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5 reasons to share California’s prosperity

Later this week, Governor Newsom will release a proposed 2020-21 budget for the state. As policymakers consider the opportunities before them to continue building the state’s fiscal health and invest in the people of California, it’s critical to remember many Californians are struggling to live in our communities despite the state’s vast wealth.

One example: The yearly income for the average California household in the top 1% in 2017 was $2 million, while the average household in the middle quintile received just $41,000 – which does not cover the cost of a modest household budget. Without prioritizing policies that help more people earn adequate incomes, afford basic necessities, and build wealth, the state is in danger of allowing millions of Californians to spend their lifetimes in financial distress.

In the Budget Center’s first analysis of the year, we present five reasons why state leaders should ensure that all Californians share in the state’s prosperity:

  1. Economic inequality has worsened for Californians, reinforcing racial and ethnic disparities
  2. Child poverty remains high, especially for Black and Latinx children
  3. Workers’ wages remain stagnant as housing costs significantly increase
  4. Economic insecurity has serious consequences – but policy choices can make a difference
  5. California can increase revenue, support investments, and share the state’s prosperity

Read the new report to better understand the economic disparities in California and how the state has the resources to do better for all its people.

This article was released by the California Budget & Policy Center.