For the first time in about a decade, with the exception of the economic shutdowns related to COVID-19, California lawmakers and the governor are bracing for a significant budget deficit.
In a presentation where Gov. Gavin Newsom typically wears a suit and tie to propose future investments, the governor Tuesday walked up to the podium in cargo pants and a zip-up to address how the state should be cutting back its spending.
Tuesday’s budget presentation is the first step in a six-month-long negotiation process between the governor and state lawmakers, as they work to nail down the state’s spending priorities by June 30. Here are some of the takeaways from his presentation.
The governor said some of the state’s biggest priorities will not see cuts. As far as the state’s response to homelessness, the governor is proposing to provide an additional $1 billion to city and county governments to confront the issue. This comes months after the governor threatened to withhold funds from local governments across the state because their homelessness reduction plans weren’t aggressive enough.
Newsom told reporters Tuesday that he will request the Legislature to put measures into state law that would hold cities and counties accountable for reducing homelessness and increasing housing.
“Our vision is realized locally,” Newsom said.
The governor proposed investing $97 million in new investments to combat the issues with fentanyl and opioids seen across the state and country. Those investments include dollars for a Naloxone distribution project, grants for recovery and testing, and overdose medication for middle and high school students.
“Whatever our schools need, anyone who needs them will be provided,” Newsom said.
Last month, the governor said California had spent $1 billion over the last three years funding services and resources for migrants at the southern border, which he said the state could not continue doing in anticipation of the budget shortfall.
Newsom said that was still the case as of Tuesday. He said the state has been spending money on medically focused sites for COVID-19 testing and vaccination for migrants. That will eventually be phased out because Newsom said it won’t be necessary. Newsom said the focus going forward will be to invest in the most vulnerable.
“Even in that strategy, there are concerns around a post-Title 42 world,” Newsom said.
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