Governor Newsom Proposes 2021-22 State Budget

Friday January 8, Governor Gavin Newsom submitted his 2021-22 State Budget proposal to the Legislature – a $227.2 billion fiscal blueprint that provides funding for immediate COVID-19 response and relief efforts where Californians need it most while making investments for an equitable, inclusive and broad-based economic recovery. Read more here. Additional detail on the 2021-22 State Budget includes:

Immediate Actions to Provide Relief and Safely Reopen Schools
The Budget reflects the Governor’s call for immediate legislative action to provide rapid relief to individuals, families and small businesses hit hardest by the COVID-19 pandemic, as well as funding needed to begin a return to in-person learning starting next month. These actions include:

  • $2.4 billion for the Golden State Stimulus – a $600 state payment to low-income workers who were eligible to receive the Earned Income Tax Credit in 2019, as well as 2020 Individual Taxpayer Identification Number (ITIN) filers
  • $575 million to more than double this year’s funding for grants to small businesses and small non-profit cultural institutions disproportionately impacted by the pandemic
  • $70 million to provide immediate and targeted fee relief for small businesses including personal services and restaurants
  • $2 billion targeted specifically to support and accelerate safe returns to in-person instruction starting in February, with priority for returning the youngest children (transitional kindergarten through 2nd grade) and those with the greatest needs first
Initial $372 Million Set Aside for COVID-19 Vaccinations
The Budget sets aside an initial $372 million in state funds, which can be allocated immediately as needed, for expenses to expedite the delivery of COVID-19 vaccinations.

Accelerating Economic Recovery and Job Creation
The Budget builds on actions taken in 2020 to support small businesses, including the elimination of the first year of the minimum franchise tax, expansion of small business loan guarantees and creation of a new Main Street hiring tax credit.
The Budget also proposes $4.5 billion for the Governor’s Equitable Recovery for California’s Businesses and Jobs plan, including the following actions to accelerate economic recovery and job creation:
  • $1.5 billion for the infrastructure and incentives to implement the state's zero-emission vehicle goals
  • $1.1 billion immediate relief for small businesses
  • $777.5 million for a California Jobs Initiative to provide incentives targeted at accelerating investment and job creation
  • $353 million for workforce development
  • $300 million for deferred maintenance and greening of state infrastructure