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

A first look at the Californians who may be facing economic hardship related to the COVID-19 health and economic crisis based on the industries and occupations likely affected by business reductions and closures. The sudden shutdown of businesses and industries that are significant sources of employment for millions of Californians leaves individuals and families who were already struggling to pay rent, buy groceries, and living paycheck to paycheck especially vulnerable right now.

The California Budget & Policy Center, a nonpartisan, data-driven organization with a focus on evaluating public policies and their effect on Californians with low and middle incomes, released the following statement from Executive Director Chris Hoene following the release of Governor Newsom’s proposed 2020-21 state budget: “Governor Newsom’s proposed budget advances a series of commitments to some of the most pressing needs facing Californians: a safe home to receive behavioral health services, accessing and affording health care coverage, and improving paid family leave so workers can care for their family members. The proposed budget also continues to strengthen the state’s fiscal health by building healthy reserves, paying down debts, and planning for the future.

The California Budget & Policy Center released a new report today showing that while California has significantly expanded its Earned Income Tax Credit – known as CalEITC – in the last few years, hundreds of thousands of immigrant families face social and economic disparities because they are excluded from the tax credit even though they file taxes. In the Budget Center’s latest piece – Five Reasons Why California Should Extend the CalEITC and Young Child Tax Credit to Immigrant Families and Communities we outline the strong equity and economic cases for making the credits inclusive of immigrant families.

Close to 3 million Californians did not have health coverage in 2018, according to a new report from the California Budget & Policy Center based on recently released data from the U.S. Census Bureau. 2018 also was the first year since the federal Affordable Care Act was enacted that the share of Californians without health coverage did not drop.

The gap between Californians with low incomes and high incomes has grown wider, according to a new analysis by the California Budget & Policy Center that is based on data from the American Community Survey released Thursday by the US Census Bureau. This news comes even as the state’s official poverty rate slightly dropped to 12.8%. The Budget Center’s analysis points to key ways policymakers have the opportunity to break down barriers that keep Californians from being able to support themselves and their families.

Approximately 7.1 million Californians live in poverty and cannot afford to pay for basics, such as food and housing, according to a new analysis by the California Budget & Policy Center that is based on data released today from the US Census Bureau. The sate’s poverty rate remains high with 1 in 6 Californians struggling to make ends meet, according to the Supplemental Poverty Measure from the Census Bureau. The Supplemental Poverty Measure accounts for the cost of living as well as for the various resources a family may use to cover basic expenses, and may include noncash benefits like tax credits and food assistance.