Governor Newsom Releases Updated Budget Proposal Following May Revisions
On May 9, 2019, Governor Gavin Newsom announced updates to his budget proposal following the May Revision. While the original January proposal focused heavily on funding solutions to homelessness and the housing affordability crisis, a large tax revenue windfall is motivating the Governor to pursue even greater funding.
The total state investment in homeless assistance would be $1 billion, while $650 million would be allocated to local governments for homelessness emergency aid – a $150 million increase from the January proposal. This significant increase would better equip municipalities statewide in providing effective assistance.
Additionally, the budget proposal now includes $40 million for public colleges and universities to combat growing housing insecurity and homelessness in the student population. The Governor is also devoting substantial resources to rapid rehousing, the Infrastructure Infill Grant program, and the Mixed-Income Loan Program.
The workforce would also experience relief from housing burdens under this budget, as the Governor continues to push for development of affordable housing for low- and middle-income Californians. These expansions in concert address the state’s pressing housing challenges comprehensively, though the Democratic supermajorities in both chambers are expected to negotiate with the Governor with their own requests before the June 15 deadline to pass the budget.
For more info, contact Alicia Berhow, OCBC Sr. Vice President of Government Affairs.