California Reaches $321 Billion Budget Deal Boosting Hollywood

California Governor Gavin Newsom and state lawmakers struck a budget agreement that provides $750 million in tax credits for Hollywood while scaling back free health care for undocumented immigrants.

The $321 billion spending plan for the fiscal year that begins July 1, marks Newsom’s third consecutive year facing a deficit, forcing trade-offs between the progressive policies he has championed and pro-business priorities. The agreement avoids higher levies on corporations and includes tax incentives for the film industry as well as cuts to some social programs.

A central feature of the budget is the rollback of free health care for most ...