This May Revision stands in stark contrast to the budget of one year ago when COVID-19 first threw the Governor's budget proposal into disarray. Compared to a projected budget deficit of $54 billion a year ago, the state now has a projected $75.7 billion surplus. Combined with over $25 billion in federal relief, this supports a $100 billion California Comeback Plan—a once-in-a-lifetime opportunity to not only speed the state's recovery from the pandemic, but to address long-standing challenges and provide opportunity for every California family—regardless of their income, race, or ZIP code. 

In this blog post, we will go over key investments in:

• Education: including childcare, higher education and a new “14th” grade established by the creation of universal transitional kindergarten.  

• Housing & Homeless: A $9.3 billion package for housing and $6.8 billion for homelessness.

• Health & Human Services: including the brand new expansion of Medi-Cal to undocumented seniors aged 60 and over. 

• Golden State Stimulus & Rent Relief: $8 billion in Golden State Stimulus payments to Californians earning less than $75,000 annually, including to immigrants who are undocumented. $5.2 billion for emergency rental assistance and back rent owed by Californians with low incomes.

• Emergency Preparedness & Responses, Small Business Relief, and more!

On April 26, the U.S. Census Bureau released its first population estimates from the 2020 decennial census. This release, primarily consisting of national and statewide population results, found that that there are approximately 331 million residents in the U.S., an increase of nearly 7.5 percent from the 2010 census. 

This population increase, however, masks the fact that the U.S. has experienced its sharpest population decline since the 1930s. From 1950 to 2010, the U.S., on average, experienced a nearly 13% population increase after every decennial census. The only other comparable period from 2010 to 2020 is the 1940 census where the U.S. experienced a 7.3 percent population increase from 1930. These results are prompting demographers to take a closer look at emerging patterns such as lower birth rates and reduced immigration as key indicators for declines in population growth. (How the 2020-21 COVID-19 pandemic impacts future population growth is yet to be determined).

After two-months of deliberations, President Biden recently signed into law a $1.86 trillion COVID-19 relief package (HR 1319) that reflects key components of his American Rescue Plan. 

In a major victory for California’s counties, the final legislation includes robust, direct, and flexible federal COVID-19-related financial support to all counties. Pursuant to the bill, counties across America will receive a total of $65.1 billion, with funds allocated based on population. According to preliminary estimates, California counties are projected to receive at least $7.6 billion. 

Key Investments Brief for UWCA Members

Executive Summary

On January 8, 2021, Governor Newsom unveiled his proposed 2021-2022 budget, amounting to a $227 billion spending plan, thanks in large part to an estimated $26 billion windfall in tax revenues according to the Legislative Analyst’s Office estimates from November 2020. The Budget closes a $54.3 billion gap in 2020-21 and significantly reduces the state’s ongoing structural deficit to $8.7 billion in 2021-22, after accounting for reserves. 

(Los Angeles, CA) — Statement from Pete Manzo, President & CEO, United Ways of California 

We were horrified to witness inexcusable acts of violence and criminal behavior Wednesday as domestic insurgents attempted to prevent the peaceful transition of power set forth under our Constitution. This was a violent assault against our democracy, and all those who carried it out or incited it, including the president and high-ranking national and state officials, including some from California, must be held to account.