SACRAMENTO — Most Californians will get tax breaks, more undocumented immigrants will be eligible for health insurance and schools will get more funding under the $300 billion budget that Gov. Gavin Newsom signed Thursday, the largest state budget ever .
Most people will receive payments between $200 and $1,050 depending on how many people are in their family and how much they make. Joint tax filers who make less than $150,000 a year and have at least one dependent will receive the largest payments of $1,050. Joint filers making up to $500,000 and individuals making up to $250,000 will also receive payments.
People who did not file taxes in 2020, such as those living on Social Security, will not receive the rebates. The budget includes extra money for people on some state assistance programs for low-income residents in an effort to send money to some of those people who don’t file taxes but are struggling financially. People on the Supplemental Security Income/State Supplemental Payment program will get an extra $470 next year for individuals and $1,200 for couples. Families on the state’s food assistance program will also get more money, with a family of three getting up to $194 more a month.
The budget also includes $1.4 billion to pay off utility bills to residents that accrued between the start of the COVID-19 pandemic and last June.
The budget’s inflation relief package also includes a one-year suspension of the state’s 23-cent diesel tax. However, it does not include a suspension of the state gas tax, nor relief from the state’s 3-cent gas tax increase that takes effect Friday. Newsom and some lawmakers pushed to delay the increase, but legislative leaders blocked their efforts, opting instead for stimulus payments.
The budget includes more than $128 billion for K-12 schools, a record, representing more than $4 billion more than the previous year. Lawmakers say they hope the funding will push California higher in the national ranking of per-pupil spending for the upcoming school year.
For the first time, the budget includes funding to allow all undocumented immigrants to qualify for the state’s low-income health insurance program if they meet income requirements. Previously, the state allowed undocumented people under 26 and over 50 to qualify. The new budget will extend eligibility to people aged 26-49, closing the gap.
The budget also includes more than $200 million to support abortion access after the Supreme Court’s decision to overturn Roe v. Wade, including funding for abortion clinic infrastructure and money to pay people who don’t have insurance.
During a debate on the budget bills Wednesday night, Senate President Pro Tem Tony Atkins highlighted the budget’s spending on inflation relief, infrastructure and budget reserves.
“In any year, this would be a great budget,” the San Diego Democrat said. “In a world where we are facing global inflation and pandemic issues, this budget is as remarkable as it is responsible.”
Assemblyman Vince Fong, R-Bakersfield, criticized the budget for failing to stop the gas tax. The tax breaks it includes are too little, too late for people struggling to afford living in California, he said.
“The ill-conceived policies and mandates imposed by this administration have increased the cost of housing, groceries, food, electricity, gasoline and everyday necessities,” said Fong, the top Republican on the Assembly Budget Committee. “What’s on offer in the face of this affordability crisis? 200 dollars? 250 dollars? 300 dollars? Pennies for every dollar Californians send to Sacramento, but no permanent or ongoing tax breaks.
California’s 2022-23 budget goes into effect Friday, the start of the state’s fiscal year.
Sofia Bolag is a contributor to the San Francisco Chronicle. Email: sophia.bollag@sfchronicle.com Twitter: @SophiaBollag
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