California Is Swimming In Money. How Will Gavin Newsom Spend California’s Budget Surplus?

For the second year in a row, California’s budget is poised to avoid economic fallout from the coronavirus pandemic, leaving Gov. Gavin Newsom with a good problem: how to spend a projected $31 billion surplus.

By Monday, Newsom must unveil his proposal for the 2022-23 fiscal year, which starts July 1. His proposal will kick off months of negotiations with lawmakers, who face a June 15 deadline to pass a budget.

Analysts predict the state’s highest earners will continue to prosper and pay high taxes, resulting in another big surplus. The budget Newsom signed last summer included a projected $80 billion surplus, which allowed lawmakers to provide COVID-19 relief and send stimulus checks to millions of Californians.

The nonpartisan Legislative Analyst’s Office has recommended that lawmakers appropriate no more than $3 to $8 billion in new ongoing spending, and use the rest on one-time expenses that won’t force cuts in the future when there’s less cash available. The office also advocated for lawmakers to add to reserve accounts in anticipation of leaner budget years in the future.

Newsom has said he wants to use most of the extra money for one-time spending on areas including budget reserves, pension debt and the social safety net. He has also suggested more stimulus checks could be on the table.

“I think that’s the approach: fiscally disciplined, recognizing this is not a permanent state, recognizing the one-time nature of most of these dollars,” Newsom said in November.

MORE POLICE FUNDING

In November, after a spate of high-profile retail thefts, Newsom announced that his 2022 budget proposal will “substantially” increase funding for cities to crack down on organized retail crime.

Assemblywoman Cristina Garcia, who leads the Assembly Budget Subcommittee on Public Safety, said she thinks addressing retail theft makes sense, but wants to see specifics.

“We need to do something to deter those crimes and hold people accountable,” the Bell Gardens Democrat said. “I want to see the details and see that the funding is used effectively and not just padding departments.”

She said she also wants to see more money in the budget to change a culture of hazing in California prisons.

Last year, The Bee reported on two California State Prison-Sacramento officers who died after reporting harassment, hazing and corruption by their colleagues. One officer’s death was ruled a suicide. The other died of a fentanyl overdose. Since then, the state has moved to fire two officers and discipline 10 other employees at the prison.

Garcia also pointed to the case of a prisoner who was tortured and beheaded by his cellmate, which officers failed to report for hours.

“Breaking the law and being in jail shouldn’t be a death sentence,” Garcia said. “Being an officer shouldn’t be a death sentence either.”

MORE MONEY FOR SCHOOLS

Newsom intends to steer more money toward screenings for dyslexia and add more funding for early education, he told The Sacramento Bee in an interview last month. Newsom has dyslexia and wrote a book last year inspired by his struggle to read because of the condition.

He said his proposal will aim to help kids who “start behind.”

“We did a lot more last year than we did the prior year, and this year’s budget’s gonna see a hell of a lot more, forgive my language,” he said. He also said he wants to expand literacy programs through First 5, a state program for kids under 5.

Click here to read the full article at the Sacramento Bee

Comments

  1. Stan Sexton says

    He will probably raise CALPERS and CALSTRS Pensions so everyone can have the $418,600 a year that Curtis Ishii enjoys.

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