CALIFORNIA BLACK WOMEN’S COLLECTIVE EMPOWERMENT INSTITUTE
ADDRESSING FISCAL CHALLENGES Refocusing the budget to empower Black Women in California
Governor Gavin Newsom Unveils California's Fiscal Plan for 2024-25 Governor Gavin Newsom recently announced California's fiscal plan for 2024-25. The budget's most notable feature is a reduced deficit of $38 billion, significantly lower than the Legislative Analyst Office's projection of $68 billion. The governor's plan seeks to balance the downturn strategically by utilizing reserves and scaling back planned expenditures while avoiding major tax overhaul strategies that could negatively impact the state's long-term economic health and equity. The deficit is expected to arise from a projected decline in state revenue of $44 billion over three fiscal years. This decline is partially attributed to delayed 2022 tax filings, now due in November 2023. Additionally, last year's stock market slump has negatively impacted income tax collections from wealthy individuals and corporations, while the Federal Reserve's rate increases have further constrained revenue. California's constitution mandates rebalancing acts as revenues recede, affecting funding for key sectors such as K-12 education, community colleges, and reserves allocated to economic uncertainties. Governor Newsom proposes to bridge the budget shortfall by tapping into $18.8 billion from the state’s financial reserves and adopting internal fiscal strategies, including borrowing and fund reallocations. However, the governor's plan does not propose significant changes to tax policies that could enhance the state's revenue stream. While this conservative approach aims to sustain prior commitments, it may negatively impact vital programs that support low-income families and communities of color, which are often the first to experience the repercussions of fiscal austerity. Notably, the plan could restrict funds for CalWORKs, initiatives combating homelessness, workforce development, and crucial climate and housing interventions.
CABWCEI INTRODUCTION
California Black Women’s Collective Empowerment Institute
UNDERSTANDING THE BUDGET PROPOSAL The Governor's 2024-25 State Budget Proposal serves as a critical document that delineates the financial outline for California. It reflects the state's priorities and commitments and presents a comprehensive guide on how resources are allocated across various sectors, including education. For organizations such as the California Black Women's Collective Empowerment Institute, analyzing this proposal is vital in identifying potential opportunities and challenges for their constituents. Advocates and organizations that serve Black women and other marginalized communities should take note of this proposal, comprehend its implications, and work towards ensuring that it supports the growth of opportunities for their communities.
POLICYMAKERS’ RESPONSIBILITY AND ABILITY Policymakers have the responsibility to ensure that budget shortfalls do not disproportionately impact marginalized communities. They have the ability to make strategic decisions to cover these shortfalls and continue to make progress for California. This includes advocating for policies and funding that support opportunities for Black women.
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BUDGET SHORTFALL
California Black Women’s Collective Empowerment Institute
The budget proposal for the 2024-25 California state budget is based on revenue estimates that fall short of the projections made during the enactment of the 2023 budget. Unfortunately, this shortfall could potentially impact the funding available for programs that support marginalized communities, particularly Black Californians. On January 10th, Governor Gavin Newsom unveiled his proposed budget plan, forecasting a $38 billion shortfall, significantly less than the $68 billion estimated by the independent Legislative Analyst Office last month. The governor's proposal aims to close the budget gap through the use of reserves and spending cuts, as well as delays or deferrals of spending authorized in earlier years. The $209 billion General Fund spending plan would preserve many of the investments made in prior years. However, it does not propose significant tax policy changes to increase state revenues in the short term or to build a more equitable, thriving state in the long run. The projected budget deficit is primarily due to state revenue collections that the administration now anticipates will be $44 billion lower over the three-year budget window (fiscal years 2022-23 through 2024-25) than previously expected when the current-year budget was enacted in June of last year. The extent of this revenue drop only recently became clear because the filing deadlines for the 2022 tax year were pushed from April 2023 to November 2023 by the IRS. The shortfall reflects the steep stock market decline in 2022, which negatively impacted income tax collections from high-income Californians and corporations, as well as the economic dampening effects of the Federal Reserve's interest rate hikes. Lower state revenues over the three-year budget window result in automatic adjustments to constitutionally-required funding allocations, including to the state's main reserve and education reserve accounts as well as for K-12 schools and community colleges. The governor's proposed solutions to cover the shortfall include using $18.8 billion of state reserves, often referred to as "rainy day funds" (leaving an estimated $18.4 billion for future use), internal fiscal measures including internal borrowing ($5.7 billion) and fund shifts ($3.4 billion), and various reductions in funding levels ($8.5 billion) and delays and deferrals in funding to later years ($7.2 billion). Notably, the governor's proposal does not include any significant tax policy measures to increase revenues to avoid reductions in funding levels for critical services and enable additional ongoing investments. As a result, the austerity measures used to cover the shortfall include some reductions and delays in funding that will disproportionately impact low-income communities, especially Black Californians. These include ongoing cuts to CalWORKs supportive services (despite draining the Safety Net Reserve designed to avoid cuts to CalWORKs), delays to programs that help address homelessness, reductions in funding for workforce systems and supports, and reductions in climate and housing programs.
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GOVERNOR'S BUDGET PREDICTS MODEST JOB GROWTH AND WAGE INCREASES, WITH CHALLENGES FOR MARGINALIZED COMMUNITIES The Governor's budget predicts a moderate increase in job growth and wages, despite economic challenges. The Federal Reserve's recent interventions to combat inflation have contributed to these changes. While nonfarm employment is expected to rise, the growth rate is expected to be sluggish, with a 1% increase in 2024 and 0.4% increase in 2025, compared to a 2.2% increase in 2023. At the same time, the state's unemployment rate is expected to rise, with estimates climbing from 4.6% in 2023 to 5.1% in 2024 and further to 5.2% in 2025. These figures suggest that communities of color may experience heightened unemployment, with Black women facing particular challenges due to systemic inequalities. On the other hand, wages may see progressive growth, with an expected increase of 3.4% in 2024 and 3.7% in 2025. However, these gains are predicted to fall short of pre-pandemic levels. The inflation rate is also expected to moderate, dropping to 3.0% in 2024 and 2.4% in 2025, indicating a reduction from 3.8% in 2023. This could potentially alleviate financial pressures for Black women in California. The Administration's economic outlook for California anticipates slower job growth and a higher unemployment rate over the next two years. These projections could potentially impact job prospects for Black women and other marginalized communities. The impact of structural racism means that Black workers, in particular, face much higher unemployment rates than white workers, both in good times and bad. Although the average worker's wage is expected to increase by 3.4% and 3.7% in 2024 and 2025, respectively, average annual wage gains are still projected to fall short of pre-pandemic levels. This could potentially impact the earning potential of Black women who are entering the workforce, even after completing their higher education.
