Although this is the final agreed upon budget, this agreement only avoids steep cuts to education and safety net programs until next year. Negotiations went better than expected as both Governor Newsom and the Legislature were encouraged by tax revenues which came in about $1 billion ahead of prior dismal May projections. This final version is very similar to the Legislative Version that passed on June 15th. 

This final version does not rely on additional Rainy Day Funds, Safety Net Reserve Funds, or the PERS deferral that were included in the Legislature’s version if additional federal funds did not materialize. Instead, it relies upon updated baseline forecast adjustments to revenues and expenditures and an increased Prop 98 deferral. $14 billion in additional funding would be appropriated if the State receives federal funding by October 15.   

Note: Although this is the final agreed upon budget, the Governor may still exercise line item vetoes in trailer bills. 

In January, California was propelling the American economic resurgence—with 118 consecutive months of growth, stratospheric job creation, and its highest credit rating in nearly two decades. Because of prudent one-time investments which enabled the state to attain the largest rainy day fund in its history,  California in a far stronger fiscal position today than it has been during previous downturns. 

In this blog post, we will go over:

• California's economic outlook prior to the COVID-19 induced recession.
• The rationale for this year's May Revise and projected budget cuts.
• An in depth analysis of areas most important to our members, including: education & child care, financial stability, health, as well as housing & homelessness; and,
• The State's Economic Outlook for the Future.

United Ways of California improves the health, education and financial stability of low-income workers and families by enhancing and coordinating the advocacy and community impact work of 31 member United Ways throughout California.

Last year we wrote to Samantha Deshommes, Chief of the Regulatory Coordination Division, at the Office of Policy and Strategy, for U.S. Citizenship and Immigration Services at the Department of Homeland Security, opposing the White House’s proposed changes to the “public charge” rule. Click here to read that correspondence.

Today, we underscore our opposition. The final rule, despite its 837-page length, is vague in its explanation of how the expanded definition will be applied, and to what end. Fear and confusion over this new rule has already proven harmful—especially to kids.

Last month, we had the opportunity to explore some of the latest American Community Survey data on median household earnings, and how they have changed over time both nationally and throughout California. (Earnings have largely remained constant for decades among most working families, but there are huge disparities among CA neighborhoods). In this blog post, we are using the same data source to explore the intersection between educational attainment and median personal earnings. This is a particularly important subject as educational attainment is universally acknowledged as a primary factor in eliminating generational poverty, and in human development.

In 2015, United Way of California’s report on poverty, Struggling to Get By: The Real Cost Measure in California, found that 31% of households in California do not earn sufficient income to meet life’s basic needs. Approximately half of those, 1.5 million, are Latino-led households. 

While it is too early to estimate the long-term impact of the Trump Administration’s decision to terminate the Deferred Action for Childhood Arrivals program (DACA), Latino households in California have the most to lose than any demographic group nationally.