Amid rising inflation, California leaders fear losing progress made in the war on poverty

AS THE STATE’S Democratic leaders weigh how to spend a record $97.5 billion budget surplus, they also are grappling with how best to keep many vulnerable Californians out of poverty with federal stimulus dollars waning and high inflation devouring household budgets.

Some advocates say the revised budget Gov. Gavin Newsom unveiled May 13 won’t do enough. To address inflation, Newsom is proposing to devote $18.1 billion in state funds.