NewsCovering California

Actions

Governor Newsom proposes new budget for 2022-2023 fiscal year

We’re talking about $97.5 billion in surplus.
Newsom
Posted at 4:08 PM, May 13, 2022
and last updated 2022-05-13 19:08:00-04

BAKERSFIELD, Calif. (KERO) — Governor Gavin Newsom unveiled a revised California Budget Proposal for the 2022-2023 fiscal year of $300 billion.

It’s a groundbreaking amount and with it, an unprecedented surplus.

We’re talking about $97.5 billion in surplus, which according to our governor, rivals any state budget our country has ever seen.

“Here’s the number you’ve been waiting for, the surplus. Just shy of $100 billion. Simply without precedent. No other state in American history has ever experienced a surplus as large as this.”

That surplus in funds thanks to a GDP growth rate of 7.8% prompting a May revision of the California Budget Proposal for the upcoming fiscal year.

Governor Gavin Newsom now urging the state legislature to increase it to $300 million.

The governor is hoping $18.1 billion will alleviate the burdens of inflation. Giving Americans money directly to pay rent, their utilities, and subsidize costs of health and childcare.

But as the assembly of Republicans, which includes Assemblymember of California’s 34th Assembly District, Vince Fong, point outs that amount does not include an immediate gas tax relief.

They wrote, in part, in a statement, “He did not propose any permanent tax relief to deal with a worsening affordability crisis exacerbated by his policies. Given the bone-dry conditions caused by the third year of drought, he stubbornly dismisses the cry to build more water storage and accelerate wildfire prevention projects. The Governor may not want to acknowledge it, but California is in crisis and his budget is unsustainable.”

Newsom did go on to propose $47.1 billion to address pollution, bolster climate-resilient water supplies, move toward cleaner energy, and protect communities from wildfires and extreme heat.

Another $14.7 million was proposed to help get those experiencing homelessness off the streets and get vital services if they’re suffering from mental illness.

"Seven new projects we just put out a couple days ago, $166 million, $1.1 billion just in the new program, 4,000 units just since Home key 2, 10,000 total. 10,000 in the last couple years."

Newsom goes on to ask legislators for $37 billion to rebuild California’s infrastructure. That includes housing and a record $128.3 billion to revolutionize public education and $660 million being set aside for public safety.

New law enforcement recruits, mental health support for current officers, support for victims of sex trafficking and tackling crimes against children both online and on-the-streets.

It’s all a part of what Newsom calls, "California’s Pro-Life Agenda”.

“If you are pro-life, you will support gun safety, if you were pro-life, you would actually support after school pre-school and grade school programs. Every one of these cases, universally. The same folks that are claiming to be on the pro-life side, are cutting these programs. So, spare me their mantra of being pro-life.”

It feels like an overwhelming sum, but Governor Newsom said that it shouldn’t impact future budgets. He’s asking for these funds to come from $37.1 billion in reserves and $23.3 billion of our state’s rainy-day fund.

Plus, 94% of surplus revenues will be used toward one-time projects.