Assembly Convenes Overview Hearing on Governor’s 2022-23 Budget Proposal

On Wednesday, the Assembly Budget Committee convened an overview hearing on the Governor’s 2022-23 Budget Proposal. The Assembly’s hearing followed an identical hearing convened by the Senate Budget & Fiscal Review Committee last week and similarly featured presentations from the Department of Finance (DOF) and the Legislative Analyst’s Office (LAO).

Assembly Budget Committee Chair Phil Ting opened the committee’s first hearing of the year by discussing many important priorities included in the Governor’s proposal and Assembly blueprint, including resources to support the continued response to the COVID-19 pandemic, health care access, housing affordability and homelessness, education funding, and economic development, among other areas.

DOF Deputy Director Erika Li provided the committee a high-level overview of significant investments included in the Governor’s January Budget Proposal. Legislative Analyst Gabriel Petek additionally presented to the committee, detailing the budget condition, Newsom Administration’s budget structure, and considerations of note for lawmakers as they begin assessing proposed investments. Petek discussed the State Appropriations Limit (SAL) and his recommendation that the Legislature develop a plan for meeting the current year SAL requirement.

Of note, Assembly Member Joaquin Arambula applauded the Newsom Administration for including proposed funding for the continued COVID-19 pandemic response, as well as full-scope Medi-Cal coverage for all income-eligible residents regardless of citizenship status. Assembly Member Jim Wood queried DOF about the recently announced deal for supplemental paid sick leave that was struck between the Administration and legislative leaders.

Budget subcommittees will begin their work in earnest over the coming weeks. Stay tuned for continued budget updates, including investments related to public health infrastructure and workforce, among other notable items.

The full agenda from the hearing is available here. A video recording of the hearing is available here.