California Gov. Gavin Newsom proposed a $213 billion state budget Thursday that boosts spending on public schools, wildfire protection and the rising rate of homelessness.
His revised budget is up $4.5 billion from his first proposal in January and maintains a $21.5 billion surplus, the state’s largest in at least two decades.
Newsom is proposing $150 million more in grants to communities to help the homeless than he did in January, as well as $40 million to public colleges and universities to help homeless students.
“This homeless issue is out of control,” Newsom said. “It is a stain on the state of California.”
Newsom is boosting spending in some key areas, but his new budget is unchanged in many ways from January. He has already proposed new spending to expand health care for young immigrants living in the country illegally, prevent and fight wildfires, spur more housing and boost early child care programs.
He wants to add a new tax on drinking water while taking away taxes on tampons and diapers, and he’s pledged to pay down debts and save money for a future recession.
Senate Republican Leader Shannon Grove (R-Bakersfield) issued the following response: “California families are taxed too much. Our families already face a tax on air and a gas tax that is the second highest in the nation. Yet, this updated budget proposal wants to tax them an additional $2.4 billion. Senate Republicans are fighting to make California a better place to live and prioritize the needs of hardworking Californians.
“However, I am grateful to see that more attention is being focused on the developmentally disabled community. Republicans asked for an 8 percent across the board rate increase for service providers who take care of our most vulnerable members of society. This budget allocates $330 million in funding for this community and that should be just the beginning.”
Newsom’s budget would bring the state’s “rainy day” fund to $15 billion. Though California is flush with cash now, he warned the good times may not continue.
Assemblymember Marc Levine (D-Marin County) released the following statement: “Governor Gavin Newsom’s $213.5 billion revised budget proposal continues his ambitious agenda to lift up all Californians. From making critical investments to fight our year-round wildfire season and the impacts of climate change, creating a 21st century education system for a 21st century economy including the largest per pupil spending in state history, addressing California’s housing crisis and working to end gun violence are no small tasks. Fortunately, we are up for the challenge.”
Assembly Budget Committee Vice Chair Jay Obernolte (R-Hesperia) issued the following statement: “There’s certainly plenty to like in this budget. Expanding the child tax credit, building our reserves and investing in early education are all worthy pursuits, but they’re also easy when the state has a $21.5 billion surplus. We need to be cautious about committing too much in ongoing spending so we avoid having to make painful cuts in the future. As people struggle with our State’s affordability crisis, the real question we should ask is ‘Are the people of California getting their money’s worth from their government?’ With failed programs such as high-speed rail, broken promises like Medi-Cal, our substandard K-12 education system, and our underfunded public pensions, the answer is clearly ‘No.’ The Governor’s plan to increase taxes while the state enjoys a record surplus defies logic. We certainly need to fix our water infrastructure and upgrade our 911 system, but we can easily do that without taking more from Californians who have already been taxed to the breaking point.”
Newsom has until June 30 to sign the spending plan, and it will cover the fiscal year beginning July 1.
