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Governor Gavin Newsom Unveils Proposed $227 Billion California Budget

Governor Gavin Newsom unveiled the proposed $227 billion California budget Friday for the upcoming 2021-2022 fiscal year as the Golden State continues to battle COVID-19.

Newsom outlined during a press conference in Sacramento Friday the budget proposals including a $600 stimulus for lower-income Californians, grants for small businesses impacted by COVID-19 and other measures to respond to the ongoing pandemic.

The budget proposes $372 million to speed up the administration of vaccines across all of California’s 58 counties, “bolstering the state’s all-hands-on-deck approach to swift and safe vaccine distribution,” according to the governor’s office.

“In these darkest moments of the COVID-19 pandemic, this budget will help Californians with urgent action to address our immediate challenges and build towards our recovery,” said Newsom. “As always, our Budget is built on our core California values of inclusion, economic growth and a brighter future for all. The Budget makes progress towards the goal I set when taking office to harness California’s spirit of innovation and resilience and put the California Dream within reach of more Californians. I look forward to working with the Legislature to enact these critical immediate and longer-term priorities for our state for the 40 million who call the Golden State home.”

This budget is built on the prudent fiscal management that has helped the state weather the COVID-19 Recession in 2020, and with an improved revenue forecast entering 2021. Through the end of this pandemic and beyond, it advances the governor’s sustained focus on increasing opportunity through education, including early education; increasing the affordability of health care and housing, and effective governance, according to Newsom’s office.

The governor projects a record-high $22 billion in reserves, including over $15 billion in a “rainy day fund” and a $3 billion school stabilization reserve.

Newsom said the state is increasing funding to pay retirement liabilities, with a proposed $9.5 billion in the upcoming fiscal year, and an additional $6.5 billion over the next three years.

Even with the COVID-19 recession and a downturn in revenue from taxes, the state is projecting a $15 billion budget surplus, including nearly $3 billion in operational reserves.

 

Education

The budget reflects the state’s highest-ever funding level for K-14 schools – approximately $90 billion total, with $85.8 billion under Proposition 98. The historic investment centers on equity in and for our school communities, especially as they navigate the inequitable impacts of the pandemic.

The proposal continues to expand on the Governor’s multi-year investments for greater equity for students and the broader school community. Targeted investments in special education include $545 million in ongoing funds – building on $1.5 billion over the last two years – and $300 million in ongoing funds for early intervention for infants, toddlers and preschoolers. The budget also continues to build on the governor’s long-term commitment to equity for the entire school community – including all school staff – with over $475 million to ensure teachers and classified staff have the opportunities, funding and preparation they need as professionals, according to Newsom’s office.

The governor is also requesting the highest-ever per pupal investment in education at over $85 billion, with $4.6 billion to extend learning time, such as summer school and after school care.

To further support teachers, Newsom proposed a $250 million teacher training and recruitment program, a $100 million grant program, as well as increasing credentialing and professional development programs.

Building on the state’s $400 million investment since 2019 in expanded early education and child care, and based on recommendations made in the Master Plan for Early Learning and Care, the Budget expands high-quality transitional kindergarten programs for all four-year-olds through $250 million in incentive funds for districts that expand these programs.

The budget proposes a General Fund increase of $786 million for the University of California and the California State University with an expectation that they focus on measurable goals to address equity gaps, further maintain online educational opportunities and expand dual admissions and other innovative strategies that reduce time to degree completion. The budget also assumes resident tuition and fees remain flat in 2021-22.

In addition to the US, the budget proposes an overall $353 million investment in workforce development. It includes a $250 million one-time General Fund to support workforce development and better linkages between higher education and gainful employment, focusing on communities that have been systematically excluded from opportunities to build skills and create wealth.

The budget also proposes early action for $25 million to immediately expand existing High Road Training Partnership Program apprenticeship programs, and additional funding for the California Apprenticeship Initiative work-based learning opportunities through the community colleges.

 

Golden State Stimulus

Earlier in the week, Newsom announced a state budget proposal Wednesday that would give millions of low-income California taxpayers a $600 stimulus payment.

The proposed payment, announced Wednesday, would go to people with annual incomes of less than $30,000. Roughly 4 million people would be eligible for the payment, for a total state cost of $2.4 billion. Newsom is also asking the Legislature to extend a moratorium on evictions.

See Related: $600 ‘Golden State Stimulus’ Proposed By Governor Newsom For Low-Income Californians

“Through the Golden State Stimulus, Californians who have been impacted by this pandemic will get help to provide for their families and keep a roof over their heads,” said Newsom. “This plan will provide relief for Californians in need by distributing $600 rapid cash support – for some, at least $1,200 when coupled with federal relief – and extend the eviction moratorium.”

