The governor’s revised economic outlook expects US and California economic growth to continue in the coming years, but at a slower rate than projected in January. Californians across the state have put their own health and well-being at risk to keep our communities running amid the ongoing pandemic, and the 2022-23 state budget agreed upon by the Legislature and governor should ensure kids, families, and individuals can be healthy and thrive.īudget Overview Revised Budget Projects Slightly Slower Economic Growth, Increase in Minimum Wage This First Look report by the Budget Center team outlines key pieces of the May Revision to the governor’s 2022-23 budget proposal and examines how state leaders can expand upon the governor’s proposals to invest in the people who are most struggling to meet basic needs. As a result, the Gann Limit threatens to hold the state back from building a better and more equitable future for Californians and will need to be repealed or significantly reformed in future years. However, if state revenues continue to grow, state leaders may be confronted with making cuts to current services to meet the state’s rising constitutional spending obligations. ![]() The administration projects that the state will be under the limit for the two-year period ending on Jand will exceed the limit, pending other budget choices, in 2022-23. The May Revision also outlines how the governor proposes to manage the state’s constitutional spending limit - or Gann Limit. Most notably, the administration proposes to spend $3 billion over the next two years to unnecessarily pay down a federal unemployment insurance loan, which amounts to a tax break that primarily benefits larger businesses and corporations. Too many of the governor’s proposals also potentially waste vital resources by providing aid and tax breaks to wealthy Californians and corporations. Tax Breaks for Wealthy Californians & Corporations Streamline and eliminate barriers that prevent students from low- and middle-income households and students of color from accessing state financial aid.Allocate large one-time discretionary grants in the K-12 and California Community College systems using equity-based formulas.Expand food assistance to all Californians who are undocumented.Significantly invest in addressing the needs of older adults and people with disabilities.Increase CalWORKs grants at a level that keeps all families out of deep poverty.Increase payment rates for subsidized child care providers.Provide more public health support to address health equity.Provide new investments in the development, acquisition, or preservation of affordable housing.Adequately invest in long-term housing and supportive services to address homelessness.Increase payment rates for California workers who need paid time off.Expand or strengthen the California Earned Income Tax Credit (CalEITC) that provides direct cash assistance to Californians earning low wages.In addition to the ill-advised vehicle-based rebates plan, the governor’s proposals fail to: Pandemic protections for subsidized child care providers and families to boost economic security.Homekey to support housing to help people exit homelessness.Emergency rental assistance that state leaders agreed to earlier this year.Health premium subsidies for Californians with low and middle incomes.Comprehensive Medi-Cal for Californians with low incomes who are undocumented and ages 26-49. ![]()
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