Governor Gavin Newsom talks housing in his new budget plan
Gov. Gavin Newsom wants to spend $1 billion on programs to help the homeless in a $213 billion revised budget he released on Thursday.
The updated proposal unveiled Thursday builds on the $209 billion budget the governor laid out in January. It keeps in place spending to expand health coverage for undocumented immigrants and $1.75 billion to spur housing construction.
His revised proposal adds $130 million for child care — mostly from taxes raised on legal marijuana sales — and doubles a proposed tax credit for families with children under 6 from $500 to $1,000. It also would eliminate sales taxes on diapers and tampons.
Newsom’s budget adds an extra $150 million in grants for communities to build programs that help the homeless, setting aside a total of $650 million for those efforts. It has extra money that would help the homeless through college programs, workforce grants and mental health resources. All together, the budget has $1 billion for homeless programs.
Following a deadly shooting at a Southern California synagogue, Newsom also added $15 million for security to prevent hate crimes at places of worship and other nonprofit organizations.
Newsom and his team are predicting a $21.5 billion surplus, up slightly from the $21 billion they predicted in January. If trends hold, the state would have a $16.5 billion rainy day fund by next year to help it weather a recession.
The budget includes $81.1 billion for education spending.
“This budget fortifies California’s fiscal position while making long-sighted investments to increase affordability for California families,” Newsom said in a written statement.
His updated proposal kicks off the final weeks of negotiations with the Legislature ahead of the June 15 deadline for lawmakers to pass a spending plan for the 2019-20 fiscal year.