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SCAG on $300 billion budget in May Revision

On Friday, May 13, Governor Newsom presented his May Revision for the 2022-23 budget based on updated information on the state’s fiscal outlook. The Governor proposed a $300 billion spending plan, including a $277 billion General Fund. General Fund revenues are now estimated to be nearly $55 billion higher than the January Budget, for a total “budget surplus” estimated to be $97.5 billion.

The budget revision includes funding and policy updates for key priorities including:

  • $18.1 billion for an Inflation Relief Package which includes $400 tax rebate per car and $439 million for a one-year pause to the diesel sales tax. In addition, the Governor proposed $750 million for an incentive grant program for public transit agencies to provide three months of free public transit.
  • $6.1 billion for various decarbonization strategies, including $1.2 billion to support access to electric vehicles and charging in low-income communities and $2.4 billion for zero-emission buses and trucks.
  • $500 million to augment the Active Transportation Program. SCAG has been working on a joint budget letter with Transportation Committee Chair Laura Friedman to support a $1.5 billion augmentation to the Active Transportation Program.
  • $500 million in additional funding for Adaptive Reuse Incentive Grants to help remove cost impediments to adaptive reuse and accelerate residential conversions, with a priority on projects located in downtown-oriented neighborhoods.
  • $1.1 billion over two years for the California Department of Technology to support additional middle-mile broadband infrastructure.

Over the next several weeks, legislative leadership, the Budget Committee chairs and the Governor will negotiate any budgetary changes. The Legislature must approve and send a budget to the Governor by June 15 and, if signed by the Governor, it would take effect on July 1. Learn more about the Governor’s official May Revise at ebudget.ca.gov.

This article was released by the Southern California Association of Governments.