On March 12, President Biden signed the American Rescue Plan (ARP) Act to provide much needed assistance to tens of millions of people, including millions of Californians. The $1.9 trillion federal aid package will bring approximately $150 billion in federal aid to California to help reduce economic hardship for low- and middle-income households, support workers, help schools address learning needs, boost early care and learning, combat housing instability and homelessness, and bolster the economy. This latest round of federal fiscal relief will help reduce hardship as a result of the pandemic, particularly for Californians with low incomes and people of color, and begins to set the stage for a more equitable economic recovery. This report outlines key provisions of the plan and what it means for Californians.
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It’s October 15 and still Congress and the Trump Administration haven’t provided the $14 billion California leaders planned for in the 2020–21 state budget agreement in order to roll back “trigger cuts” — otherwise known as spending that won’t happen on K-12 education, the California State University and University of California systems, housing production, and other services for Californians. This means that students, families, and individuals won’t have the supports and resources needed to weather the COVID-19 health and economic crisis safely.
The 2020-21 California state budget put forward by state leaders recognizes the challenges the state faces and meets state leaders’ Constitutional obligation to enact a balanced budget, the spending plan fails to meet many of the most urgent and basic needs of Californians: ensuring they can safely earn a living in healthy environments and provide food, housing, and health care for their families. Without bolder action, including raising additional revenues and pursuing appropriate borrowing, the enacted 2020-21 budget will exacerbate income and wealth inequality and systemic inequities that permanently leave Californians of color, undocumented residents, and households with low incomes locked out of our state’s prosperity.
Recent acts of police brutality against Black Americans and greater public outcry over the continued abuse and deaths of people across Black communities have amplified calls for defunding, abolishing, and reimagining local policing. This also comes with growing understanding that police violence has disproportionately fatal consequences for Black men and women, and Black transgender women in particular.The calls to action involve significantly transforming the mission and structure of local law enforcement, divesting from local law enforcement in its current forms, and reinvesting the freed-up funding into community-building capacities that would also seek to end racial profiling and police brutality against Black people and other people of color.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 and provides the largest amount of fiscal relief to date – approximately $2 trillion. The CARES Act includes one-time cash rebates for low- and middle-income households; additional support for unemployment benefits; loans for small businesses; direct funding for states, local governments, and tribal communities; funds changes to food assistance in the Families First legislation; an array of additional health care supports; and some additional support for human services, housing and homelessness, and student debt relief. These federal actions are significant and needed. At the same time, millions of Californians are experiencing threats to their health and economic security, and for those excluded from the federal fiscal relief efforts, the economic hardship and health risks are particularly critical.
A Budget Center Analysis of Governor Newsom’s Proposed 2020-21 Budget: On January 10, Governor Gavin Newsom released his proposed 2020-21 budget that advances a series of commitments to some of the most pressing needs facing Californians: addressing homelessness and behavioral health, providing access to affordable health coverage, and improving paid family leave so that more workers can care for their family members. The Governor forecasts revenues that are $5.8 billion higher (over a three-year “budget window” from 2018-19 to 2020-21) than previously projected in the 2019-20 budget enacted in June, driven largely by continued economic growth.
On June 27, Governor Gavin Newsom signed into law the 2019-20 state budget, an agreement with state legislative leaders that makes a series of investments in creating economic security and opportunities for Californians, while also fostering the state’s fiscal health.
This “First Look” analysis examines Governor Newsom’s revised state budget proposal for 2019-20, the state fiscal year beginning on July 1, 2019, and highlights the ways it could impact low- and middle-income Californians.
As Californians scramble to submit their personal income tax returns before the Tax Day deadline, we at the Budget Center think this is the perfect time to take stock of how the state’s tax system performs on two key parameters: its ability to raise sufficient revenue to support public services, and how fairly it raises that revenue. Tax Day is also a chance to look forward and consider key opportunities for policymakers to more equitably raise revenue and support robust new investments that advance the health and well-being of all Californians, » Read more about: Tax Day 2019: Examining California’s Progress Toward and Opportunities for Equitably Raising Revenues »
This “first look” analysis examines Governor Newsom’s proposed state budget for 2019-20, the state fiscal year beginning on July 1, 2019.