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POTENTIAL IMPACTS OF PROPOSED BUDGET CUTS ON HIGHER EDUCATION AND CAREER ADVANCEMENT FOR BLACK WOMEN AND MARGINALIZED COMMUNITIES The proposed budget plans to delay $734.5 million from 2023-24 and prior years to 2024-25 or beyond, as well as cut approximately $100 million from the General Fund. However, this approach may hinder the immediate availability of funds for programs which directly or indirectly support higher education opportunities for Black women and other marginalized communities. Delaying the $300 million California Jobs First (formerly the Community Economic Resilience Fund) could affect job creation initiatives, which often provide essential employment opportunities for graduates of higher education institutions. Similarly, the delay of $189.4 million Mental Health Services Act Fund and $140.1 million General Fund for various health care workforce investments could impact those pursuing careers in the healthcare sector, where Black women are often underrepresented. The proposed reductions in spending, including $45 million for the High Road Training Partnerships program and $15 million for the Low Carbon Economy Grant Program, could limit access to training and development opportunities. These programs often serve as pathways to higher education and career advancement for individuals from marginalized communities. Furthermore, the proposed cut of $5 million for the Women in Construction Unit could directly impact initiatives aimed at increasing representation of women, particularly Black women, in the construction industry. In summary, while these budgetary measures are intended to address the state’s budget problem, they could potentially create barriers to higher education and career advancement for Black women and other marginalized communities. To mitigate these potential impacts, it’s critical for organizations like the California Black Women's non-profit to advocate for these communities and work towards safeguarding their interests.
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IMPACT OF THE GOVERNOR'S PROPOSED BUDGET ON WORKFORCE DEVELOPMENT AND HIGHER EDUCATION OPPORTUNITIES The Governor's proposed budget could have significant implications for workforce development and higher education opportunities, especially for Black women and other marginalized communities. The budget suggests delaying or reducing spending on workforce development programs, including apprenticeships and high road training partnerships. These programs provide essential training and employment opportunities that could benefit students pursuing higher education. However, the proposed delays and cuts could impact the quality and availability of these programs. Furthermore, the budget proposal includes significant reductions and delays in General Fund climate investments, which could potentially limit resources for climate change resiliency projects. These projects often provide educational and job opportunities in the growing green economy, which could be crucial for Black women and other marginalized communities. For instance, the reduction in funding for the Climate Innovation Program could limit opportunities for Black women to participate in and benefit from the green economy. Additionally, the proposed reduction in programs advancing climate resilience in low-income and underserved communities could directly impact those communities' ability to adapt to climate change. This could exacerbate existing inequalities and make it even more challenging for individuals from these communities to pursue higher education. Moreover, the delay of Transit and Intercity Rail Capital Program formula grants could impact public transportation infrastructure, potentially making it more difficult for students from marginalized communities to commute to educational institutions. In conclusion, while the budget proposal includes some measures to support workforce development and climate change initiatives, it does not go far enough in addressing the specific needs of Black women and other marginalized communities. It's essential for organizations like the California Black Women's non-profit to advocate for policies and funding that support these communities and work towards mitigating the potential negative impacts of these budgetary measures.
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The Governor's Budget: What It Means for K-12 Education Proposition 98, a constitutional amendment approved by voters, has established minimum funding levels for K-14 education in California. These levels are determined by various factors and are projected to be $98.3 billion for 2022-23, $105.6 billion for 2023-24, and $109.1 billion for 2024-25. However, this represents an $11.3 billion decrease over three years compared to the 2023 Budget Act. To address this shortfall, the Budget proposes statutory changes to ensure the budgets of Local Educational Agencies (LEAs) and community colleges are protected. The Guarantee remains in Test 1, which ties the funding level to approximately 39 percent of General Fund revenues plus local property tax revenues and is "rebenched" to reflect new educational initiatives, increasing the General Fund revenue percentage to 39.5 percent. K-12 education funding, including all sources, totals $126.8 billion, or $17,653 per pupil from the Proposition 98 General Fund and $23,519 per pupil from all funding sources. The Budget allocates $20 million for the implementation of a new Mathematics Framework in training mathematics coaches and leaders. It also proposes statutory changes to focus unspent Learning Recovery Emergency Block Grant funds on mitigating learning loss in alignment with local accountability plans. The Budget aims to improve mental health support in schools by providing professional development linked to state investments. However, funding for the School Facility Program (SFP) will be reduced from $875 million to $375 million for 2024-25, and investments in the California Preschool, Transitional Kindergarten, and Full-Day Kindergarten Facilities Grant Program are postponed to address budget shortfalls.
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The Governor's Budget: What It Means for K-12 Education cont. The Budget also makes other significant adjustments, including a decrease in Proposition 98 General Fund allocations due to increased local property tax revenues, a modest cost-of-living adjustment for certain educational programs and the LCFF Equity Multiplier, and a decrease reflecting attendance changes in the county offices of education. The Budget will continue to provide $500 million for zero-emission school buses while increasing funding for curriculumembedded performance tasks to support science instruction.
The Governor's Budget: What It Means for Higher Education The document outlines the financial allocations and strategic changes to higher education and related sectors within California for the fiscal years 2023-25. It details the budget adjustments for the University of California (UC), California State University (CSU), California Community Colleges (CCC), the California Student Aid Commission, and other educational entities. The University of California and California State University systems are experiencing budget deferrals to maintain funding levels while meeting Compact goals. UC Merced will receive $14.5 million for a Medical School Project. California Community Colleges are prioritizing equity and student success with a $3.3 billion budget for financial aid. Adjustments include a $2.2 million increase for the College of the Law, San Francisco, and significant reductions for the California State Library. Governor Newsom's Executive Order N-11-23 aims to realign education and workforce systems in California, with a Master Plan for Career Education to be published in winter 2024. CABWCEI PAGE 8
Education Key Takeaways PRE-K TO 12 Proposition 98 is a constitutional amendment approved by voters that ensures K-12 schools and community colleges receive minimum funding levels. This funding is based on factors such as General Fund revenues and school attendance. For the upcoming years, the estimated funding is $98.3 billion for 2022-23, $105.6 billion for 202324, and $109.1 billion for 2024-25. The Guarantee falls under Test 1, which means that funding is linked to around 39% of General Fund revenues and local property tax revenues. Each student receives $17,653 from the Proposition 98 General Fund and $23,519 from all funding sources.