COVID-19 Response

The proposed budget also includes an immediate action to approve $575 million more for California’s small businesses as they work to adapt their operations amid the COVID-19 pandemic.

This immediate action proposal is on top of the initial $500 million allocated in partnership with the Legislature to the California Small Business COVID-19 Relief Grant, bringing the total for California’s small businesses to more than $1 billion, according to the governor’s office.

To put money into the hands of the most impacted small businesses as quickly as possible, the governor has proposed immediate legislative action on $575 million in additional grants.

The budget also proposes sustained investments to preserve California’s competitiveness. The California Jobs Initiative, a $777.5 million proposal, focuses on job creation and retention, regional development, small businesses and climate innovation.

The proposal also includes one-time and ongoing investments totaling $353 million to support California’s workers as they adapt to changes in the economy brought about by COVID-19.

The COVID-19 pandemic has accentuated the need for health care for all. While responding to the COVID-19 pandemic, the state continues to work on long-term plans to reduce the costs of health care by lowering prescription drug costs; the budget includes the creation of a new Office of Health Care Affordability. The office is set to increase quality and cost transparency, develop cost targets and evaluate consequences for entities that fail to meet the targets.

 

Housing and Homelessness

The state continues to make progress in addressing the housing availability and affordability crisis that has been exacerbated by the COVID-19 pandemic. In addition to the $500 million for infill infrastructure, the Budget also proposes an additional $500 million in low-income housing tax credits to support low-income housing development. The Administration is streamlining and reorganizing state housing programs to maximize housing production, while also continuing to support below-market-rate housing.

Through Homekey – a nation-leading effort to acquire motels for homeless housing to respond to the COVID-19 pandemic – the state has awarded $846 million to 51 local agencies to secure over 6,000 units of permanent housing for individuals and families who had been homeless. The Budget includes $1.75 billion one-time General Fund to purchase additional motels, develop short-term community mental health facilities and purchase or preserve housing dedicated to seniors. The Budget also proposes changes to the state’s Medi-Cal system to better support behavioral health and housing services that can help prevent homelessness.

 

Emergency Response and Preparedness

In 2020, the state experienced catastrophic wildfires that consumed over four million acres, far more than any previous year in the state’s history.

The historic emergency response, while combatting the COVID-19 pandemic at the same time, strained the state’s emergency response capabilities. The administration is developing a spring proposal to strengthen the Governor’s Office of Emergency Services’ ability to respond to emergencies and support recovery efforts, especially in vulnerable communities, according to Newsom.

Building on significant investments in the state’s firefighting capabilities, the Budget adds $143 million General Fund to support 30 new fire crews, and also includes $48 million to continue phasing in Black Hawk helicopters and large air tankers.

Additionally, the budget proposes $17.3 million for earthquake early warning, according to the governor’s office.

To see the full governor’s budget summary visit here.


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Governor Gavin Newsom Unveils Proposed $227 Billion California Budget

14 comments

  1. What a clown.
    Highest ever funding for a broken system where the employees found out they could hide at home and barely work. Great job.

    We should be defunding education and putting that money into people’s pockets. The broken education system and lack of any real teacher accountability is disgusting.

  2. Same Old… You’re obviously not a teacher, nor do you have any respect for them.

    • Very good observation, with skills like that you must be an overly qualified teacher.
      Which parts of our education system are worthy of respect?

      It’s very clear we don’t need teachers in this new age.
      The brain washing of our youth has come full circle thanks to our wonderful education system.

      It’s cheaper to send kids to a private school where they can learn actual facts instead of left wing conjured “facts.”

      Defund education. Eliminate teacher pensions. Give parents an opportunity to choose between education and brain washing.

      • Don’t be afraid to ask for help. I understand, we’re all going through a lot right now. Talk to a pastor, a therapist, a certified professional. Not someone who will just tell you what you want to hear.

        And I wouldn’t make such a blanket statement about Private Schools either… You may want to clarify that as Private Catholic School perhaps…

        I hope this country is able to overcome and persevere. Progress is really not as bad as Fox News wants you to believe.

  3. All the comments are factual, except SEYMOUR(what a name) the excuser the turn around blamers! All of societies degeneration are caused by Liberals! Look what the Liberals have done from cities from Seattle to LA, Chicago, Baltimore, Minneapolis, Kenosha, Philadelphia, NY, etc. Keep voting for the demons like Gas-Con, Newsom, Garrshity, Breed, etc.—the sheeple that blindly keep voting an ignorant (D)!!

    • So Ricardo, you’re seriously pretending like the storming of the Capitol by so-called conservatives and definite diehard republicans didn’t happen on Jan 6. Where 5 people died. Sounds like you are in denial as well. Looks like you are blind as well. Seems like the behavior you’re so offended by you have everything in common with.

