Skip to main content

Gov. Newsom Releases May Budget Revise

Printer-friendly version
May 16, 2019

Gov. Newsom released his revised state budget last week, showing major gains for tax credits for low-income earners, homeless programs, restorative justice pilot programs, and funding for two free years of community college tuition for first-time students.

The revised budget would triple the California Earned Income Tax Credit (CalEITC) and expand eligibility to cover roughly another three million households. The CCC is working to make tax-paying low-income immigrant families with federally assigned Individual Taxpayer Identification Numbers (ITINs) eligible for the credit as well.

The budget, through SB 678 (Glazer, D - Orinda), would also fund three restorative justice pilot programs over the course of five years at a cost of $25 million. These programs would put victims first and help transform those who have committed crimes to reduce our reliance on mass incarceration.

The Governor is taking advantage of additional revenue to put his stamp on education.  He proposes significantly more funding for early childhood education and child care -- including $31.4 million to add 10,000 new preschool slots for low-income 4-year-olds in 2020. Additionally, $50 million is allocated for establishing Child Savings Accounts to prepare for college access.  To help recruit and retain qualified teachers in school districts with high rates of under‑prepared teachers, the May Revision includes $89.8 to provide loan assumptions (repayments) for newly credentialed teachers to work in high-need schools for at least four years.  Two free years of community college for first time, full time students is also accounted for in the budget.

Additionally, Newsom’s budget adds an extra $150 million in grants for communities to build programs that help the homeless, bringing the total available for those efforts to $650 million.

Bills have until today to pass their respective Appropriations Committees and head to the floor. The Senate is currently considering 350 fiscal bills while the Assembly is reviewing 750.

Stay tuned to the CCC as lawmakers will continue budget negotiations before the June 15 deadline to pass a final budget for the 2019-2020 fiscal year.