Newsom Unveils 2021-2022 Budget

Governor Gavin Newsom unveiled his 2021-2022 budget proposal Friday and, as he put it, the state appears to be doing “pretty damn well.”

Despite a global pandemic that forced business closures across the state, California is operating with a $15 billion surplus. The windfall was driven by stock market gains and high profitability in the tech market. Newsom’s $227.2 billion budget includes $15.6 billion in the state’s rainy day fund.

The COVID-19 pandemic remains a top priority for the governor. The budget proposal includes $70 million in relief for small businesses and $600 “rapid cash” grants for low-income workers for a total of $2.4 billion. It also includes $372 million to expedite distribution of COVID-19 vaccines.

Project HomeKey, which helps local governments purchase and re-purpose motels for homeless housing, would also be expanded under Newsom’s proposal. His plan calls for $1.75 billion for the purchase of additional motels. So far, the state has awarded $846 million to 51 local agencies under the program.

The budget allocates around $90 billion for K-14 schools, which is the highest level of education funding on record. The education portion includes:

  • $2 billion to aid the safe reopening of schools
  • $400 million for mental health programs in schools
  • A 3.84% cost-of-living adjustment to the LCFF
  • $250 million for the expansion of early learning programs
  • $4.6 billion to reverse “learning loss” that has occurred during the pandemic
  • $786 million for the University of California and California State University systems

The governor made clear that he sees the reopening of campuses as a top priority for the state. He also rejected the idea of tuition increases for California’s public universities.

Read the budget blueprint here.


Comments

Policy

Monday, August 15, 2022 - 08:43

The clock is ticking for San Francisco. The state made clear last week that it’s ready to go all the way to blunt the city’s notorious NIMBYism if changes aren’t made.