California Legislature Approves Hollywood Tax Breaks in Budget

California legislators approved a $232 billion spending plan on Friday that would reduce Medicaid services for the undocumented while providing larger tax credits for Hollywood.

The measure, which provides about $1 billion less in general fund spending than the previous fiscal year’s budget, rejects or scales back many cuts proposed by Gov. Gavin Newsom (D) and would instead dip further into reserve funds to make up for a $12 billion budget shortfall.

The Assembly adopted the budget on a 57-19 mostly party-line vote, with one Democrat—Joaquin Arambula—voting against it. The Senate cleared it by a 26-8 vote.

The vote sets ...