Governor releases the 2021-2022 May budget revision mapping California’s economic recovery
SACRAMENTO – Today, Governor Gavin Newsom released a $100 billion balanced State Budget proposal, which estimates an all-time high surplus of $75 billion. The budget proposal includes the largest state tax rebate in American history in the form of direct checks to Californians and makes crucial investments in small business assistance, water infrastructure, drought response, and schools. Assemblymember Salas (D-Bakersfield) highlighted the proposal's inclusion of an historic $5.1 billion investment for drought infrastructure, preparedness and response, and the unprecedented $750 million for Assembly Bill 106 (Salas), which establishes the Regions Rise Grant Program, which incentivizes local businesses and organizations to collaborate and develop inclusive strategies for economic prosperity in underserved communities like the Central Valley. Additionally, the proposal contains $500 million for support to local farmers under Assembly Bill 252, which Assemblymember Salas is joint-authoring, and will help transition agricultural land in ways that benefit the environment and the economy.
“California is on its way to make a strong economic recovery by making historic investments with over $6 billion for water infrastructure and drought response, $750 million for our Regions Rise Grant Program, which will help increase economic opportunities in the Valley, $121.7 billion for our schools, $12 billion to address the homelessness crisis and $15.9 billion put into the state’s rainy day fund to prepare us for the next recession,” said Assemblymember Salas. “Now is the time to invest in long-term solutions to strengthen our state’s infrastructure and support our families and businesses who have struggled the most during this past year. I will continue to fight for these priorities to ensure that the final state budget supports our communities in the Central Valley.”
Both houses of the Legislature will now convene to conduct an independent review of the Governor’s revised budget proposal and are expected to agree upon a finalized plan by the June 15 deadline.
Key items from the budget proposal include:
Water and Drought Resilience:
- $1.3 Billion for Drinking Water/Wastewater Infrastructure especially for small and disadvantaged communities.
- $150 Million for Groundwater Cleanup and water recycling to improve climate resilience.
- $300 Million for SGMA Implementation to improve water supply security, water quality, and water reliability.
- $200 Million for Water Conveyance to address subsidence and rising cost of moving water through the Friant-Kern Canal, the Delta-Mendota Canal, the California Aqueduct, and the San Luis Canal.
- $27 Million for emergency and permanent solutions to drinking water drought emergencies.
- $500 Million for Multi-benefit Land Repurposing to support growers.
- $300 Million for Drought Relief and Urban Water Management Grants for approximately 2,400 small community water systems that serve schools and all of California’s 58 counties as they plan for drought and potential water shortages.
Immediate Relief for Working Families:
- 2 out of every 3 californians will receive at least a $600 check.
- $5.2 billion to help low-income renters pay back their rent.
- $2 billion for families to pay their water, power, and gas bills.
- $121.7 billion total investment, the highest ever in state history.
- $20 billion for public schools.
- $2 billion to help schools safely reopen.
- $2.6 billion for accelerated learning and tutoring.
- $1 billion for summer school programs.
- $150 million for universal meal programs.
- $2 billion to open 3.7 million child college savings accounts for low-income students.
- 100,000 new child care slots.
- $550 million for teacher training and recruitment.
- $3.6 billion for community colleges.
Jobs and Infrastructure:
- Expanding small business grants to $4 billion, the largest program in the country.
- $6.2 billion tax cut for small businesses.
- $1 billion in new grants to workers who lost their jobs.
- $417 million for apprenticeship programs.
- $200 million grants to establish youth volunteer and job opportunities.
- $12 billion in funding to get 65,000 people off of the streets.
- $7 billion for Project Homekey to create 46,000 of housing.
- $447 million to address student homelessness.
- $3.5 billion to end family homelessness.
- $100 million for CalOES to support services for domestic violence victims.
- $100 million additional funding for CalVIP to reduce gang and community violence.
- $276.3 million to improve the verification backlog.
- Changing benefits to a direct deposit system.
- Improving language access.
- More employees to help with individual case load and backlog.
Assemblymember Salas represents part of the City of Bakersfield, the cities of Arvin, Hanford, Corcoran, Delano, Lemoore, McFarland, Shafter, Wasco, and the communities of Armona, Avenal, Buttonwillow, Home Garden, Kettleman City, Lamont, Lost Hills, Stratford and Weedpatch.