Chris Hoene on the Governor’s May Revision: Emphasis on Bold Investments and Fiscal Resilience Continued but Opportunities Remain to Improve Well-Being for More Californians

SACRAMENTO – The California Budget & Policy Center, a nonpartisan public policy research group, issued the following statement from Executive Director Chris Hoene in response to today’s release of Governor Gavin Newsom’s revised 2019-20 budget:

“Governor Newsom’s revised budget continues the bold investments he first proposed in January that are necessary to create economic opportunities for Californians, starting in their earliest years and continuing on as they join the workforce, while also fostering the state’s fiscal health.

“Among the key one-time and ongoing investments vital for low- and middle-income Californians to share in our state’s economic prosperity are: expansion of the state’s Earned Income Tax Credit (EITC), investment in early childhood development, extending paid family leave, moving toward universal health coverage, increasing investment in K-12 and state higher education systems, and working toward greater access to mental health services. As homelessness and the high cost of housing continue to bear down on Californians, we are encouraged by Governor Newsom’s mix of support for housing and homelessness. The Governor’s budget recognizes the strong connections between being able to afford a home, raise a family, go to school, maintain a job, and access health care for Californians to successfully live in this state.

“The Governor’s revised budget also continues to bolster the state’s fiscal resilience by building up reserves and paying down debts. While the Governor’s budget calls for a variety of program expansions, the May Revision sunsets some of those investments within a few years.

“While we applaud the Administration’s emphasis on fiscal resilience, we see opportunities to further enhance the state’s fiscal standing and extend support to more Californians in need. By seeking an extension of California’s tax on health insurance plans — also known as MCOs — the state could afford to move closer to universal health coverage. The state also still has room to further improve the economic and social well-being for all Californians, including older adults and people with disabilities, all working immigrants who file their taxes and who are left out of the EITC expansion, and families with young children who are struggling to find affordable child care.”

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The California Budget & Policy Center will release its “first look” analysis of the 2019-20 May Revision on Friday, May 10 and will release further analysis and commentary in the days and weeks to come. In addition, we will provide a webinar briefing on this analysis as part of our Policy Perspectives Speakers Series on Tuesday, May 14 at 11:00 a.m. Visit this event page to register. 


The California Budget & Policy Center engages in independent fiscal and policy analysis and public education with the goal of improving public policies affecting the economic and social well-being of low- and middle-income Californians. Support for the Budget Center comes from foundation grants, subscriptions, and individual contributions