With California’s new fiscal year set to begin July 1st, Governor Newsom is expected to sign into effect the $214.8-billion state budget by the end of the week. Highlights of the budget include the following:
Putting safeguards in place for the next recession – The budget will set aside $15 billion to build reserves and pay off unfunded liabilities, with $1.2 billion of this being placed in the Rainy-Day Fund.
Addressing the cost of living in California – The housing crisis will be addressed through a $1.75 billion allocation used to help stimulate housing development via planning and production grants for local governments, expand state’s housing tax credit program and loan program for mixed-income housing, and help provide opportunities for innovative housing projects on excess state property. $500 million of the $1.75 billion will be directed at eliminating impediments to mixed-income housing development
The budget addresses healthcare costs by expanding subsidies for middle-income earners to aid in the cost of obtaining healthcare through Covered California; and expanding Medi-Cal coverage eligibility to young adults ages 19-25. The budget will also look to extend paid family leave, increasing it to 4- month of leave for parents after the birth of a child.
Education is addressed via a larger investment in K-12 schools, expanding the Earned Income Tax credit, providing funding to cover 2 -year community college tuition for first time full time college students, and providing additional funding to Cal State and UC schools to prevent future tuition hikes.
The fight against homelessness – The budget will allocate $1 billion in funds to provide additional aid, services, advocacy and programs to the homeless population. This also includes a $400 million increase in grant for families enrolled in the CalWORKS program.
Emergency preparation – The budget will allocate $769.6 million, providing funding for California Office of Emergency Services, California Department of Forestry and Fire Protection, California Conservation Corps, and the General fund for various updates and improvements. The budget will also provide $39.9 million to disaster preparedness, response and recovery efforts.
This budget seeks to enhance the quality of life for all Californians by preparing for the possibility of a recession repeat from the past, resolving the current problems that exist, and strategically investing to ensure a better future.