California Legislature Passes Budget Bill for 2021-22 Fiscal Year

This afternoon, both houses of the California State Legislature passed budget bill AB 128 (Ting) for the 2021-2022 fiscal year, a day ahead of the June 15 deadline. The budget package authorizes General Fund expenditures of $195.5 billion and assumes $201.9 billion in total General Fund resources. It includes approximately $25.5 billion of combined total reserves in the Budget Stabilization Account (BSA), the Special Fund for Economic Uncertainties (SFEU), the Public School System Stabilization Account (PSSSA) and the Safety Net Reserve.

Assembly Member Philip Ting, Chair of the Assembly’s Budget Committee, underscored housing and homelessness as among the top priorities addressed in this budget. A few of the notable components from this package include:

  • $1 billion per year, ongoing, for flexible aid to local governments to combat homelessness.
  • $1.2 billion in federal funds in 2021-22 (and $1 billion in 2022-23) to continue Project HomeKey, which provides funds for the acquisition of hotels, motels, and other properties for conversion to non-congregant housing for homeless individuals.
  • $1.75 billion to alleviate the backlog in affordable housing construction.$300 million for the preservation of existing affordable housing.
  • $130 million for the development, maintenance, and preservation of farmworker housing.

Senator Nancy Skinner, Chair of the Senate’s Budget and Fiscal Review Committee, highlighted the package’s $8.1 billion for another round of Golden State Stimulus payments, $1.5 billion in additional small business and nonprofit grants, and the “historic investments in resources and infrastructure packages in such things as drought, climate resiliency and more.”

Contingent upon future legislation, AB 128 appropriates the following for several Legislative packages:

  • $3.475 billion (General Fund, Coronavirus Fiscal Recovery Fund of 2021, bond and special funds) for water and drought resilience.
  • $2.7 billion (General Fund, GGRF, and special fund) in 2021-22 ($3.9 billion over three years) for zero-emission vehicles and related infrastructure.
  • $1.225 billion General Fund for a climate resilience package with the intent to appropriate $1.225 million annually in 2022-23 and 2023-24.
  • $1 billion General Fund for a wildfire prevention and resilience.
  • $776 million (General Fund and special funds) for agriculture.
  • $1 billion (Coronavirus Fiscal Recovery Fund of 2021) in 2021-22, and $7 billion (CFRF and General Fund) over seven years for Broadband investments
  • $835 million (General Fund) for additional investments to help the state reach its clean energy goals.

AB 128 also appropriates:

  • $60 million General Fund one-time to the Department of Water Resources for grants to support local planning and implementation of the Groundwater Sustainability Plans across critically over-drafted basins.
  • $40 million General Fund one-time to the California Department of Food and Agriculture to award, administer, and monitor State Water Efficiency and Enhancement Program (SWEEP) grants with a focus on depleted groundwater basins.
  • $3.35 million for technical assistance for underserved farmers.

The budget bill now heads to the Governor’s desk where Governor Newsom has 12 working days to sign the bill into law. Once signed, AB 128 will go into effect immediately.

More information on the budget bill can be found here. View Update

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