Newsom Releases $209 Billion Budget, Prioritizes Education, Health and Human Services

On Thursday, Governor Gavin Newsom released his proposed FY 2019-20 State Budget, proposing significant expenditures in the state’s fiscal health and new initiatives. The proposed budget totals $209 billion ($144 billion General Fund) and projects a $21.4 billion surplus. The total budget represents a four percent increase from last year’s budget.

In a nearly two-hour presentation on Thursday, Newsom walked through the details of his proposal, some of which includes $4.8 billion to reduce unfunded pension liabilities, $4 billion to pay off long-standing debt, and $4.8 billion to strengthen the state’s budgetary reserves. $700 million is slated to be set aside for the Safety Net Reserve to be used for Medi-Cal and CalWORKs in the event of an economic downturn.

Nearly 81 percent of Newsom’s proposed General Fund expenditures would be dedicated to education and health and human services. During his press conference, Newsom discussed proposed investments in emergency preparedness and response, early childhood initiatives, health coverage issues, housing and homelessness efforts, and affordability matters.

Following the release of the proposed budget, CHEAC produced a summary of the Governor’s 2019-20 Budget Proposal; that memo is available here. Additional budget resources will be posted on our CHEAC Budget Page throughout the year.

The California Department of Public Health’s (CDPH) budget overview is available here and the California Department of Health Care Services’ (DHCS) budget overview is available here.

Over the coming weeks, the Legislature will begin hearing proposed budget items and stakeholder proposals. The Senate is scheduled to convene a budget overview hearing on January 17, and the Assembly will convene a similar hearing on January 29.