Buoyed by a $75 billion surplus from tax revenue and $27 billion in stimulus funds from the federal government, today Gov. Gavin Newsom released his May Revise for the 2021-2022 budget, totaling $267.8 billion dollars in spending.
Today’s May Revise represents a $40 billion increase from the Governor’s proposed budget in January. Newsom and the Legislature will now work towards approving a final budget by the June 15 deadline.
The full budget is available here, but below are some quick highlights:
ECONOMIC SUPPORT AND RECOVERY
- Nearly $12 billion in direct payments to Californians. Two-thirds of Californians would qualify for the Golden State Stimulus program for a check of at least $600, and families with kids would receive an additional $500.
- $12 billion to tackle homelessness, including expanding Project Homekey, the administration’s signature program to acquire hotels, motels, apartments and other buildings to provide homes for people experiencing or at risk of homelessness.
- $95 million to support the recovery of California’s tourism industry, one of the largest economic drivers in the state, from the pandemic.
ENERGY & INFRASTRUCTURE
- $912 million to build the “grid for the 22nd century” and accelerate California’s progress on meeting its clean energy goals through investments in energy storage, offshore wind, clean hydrogen and more transmission infrastructure.
- $3.2 billion over the next three years to support zero emission vehicle (ZEV) adoption through increased funding for incentives such as the Clean Vehicle Rebate Program and Clean Cars 4 All, in addition to grants focused on expanding California’s ZEV manufacturing footprint.
- $5.1 billion over 4 years for drought response and to protect water supplies for communities, the economy and the environment. The investment includes funds for drinking and wastewater infrastructure and investments in groundwater cleanup and water recycling projects.
- $7 billion over three years as part of Gov. Newsom’s aim to expand broadband infrastructure, increase affordability and enhance access to broadband for all Californians.
- $15 billion total towards investments in K-12 public schools, including additional programming in low-income communities, $4 billion for youth mental health support, more than $3.3 billion for teacher and staff training and $3 billion for the development of “community schools,” with wraparound mental health, social and family services.
- $2 billion to seed college savings accounts for students currently enrolled in K-12 public schools. The savings account can be used later in life for higher education or to start their own business.
- $3.4 billion to provide free transitional kindergarten to all four-year-olds in California.
- $4 billion over two years to establish a low-cost student housing grant program focused on expanding the availability of affordable student housing in higher education settings.
- An additional $1.5 billion for the California Small Business COVID-19 Relief Grant Program, bringing the total investment to $4 billion. This program offers grants up to $25,000 for small businesses that have been impacted by the pandemic.
- $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.
- $3.3 million in ongoing General Funds to support implementation of the Master Plan for Aging.
- $32.8 million to prepare and prevent the state for the rising number of Alzheimer’s and dementia-related diseases by implementing recommendations of the Alzheimer’s Task Force.