Daily Business Report: Friday, June 27, 2025
The Two Primary Causes of California’s July 1st Gas Tax Increase
By Katy Grimes | California Globe
The gas tax increase coming July 1st that CalTax explained in our previous article is the gasoline excise tax, as opposed to the low-carbon fuel standard tax changes. The amounts are very similar, which has caused confusion.
An excise tax is a specific type of tax levied on certain goods or services at the time of their purchase including gas, tobacco, and airline tickets, imposed by local, state, and federal government.
The California Air Resources Board voted in November to approve new gas regulations (taxes) which will result in as much as a 65 cent per gallon increase in California’s gas prices. The vote made significant updates to the low carbon fuel standard (LCFS), which requires the state to reduce the environmental impact of gas and other transportation fuels by incentivizing producers to cut emissions.
Newsom agrees to ease budget cuts as California seeks more time to fix growing deficit
By Alexie Koseff | CalMatters
Gov. Gavin Newsom backed off some of his proposed cuts to health care programs in a state budget deal he reached with legislative leaders late Tuesday, but California will move forward with his plan to limit services to undocumented immigrants as the state faces a growing deficit.
The $321 billion spending plan is expected to go before the Legislature for approval later this week, ahead of the July 1 start of the fiscal year. With health care costs rising faster than expected, the state economy battered by new tariffs and further federal funding cuts looming, officials confronted a $12 billion shortfall that has forced difficult conversations about California’s spending.
Officials did not formally announce the deal as they continue to haggle over the details of a provision that could streamline construction of housing projects near public transit and denser development in cities. Newsom demanded the language, which has encountered resistance from the state Senate.
The Learning Curve: San Diego Unified May Get $36 Million More for PrimeTime
By Jakob McWhinney | Voice of San Diego
after-school care to all the families who need it. But the latest state budget may inject tens of millions of dollars into programs like San Diego Unified’s PrimeTime. That could allow districts to slash the long waitlists that have stymied working parents for years.
The state of play: School schedules are pretty wonky. Most San Diego Unified schools for example, start around 8 a.m. and end around 3 p.m. That doesn’t work out well for most working parents, making before- and after-school care a necessity.
Unfortunately, that care is also a rarity. Spots across San Diego are in extremely short supply, and the ones that are available often come with hefty price tags. That can leave working parents in a pretty impossible position – stuck between needing to work to support their family and not being able to work because of a lack of child care.
