year-old family member. Justin Teel received three years in prison, while Gina Abercrombie was sentenced to a year in county jail and probation after prosecutors said they carried out a yearslong fraud scheme. (More)

➤ Buellton: Caltrans launched a $29 million project along nearly 10 miles of Highway 101, including new pavement, drainage, guardrails, and rebuilt ramps. Lane reductions and ramp closures are expected to continue into next year. (More)

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➤ San Diego: A Marine who went missing from the San Diego-based USS Anchorage off the coast of Southern California has been declared dead. Lance Cpl. Armando Ortiz Canseco, 21, was reported missing June 25, and the circumstances surrounding the incident remain under investigation. (More)

➤ Simi Valley: A Tesla jumped a curb and crashed into the patio of an Urbane Cafe at a Target shopping center Monday afternoon, killing a 79-year-old woman walking outside. Police are investigating the cause of the crash. (More)

➤ Boyle Heights: Mayor Karen Bass signed two executive orders Monday to speed the cleanup of 85 million pounds of rotting food left by a warehouse fire, setting a 45-day deadline for the operator to remove the waste and vowing to hold those responsible accountable. (More)

➤ San Marcos: Homeowners in the Ambiance townhome community say their HOA threatened a $100 fine for flying American flags outside their homes. At least two residents are refusing to remove the flags and plan to challenge the policy, which legal experts cited in the report say may violate federal and state law. (More)

➤ San Diego: Yoga instructor Steve Hubbard, known as “NamaSteve,” filed another lawsuit against the city challenging its enforcement after park rangers cited him for teaching yoga at Pacific Beach, despite a federal court ruling the city’s outdoor yoga bans unconstitutional. (More)

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➤ LeBron James informed the Lakers yesterday that he will not return to Los Angeles, ending an eight-year run that included a championship in 2020. (More)

➤ The LA Clippers reportedly traded superstar Kawhi Leonard to the Toronto Raptors yesterday for Brandon Ingram, Gradey Dick, and multiple draft selections. (More)

➤ The U.S. men’s national team plays its first World Cup knockout game tonight at Levi’s Stadium in Santa Clara against Bosnia and Herzegovina. (How to Watch) 

➤ Four California schools will compete in the Big West Conference’s Olympic sports beginning in 2027-28: Fresno State and San Diego State will compete in women’s water polo, San José State will add beach volleyball and men’s and women’s water polo, and UC Santa Barbara will continue in men’s volleyball and men’s and women’s track & field. (More)

➤ The Anaheim Ducks traded the rights to defenseman Radko Gudas to the Florida Panthers for forward A.J. Greer, continuing their offseason overhaul. They’d already traded Mason McTavish, Olen Zellweger, and John Carlson’s rights in recent days. (More)

➤ NBA free agency kicked off last night, meaning a frenzy of signings have already taken place for the Lakers, Warriors, Clippers, and Kings. Contract negotiations and trades will continue throughout today. (See Deals) 

➤ Yesterday’s Results: World Cup | Wimbledon | MLB | WNBA

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➤ Developers of OCVIBE, the $4 billion entertainment district surrounding Anaheim’s Honda Center, unveiled the first restaurants, attractions, and public spaces ahead of phased openings beginning in 2027. (More)

➤ California struck a deal with Anthropic, the San Francisco AI company, giving all state agencies and local governments access to its Claude assistant at a 50% discount, plus free worker training. Some agencies, including the DMV, already use it; the state did not disclose the cost. (More)

➤ San Diego’s commercial fishing fleet, once the heart of the world’s tuna capital, has dwindled, and a new apprenticeship program is trying to draw a new generation back to the historic industry. (More)

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➤ A historic presidential helicopter that carried Presidents Kennedy, Johnson, Nixon, and Ford left the Nixon Presidential Library in Yorba Linda on Monday for the March Field Air Museum near Riverside, where it will undergo restoration before remaining on public display for at least a year. (More)

➤ The Big Bay Boom, billed as the West Coast’s largest fireworks show, returns to San Diego Bay on the Fourth of July, launching from four barges synchronized to music on 91X FM. Prime viewing spots include Shelter Island, Harbor Island, the Embarcadero and the Coronado Ferry Landing. (More)

➤ Fourth of July celebrations across California are going bigger this year to mark the nation’s 250th anniversary. Highlights include fireworks at San Francisco’s Fisherman’s Wharf, South Lake Tahoe’s synchronized display, and celebrations in Marina del Rey, Newport Beach, and San Diego’s Big Bay Boom. (More)

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The following stories are featured exclusively on The Flyover Podcast—a daily show that gives you the most important headlines in under 15 minutes. Clicking the links will take you directly to these stories:

➤ These six science-backed tricks are supposed to help fussy children finally eat their vegetables. (Hear Details)

➤ The pope is pleading with a breakaway traditionalist group to abandon what he calls a sin of extreme gravity. (Hear Story)

➤ Experts have a clear pick for the best long-term investment, but Americans keep choosing something else entirely. (Listen Now)

Should a homeowners association be able to fine residents for flying the American flag?

1. No, it’s a basic right
2. Only with reasonable limits
3. Yes, homeowners agreed to the rules
4. Not sure
5. Other (reply to tell us)

Yesterday’s Results:

Are you traveling for the Fourth of July?

1. Staying put: 47%
2. Road trip: 19%
3. Flying somewhere: 17%
4. Already on vacation: 17%

March Field near Riverside, one of the oldest continuously operating military airfields in the United States, was established during which global conflict?

Show me the answer