On January 10, Governor Newsom proposed a state budget that provides the Department of Financial Protection and Innovation (DFPI) with the necessary resources to continue our important work under the California Consumer Financial Protection Law, while providing additional funding for increased workload and the implementation of new laws.
The proposed budget will help in dealing with a dramatic spike in mortgage loan originator applications, provide additional resources to handle increased consumer complaints related to identity theft, and help to better manage mandatory reports relating to the financial abuse of elders and dependent adults.
In addition, these funds will allow the Department to implement a new securities exemption aimed at helping entrepreneurs and start-up small businesses raise much needed funds from smaller investors. And a market analysis will help us provide data-informed recommendations on the feasibility of a zero-fee, zero-penalty debit account and debit card option for Californians.
The budget includes a new proposal aimed at helping student borrowers. A communications campaign and grant program will inform, educate, and assist student borrowers who in May will begin repaying their student loans after a two-year pause. The campaign will also help students working in public service understand the new eligibility guidelines under the Public Service Loan Forgiveness Waiver. The budget will also support a grant program for community-based and legal aid groups and a new website for student borrowers to provide information and links to credible and trusted resources.
DFPI Overall Budget Summary: 813 positions and $157 million ($147 million + $10 million one-time General Fund appropriation). This is an increase of 40 positions and $7.6 million.
- $10 million for Student Borrower Outreach
- $4.8 million to restore pandemic reductions
- $2.7 million to continue CCFPL & Debt Collector Implementation
- $4 million for Budget Change Proposals related to workload and new laws