Senate Budget Committee advances AB 101, 10-6, after debate over Medi‑Cal, reserves and homelessness funding

The California State Senate Budget Committee voted 10-6 to advance Assembly Bill 101, the Budget Act of 2025, after a hearing on June 11 in Room 1200 at 10210 Street that included extended debate on Medi‑Cal changes, reserves and homelessness funding.

Chair Scott Wiener opened discussion by saying, “We face some very hard choices in this budget,” and framed AB 101 as a two‑house agreement that the committee had vetted through subcommittee hearings. The package presented in committee includes approximately $324.7 billion in total spending, about $231.9 billion of which is general fund, and relies on roughly $12.3 billion in “solutions” and $13.2 billion in combined year‑end reserves, according to the materials read into the record.

Why it matters: AB 101 is the Legislature’s primary vehicle to set state spending and reserves for 2025–26. Committee members described it as an effort to protect core services while responding to revenue uncertainty tied to national and global economic conditions.

Key provisions and debate

- Education and higher education: Committee members repeatedly noted the package preserves K–12 funding under Proposition 98 and rejects a proposed 3% cut to the University of California and California State University systems. Several senators said the faces of budget constraints make even a 0% nominal cut a real cut because of inflation and rising costs.

- Medi‑Cal and coverage for immigrants: The legislature’s package narrows some of the governor’s May…