California Gov. Gavin Newsom’s Record $286.4 Billion Proposed Budget

California Gov. Gavin Newsom released his record $286.4 billion proposed budget Monday to praise and criticism. His 2022-2023 budget proposes to spend:

• $22.5 billion over the next five years to fight climate change including $500 million for “climate workforce” programs that involve professional training
• An “Oil-free” future includes $6.1 billion for electric trucks, school buses, heavy-duty vehicles, 100,000 new charging stations and more transportation projects, $2 billion clean energy projects, $1 billion in tax credits for companies working on climate solutions, $9 billion in transportation projects for transit, rail, bicycle and pedestrian safety, climate adaptation and high-speed rail
• Wildfire support including $3.7 billion and add more than 1,200 new CalFire positions and $1.2 billion for forest management
• On top of the $12 billion in last year’s budget for the homeless, Newsom proposes another $2 billion in spending and $1.5 billion for housing for homeless including tiny homes and shelters
• Drought spending including $750 million in water conservation, efficiency, groundwater recharge
• $2 billion for coastal and ocean protection, community resiliency projects, urban greening and a state climate corp
• Universal health care for everyone in the state (previously estimated at more than $400 billion)
• $2.7 billion on efforts related to vaccines, boosters, COVID-19 testing and “increased medical personnel”
• $20 million in scholarships for doctors who commit to providing abortions
• In addition to paying for the health care of low-income young adults and people 50 and over in the country illegally, Newsom is adding $2.2 billion per year to pay for the health care expenses for every low-income adult in the state regardless of their immigration status
• $1.5 million to repurpose empty housing areas in prisons
• $102 billion to education to deal with pandemic costs in schools
• $1 billion for universal transitional kindergarten for all 4-year-olds by 2025
• $3.4 billion before- and after-school programs for low-income elementary school students, and “expanded learning”

The entire budget is here. A summary of the 2022-23 budget is here.

Lawmakers and others involved in state politics weighed in on Gov. Newsom’s 2022-2023 budget proposal:

California Republican Party Chairwoman Jessica Millan Patterson:

“Gavin Newsom’s budget gets a big fat F for failing Californians. “It has unprecedented spending yet is woefully short on solutions that will fix the problems that are plaguing California. Gavin Newsom’s California leads the nation with the highest unemployment rate, highest gas prices, highest poverty and homeless levels, and most U-hauls moving residents out of a state. Crime is rampant, housing is unaffordable, and students are falling further behind. Instead of a reckless spending spree, Democrats should take the budget surplus accrued from aggressively over-taxing Californians and work with Republicans to make wise investments that will restore the Golden State to a place where people come because of opportunity, not one they are rushing to leave.”

Board of Equalization Member Ted Gaines:

“With a $45.7 billion budget surplus, there’s no reason we can’t create a more affordable and sustainable California by investing in housing; expanding California’s water storage; protecting the jobs of California taxpayers; investing in science-based fire protection programs; ensuring that the money we send to our schools reaches the classroom; re-funding the police so our communities and families are safe; and building a strong safety net, not a mattress.

Dr. Mark Ghaly, Health and Human Services Secretary:

“The Governor’s Budget doubles-down on an upstream, whole person, equity-anchored approach.

The 2022-23 Governor’s Budget makes investments that focus on our most vulnerable neighbors while addressing the upstream needs of our communities.

As we move forward, we will leverage the multiyear investments made in the 2021 Budget Act and proposed in the Governor’s Budget to build up the foundations of a Healthy California for All.

Collectively, these bold investments are designed to break down silos and integrate services– such as providing housing for homeless individuals with serious behavioral health issues and addressing the spectrum of needs for justice-involved individuals.

The proposed investments – covering health, housing, and social needs – will improve the state’s ability to serve the whole person. Read the rest of Dr. Ghaly’s statement here.

“The Governor’s proposal sets the stage for continued, careful implementation of last year’s bold budget initiatives and new investments in education, transportation, and climate-related infrastructure to benefit all Californians. I want to thank the Governor for his continued support of expanding health care coverage to all Californians.

“At the start of session last week, I told my Assembly colleagues, ‘Let’s get to work.’ That work will include budget collaboration with the Governor and Senate Pro Tem Atkins to fund state and local responses to our public health challenges, especially COVID-19.  This is especially important to support Californians facing the Omicron spike.

“In the absence of new federal funding to assist small businesses with COVID sick leave requirements, I support augmenting the Governor’s budget to add state funding for this purpose, and we have already had a productive discussion on this. “It truly is time to get to work.”

Senate Republican Leader Scott Wilk (R-Santa Clarita):  

“The governor likes to thank his fellow Democrats for ideas that originated within the Republican Caucus – but Californians see through that political gamesmanship. This budget includes many commonsense Republican requests such as a gas tax holiday, wildfire prevention and forest management, reversing tax increases on businesses, and helping keep business doors open, but so much more needs to be done.

“Senate Republicans worked effectively with former Governor Jerry Brown on bi-partisan solutions and we stand ready to work with Governor Newsom when he chooses to govern collaboratively to the benefit of all Californians.”

Senate Republicans called on the governor to prioritize several areas in the budget. View the letter here. Successful Republican requests include:

• √ Gas tax holiday                             
• √ Investment in wildfire prevention 
• √ Helping local government combat retail theft                
• √ Tax relief for job creators

“Since Newsom is so focused on ‘reimaging the future,’ he should take a better look at building water storage, improving the quality of life for everyday Californians, and analyzing why his spending on homelessness has failed,” said Wilk. “I look forward to working with my colleagues in the legislature to ensure good ideas remain in this budget and the challenges are addressed.”

Assemblyman Vince Fong (R-Bakersfield):

“While the Governor makes political headlines, every day Californians are overtaxed and are struggling to afford to live and work in our state.

“Parents are concerned about their children. Homelessness is on the rise. Small businesses are stressed. Crime is increasing. Water storage is desperately needed. Communities face a never ending wildfire season. There’s an endless list of crises. Californians are rightfully frustrated.

“Governor Newsom and Sacramento Democrats have fallen into the false mindset that simply more spending equates to success. The mentality that success is defined by how much is spent instead of by real, measurable, and actual results is mindboggling.

“Overtaxed Californians should keep more of their hard earned money. Precious tax dollars need to be spent wisely and effectively to serve those in need.”

“Governor Newsom’s budget over taxes and over-regulates Californians while continuing to push the same policies that have resulted in the highest cost of living, the highest poverty, historically high crime rates and worsening homeless crisis, despite record high spending. In December, Senator McGuire and I called on the governor to increase the number of state firefighters to meet the increasing demands of wildfire management, and I am pleased he has set aside $400 million for this proposal. I appreciate the governor’s focus on the drought’s impact on food producers and funding for water conveyance, but with no additional money for water storage, the budget is still not serious about addressing California’s food and water security. I hope the governor understands we can’t import 100% of the food the Central Valley grows. I am also strongly opposed to the governor’s continued war on the state’s oil and gas industry, which provides good jobs for thousands of families and energy security for all Californians. The governor and the majority party must prioritize the immediate needs of Californians, instead of focusing on their utopian Government controlled state.”