Governor Newsom’s 2023 May Revise Budget
Key Investments Brief for UWCA Members
Statement from Pete Manzo, President & CEO, UWCA
As the state navigates this year’s budget challenges, it is imperative we safeguard and bolster investments in our safety net to protect our most vulnerable communities. California’s current budget deficit is now at $31.5 billion, about $9 billion more than the $22.5 billion deficit that was estimated in January. We call on Governor Newsom to continue working with the California State Legislature to make targeted investments in what we know works to uplift California families who are struggling with the rising cost of living.
The economic uncertainty we are experiencing is not unfamiliar to our state, having weathered downturns and deficits before. Part of the challenge for California’s revenues is our overreliance on income taxes which are known to be volatile. In the last two years, California experienced record revenues and had incredible opportunities to prioritize struggling families. While strides were made, many of them were one-time in nature, like the Middle Class Tax Refund. Even as our revenues are down again, the opportunity to make ongoing investments in equity-based programs such as refundable tax credits, expanding child care rates, and affordable housing remain paramount to our state’s well-being.