Mathematics Framework The State Board of Education adopted a new Mathematics Framework that aligns with California's standards. The budget proposes $20 million for training math coaches and leaders to support educators in teaching the new framework. Instructional materials are expected to be available in 2025. The budget adjustments for California include a decrease in Proposition 98 General Fund, a modest cost-of-living adjustment for certain educational programs, and maintaining $500 million for zero- emission school buses, among others. The California preschool and kindergarten facilities grant program supports the construction of new school facilities or retrofitting existing ones, and its planned investment of $550 million is delayed from 2024-25 to 2025-26 due to budget shortfalls.
Enhancing Mental Health Support The Budget includes provisions that will allow school staff to receive training and resources required to recognize and provide appropriate mental health support to students. In line with state investments, the Budget aims to enrich mental health support in schools through professional development opportunities.
Education Key The document discusses the financial strategy for higher education in California, aiming to maintain quality and expand career opportunities despite budget constraints. The goal is to ensure Californians have access to a quality education and are on-ramped into well-paying, purposeful careers, empowered with real-life skills. Financial figures for UC, CSU, CCC, and the California Student Aid Commission show changes from the previous fiscal year, with General Fund and Total Funds figures provided. The General Fund increased by 1.4% to $26,726.3 from $25,247.80, while Total Funds increased by 1.2% to $44,542.40 from $43,389.80.
Takeaways
California State University (CSU) faces budget deferrals to maintain its funding levels and support its mission. The budget defers the planned 2024-25 Compact investment of $240.2 million to 2025-26, allowing CSU to continue meeting the Compact goals. The California Community Colleges (CCCs) are the largest higher education system in the US, providing accessible education with a focus on equity and student success. The CCC multi-year roadmap, which highlights equity and student success, is reflected in the budget. Governor Newsom's Executive Order N-11-23 aims to realign education and workforce systems in California by initiating a comprehensive effort to rearchitect them. It was signed on August 31, 2023. The Cal Grant Reform Act is being discussed to improve California's financial aid program for students with financial need, as it would bring significant changes to the program. The California Student Aid Commission and the Administration are monitoring the provisions in the 2022 Budget Act. The College of the Law in San Francisco has been granted a budget increase of $2.2 million to support its operating costs. The California State Library is facing significant budget cuts, specifically in local library infrastructure and broadband services. The proposed budget aims to retract $131.3 million of one-time General Fund support for local library infrastructure.
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AN EVALUATION OF THE PROPOSED CLIMATE BUDGET'S IMPACT ON COMMUNITIES The proposed budget includes a number of climate-related programs that could have a direct impact on communities. •
Climate Investments: The budget proposes $6.7 billion in climate-related programs, including wildfire and forest resilience, water, coastal resilience, and sustainable agriculture, among others.
Zero-Emission Vehicles: The budget includes $38.1 million of General Fund reductions, $475.3 million in fund shifts to the Greenhouse Gas Reduction Fund (GGRF), and $600 million in delays across various programs. This could affect the affordability and accessibility of zero-emission vehicles in your community. Water and Forest Resilience: The budget allocates $2.7 billion in investments over five years to improve critical investments in restoring forest and wildland. However, this could have implications for communities located near forests and wildlands, particularly in terms of wildfire resilience. Water: The budget earmarks $7.3 billion in investments over several years and includes $796.8 million in General Fund reductions and $100 million in delays across various programs. This could affect water security and flood protection in your community. Workweek Reduction for CalFire: The governor's budget proposes an increase of $198.9 million ($197.1 million General Fund) and 338 positions in 2024-25 and $770.4 million ($756.3 million General Fund) and 2,457 positions ongoing. This could impact fire safety in your community.
These investments and changes could have significant implications for the Black community, particularly in terms of environmental justice, access to clean transportation, and resilience to climate change impacts. It's important to understand these changes and advocate for policies that ensure these funds are used in a way that is equitable.
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State Water Efficiency and Enhancement Program: The budget proposes a transfer of $20.6 million General Fund to the GGRF. This could have repercussions on water efficiency and conservation initiatives. Relief for Small Farmers: The budget proposes a diversion of $12.9 million California Emergency Relief Fund designated for drought relief to support small farms. This could impact small-scale farmers, especially women, in your community. Coastal Resilience: The budget maintains its commitment to invest around $660 million in various programs and projects over multiple years to enhance coastal resilience. This could have implications for communities located near the coast, particularly in terms of resilience to climate change impacts. Energy: The budget maintains approximately $6.6 billion of the planned 2022 energy investments. This could impact energy security and access to clean energy in your community. Equitable Building Decarbonization: The budget proposes a $283 million General Fund reduction in 2021-22 and a shift of $87 million from General Fund to GGRF in 2024-25 to the CEC Equitable Building Decarbonization program. This could impact efforts to reduce carbon emissions from buildings in your community. Residential Solar and Storage: The budget proposes a $200 million General Fund delay to the CPUC’s Residential Solar and Storage program. This could impact the affordability and accessibility of solar power and energy storage in your community.
These proposed changes could significantly impact the Black community, particularly in terms of environmental justice, access to clean energy, and resilience to climate change impacts.
NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION This agency' s programs are allocated a total of $ 5.4 billion in the budget, with the breakdown being $719.7 million for the General Fund, $4.1 billion for special funds, $564.7 million for federal funds and $11.3 million for bond funds. To balance the budget and address the projected shortfall, the proposal includes $489.9 million in General Fund solutions for non-climate-related Natural Resources and Environmental Protection programs. This action may have an impact on environmental protection and natural resource efforts in communities. Department of Forestry and Fire Protection: The budget includes $4.2 billion and 12,295 positions for CAL FIRE. This could affect fire safety and forest conservation in your community. •
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Safe and Sustainable Pest Management: The governor’s budget proposes legislation to increase the mill assessment to support programs and address the Department of Pesticide Regulation (DPR) Fund’s structural balance. This could impact pest management practices, which are particularly relevant for community members involved in agriculture. Protecting Water Quality and Habitat: In response to the U.S. Supreme Court ruling that narrowed the reach of the federal Clean Water Act on wetlands, the governor’s budget proposes to include $6.1 million Waste Discharge Permit Fund in 2023-24, and $7 million ongoing for activities to protect wetlands. This could have implications for water quality and habitat protection in your community. Beverage Container Recycling: The governor’s budget proposes a budgetary loan of $125 million from the Beverage Container Recycling Fund to the General Fund. This could impact recycling programs in your community. Urban Waterfront Funding: A reversion of $12.3 million General Fund for various projects in urban areas adjacent to rivers and waterways throughout the state. This could affect urban waterfront development and conservation efforts in your community.
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Health & Human Services Overview of Governor's Health and Human Services Budget for 2024-2025 and Recent Investments and Actions The governor's proposed budget for health and human services programs in 2024-2025 is $253.4 billion ($73.9 billion General Fund). In addition, the state has made significant investments and taken action in the following areas: Expanding Medi-Cal The budget includes $3.4 billion ($2.9 billion General Fund) in 2024-25 to expand full-scope Medi-Cal eligibility to income-eligible adults aged 26 to 49 regardless of immigration status, inclusive of In-Home Supportive Services (IHSS) costs. Ongoing funding of approximately $3.7 billion ($3.2 billion General Fund) will continue this expansion. Behavioral Health Continuum The budget maintains over $8 billion total funds across various Health and Human Services departments to expand the continuum of behavioral health treatment and infrastructure capacity for children and youth. BH-CONNECT Demonstration The budget maintains $7.6 billion ($350.4 million General Fund, $87.5 million Mental Health Services Fund, $2.6 billion Medi-Cal County Behavioral Health Fund, and $4.6 billion federal funds) through the term of the waiver for the Department of Health Care Services (DHCS) and the Department of Social Services (DSS) to implement the BH-CONNECT Demonstration, effective Jan. 1, 2025. This program aims to create Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment. California Advancing and Innovating Medi-Cal (CalAIM) The budget includes approximately $2.4 billion ($811.1 million General Fund) in 2024-25 to continue transforming the health care delivery system through CalAIM at DHCS. The budget also includes $24.7 million ($8.6 million General Fund) in 2025-26 increasing to $197.9 million ($69.3 million General Fund) at full implementation to provide eligible individuals experiencing homelessness or at risk of homelessness with up to six months of rent or temporary housing as they transition out of institutional care, a correctional facility, the child welfare system, or other transitional housing settings. Developmental Services Provider Rate Reform The budget includes approximately $1.7 billion ($1 billion General Fund) in 2024-25 for the Department of Developmental Services (DDS) to reform provider rates.
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Managed Care Organization (MCO) Tax The budget proposes $2.8 billion ($1.2 billion Medi-Cal Provider Payment Reserve Fund) in 202425 and approximately $6.5 billion ($2.7 billion Medi-Cal Provider Payment Reserve Fund) in 2025-26 for targeted rate increases and investments. $727 million ($291 million Medi-Cal Provider Payment Reserve Fund) annually is for Medi-Cal provider rate increases effective Jan. 1, 2024. Significant Adjustments • •
Children and Youth Behavioral Health Initiative Wellness Coaches $9.5 million ($4.1 million General Fund) in 2024-25 increasing annually to $78 million ($33.8 million General Fund) in 2027-28 to establish the wellness coach benefit in Medi-Cal effective Jan. 1, 2025.
Reproductive Health Services Waiver The budget maintains one-time $200 million ($100 million General Fund) in 2024-25 for the California Reproductive Health Access Demonstration Waiver to support access to reproductive health services beginning no sooner than July 1, 2024. Medi-Cal Caseload and Eligibility Redeterminations •
The budget assumes a Medi-Cal caseload of 14.8 million in 2023-24, an increase of 583,000 individuals compared to the 2023 Budget Act. This results in increased costs of $2.3 billion ($499 million General Fund) in 2023-24 compared to the 2023 Budget Act.
Proposition 56 •
The budget reduces Proposition 56 funding for physician services supplemental payments by $193.4 million ($77.1 million Proposition 56) in 2024-25.
Addressing the Budget Problem To address the projected shortfall, the budget proposes General Fund solutions to achieve a balanced budget. These include: • • •
Behavioral Health Continuum Infrastructure Program – A delay of $140.4 million General Fund from 2024-25 to 2025-26. Behavioral Health Bridge Housing – The budget proposes to shift $265 million from Mental Health Services Fund appropriated in the 2023 Budget Act to General Fund in 2024-25. Clinic Workforce Stabilization Payments – A reversion of $14.9 million in unexpended General Fund from the one-time $70 million General Fund included in the 2022 Budget Act for the Clinic Workforce Stabilization and Retention Payment Program.
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Housing and Homelessness The budget proposal suggests over $1.2 billion in General Fund reductions through 2025 for various housing programs that recently received investments. This results in a total General Fund investment of approximately $4 billion in affordable housing and homeownership programs since 2019. Since most programs are funded with one-time allocations, many of the cuts will take the form of reversions rather than reductions in ongoing spending. Significant Adjustments Multifamily Housing Program •
The Multifamily Housing Program will undergo a reversion of $250 million General Fund, leaving $75 million in 202324 for this purpose.
Infill Infrastructure Grant Program •
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The Infill Infrastructure Grant Program will undergo a reversion of $200 million General Fund, leaving $25 million in 202324 for this purpose CalHome Program. The CalHome Program will undergo a reversion of $152.5 million General Fund.
Veteran Housing and Homelessness Prevention Program •
The Veteran Housing and Homelessness Prevention Program will undergo a reversion of $50 million General Fund.
