Governor Newsom’s New Budget Plan

Governor+Newsoms+New+Budget+Plan

Vritti Godani, Staff Writer

Under the new budget plan proposed by Governor Gavin Newsom on Monday, Jan. 10, California would provide healthcare to all people (regardless of immigration status), and it would be the first to do so. Newsom proposed a $286.4 billion spending plan, with a surplus of at least $31 billion (projected by the Legislative Analyst). 

Regardless of efforts made to decrease the number of uninsured people in California, many undocumented immigrants and low-income residents are left behind in the state’s Medicaid program. The state already covers those under 26 and over 55, but starting no later than January 1, 2024, Newsom wants lawmakers to cover the rest of the population. However, Newsom did not mention how he plans to pay for that. Covering immigrants and those over 55 is estimated to cost taxpayers approximately $3.7 billion.

To fight retail theft, Newsom has pledged $300 million on boosting law enforcement efforts and $2.7 billion towards hospital staffing, COVID-19 testing, and such efforts. To back wildland firefighters and buy more helicopters and bulldozers, Newsom proposed $648 million and another $1.2 billion along with the current budget year’s $1.5 billion for forest management. With the current budget year’s $5.2 billion water package, another $750 million would go towards drought relief. Newsom also pledged for California to continue reducing fossil fuels. 

To combat the state’s homelessness issue, he proposed spending $2 billion for mental health services, housing, and clearing homeless encampments. Combined with last year’s $12 billion packages and combined, it would create about 55,000 new housing units and treatment slots.

Newsom proposed “doubling down” on the state’s existing plan to provide free universal pre-kindergarten and assist with California’s growing cost of living. “Doubling down” would add thousands of child care slots and boost to before, after, and summer school programs.

The budget also aims to assist small businesses who have been harmed by the pandemic with fee waivers and provide hundreds of millions in grants and tax breaks. 

Newsom also promised to increase the amount of money spent on infrastructure (roads and bridges), which has many economic benefits. 

With recent tensions regarding Roe v. Wade and abortion, people all over the nation are paying close attention to see how Newsom wants to spend money to increase access to abortion.

Newsom’s massive projected budget and surplus dragged California away from the gloom of 2020, which lawmakers assumed would create a deficit of $54 billion. The deficit never happened and state revenues thrived with tax collections rising 40% higher. Overall, the plan looks like it would benefit California. 

 

Photo courtesy of FLICKR.COM