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.