State Leaders Have Opportunity to Provide Targeted Relief to Californians Struggling to Make Ends Meet

The California Budget & Policy Center, a research and analysis nonprofit advancing public policies that expand opportunities and promote well-being for all Californians, released the following statement from Executive Director Chris Hoene following the release of Governor Newsom’s revised 2022-23 state budget proposal, or May Revision:

“At the end of the day, the state budget should be about ensuring every Californian can afford housing, food, child care, health care, and education opportunities, whether they are Black, brown, or white, and regardless of zip code, age, gender, or sexual orientation. Governor Newsom’s revised 2022-23 state budget proposal makes strides in supporting some Californians but fails to adequately target the state’s strong revenues to provide direct, meaningful assistance to individuals and families struggling the most to pay for basic needs in our communities. Specifically, moving forward with the proposal to provide rebates to households based on vehicle registration — knowing it will exclude many Californians who need help and include wealthy Californians who do not need the aid — only reinforces California’s widening income and wealth gap.

“The state’s current fiscal picture is quite bright with billions in unanticipated revenue and state leaders should prudently use this opportunity for a wide range of needs both now and in the coming years. Unfortunately, the governor’s proposal threatens to waste vital resources by providing aid and tax breaks to wealthy Californians and corporations who are thriving amid the pandemic and rising prices, rather than investing those resources to ensure that economic security and well-being are available to Californians in low-income households, especially those led by women and Black and Latinx Californians.

“It’s certainly significant that California is moving forward with comprehensive Medi-Cal for Californians who are undocumented ages 26-49, increasing support to provide more housing for people experiencing homelessness, and waiving fees for subsidized child care and preschool for one year. California has been a national leader on economic and health support essential for individuals and families to thrive, including paid family leave and the state’s Earned Income Tax Credit, but now is failing to follow through on the promises of these two critical benefits for Californians in the face of rising costs of living and an ongoing pandemic. 

“And we at the Budget Center will continue to sound the alarm on the Gann Limit: California cannot be bound to a decades-old constitutional spending cap if state leaders want to avoid cuts to current services and build a California where everyone can be healthy and thrive.”

• Be on the lookout for our “First Look” analysis of the governor’s revised 2022-23 state budget proposal. Find it on our new website or delivered directly to your inbox.