Between responding to the public health and economic impacts of the pandemic, tackling challenges that existed pre-pandemic that were worsened by it, and doing our regular due diligence of updating existing laws – there has been no shortage of work to be done in Sacramento. I’m happy to report that I was able to have 11 bills addressing these issues pass out of the Assembly and into the Senate. But today, I want to provide you with an important update about one of the most significant actions we take each year in the Legislature – the budget.

In the face of a tumultuous and fiscally uncertain year, it brings me great pride to announce that this year’s budget has far exceeded expectations. As a direct result of a decade of responsible budgeting, we are positioned to put record revenues into a transformative budget that is bold, encompassing and with an eye on sustainability. Our updated version of the budget contains $264.1 billion in spending, while putting a record $25.2 billion in General Fund reserves to save for a rainy day.

So what are we spending this money on?

First, an issue on a lot of people’s minds – economic recovery. One of the toughest parts of the pandemic has been watching individuals, families and our small businesses struggle under the weight of stay-at-home orders and a rapidly shifting economy. The impacts have been widespread – which is why we’re committing to serious investments in economic stimulus and relief. Our investments include $8.1 billion in a second round of Golden State stimulus tax cuts, providing individual taxpayers with a payment of anywhere from $500-$1,100 of additional relief; $1.5 billion in new small business and non-profit grants; and $2 billion in additional tax relief to small businesses to help mitigate the impacts of unemployment insurance on employers.

Education has come up in our district as probably the most discussed aspect of our budget year after year. Funding for our schools, early education, and beyond have been major conversations in Sacramento for as long as I have been in office. The good news for students, parents and educators alike is that we are making historic investments in education including: $1.1 billion to help alleviate the costs of childcare while working to remove existing inequity in the current rates parents pay across the state, $2.7 billion into universal transitional kindergarten (TK), and increasing spending to over $21,000 per student for TK-12 students. We’re also making significant investments in special education, career and college readiness, assistance for foster youth and to help increase the number of  slots available for Californians to access state-subsidized childcare. In addition to focusing on early and primary education, we’re doubling down on our commitment to ensuring all Californians have the opportunity to pursue a higher education by expanding the Cal Grant program and rebooting the Middle Class Scholarship program, helping people from all walks of life have better access to a reduced or debt-free college education.

Of course, I would be remiss if I didn’t include a few of my budget priorities that were thankfully part of the Legislature’s proposal – mainly climate resiliency, wildfire prevention, homelessness and transportation infrastructure.

Across an array of programs and state departments, we’re prioritizing investments to address the ongoing impacts of climate change. California is on the brink of another epic drought and through the budget we’re allocating $3.7 billion in drought relief and assistance. We’re dedicating another $3.7 billion for climate resiliency investments, as well as historic funding for wildfire prevention and response. 

In the 43^rd, we all know far too well the threat wildfires pose to our communities. Nearly half of our district lies within a very high fire hazard severity zone – communities most at risk of severe wildfires. Throughout my time in the Assembly, I’ve put a tremendous amount of focus on updating our existing laws and fighting for our first responders, cities and property owners to have the tools they need to reduce the loss of lives and property due to wildfires. I’m pleased to announce that our budget proposal includes $1 billion toward wildfire prevention and response, including an allocation of $3.2 million that I was able to get into the budget to help pay for the new defensible space requirements created by my AB 3074, a measure signed into law last year.

While there’s been a lot of talk about infrastructure investment at the federal level, in California we’re acknowledging our responsibility to make these worthwhile investments that are key to securing a safe, equitable and prosperous future. We’re putting $7 billion towards improving broadband service statewide, increasing our funding for parks and cultural institutions, and allocating $3 billion for transportation funding. As the chair of the Assembly Transportation Committee, I’ve been working closely with my colleagues and the governor’s office to ensure those transportation dollars are well spent.

These dollars should not only help repair our roads, but make meaningful investments in transit and active transportation projects up and down the state.

Our infrastructure plan also includes key resources for housing across the state. Over the past few years, we’ve allocated billions to address our housing and homelessness crisis. In this budget, we’ve increased funding for the development of affordable housing, we’re building on our investment in housing and services for homeless Californians with $8.5 billion in funding over two years, and $1 billion to help cities and local governments address the specific needs of homeless residents in their communities. 

I know it may feel like there is a lot here and I’ve really only been able to scratch the surface. What I’d like to leave you with is this: We’re continuing to prioritize responsible budgeting. Just because we have the money doesn’t mean we’re going on a reckless spending spree. The work of this budget is done carefully and cautiously. Our goal has been to craft a budget that’s sustainable through the good years, and the challenging years. Through our work with the governor’s administration and stakeholders across the state, we’re not only making bold and impactful investments, we’re also focused on increasing our reserves, fully paying off our Proposition 98 deferrals, spending $3 billion to pay down pension costs, and making an astonishing $1 billion worth of early prepayments to our general obligation bonds.

As of Monday, we passed the Legislature’s version of the budget, and now we will continue final negotiations with the Newsom Administration in order to earn his final signature.

There’s a lot to unpack in our annual budget; I hope this overview helps explain some of the key areas we’re looking to fund so that we can not only recover from this pandemic but also prepare for future challenges while taking care of the needs of so many who call our state home.

If you have any thoughts, questions or would like an more detailed look at this year’s budget, please do not hesitate to email me at Assemblymember.Friedman@assembly.ca.gov or call my office at (818) 558-3043.