California’s State Budget – Investing in our Future

Earlier this week, the California Legislature passed our 2022-23 state budget, setting a sustainable course that invests in California and takes steps to protect our resources from future economic downturns. I’m proud that this is a budget that reflects our values with historic levels of funding for our schools and universities and expanded access to health care as well as investments in housing, transportation and economic relief for millions of Californians and small businesses. It’s also a responsible budget that allocates a significant portion of revenues to our reserves. In fact, the budget nearly doubles our reserves to $37.8 billion. I’d like to share with you some highlights from the budget, what it means for you and our community, and our next steps.

The impact of inflation is hitting Californians hard from the grocery store shelves to the gas pump. This budget prioritizes much-needed relief for Californians, small businesses and nonprofits. First and foremost, the Legislature is proposing $8 billion to counter costs due to inflation through the Better for Families Rebates, a program to provide $200 per taxpayer and dependent for taxpayers earning up to $250,000 in annual income for joint filers and $125,000 for single filers. This means a family of five could receive a $1,000 rebate.

We’re also providing additional relief for small businesses and nonprofit organizations with an investment of $1.3 billion. The funding will not only provide grants to offset the costs of paid sick leave and direct assistance for agriculture-related businesses impacted by the severe drought, it will also provide full rebates to cover the upcoming increase in federal unemployment insurance for 99% of all businesses.

Over the past several years, we’ve been able to make significant investments in our schools. I’m happy to report that in this budget we’re continuing to strengthen schools with a $9.4 billion increase – that’s 16% over last year. We’re allocating $9 billion in Proposition 98 funds to assist with learning recovery through grants, as well as a $1.5 billion investment in arts, music, libraries and instructional materials, and $700 million in college and career readiness initiatives. These are investments that will make a real difference in schools across the state, but we’re also taking the necessary steps to prepare for a rainy day by setting aside specific reserves to help weather the storm that any future downturn might bring.

The COVID-19 pandemic put a spotlight on our health care system and the holes in our safety net. Through this budget, we’re building on our work to provide health care for all by expanding Medi-Cal to cover all eligible Californians regardless of immigration status. We’re also continuing to bolster our public health system and infrastructure to respond not just to the pandemic, but also our ongoing battle with opioid addiction, mental health and overall health disparities.

We’re investing in our health care workforce with over $296 million as part of our Workforce for a Healthy California for All Program. The funding will recruit, train and certify 25,000 health care workers by 2025 to serve some of our most vulnerable populations, increase the number of nurses across the spectrum, expand the number of social workers and invest in the hospital and nursing facility staff that have worked tirelessly on the front lines of this pandemic for over two years. 

We have a clear opportunity to invest in infrastructure that we depend upon every day and through our budget plan we’re poised to provide over $40 billion for projects across the spectrum. While the details are subject to ongoing negotiations, the package is expected to address water resources, active transportation, drought resiliency, wildfire prevention and response, biodiversity, zero-emission vehicles and many other climate-related items.

These historic and transformative investments are absolutely exciting and it is money we need to steward carefully so that we can leave future generations in the best shape possible. I see these incoming funds as key opportunities to create pivotal, sustainable and lasting change.

In the days and weeks ahead, we’ll continue to negotiate with Gov. Newsom on an array of budget issues. We’re already starting from a solid position where we have common goals and priorities that continue to move California forward. 

As always, I’d like to hear your thoughts on our budget, legislation or any general comments or concerns. You can reach my district office at (818) 558-3043 or by email at Assemblymember.Friedman@Assembly.ca.gov.