$214.8 Billion Budget Approved by California Legislature
California lawmakers passed a $214.8 billion budget deal last week and are still working on trailer bills, which can be passed after the main budget bill is passed. The budget bill will go into effect on July 1, the start of the fiscal year, and will outline the state’s spending plan until next year’s budget. The budget relies on a surplus to add billions more to the state’s reserves funds, which will increase to $19 billion. The budget will also add hundreds of millions of dollars to reserves for social services and schools. State Senator Holly Mitchell, the chair of the Committee on Budget and Fiscal Review that oversees the final budget deal, stated the following regarding the budget’s passage,
The budget deal will maintain the state’s ongoing commitment to fiscal prudence. This budget is bold and responsible.
The budget includes new spending on schools, homelessness and health care for undocumented immigrants. Around $101 billion is planned for k-12 education, with hundreds of millions of dollars going towards easing pension pressure on schools, more money will be allocated for special education programs, and an additional $125 million is planned for new preschool slots. $250 million is earmarked to help cities and counties plan for new housing, half a billion dollars each will be available for developer loans to build affordable housing and expand state’s Low-Income Housing Tax Credit program, and $650 million is planned for local governments to help homeless people. The budget has also earmarked $98 million for undocumented young adults under age 26 to be allowed to enroll in Medi-Cal starting in 2020. The Legislature is expected to pass about 17 trailer bills this week, according to Assemblyman Phil Ting. Governor Newsom has 12 days to sign or veto the budget bill.