Governor Newsom Proposed 2022-2023 Budget

California Governor Gavin Newsom recently released his 2022-2023 state budget proposal. Full details of the proposal can be found by visiting: https://www.ebudget.ca.gov/

In his statement to the legislature, Gov. Newsom laid out his budgetary priorities: “This budget fully funds our state’s rainy-day fund and pays down future obligations. It prioritizes the safety and security of all Californians with new crime-fighting strategies, investments in behavioral health reform, and more housing for people exiting homelessness. It tackles affordability with record investments in our public schools and makes California the first state in the nation to achieve universal healthcare coverage. And it reinforces our role as the global leader in climate protection, innovation and job creation.[1] ”

The $286.4 billion-dollar budget is $20 billion larger than last year and focuses new investments on healthcare, COVID-19, climate change, housing, inequality, and public safety. Newsom called the budget “a foundation for California’s future” and said California “must meet the moment again.[2] ”

Like 2021, there are no major cuts in this year’s spending plan given the multi-billion-dollar surplus.  COVID-19 mitigation and response continue to be a priority, with $2.7 billion allocated to increasing testing, vaccinations, and supporting the healthcare system.  Newsom is asking the Legislature to approve this funding now so that it can be utilized immediately. He is also seeking a reinstitution of paid COVID-19 supplemental sick leave for workers, which expired last fall.

The budget process now shifts to the Legislature who will spend the next 5 months diving into the details while making changes that fit their priorities.  With such a large surplus and like-minded Governor, it's hard to see the Legislature making many sweeping changes. 

If you’re interested in more specifics, click here.

[1] https://www.ebudget.ca.gov/2022-23/pdf/BudgetSummary/GovernorsMessage.pdf

[2] https://www.gov.ca.gov/2022/01/10/governor-newsom-releases-california-blueprint-to-take-on-the-states-greatest-existential-threats-and-build-on-historic-progress/