Please ensure Javascript is enabled for purposes of website accessibility
Governor Newsom Proposes $213B State Spending Plan
gvw_ap_news
By Associated Press
Published 6 years ago on
May 9, 2019

Share

SACRAMENTO — California Gov. Gavin Newsom proposed a $213 billion state budget Thursday that boosts spending on K-12 education, wildfires and homelessness while putting more money toward state reserves and debt.

The revised budget is up $4.5 billion from his first proposal in January and maintains a $21.5 billion surplus, the state’s largest in at least 20 years.

His announcement kicks off negotiations with lawmakers, who must pass a budget by June 15 or lose pay.

“This homeless issue is out of control. It is a stain on the state of California.” Gov. Gavin Newsom

Newsom is proposing $150 million more in grants to communities to help the homeless than he did in January, as well as $40 million to public colleges and universities to help homeless students. He’s also added $20 million to help renters facing eviction.

“This homeless issue is out of control,” Newsom said. “It is a stain on the state of California.”

Newsom echoed themes of his predecessor, former Gov. Jerry Brown, as he highlighted the importance of saving money for a future recession and paying down debt. He has proposed boosting the state’s “rainy day” fund to $16.5 billion and for the first time putting about $400 million toward an education reserve fund.

While the state is flushed with cash now, Newsom warned the good times may not continue. He projected revenues would be down by several billion in future years.

“The headwinds are real,” he said.

Newsom Has Until June 30 to Sign the Spending Plan

Newsom is boosting spending in some key areas, but his new budget is unchanged in many ways from January. He has already proposed new spending to expand health care for young immigrants living in the country illegally, prevent and fight wildfires, spur more housing and boost early child care programs.

He wants to add a new tax on drinking water while taking away taxes on tampons and diapers, though he’s only proposed that tax cut for two years. Democratic lawmakers wanted it to continue for at least five.

The governor also proposed a tax increase to bolster the state 911 system. Such increases would create a long-term, sustainable pot of money, he said.

Newsom has until June 30 to sign a spending plan that will cover the fiscal year beginning July 1.

Assembly Budget Committee chairman Phil Ting said the state must continue to rebuild its social infrastructure while investing in education, health and housing programs. He noted the governor and the legislature have differences, but he said he is confident lawmakers will deliver a budget by the June 15 deadline.

Senate Budget Committee chairwoman Holly Mitchell lauded Newsom for preparing for the next recession.

Will There Be More Funding for Violence Prevention, Health Care?

Republican Sen. Patricia Bates criticized Newsom for including proposals for new taxes despite the state having a $21.5 billion surplus.

Newsom faces pressure from lawmakers and outside groups to unleash the historic surplus.

Democrat Assemblyman Reggie Jones-Sawyer has asked for $100 million for youth development and pre-arrest diversion programs for children under 18.

Democratic Sen. Anna Caballero, who represents many Central Valley communities without clean water, has a proposal to tap surplus from water infrastructure improvements rather than enacting a new tax.

Gun control groups have asked for $39 million toward violence prevention, and some lawmakers have proposed expanding health care to all immigrants living in the state illegally rather than just those up to age 26.

Newsom is also poised to suggest other new spending.

In April, following the deadly shooting at a San Diego-area synagogue, he vowed to spend $15 million on grants for security enhancements at nonprofits vulnerable to hate crimes. On Tuesday, he unveiled a “parents’ agenda” complete with hundreds of millions of dollars in new spending on child care, paid family leave and tax credits for families with children under 6.

About $147 billion of the budget comes from the state’s general fund, the pot of money that Newsom and lawmakers can spend however they choose. The rest is in special and bond funds dedicated to specific purposes.

DON'T MISS

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

DON'T MISS

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

DON'T MISS

China Halts Approvals for New US Investment Projects

DON'T MISS

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

DON'T MISS

Trump Tariff Fears Erase $2 Trillion From US Stocks

DON'T MISS

Startup Offers Controversial Microplastic Blood Cleansing Treatment

DON'T MISS

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

DON'T MISS

Politics Turns Ugly for a Conservative Running for Fresno State Student Body President

UP NEXT

Startup Offers Controversial Microplastic Blood Cleansing Treatment

UP NEXT

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

UP NEXT

No More Calling ‘Shotgun?’ CA Could Ban Teens From Riding in Front Seat

UP NEXT

Diehard Baseball Fans in Sacramento Welcome Athletics and Hope They Stay Awhile

UP NEXT

Flores Homers, Matos and Wade Also Go Deep to Help Giants Cap Sweep of Astros

UP NEXT

California’s Schools Chief Has a $200,000 Salary and a Side Gig

UP NEXT

Trump Proposes Tax Deduction for Auto Loan Interest on US-Made Cars

UP NEXT

Western US Sees Sharp Increase in Extreme Weather Impact

UP NEXT

7-Year-Old Girl Was Killed by a Falling Boulder at a Lake Tahoe Ski Resort

UP NEXT

Xavier Becerra Enters 2026 California Governor’s Race

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

10 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

10 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

10 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

11 hours ago

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

13 hours ago

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

13 hours ago

Politics Turns Ugly for a Conservative Running for Fresno State Student Body President

13 hours ago

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

13 hours ago

President Trump’s Tariffs Could Be the Political Tipping Point

14 hours ago

Order That Kept Water in the Kern River Reversed by 5th District Court of Appeal

14 hours ago

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

GV Wire’s Edward Smith talks with KMPH Fox 26 “Great Day” anchor Christina Rodriguez about the possibility of CEMEX digging a 600-foot hole ...

8 hours ago

8 hours ago

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP/Mark Schiefelbein)
8 hours ago

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

9 hours ago

China Halts Approvals for New US Investment Projects

10 hours ago

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

10 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

10 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

Dr. Mehmet Oz, President Donald Trump's pick to lead the Centers for Medicare and Medicaid Services, seated right, gives a thumbs-up alongside his wife Lisa Oz, seated left, with friends and family after he testified at his confirmation hearing before the Senate Finance Committee, on Capitol Hill in Washington, Friday, March 14, 2025. (AP/Ben Curtis)
11 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

13 hours ago

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

Help continue the work that gets you the news that matters most.

Search

Send this to a friend