SACRAMENTO, CA – Governor Gavin Newsom released his revised proposal for California’s 2021-2022 Budget. Upon the release of the proposal, Assemblymember Timothy S. Grayson (D-Concord) made the following statement:
“California faces a vastly different fiscal landscape than it did in January. The Governor has a unique challenge with this revision of the budget: handling an almost $100 billion surplus responsibly, equitably, and in a way that jump-starts California’s long awaited recovery. I am pleased to see significant investments in housing, education, and small businesses, and direct support to millions of struggling people across the state. In doing so, the Governor has aligned himself with the priorities expressed by myself and my colleagues in the Legislature over the last several months.”
“Today’s budget makes several important long-term investments in California’s future: It includes nearly $122 billion for K-12 education, the highest level of investment in California’s history. This funding will support school reopening, expanded learning time, universal transitional kindergarten, and educator training. To support access to broadband internet, which we now know is as essential as water or electricity to our modern economy, the budget includes a three-year, $7 billion investment to expand broadband infrastructure and enhance access. In the critical area of building housing that is affordable to all Californians, the Governor has dedicated $1.75 billion in one-time federal funds to help fund the backlog of shovel-ready HCD affordable housing projects. These funds are estimated to support the development of more than 6,300 housing units. This budget also includes $1.5 billion in federal funding for additional grants to small businesses, which are essential if we want to keep our main streets healthy and vibrant.”
“I have long advocated for building up a strong reserve account, so I am especially pleased to see that the Governor’s proposal includes an investment of over $24 billion in reserves, including $15.9 billion in the state’s Rainy Day Fund. This year’s unprecedented level of budgetary surplus necessitates new accountability measures, and a strong focus on future financial stability, and I believe the Governor has recognized this with these prudent proposed investments. I am also pleased to see the proposal of a new unit within the Department of Finance to track and oversee the expenditure of federal stimulus funds.”
“Overall, the May Revision strikes an appropriate balance between necessary one-time investments in our recovery, and longer-term outlays for both rebuilding the state’s economy and the pocketbooks of hardworking families. I look forward to continuing negotiations to ensure that this money is used wisely and effectively to address California’s challenges and capitalize on our many opportunities ahead.”
A summary of the Governor’s revised 2021-2022 Budget Proposal can be found here.