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The Latest: California lawmakers reach housing agreement

California’s governor and legislative leaders have agreed to reward local governments that make it easier to build houses faster and punish those who don’t.

The proposal finalized on Thursday is in response to the state’s housing shortage, which is driving up costs and sending more people to the streets.

The plan would reward local governments deemed to be “pro-housing” with more than $1 billion in housing and transportation grants. It would also let the state sue local governments who do not comply, which could include court-imposed fines of up to $100,000 per month. The court could impose additional penalties.

The proposal still must pass both houses of the state Legislature.

The agreement is part of the final package of bills around the state budget. Newsom has until midnight Thursday to act on the budget bill.

California’s governor is running out of time to act on the state’s nearly $215 billion operating budget.

Democratic Gov. Gavin Newsom has until midnight Thursday to make a decision on the budget, which lawmakers passed earlier this month.

This is Newsom’s first budget since he took office in January. It includes a $21.5 billion surplus, the largest in at least two decades following years of budget cuts because of shrinking revenues.

Newsom has not said whether he will sign the budget. He could also veto it entirely or veto parts of it. Newsom and state lawmakers are still negotiating about other bills that direct how the money will be spent. But Newsom called those outstanding bills “small issues.”

Source: By The Associated Press

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