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The state has dedicated $3.4 billion of General Fund in 2023-24 for addressing homelessness, which is consistent with prior budgets. This includes $400 million for the third round of encampment resolution grants and $1 billion for the fifth round of Homeless Housing, Assistance and Prevention (HHAP) grants, as previously budgeted. However, the budget has implemented significant cuts in other areas by employing a combination of funding delays, deferrals, and shifts. For instance, there is a $260 million delay of General Fund HHAP funding from 2023-24 to 2025-26, aligning the availability of funds with eligible applicants. However, the budget maintains $1.1 billion General Fund for HHAP 5 across 2023-24 and 2024-25 to provide local jurisdictions, including federally recognized tribal governments, with flexible funding to help prevent and end homelessness in their respective communities. In the May revision, the administration intends to commit to working closely with the legislature to provide additional funding to support local governments' response to the homeless crisis, assuming that local governments deliver on their performance commitments made under HHAP 3 and HHAP 4 and regional planning and coordination requirements of HHAP 5. Moreover, the budget has shifted $265 million from the Mental Health Services Fund appropriated in the 2023 Budget Act to the General Fund in 2024-25 due to lower-thanprojected Mental Health Services Act revenues. Additionally, there is a delay of $235 million General Fund originally planned for 2024-25 to 2025-26. Finally, the budget has delayed $80 million General Fund for the Bringing Families Home Program and $50 million General Fund for the Housing and Disability Advocacy Program to 2025-26.
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CRIMINAL JUSTICE & THE JUDICIAL BRANCH DEPARTMENT OF CORRECTIONS AND REHABILITATION In 2024-25, the Department of Corrections and Rehabilitation (CDCR) is set to receive a total funding of $14.5 billion, of which $14.1 billion is allocated from the General Fund and $364.3 million from other funds. Out of the total amount, $4.1 billion from the General Fund will be utilized for health care programs, to ensure that imprisoned individuals have access to medical, dental as well as mental health care services that comply with the standards and scope of care suitable within a custodial environment.
Notable Changes in Budget Allocation Board of Parole Hearings Attorney Fees •
A $2.1 million ongoing General Fund to increase state-appointed attorney fees to keep up with current market rates.
Utilities Expenses •
A $21.9 million General Fund to cover increased utility rates, which will be adjusted twice a year to reflect actual costs.
Free Voice Calling •
A one-time General Fund increase of $7.4 million in 2023-24 and an ongoing $8.2 million increase, bringing the total budget to $32.6 million in 2023-24 and $36.7 million ongoing. This funding is for providing incarcerated individuals access to free voice calling per SB 1008 (Chapter 827, Statutes 2022).
Solving the Budget Issue In 2024-25, the Department of Corrections and Rehabilitation (CDCR) is set to receive a total funding of $14.5 billion, of which $14.1 billion is allocated from the General Fund and $364.3 million from other funds. Out of the total amount, $4.1 billion from the General Fund will be utilized for health care programs, to ensure that imprisoned individuals have access to medical, dental as well as mental health care services that comply with the standards and scope of care suitable within a custodial environment.
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California Department of Corrections and Rehabilitation (CDCR) Budget Adjustments The CDCR has undergone several budget adjustments for various areas, including COVID-19 prevention and response, statewide correctional video surveillance, and administrative reduction. Here's a breakdown of the changes: Statewide Correctional Video Surveillance: •
A delay of $27.2 million in General Fund for the installation of fixed camera technology from 2023-24 to 2025-26 and 2026-27.
COVID-19 Prevention and Response: •
A reversion of $38.8 million General Fund in 2023-24 to align with estimated current year savings for COVID-19 response activities.
COVID-19 Workers' Compensation: •
A reversion of $5 million General Fund in 2023-24, and a reduction of $9 million in General Fund in 2024-25 for COVID-19- related workers' compensation expenditures.
Administrative Reduction: •
A reduction of $15 million ongoing General Fund for various areas within CDCR's administration.
TransMetro Bus Contract: •
A reduction of $2 million General Fund for bus transportation to the prisons due to its underutilization.
Parolee County of Release Workload: •
A reversion of $1.9 million General Fund in 2023-24 and an ongoing reduction of $1.9 million beginning in 2024-25 due to SB 990 (Chapter 826, Statutes of 2022), which grants parolees greater eligibility to move to counties outside their county of commitment following their release from correctional institutions.
Division of Juvenile Justice Warm Shutdown: •
A reduction of $909,000 General Fund to better align contract resources for maintaining closed Division of Juvenile Justice facilities with actual needs.
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Division of Adult Parole Operations Urinalysis Contract: •
A reduction of $100,000 General Fund in 2023-24, and an ongoing reduction of $100,000 beginning in 2024-25, to right- size a contract for parolee urinalysis testing to align with the population.
Revenue transfer from the Recidivism Reduction Fund to the General Fund: •
A revenue transfer of $7.3 million of unobligated funds within the Recidivism Reduction Fund to the General Fund.
The proposed budget allots an amount of $4.1 billion from the General Fund for health care programs in 2024-25, aimed at providing incarcerated individuals access to medical, dental, and mental health services. The following adjustments have been made: • •
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A one-time allocation of $40 million from the General Fund in 2024-25 to address a shortfall in the Medical Program budget. To address a structural deficit in the budget for Contract Medical services, $36.5 million from the General Fund has been allocated, along with a reduction of $12.1 million in reimbursement authority. $38.3 million from the General Fund has been allocated to support the COVID-19 prevention and mitigation activities of the CDCR. A reduction of $7.1 million from the General Fund has been made, attributed to the success of the Employee Health Program proposed in the 2023 Budget Act.
Overview of Juvenile Justice Realignment •
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As of June 30, 2023, the Division of Juvenile Justice has stopped functioning in compliance with Chapter 18, Statutes of 2021 (SB 92). The transfer of youths who were formerly committed to the Division of Juvenile Justice has been realigned to their respective county probation department. The budget plan includes a one-time General Fund of $208.8 million in 2024-25 to support the Juvenile Justice Realignment Block Grant (JJRBG) established by SB 823 (Chapter 337, Statutes of 2020) to help counties in providing rehabilitative housing and supervision services to the realigned youth population. The budget also includes an estimated increase of $16.2 million General Fund to meet the yearly requirement to adjust JJRBG funding by a rate corresponding with growth in the Juvenile Justice Growth Special Account, bringing the total available funds to an estimated $225 million in 2024-25. To offer counties clarity on the allocation amounts for 2024-25 and allow more time for the administration and legislature to coordinate on the best approach for a funding allocation methodology, the administration has proposed statutory changes to preserve the funding formula prescribed in SB 823.
