California Construction News staff writer
Governor Gavin Newsom’s new budget proposal, is a balanced plan that identifies the state’s biggest challenges – housing and homelessness, public safety and climate action.
With unprecedented investments over the past two state budgets, in addition to federal funding targeting infrastructure and inflation reduction, California will spend more than $180 billion over the next several years for clean energy, roads, bridges, public transit, water storage and conveyance and expanded broadband projects.
Funding will create hundreds of thousands of new jobs while building the infrastructure, Newsom said.
While the May Revision does not forecast a recession, it recognizes increased risks to the budget since January that could significantly change the state’s fiscal trajectory in the near term. Taking this into account, the plan puts $37.2 billion in total budgetary reserves.
In addition to addressing the budget shortfall, the May Revision maintains investments incuding:
TACKLING HOMELESSNESS. Governor Newsom has invested $15.3 billion to address homelessness – up from $500 million when he took office and more than ever before in state history. The May Revision maintains billions of dollars for aid to local governments, encampment resolution grants, and more. With this funding will come new accountability – no more status quo.
INCREASING HOUSING SUPPLY. In the last four years, California invested more to increase housing supply than ever before in state history while holding local governments accountable. The state continues to deploy a comprehensive set of strategies – improving state financing, targeting housing investments, providing technical assistance, eliminating regulations, and leveraging land use tools. The state adopted a legally binding goal that local governments must plan to build approximately 2.5 million new units by 2030, and 1 million of these units must be affordable.
CLIMATE COMMITMENT. California is advancing a $48 billion multi-year commitment to implement its world-leading agenda to achieve carbon neutrality by 2045, protect communities from harmful oil drilling, deliver 90% clean electricity by 2035, and more. It also proposes the development of a Climate Resilience Bond to increase and sustain investments in our climate initiatives.
Additional details on the May Revision can be found at www.ebudget.ca.gov.