SACRAMENTO – Governor Gavin Newsom today signed a $308 billion state budget that provides direct tax refunds for 23 million Californians to help address rising costs, address the state’s most pressing needs, build our reserves and to invest in California’s future.
Here are the top 10 things you need to know about budgeting:
1. “Cha-ching! You just received a deposit.’
Global inflation. Rising costs. It’s tough out there and we know it. So we’re giving you back $9.5 billion. MILLIONS of Californians – 23 million to be exact – will benefit from up to $1,050 as early as October! See if you qualify for the new middle class tax refund calculator here.
2. Don’t go into crippling debt because of a hospital visit
Want healthcare? We are now the FIRST and ONLY state in the nation to offer universal access to health coverage regardless of your immigration status. Do you want insulin? California will produce its own insulin to make it cheaper and more accessible to all.
3. A true “for life” program.
Fun fact – California is actually a pro-life state. We protect reproductive freedoms and support Californians throughout their lives. In this budget, we are investing over $200 million in reproductive care. We make the company’s desire to move OUT of the anti-choice states and INTO the reproductive freedom state of California a factor in providing state business tax credits. But we don’t stop at reproductive care. We invest in a child’s entire life. From birth to college and beyond. That means universal preschool, free school meals, expanded before and after school programs, more counselors for our schools, free community college, the list goes on.
4. Climate change is real
While SCOTUS is impeding the federal EPA’s ability to fight climate change, California is making a climate commitment on the scale of what other states are spending. Our $53.9 billion in new investments will better protect Californians from the extreme weather that affects our bills, our livelihoods, our farms and our families. We’re investing in fire protection and drought response while building a future without oil, away from big polluters and more. Later is too late and we will act now so that our children and grandchildren have a brighter and cleaner future.
5. Placement of people in housing and shelter and removal from the street
We are making major investments to address California’s homelessness crisis by providing people with housing and shelter. We have $2.2 billion for statewide encampment solutions and new bridge housing to help people going through CARE Court—tens of thousands of people with a safe roof over their heads and mental health and substance use help from many are in desperate need.
6. Maintenance of lighting
California has an energy plan. Drought leads to lower energy production. Extreme heat causes increased energy demand. Forest fires threaten energy infrastructure. So we’re investing $4.3 BILLION to help keep the lights on this summer, invest in clean and reliable energy infrastructure, help with your energy bills, accelerate our clean energy transition, and more. We are building the energy system of the future.
7. A realistic public safety plan
Californians should always feel safe – whether it’s at home, in the park or at work. California is fighting the root causes of crime and taking guns and drugs off our streets. The state launched the nation’s largest gun buyback program, funding a permanent retail theft unit and investing $30 million to support the National Guard’s narcotics efforts targeting transnational criminal organizations.
8. Literally transforming education in our country
It’s no longer K-12, it’s Pre-K -16. We are investing – indeed – a historic $170 billion to continue our transformation of education in California. From our Early Learning Master Plan to free community college, education has never been more affordable in our state. NEW this year we have $7.9 billion to help rebuild tuition, more investment in higher education, an additional $2 billion for affordable student housing (on top of last year’s $2 billion), and $3.5 billion that schools can use for arts, music, and more.
9. Getting our kids mental health help
After the last few years, everyone knows we are experiencing a mental health crisis and California is taking it seriously. We invest heavily in the behavioral health of adults and our children. This year there is new emergency funding for health promotion programs, funding for youth suicide reporting and prevention, and more.
10. Recovery of California
Railroads. Highways. Streets. We invest in infrastructure! This budget includes a $14.8 BILLION investment in transportation infrastructure. That means money for rail and transit projects, climate adaptation projects, pedestrian and bicycle projects, high-speed rail, our ports, and more. And we are investing to accelerate our transition to zero-emission vehicles. Sound signal!
“In the face of new challenges and uncertainty, we’re providing more than $17 billion in aid to help families make ends meet, and we’re doubling our investments to continue building the California Dream on a sound fiscal foundation,” said Governor Newsom. “This budget invests in our core values at a pivotal time, protecting women’s right to choose, expanding access to health care for all and supporting the most vulnerable among us, while supporting our future with funds to fight the climate crisis, strengthen our energy grid, transform our schools and protect communities. By building a better future for all, we will continue to model what progressive and responsible governance can look like the California way.”
Amid record inflation rates and economic uncertainty on the horizon, the budget continues to build resilience with $37.2 billion in budget reserves and 93 percent of the discretionary surplus allocated to one-time projects.
Additional details include:
A $17 billion inflation relief package
$9.5 billion in tax refunds to address inflation: The budget provides up to $1,050 in tax refunds for 23 million Californians to help offset rising prices.
$1.95 billion for emergency rental assistance: The budget provides additional funds to ensure that qualified low-income renters who requested rental assistance before March 31 receive the support they need.
$1.4 billion to help Californians pay delinquent utility bills: Expanding on last year’s utility relief program, the budget provides funds to continue covering delinquent electric and water bills.
$439 million to suspend the state diesel sales tax for 12 months: Providing relief to the commercial sector and motorists, the budget includes a suspension of the General Fund portion (3.9375 percent) of the diesel sales tax rate, which will provide an estimated $439 million in aid.
California’s $53.9 billion climate commitment
The new investments in this year’s budget bring California’s multiyear climate commitment to $53.9 billion to protect Californians from the impacts of climate change, help build an oil-free future and address pollution.
Drought and water resilience: Building on last year’s $5.2 billion commitment to ensure water security for Californians, the budget invests another $2.8 billion in short- and long-term actions to build water resilience, promote conservation and more .
Fighting wildfires: A $2.7 billion investment to reduce the risk of catastrophic wildfires and strengthen forest health. These projects include forest thinning, prescribed burns, grazing, reforestation and fuel breaks.
Accelerating the transition to zero-emission vehicles (ZEVs): Building on last year’s unprecedented ZEV package, the budget invests an additional $6.1 billion to create a total package of $10 billion to expand ZEV access and affordability and support the build of infrastructure across the state.
Strengthening our energy system: Provides $4.3 billion to support energy reliability, provide ratepayer relief, create strategic energy reserves and accelerate clean energy projects. Allocates an additional $3.8 billion for clean energy projects to increase affordability and reliability.
$14.8 billion for regional transit, rail and port projects to support the continued development of clean transportation projects, including the nation’s first high-speed rail system in California and projects for bicyclists and pedestrians.
Expanding access to health care
Access to health care for all: With this budget, California becomes the first state in the nation to provide universal access to affordable health coverage for lower-income individuals by providing coverage for Californians ages 26 to 49, regardless of immigration status . It also created the Office of Health Care Affordability to develop spending targets for the health care industry and impose consequences if they are not met.
Reproductive health care: As other states limit access to this critical care, California is providing more than $200 million in grants and services to reproductive health care providers to expand access, improve clinical infrastructure and more to braced for the expected influx of out-of-state women seeking care.
Transforming Children’s Behavioral Health System: Building on the $1.4 billion investment in last year’s budget to transform California’s behavioral health system for all children, the budget includes an additional $290 million over three years to address urgent needs, including funding for programs that promote well as and grants to support children and youth at increased risk of suicide and pilot response to youth suicide crises.
Affordable insulin: The budget invests $100 million to develop and manufacture low-cost biosimilar insulin products to increase the availability and affordability of insulin in California.
Confronting…
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