Governor Newsom Signs Budget Legislation

Earlier this week, Governor Newsom signed budget bill SB 154 (Skinner), also known as the Budget Act of 2022. However, additional legislation surrounding the $308 billion state budget had not been signed until yesterday after the Assembly and Senate held evening Floor Sessions on Wednesday to pass budget trailer bills* reflecting the framework that the Administration and legislative leadership came to an agreement on this past weekend.

Senator Nancy Skinner, Chair of the Senate’s Budget and Fiscal Review Committee, stated during her presentation on the Senate Floor that this is “the largest budget for any state in the history of the US.” A few highlights from the Governor’s press release regarding the budget include:

$17 Billion Inflation Relief Package –

  • $9.5 Billion for Tax Refunds to Help Address Inflation: the budget provides tax refunds of up to $1,050 for 23 million Californians to help offset rising prices.
  • $1.95 Billion for Emergency Rental Assistance: the budget provides additional funds to ensure qualified low-income tenants who requested rental assistance before March 31 get the support they need.
  • $1.4 Billion to Help Californians Pay Past-Due Utility Bills: the budget provides funds to continue covering past-due electricity and water bills.
  • $439 Million to Pause the State Sales Tax on Diesel for 12 Months: the budget includes a pause of the General Fund (3.9375 percent rate) portion of the sales tax rate on diesel fuel.

$53.9 Billion California Climate Commitment –

New investments in this year’s budget bring California’s multi-year climate commitment to $53.9 billion.

  • Drought and Water Resilience: the budget includes $2.8 billion for near- and long-term actions to build water resilience, promote conservation and more.
    Fighting Wildfires: $2.7 billion to reduce the risk of catastrophic wildfires and bolster forest health, including forest thinning, prescribed burns, grazing, reforestation, and fuel breaks.
  • Accelerating the Zero-Emission Vehicle (ZEV) Transition: the budget includes $6.1 billion to expand ZEV access and affordability and support the build-out of infrastructure across the state.
  • Bolstering our Energy System: allocates $4.3 billion to support energy reliability, provide relief to ratepayers, create strategic energy reserves, and accelerate clean energy projects. The budget also includes $3.8 billion for clean energy projects to boost affordability and reliability.
  • $14.8 billion for regional transit, rail and ports projects to support the continued development of clean transportation projects, including more than $4 billion for high-speed rail.

Confronting Homelessness and Mental Health –

  • $3.4 billion over two years to expand behavioral health housing, encampment cleanup grants and support for local government efforts.
  • Supporting the CARE Court framework to assist people living with untreated mental health and substance abuse disorders, the budget includes funds for state department and Judicial Branch costs associated with the proposal.

Safer Communities –

  • Combatting COVID-19: The budget adds $1.8 billion to continue implementing the state’s SMARTER plan, including more funding to support school testing, increase vaccination rates and more. The budget also includes $300 million for CDPH and local health jurisdictions to permanently expand the state’s capacity to protect public health and promote health equity.
  • Tackling Crime: The budget expands CHP’s retail theft task force and includes funding for the Attorney General to prosecute organized retail theft crimes, lead anti-crime task forces throughout the state, and establish a new Fentanyl Enforcement Program. Additionally, the budget expands fentanyl drug interdiction efforts led by the California Military Department.

Additional trailer bills will continue to move through the Senate and Assembly once the Legislature reconvenes from Summer Recess in August. View Update

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