Gov. Gavin Newsom unveiled Friday a record $222.2 billion budget for the 2020-21 fiscal year that is a modest 3.5% more than the budget enacted last year.
“As 2020 begins, California’s economy is the strongest in the nation and the fifth largest in the world. We’re eliminating debts, paying down pension liabilities, growing our reserve funds,” Newsom said.
But he acknowledged that California faces the challenges of “our widespread affordability crisis, expanding homelessness crisis and catastrophic wildfires” and said the new budget addresses those problems.
The budget brings the state’s reserves to almost 10% of the budget at $21 billion, with $2 billion added to the so-called “rainy day fund.”
Newsom’s budget also includes nearly $1 billion to enhance California’s emergency response capabilities, and an additional $1 billion assistance to the homeless.
Senate Republican Leader Shannon Grove of Bakersfield praised the increase in reserves and new money for emergency preparedness, but criticized funding to enforce the controversial Assembly Bill 5 restrictions on independent contract work.
“Nearly $20 million will go towards cracking down on AB 5 and limiting workers’ freedom, despite the pleas from so many industries to fix the law,” she said. “We should be using this funding to house Californians instead of preventing them from earning an income the way they choose.”
Newsom’s budget also proposes a historic level of funding for K-12 schools. Per-pupil funding has grown by more than $7,200 since its low point in 2011-12 following the Great Recession.
