SACRAMENTO, CA — Following this morning’s release of Governor Newsom’s 2024-25 revised budget proposal, the California Budget & Policy Center (Budget Center), a nonpartisan research and analysis nonprofit, responded with the following statement from its executive director, Chris Hoene:
“A state budget mirrors the values and decisions of our collective. In times of significant budget shortfalls like today, policymakers must utilize all available strategies to balance the budget and safeguard the well-being of Californians, who are integral to maintaining our state’s status as the 5th-largest economy in the world. Despite the sizable shortfall, Governor Newsom’s proposal largely protects core services while balancing the budget and maintaining sizable reserves for future years.
“While the governor’s proposal protects many vital programs and services, it also includes cuts to programs and services that affect the day-to-day lives of Californians with low incomes and Californians of color. The proposed cuts and delays are a result of policy choices and can be avoided through a series of different policy solutions to balance the budget. Today’s spending proposal exemplifies the challenging choices and potential harm caused by Governor Newsom’s resistance to raising revenues by closing corporate tax loopholes and taking other steps to make the state’s tax system more fair in a time of great need.
“We applaud the governor’s unwavering dedication to extending full-scope Medi-Cal coverage to all Californians, irrespective of immigration status. His steadfast support for the CalEITC, Young Child Tax Credit, and Foster Youth Tax Credit, and temporary rate increases for child care providers are essential for helping Californians thrive. The reduction of prison beds is a step in the right direction toward closing additional prisons, which could yield billions in annual savings. Nonetheless, the persistent reluctance to embrace meaningful revenue solutions continues to impede the realization of the governor’s vision for a California for all.
“State leaders have options — including reducing inequitable tax breaks and responsibly using additional reserves — to avoid cuts to homelessness programs, CalWORKs supportive services, behavioral health initiatives, public health capacity, education, and more. Worrisome delays include a two-year delay of the California Food Assistance Program Expansion and an indefinite pause of child care slot expansion. The administration’s proposed cuts and other delays would reverse a decade of progress and exacerbate existing racial and gender inequities.
“While the administration’s prudent use of the state’s reserves and other budgetary tools reflects California’s financial resilience and helps manage the shortfall, the proposal could go further to protect the vital services millions of Californians rely on.
“As the Legislature and administration enter final budget negotiations, we strongly urge them to prioritize closing corporate tax loopholes and implementing other measures to make the tax system more fair. This proactive approach is essential to avoid further cuts and to secure enduring investments for the future, fostering health and prosperity for all Californians.
“Our team eagerly awaits the release of the budget trailer bill language, Finance Letters, Budget Change Proposals, and details of the proposed excess revenue investment capture account to further analyze the administration’s proposals and assess their potential impact on communities of color and Californians with low incomes.”
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The California Budget & Policy Center (Budget Center) is a nonpartisan research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians.
