Today, Senate President pro Tempore Toni G. Atkins (D-San Diego), Speaker Anthony Rendon (D-Lakewood), and Senate and Assembly Budget Committee Chairs, Senator Nancy Skinner (D-Berkeley) and Assemblymember Phil Ting (D-San Francisco), announced a Legislative budget agreement that will deliver prosperity and strengthen the future by putting California’s wealth to work.
The joint legislative plan, which contains the budget priorities laid out by both houses and includes elements the Governor included in his proposals, strikes the balance of providing real relief to families and small businesses—including $8 billion to help Californians withstand the rising cost of gas and consumer goods—while investing in programs that will bolster Californians and our economy. For more than a decade, responsible budgeting has been the cornerstone of Legislative Democrats’ approach, and this budget further builds upon that record by investing an unprecedented $37.5 billion in reserves.
“With this budget, we are spreading our state’s wealth to hard-working Californians and small businesses like never before,” said Pro Tem Atkins. “We are focused on providing struggling families the relief they need to weather rising costs of fuel and groceries, investing ongoing funding in core programs and services, funding one-time infrastructure projects that will keep California moving for years to come, and continuing to reinforce California’s ability to meet unforeseeable challenges. Our state’s wealth needs to work for Californians and that’s exactly what we have ensured with this agreement. I appreciate the leadership of Speaker Rendon, Senator Skinner, and Assemblymember Ting, and we look forward to continuing the conversation with Governor Newsom and his office. We all are working toward the same goal, and I have every confidence we will find a united path to get there.”
“I’m proud of this budget, not just because of what it contains, but because of how we created it. Together, the Senate and Assembly did not start by asking, ‘What things do we want?’ We started by asking ourselves, ‘What beliefs do we cherish?’ We share a firm belief that our state is strongest when it cares for the weakest among us. We believe that everyday Californians have done the work that laid the foundation for the powerful revenues we enjoy, and they should share the financial relief it provides. Finally, it is our belief that those revenues are no reason to stop planning for California’s future,” said Speaker Rendon. “Our budget proposal continues to lay the groundwork with infrastructure and other investments for future prosperity. I thank the Senate, our budget chairs and budget staff for putting our beliefs into these numbers.”
“The Legislature has come together on a budget agreement that will truly put California’s wealth to work for all,” said Senator Nancy Skinner, Chair of the Senate Budget and Fiscal Review Committee. “Our increase in school funding is higher than any budget in decades, and we provide additional funding for housing, homelessness, healthcare and safety net services. To protect these investments, we boost state reserves for the future. I’m especially proud that the Legislature’s proposal complements Gov. Newsom’s May Revise with increases to child care, gun violence prevention and abortion access while still retaining rebates to help Californians struggling with high costs.”
“When spending plans are responsible and include robust reserves, we can plan for the future. Our budget agreement not only addresses the critical needs of today by supporting residents and small businesses still struggling from the pandemic, but it also ensures our state remains an economic force for generations to come with one-time infrastructure investments. I’m proud to be part of the team that’s building a more inclusive California and creating more opportunities for all residents to succeed,” said Assemblymember Phil Ting, Chair of the Assembly Budget Committee.
The joint budget agreement provides nearly $10 billion in financial relief to Californians, small businesses, and nonprofits by expanding the CalEITC, establishing the Workers Tax Fairness Credit, covering businesses’ higher unemployment taxes for up to 250 employees until 2024, and allocating $8 billion for the Better for Families Rebate plan. Under the Legislative rebate plan, joint filers making up to $250,000 and single filers making up to $125,000 would receive $200 per taxpayer and for each dependent. It also includes a parallel rebate for families enrolled in the CalWORKs program, for Californians enrolled in the SSI/SSP program, and for lower-income Californians to ensure no one is left out of the relief they need.