Read More about the Newsom May Revision 2024 →

Today, Gov. Gavin Newsom released his proposed 2022-2023 budget, totaling $286.4 billion and tackling issues that he called California’s five greatest existential threats: COVID-19, climate change, homelessness, inequality and keeping the streets safe. The plan includes a large amount of one-time spending, reflecting an estimated $45.7 billion surplus.

Newsom and the Legislature will use the initial plan to work toward passing a final budget by the June 15 deadline.

The full budget is available here, but below are some quick highlights from Newsom’s California Blueprint:

Fighting COVID with Science with a focus on keeping schools open and the economy moving.

  • $2.7 billion pandemic response package for COVID-19 testing and contract tracing, staffing for vaccination sites, health care facilities and public agencies, and continuing the state’s education campaigns to tackle vaccine mis- and disinformation. Newsom has also asked the Legislature to revive COVID-19 supplemental paid sick leave.

Combating the Climate Crisis by fighting wildfires, tackling the drought and forging an “oil-free future.”

  • $2.1 billion to nature-based solutions to confront the climate crisis, including coastal and ocean protection efforts, habitation restoration, and preparation for floods, heat and extreme weather.
  • $2 billion to provide incentives for long-duration-storage projects, green hydrogen, industrial decarbonization, food production and offshore wind.
  • $1.2 billion over two years to improve forest health and fire prevention and $648 million to support firefighters.
  • $1 billion in new green tax credits to companies creating cutting-edge climate solutions.
  • $946 million in Greenhouse Gas Reduction Fund, including $676 million to expand zero-emission vehicle adoption and advance equitable clean mobility options.
  • $750 million to address immediate drought response needs, focusing on water conservation efforts, groundwater recharging and assistance for farmers.
  • $550 million over three years to expand climate workforce strategies.

Confronting Homelessness by ensuring vulnerable Californians have the supports and mental health treatments they need.

  • $2 billion over two years to help Californians transition from the streets to shelters and treatment by investing in behavioral health housing and encampment cleanup grants.

Tackling The Cost of Living by advancing universal access to health care coverage, providing millions in grants and tax breaks to small businesses, and confronting rising childcare, education and housing costs.

  • $819.3 million in 2023-24 and $2.7 billion annually at full implementation to expand Medi-Cal coverage to all income-eligible adults aged 26-49 regardless of immigration status, creating the pathway to all income-eligible Californians.
  • $1.5 billion over two years to accelerate the development of affordable housing, with a focus on high-density, infill development.
  • $4.4 billion ongoing funding to before and after school programs, $1 billion to implement universal Pre-K, $750 million to increase student housing affordability, and $515 million to expand middle class scholarships.
  • $30 million to create the Office of Health Care Affordability to identify the drivers of health care costs, compliance and the integration of primary care and behavioral health.

Keeping Our Streets Safe by fighting and preventing crime.

  • $132 million to bolster law enforcement response to organized retail theft crime.
  • $25 million to support local gun buyback programs.
  • $20 million to expand existing drug interdiction efforts supporting the four High Intensity Drug Trafficking Areas in California.