  4. Scumbag Newsom never thought the vaccines would be ready on time so he never planned on it.Now we have a vaccine bottle neck and it’s probably better to give them up to governors or states who have their acts together and can make use of them before they expire at least someone will get them whether they live here or not.The people who can’t see through Newsom’s lack of competence would probably just be best served carrying his water or shining his penny loafers.

    • Whats with you people? Do you think Newsom makes the vaccine in his basement?? How can you blame him for the not having enough of it? These things take time. You also need the manpower as well as refrigeration in most cases to distribute as well.

      Continue or if haven’t started yet which is the real reason we are in this mess in LA county: Wear a mask, stay at least 6 feet apart and avoid gatherings, especially indoors.

      Also, avoid right wing propaganda that claims Covid is hoax, if you don’t want to read the news, talk to a doctor or a nurse if you want the truth on that one. They certainly wear masks…

  5. You had to have seen what this guy did as Mayor of SF and now he’s running the worlds 5th largest economy.We lead in homelessness,addiction,high taxes etc.I know your an apologist for this guy but he was way in way over his head before COVID started.How’s that California bullet train goin for ya?

  6. The above posts are logical, truthful, factual, accurate, non over emotional, non skewed brainwashing, except for the guy with the guilty odd name, Seymour—no wonder he turns the facts around and diverts blame from the Liberals deterioration of America to try to white(white is bad) wash the truth! Trump promised and came through with record setting break through vaccines—-Newsom, Garrshity, etc. has had 11 months to prepare and devise a plan for quick, orderly administration of the lifesaving vaccine. But deceitful Liberals like Seymour are not accepting blame for it and the success of private schools that teach proper learning, rather than wasting time, hearts and brains with fussing what to call a man & a woman with Mr, Mrs, he, she, etc. to confuse and brainwash the growing children to appease the loud mouths with the aberrant wealthy $$$ by Soros, Big Hollywood, Big tech, etc—-Demons!!

    • Ricardo your post are far from factual… and in case you don’t know the year is 2021, get with times and understand California is a progressive state. White is not bad, I never said that. Horrible & Good people come in every color of the rainbow and whatever pronouns they want use.

      John I’m not apologizing I just know as far a Covid goes we pose a bigger challenge than anywhere else in this country, especially LA county. So many had it out for Newsom before Covid and now are using it to drive home how he’s no good, ironically similar tactics took out Trump so maybe you guys will get what you want. I doubt it, but maybe.

  7. SEYMOUR CHANGE for the worst: The subject started with the failing school systems caused by Liberals. CA is not progressive, CA is Regressive/Revisionist. The Liberals are further dividing our country by constantly calling the White man evil. All the Liberal run institutions are a ruins——just look at the degeneration from Seattle to LA, Chicago, Baltimore, Minneapolis, Kenosha, Philadelphia, Detroit, NY, etc.—all ruined by Liberals! John was correct, and you were making excuses for Newsom, who was already being disliked because of his continued unbelievable degeneration of San Francisco. Now Newsom’s buddy Gas-Con who helped ruin San Francisco is here with further deterioration of CA! The Liberal Democrats live in “Peter Pan Land” and think it’s reality, that’s why they brush off horrible behaviors by making silly excuses—further brainwashing!

  8. CA is considered the 7th most progressive state in the country.

    I never called the White Man evil, that’s your own scapegoat propaganda to justify your conservative views and denial of systemic racism. It is interesting though the school shootings and domestic terrorism that happens in this country is almost always a certain color, but again I never called the White Man evil. I won’t talk about Mitch McConnell here either.

    Many of those instances that you’re referring in those cities are the result of complicated race related issues and use of unjustified law enforcement tactics that are far too complex to summarize. Yes, there are protestors that go too far and nothing justifies violence, damaging others or state property in any of those cities or DC last week. There are element on both sides of that argument that are distorted. These events certainly need more actual thought than people just jumping to conclusions.

    Horrible conservatives like yourself label everything as black and white and need to understand there’s a lot of gray area that needs to be evaluated. Change is progress, we evolve, again Ricardo its 2021, the world is different place since you were a kid and yes the education system is different because it has to consider and respect the changes in the environment and this social experiment we call America and not teach like it’s America in the 1950s.

  9. 7th most progressive state?
    Wonder what the Top 6 are?
    I’m sure they are blue paradises with no crime and low taxes like NY, Illinois, Maryland…yeah some real nice “progressive” states.

    Get back on track.
    Defund education.
    Lay off teachers, breakup CA teachers union, blow up their pension system. Demand an end to tenure and hold teachers K-college accountable for their words.
    Any educational system receiving a dime of state or federal money should be highly scrutinized and responsible for their employee’s behavior.

    Defund Education Today and save American!

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