Brown, lawmakers reach $122 billion budget deal

SACRAMENTO — Gov. Jerry Brown and legislative leaders reached a budget deal Thursday that gives Democratic lawmakers a long-sought repeal of a controversial limit on welfare benefits and increases the number of subsidized child care slots, while maintaining the governor’s call for putting $2 billion into the state’s rainy-day fund, administration sources said.

The deal for the 2016-17 fiscal year puts aside $400 million for affordable housing sought by Democrats once lawmakers agree to language Brown wants to ease building requirements.

Brown wants to streamline the review process for housing proposals that meet a city’s zoning requirements, but the legislation has been opposed by groups and unions that say it sidesteps the state’s environmental laws.

Over the next two years, Brown will receive $1.3 billion of the $1.5 billion he included in his budget proposal for building two new state office buildings in downtown Sacramento and remodeling a portion of the state Capitol.

Community groups like Fathers and Families of San Joaquin criticized the jail plan, saying the interest on the bonds will impact future budgets and that money would be better served on programs that offer alternatives to incarceration.

Among the top priorities for Democrats is repealing a state law that does not allow for increased welfare payments if a child is born after a family has already been receiving benefits.