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Ensuring Public Safety in California The state has allocated nearly $1.1 billion for public safety investments to protect Californians. This budget includes $140 million from the General Fund to support nonprofit organizations that have been victims of hate- motivated violence. In October 2023, due to concerns arising from the ongoing conflict in the Middle East, the administration – with the legislature's agreement – added an extra $20 million to augment the California Nonprofit Security Grant Program. The funding for 2023-24 will continue to be administered in support of projects through 2024-25, improving safety and security for faith communities. Furthermore, California receives annual funding from the federal Nonprofit Security Grant Program.
Fighting Organized Retail Theft and Other Crimes To combat retail theft and other crimes, the state allocated $373.5 million from the General Fund over four years to support local law enforcement efforts. This includes ongoing resources for the California Highway Patrol's retail theft task forces, the Department of Justice's Special Operations Unit, and other task force and prosecution teams.
Significant Adjustments Drug Interdiction Continuation: •
The Military Department’s drug trafficking prevention program will receive an additional $30 million over two years (2024-26).
Proposition 47: •
The budget anticipates a net savings of $87.8 million in 2024-25 from this proposition.
Post Release Community Supervision: •
An estimated $4.4 million will be allocated to this program.
Community Corrections Performance Incentive Grant: •
County probation departments will receive $113.6 million to administer this grant.
Board of State and Community Corrections Loan: •
The General Fund will receive a $100 million loan from the Cannabis Tax Fund.
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Adult Reentry Grant: •
The $57 million allocation for this grant will be paused for one year and then reallocated over three years starting in 2025-26 at $19 million per year.
Cal VIP Grant Program: •
Starting in 2025-26, there will be a reduction of $9 million, which will be replaced by funds from the newly created Gun and Ammunition Tax.
Firearm Relinquishment Programs: •
There will be reductions of $21 million for the Office of Emergency Services Gun Buyback Program and $20 million for the Judicial Council Firearm Relinquishment Grant Program.
Public Defender Pilot Program: •
There will be a reduction of the $40 million one-time General Fund in 2023-24 for the final year of this program.
Community Partnership Plan: •
An estimated $4.4 million will be allocated to this program.
Community Corrections Performance Incentive Grant: •
Starting in 2024-25, there will be a reduction of $8 million for counties that provide Community Corrections Partnership Plans and reports.
Board of State and Community Corrections Loan: •
The General Fund will receive a $100 million loan from the Cannabis Tax Fund.
Proud Parenting Grant Program: •
Starting in 2024-25, there will be a reduction of $835,000 to this program.
Department of Justice total funding: •
The budget includes a total funding of approximately $1.3 billion, including $487 million from the General Fund.
Small Client Legal Workload: •
An allocation of $4 million from the General Fund from 2024-25 through 2026-27 to maintain the baseline level funding for small client departments.
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CURES Fee: •
The Controlled Substance Utilization Review and Evaluation System (CURES) Fee will increase from $9 to $15.
Loan from Litigation Deposits Fund: •
A loan of $100 million will be made from the Litigation Deposits Fund to the General Fund. This is in addition to the $400 million loan from the same fund included in the 2023 Budget Act, making the total loan amount $500 million.
Judicial Branch total funding: •
The budget includes a total funding of $5.2 billion ($3.2 billion General Fund and $2 billion other funds) in 2024-25 for the Judicial Branch, with $3 billion supporting trial court operations.
Trial Court Trust Fund: •
An ongoing allocation of $83.1 million from the General Fund to backfill expected revenue declines.
State Court Facilities and Construction Fund: •
An allocation of $80 million in 2024-25 and $119 million ongoing from the General Fund to backfill a projected shortfall.
Self-Help Centers: •
An increase of $19.1 million ongoing from the General Fund to maintain the current funding level for self-help centers in trial courts statewide.
Trial Court Employee Health Benefits: •
An increase of $15.8 million ongoing from the General Fund for trial court employee health benefit and retirement costs.
Trial Court Employee Health Benefits: •
A one-time reversion of $75 million from the unrestricted fund balance in the Trial Court Trust Fund to the General Fund.
Trial Court Emergency Fund: •
A one-time reversion of $5 million from the available $10 million in the Trial Court Emergency Fund.
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GENERAL GOVERNMENT & STATEWIDE ISSUES CAL COMPETES The budget includes $60 million for the California Competes grant program and $50million to recapitalize the Infrastructure State Revolving Fund at the California Infrastructure and Economic Development Bank (IBank), providing financing for infrastructure related to clean energy, water, and environmental projects. The investment in IBank has supported over 100 projects and created over 24,000 new jobs.
OFFICE OF PLANNING AND RESEARCH (OPR) The Office of Planning and Research (OPR) is responsible for developing state policies across land use, climate risk, economic development, and research needs. It comprises several programs, including the State Planning and Policy Program, California Strategic Growth Council, Office of Community Partnerships and Strategic Communications, and California Volunteers. The OPR has made significant adjustments, including California Environmental Quality Act Judicial Streamlining and allocating $2.3 million for infrastructure and environmental leadership development projects. CANNABIS Proposition 64 outlines the allocation of the Cannabis Tax Fund, with AB 195 requiring baseline funding for specific programs totaling around $670 million. The 2024-25 budget estimates $568.9 million for youth substance use disorder education and prevention, environmental cleanup and law enforcement related to illegal cannabis cultivation, and public safety activities, with 60%, 20%, and 20% of the funds allocated to each program, respectively.
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IMPLEMENTATION OF STATEWIDE BROADBAND NETWORK
An additional $1.5 billion General Fund will be allocated over two years to the broadband Middle Mile Broadband Implementation Project. The money will be used to complete the development of the statewide middle- mile network, due to changes in scope and associated costs, including inflation costs. The aim is to bring broadband connectivity to the state's remaining unconnected and underconnected communities by Dec. 31, 2026.
