Cup Runneth Over

Governor Newsom released his updated budget proposal for fiscal year 2021-2022, referred to as the May Revision, totaling $267.8 billion. The proposal reflects a $75.7 billion budget surplus and the largest tax rebate in American History, and takes into account the $27 billion in one-time funds the state is receiving from the federal American Rescue Plan. Throughout the week the Governor previewed his $100 billion California Comeback Plan that includes the following proposals: $12 billion for direct cash payments to Californians making less than $75,000 a year, $5.1 billion for water infrastructure and drought resilience, $12 billion for homelessness, $20 billion for public schools and expansion of the largest small business relief program in the nation to $4 billion.

Additional key investments released today include:

$1.1 billion for the CalAIM healthcare program

$1.5 billion to clean and beautify the state 

$1.75 billion for affordable housing

$93.7 billion for education

$7 billion for broadband for all

$3.6 billion for workforce development 

$912 million for green energy grid investments  

$3.2 billion for ZEV goals, including infrastructure, rebates, and manufacturing grants

$1.3 billion for climate resilience

The Assembly and Senate Budget Subcommittees will begin an accelerated deliberation process leading up to the full Budget Committees releasing their respective spending plans. Once each house’s spending plans are finalized, the differences will be reconciled against the Governor’s proposal and a final balanced budget will be voted on and sent to the Governor by June 15th.

Show Those Smiles

The Center for Disease Control and Prevention updated its mask guidance saying fully vaccinated people no longer need to wear masks outdoors and indoors. With California slated to move beyond the Blueprint for a Safer Economy next month, the Governor has indicated that California’s masking guidelines will also be updated. California has administered more than 33 million vaccine doses and continues to have the lowest positivity rates in the nation. Additionally, the CDC and FDA have cleared the Pfizer vaccine for use in children as young as 12 years old.

AG’s Racial Justice Bureau

California’s new Attorney General Rob Bonta announced the Department of Justice will now house a Racial Justice Bureau. The Bureau will support the DOJ’s broader mandate to advance civil rights and will assist on efforts related to hate crimes, implicit and explicit bias in policing, law enforcement best practices, campus climate issues, and includes a task force to study and develop reparation proposals for African Americans.