Gov. Newsom targets education, housing in proposed 2022-2023 California budget
By Jessica Gonzalez
Jan. 27, 2022 8:47 a.m.
Gov. Gavin Newsom seeks to address issues such as climate change, homelessness and public safety in his proposal for the 2022-2023 California state budget.
On Jan. 10 Newsom presented the $286.4 billion budget, with $2.7 billion going to increasing COVID-19 testing and vaccination services and $22.5 billion for addressing climate change and the state’s transition to renewable energy.
Education is the largest spending area with a budget of $119 billion, of which more than $600 million would be distributed to the California State University and the University of California systems on the condition they meet diversity and in-state enrollment requirements set by the state. Newsom has dedicated $99 million to creating more than 7,000 spots for new students on UC campuses and has voiced support for promoting equity in higher education with the budget.
In a press release issued by the UC Office of the President on Jan. 10, UC President Michael Drake said the budget funds for the UC system would be used for various projects and would create more aid for UC students.
“This sustained commitment will enable UC to make critical long-term investments, particularly in areas that directly support our students: further expanding California undergraduate enrollment, boosting resources to traditionally low-income and first-generation students, and increasing college access and affordability for hard-working students and families across the state,” Drake said.
Chris Tilly, a professor of urban planning, said some of the funding could be put toward providing students with increased financial support.
“Especially if you’re trying to bring in more California residents and trying to work on the equity and diversity front, it takes some financial aid to help people go through college without falling into crushing debt or just being forced to drop out by the financial crunch,” Tilly said.
Daniel Mitchell, professor at the UCLA Anderson School of Management, added that the increased funding can make up for expected tuition losses from less out-of-state enrollment.
[Related: California Legislature proposes bill to reduce number of nonresident UC students]
Newsom has also proposed $2 billion toward supporting individuals experiencing homelessness and transitioning them into shelters or various forms of housing. In addition, another $2 billion will be used for establishing more affordable housing and establishing more living accommodations in downtown areas.
Michael Manville, a professor of urban planning, said one big issue with the current housing market that requires financial support is the lack of subsidized housing.
“There’s a need in California for all sorts of housing, say like making it easier for developers to build kind of market-rate housing but also providing different forms of sort of government-supported housing that range from kind of subsidized workforce housing all the way to permanent supportive housing for unhoused people,” Manville said.
He added that permanent housing for people experiencing homelessness is one of the most needed types of housing, however, this venture would be incredibly expensive.
To combat the cost issue associated with permanent housing, Manville said the state can try to determine the cause of high housing costs to combat the issue or continue funding the existing permanent housing efforts.
For public safety, Newsom indicated that $356 million would go toward funding law enforcement in addition to criminal prosecutions and gun violence prevention. Included in this cost, $53 million would be spent on improving the technology used in prisons that prevents illicit phone activity as well as more than $100 million for providing improved body cameras.
This year’s budget also sees a projected surplus of $45.7 billion generated by past years’ tax revenue and also seeks to address some of California’s debt in addition to various spending programs.
One of the main differences in the 2022-2023 budget as opposed to those of the past is California’s increased revenue which includes leftover revenue from prior years, said Jerry Nickelsburg, a professor of economics.
“We think of a surplus as an excess of revenues over expenditures. But in the way in which the state budget is formulated, carryover of excess in revenues from previous years counts as revenue,” Nickelsburg said.
Mitchell added that California’s previous governor, Jerry Brown, initiated the budget surplus during his term in office.
“There was a conscious effort for the state to spend less than it was taking in. He did it through import, by getting the electorate to vote for a ballot proposition that raised taxes. But he did it, and the state reserves were built up. And so that was a legacy that he left to Gov. Newsom,” Mitchell said. “So Newsom started out in a kind of a strong financial situation when he took over as governor in 2019, and things looked pretty good.”
The budget is now set to undergo a monthslong revision process and eventual approval by the California State Legislature.
“Now there can be changes in midcourse if some new developments occur, something happens, something unforeseen. The legislature can add or subtract something or all kinds of changes can, in theory, be made. But, absent that, that’s the budget for the next 12 months,” Mitchell said.
