Chris Hoene on the Governor’s Proposed Budget: A Series of Bold and Smart Investments, While Maintaining Our State’s Fiscal Health

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

“Governor Newsom’s inaugural budget proposal calls for a series of bold and smart investments in broadening economic security and opportunity for Californians, while continuing to strengthen the state’s underlying fiscal health.”

“The Governor’s proposal includes a range of significant expansions in support of low- and middle-income Californians who are struggling to make ends meet and access greater opportunity, including doubling the state’s Earned Income Tax Credit, working toward universal preschool for 4-year olds, investing in child care infrastructure, expanding health care to move closer to universal coverage, extending paid family leave, boosting CalWORKs grants, and increasing investment in state higher education systems. Recognizing that high housing costs contribute to California’s high poverty rate, Governor Newsom also proposes a mix of policies to address housing needs and homelessness. These policies would make California more affordable for millions of Californians.”

“Many of the Governor’s proposals – such as for child care and housing – use one-time investments in 2019-20 to lay a foundation for plans to build out public supports over the next several years.”

“Recognizing that California is experiencing a period of sustained economic growth and a positive revenue outlook, the budget proposal also calls for paying down debts and building up reserves. These proposals, in combination with one-time and ongoing investments, represent a balanced approach to managing the state’s fiscal health.”

“We are encouraged by the Governor’s proposals and the focus on making smart budget and policy choices that will improve outcomes for many Californians, especially those who are not yet sharing in our state’s economic prosperity.”

Webinar Briefing, Thursday, January 17, 1:00 p.m.: Please join the California Budget & Policy Center for a webinar briefing on the Governor’s proposed 2019-20 budget on Thursday, January 17, from 1:00 to 2:00 p.m. Register here.

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The Budget Center plans to release our “first look” analysis of the Governor’s proposed budget on Monday, January 14th and will release further analysis and commentary in the days and weeks to come.


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