Nearly a month after the June 15 deadline for a 2021-2022 state budget, Gov. Gavin Newsom and state legislators have agreed to six bills that are a part of the proposed $262.6-billion state budget.
According to Newsom and lawmakers, his signing of SB 129 on Monday provides "the overall architecture of the budget agreement." Smaller supplementary funding bills will be signed later in the week.
The bill includes funding for the $100 billion California Comeback Plan, which authorizes another round of stimulus payments.
Nearly two-thirds of Californians will receive a $600 check. Qualified families with children will get another $500 on top of that. Households earning up to $75,000 in adjusted gross income should qualify. The program will also disburse $500 payments to families of immigrants who are not in the country legally.
More information about the Golden State Stimulus is available on the state's Franchise Tax Board website.
Newsom released a joint statement with Senate President pro Tempore Toni G. Atkins (D-San Diego) and Assembly Speaker Anthony Rendon (D-Lakewood) on Monday touting the budget agreement’s programs.
"From providing stimulus checks to middle class Californians and immediate relief for small businesses, to transforming our public schools, addressing the homelessness crisis head-on, and making major investments in nation-leading climate change actions, this budget represents a once-in-a-generation opportunity to reimagine what California’s future can look like," said the statement.
The agreements include $8.1 billion in stimulus payments ranging from $600 to $1,100 for most Californians, an expansion of Medi-Cal, the state’s health insurance program for low-income residents, to undocumented migrants aged 50 and older, $5.2 billion for rent relief and $4 billion in grants for small businesses.
Newsom emphasized the effect the budget will have on middle-class families and businesses still reeling from the pandemic, calling the bill, “the largest small business relief package in the nation.”
During negotiations, Newsom’s hesitancy over committing to future funding for programs was a sticking point between the governor and state legislators. The state has a remarkable $75.7 billion surplus. A stark contrast from the $54.3 billion shortfall estimated just over a year ago. Between the surplus and federal funds from the American Rescue Plan Act, members of the State Senate and Assembly wanted to allocate to multi-year programs with spending in the future.
State budgeting requires a certain amount of guesswork using suspected future income from taxes as a base for spending. Newsom wanted to deliver funds in a way that did not commit the state to future funding.
"This last year reminds us that we need to plan for the unexpected," he said in a news release. "We must maintain a strong fiscal foundation that does not overcommit the state to long-term spending it cannot afford, which could lead to future cuts."
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