With six days left before the deadline, Gov. Jerry Brown and top lawmakers have agreed on a new state budget that would increase funding for child care and repeal a controversial limit on welfare benefits.
The budget would also set aside $400 million for affordable housing, which would only be spent if a separate deal can be reached on streamlining the process for new construction.
Lawmakers are scheduled to convene a hearing on Thursday night to begin approving the new spending plan .
The possibility of another economic downturn has loomed over negotiations, and the budget deal includes an extra deposit of $2 billion into the state's rainy-day fund.
There's also more money for social services. Because California is increasing the minimum wage , rates paid to state-subsidized child care providers are also being ramped up. The extra funding is expected to total $500 million annually starting in 2019.
In addition, the budget would repeal a rule known as the maximum family grant, which prevents mothers from receiving additional benefits if they have another child while on welfare.