STATE EMPLOYEE COMPENSATION AND COLLECTIVE BARGAINING The budget allocates $1.3 billion for employee compensation, healthcare costs, and retiree health care prefunding contributions in 2024-25, including collectively bargained salary and benefit increases. It also covers projected increases in health care and dental premiums and enrollment for 2025. To address the projected budget shortfall, the Department of Finance issued Budget Letter 23-27, directing state entities to reduce current year spending and take necessary measures for more prudent spending. HEALTH CARE WORKER MINIMUM WAGE SB 525 (Chapter 890, Statutes of 2023) increases the minimum wage for specified health care workers to $25 per hour effective June 1, 2024. The administration is seeking early action in January by the legislature to add an annual "trigger" to make the minimum wage increases subject to General Fund revenue availability, clarify the exemption for state facilities, and make other implementation clarifications due to the significant fiscal impact of SB 525 on the state.
INFRASTRUCTURE Overview of the Budget and Infrastructure Plan The proposed budget outlines $296 million in reductions to the General Fund, along with $791 million in fund shifts and $3.2 billion in delays spread across various programs. Additionally, the Governor has included a five-year infrastructure plan (beginning in 2024) for consideration, which involves about $53.3 billion in state infrastructure investments over the next half-decade.
NOTABLE ALLOCATIONS American Rescue Plan Act •
California has designated almost $7.1 billion in State Fiscal Recovery Funds to create and maintain affordable housing.
Infrastructure Investment and Jobs Act •
$45.3 billion in formula funding and $7.9 billion in competitive funding (a total of $53.2 billion) for transportation infrastructure, broadband, and climate resilience projects.
Inflation Reduction Act • $816 million allocated with $369 billion more available nationwide for energy and climate change investments.
Preserving Critical State Infrastructure Investments In an effort to maintain investments in projects under the California Infrastructure Planning Act (Chapter 606, Statutes of 1999), the budget recommends transferring spending commitments from the General Fund to other fund sources, as well as postponing several projects to future years.
THE JUDICIAL BRANCH Details of the Plan for Judicial Branch Projects The proposed plan entails allocating $1.4 billion from the Public Buildings Construction Fund to the top five judicial branch projects for the next five years. In addition, $89.5 million from the same fund will be allocated for the construction of a new courthouse in Sunnyvale, specifically for the Sixth Appellate District.
Transportation Budget Adjustments and Solutions The proposed budget includes a $1.1 billion reduction from the General Fund, which will be partially offset by $791 million of Greenhouse Gas Reduction Funds, resulting in a net reduction of $200 million. Despite these adjustments, the budget will preserve a total of $15.9 billion out of the $16.1 billion in recent one-time transportation investments.
Addressing the Budget Problem In order to address the budget problem, the budget proposes General Fund solutions, including $296 million of General Fund reductions, $791 million in fund shifts, and $3.2 billion in delays. Here are some of the programmatic impacts of these solutions:
Active Transportation Program •
The budget proposes a $200 million reduction to the Active Transportation Program (ATP), which will leave the ATP with $850 million out of the $1 billion originally included as part of recent onetime transportation investments. To avoid any adverse impact on previously awarded projects, $200 million of ATP funding that was expected to be available for allocation in future cycles will instead be used to fund the projects awarded in Cycle 6 of ATP. Furthermore, there will be a $400 million delay from 2021-22 to align the budget with expenditure schedules, which will not have a programmatic impact.
Competitive Transit and Intercity Rail Capital Program •
The budget proposes a delay of $2.1 billion from 2021-22 to as late as 2027-28 to align the budget with expenditure schedules. This will not have a programmatic impact. Additionally, there will be a shift of $530 million from the General Fund to the Greenhouse Gas Reduction Fund, which will also not have a programmatic impact.
Formula Transit and Intercity Rail Capital Program •
The budget proposes a delay of $1 billion from 2024-25 to 2025-26, as well as a shift of $261 million from the General Fund to the Greenhouse Gas Reduction Fund. This will not have a programmatic impact.
Highways to Boulevards •
The budget proposes a delay of $150 million General Fund from 2021-22 to align the budget with expenditure schedules, which will not have a programmatic impact.
Port and Freight Infrastructure Program •
The budget proposes a delay of $100 million General Fund from 2021-22 to align the budget with expenditure schedules, which will not have a programmatic impact.
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Port of Oakland •
The budget proposes a reduction of $96 million from 2021-22, which will leave $184 million General Fund for Port of Oakland improvements.
Infrastructure Plan: Important Investments for California's Future High Speed Rail Authority • •
The High-Speed Rail Property Fund will receive $6 million from the budget. These funds will be utilized to reinvest excess property sale revenues to offset future costs.
California Highway Patrol • •
The infrastructure plan will allocate $297.4 million towards facility replacements statewide. Seven critical projects will receive $18 million in funding.
Department of Motor Vehicles • •
Over the next five years, $89 million from the Public Buildings Construction Fund has been allocated to infrastructure projects. The El Centro Field Office Replacement Project and the Oxnard Field Office Reconfiguration project have been granted $17.9 million.
Exposition Park • • •
The Southeast Underground Structure project will receive $351.5 million from the Public Buildings Construction Fund. This venture aims to prepare Exposition Park for the 2028 Summer Olympics.
Department of Forestry and Fire Protection The infrastructure plan has allotted $1.4 billion over the next five years for the continuation and addition of critical infrastructure projects statewide. Major capital projects will receive $124 million.
Infrastructure Plans and Budgets for Various California Departments Department of Parks and Recreation: Over the next five years, the infrastructure plan will allocate $200.5 million towards major capital projects. This includes $152,000 from General Obligation bond funds and $200.3 million from other funds.
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Department of Water Resources: The budget aims to allocate $54.3 million from the General Fund for flood management projects in the Central Valley, with $31.3 million for Systemwide Flood Risk Reduction projects and $23 million for the Urban Flood Risk Reduction Program. Additionally, $60 million from the General Fund is allocated for the Salton Sea Management Plan.
Department of Developmental Services: The infrastructure plan provides $157.3 million from the Public Buildings Construction Fund over the next five years for the design and construction of residence buildings at the Porterville Developmental Center.
Department of Corrections and Rehabilitation: The infrastructure plan includes $20.1 million from the General Fund over the next five years for two projects targeting critical fire and life safety upgrades. The budget also includes $959,000 from the General Fund for the California Health Care Facility Stockton's portable water system treatment project.
California Department of Education – State Special Schools: The infrastructure plan includes $81.6 million from the Public Buildings Construction Fund over the next five years for three projects aimed at addressing aging infrastructure across the state.
California Community Colleges: The budget includes $29.3 million in Proposition 51 funds for renovations and improvements for the Siskiyou Joint Community College District and College of the Siskiyous.
Department of General Services: The budget proposes a budgetary loan of $50 million from the State Project Infrastructure Fund to the General Fund. These funds are idle and are expected to be returned as needed in 202526 and 2026.
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EVALUATING THE BUDGET FOR ADVOCACY AND EMPOWERMENT
Refocused Budget A Closer Look
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THE IMPORTANCE OF THE CALIFORNIA BLACK WOMEN'S COLLECTIVE EMPOWERMENT INSTITUTE IN EVALUATING THE STATE'S 2024-2025 BUDGET PROPOSAL. The California governor's proposed budget for 2024-2025 has significant implications for the lives of Black Californians, and the California Black Women's Collective Empowerment Institute has played a crucial role in scrutinizing its details. The institute's advocacy and informed analysis of the budget have allowed us to present the specific challenges and needs of Black women and communities in the state accurately. Our goal is to use the budget's identified key priorities to engage with the state legislature and governor's office to advocate for fair, equitable, and effective allocation of resources to address these issues. The institute endeavors to empower and uplift Black Californians through policy recommendations, research, and active engagement. Our approach aims to drive systemic change by dismantling barriers and cultivating an environment that facilitates the growth and success of Black communities. As such, our participation is fundamental to shaping advocacy that supports and empowers Black Californians.
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CA Black Women’s Collective Empowerment Institute’s 2024-2025 Policy Platform •
Our platform is developed from the lens of Black women and girls. Throughout our work, our goal is to ensure that their voices and experiences are at the center of all policy decisions in order to create a comprehensive, actionable plan that addresses the systemic inequalities and challenges faced by Black women and girls in California, promoting their well-being, empowerment, and equality.
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Developing a policy platform specifically aimed at addressing the needs and challenges faced by Black women and girls in California involves a multi-faceted approach that touches on various aspects of society, including education, healthcare, economic empowerment, criminal justice, and social equality. Here is a proposed outline for such a platform, incorporating these key areas:
Education •
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Equal Access to Quality Education: Advocate for policies that ensure Black girls have equal access to high-quality education from early childhood through higher education. This includes investments in schools in predominantly Black communities, STEM education, and after-school programs as well as ensuring their learning environment is physically, socially and emotionally safe. Cultural Competence and Inclusion in Curriculum: Implement curricula that are inclusive of Black history and culture with the intersection of gender, and to promote cultural competence among educators.
Healthcare •
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Access to Quality Healthcare: Ensure Black women and girls have access to affordable, high-quality healthcare services. Address disparities in maternal mortality, mental health, and access to reproductive health services. Mental Health Support: Expand mental health services and support for Black women and girls, recognizing the unique stresses they face. Aging Gracefully: Partner with CA Black Women’s Health Project and Sistahs Aging with Grace and Elegance to address the needs of aging Black Women and provide transitional support.
Economic Empowerment •
Job Training and Education: Support job training and education programs that open pathways to highpaying jobs for Black women including public sector, emerging industries and non-traditional roles. Promote entrepreneurship through grants and support services that focus on support for microenterprises and non-traditional businesses. CABWCEI PAGE 37
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Wage Equality: Advocate for policies to eliminate the wage gap experienced by Black women in the workforce. Push for data segmentation by race, gender and geographic areas. Criminal Justice Reform Protect Black Women and Girls: Advocate for a holistic approach to protecting and empowering Black women and girls, addressing not only immediate safety concerns but also broader systemic issues that impact their lives. Support for Incarcerated Women: Provide support for incarcerated Black women and girls, including access to education and rehabilitation programs, and address the specific needs of this population.
Social Equality • •
Combat Discrimination: Enact and enforce laws that combat racial and gender discrimination in all areas of society, including housing, employment, and the legal system. Support for Families: Provide support for Black families through accessible childcare, healthcare, and social services as well as address situational, community, and systemic barriers.
Political Representation •
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Encourage Political Participation: Encourage and support Black women to run for political office and participate in political processes at all levels. Ensure their voices are heard and considered in policy making. Community Support and Engagement Strengthen Community Networks: Continue to build CA Black Women’s Collective Empowerment Institute’s reach especially in communities that have significant Black population but lacks Black representation. Promote Positive Representations: Support media and initiatives that promote positive representations of Black women and girls in society. Expand the CROWN Act: Advocate for the expansion of the CROWN Act to require businesses and organizations to incorporate into bi-annual discrimination and harassment training.
Reparations •
Advocate for Support: Partner with CA Legislative Black Caucus to garner support on the issues that impact Black Women and girls.
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About Us
The California Black Women’s Collective Empowerment Institute (CABWCEI), a 501C3 non-profit organization, focuses on improving the lives of Black Women and Girls throughout the state. Through partnerships with corporate, social, not for profit, and advocacy entities, the Empowerment Institute develops programs and initiatives that have a meaningful impact on dismantling systemic social, economic, and physical barriers. The purpose of the Empowerment Institute is to: • • • • • •
Serve as the anchor organization for the CA Black Women’s Think Tank with academic partner, California State University at Dominguez Hills Elevate our voice, power, and participation to secure adequate representation and reparations; Amplify our issues and priorities that are vital to elevate Black Women; Organize, leverage and utilize our extensive talent, influence, networks, and brilliance into areas of collective alignment; Eliminate the racist and sexist attacks on Black Women and Girls; and Elevate the agenda and collective power of Black Women locally and nationally to secure the social and economic safety-net.
Our mission is to uplift the voices and issues of Black Women and Girls in California. Our vision is to improve the lives of California Black Women and Girls. The foundation of our work is anchored by our values – Resilient, Elevate, Advocate, Collaborate, and Hopeful (REACH). CABWCEI has three core programs – The CA Black Women’s Think Tank, Conversations for Black Women, and Protect Black Women and Girls.
www.CABlackWomensCollective.org
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