Just a few years ago, California’s budget was brimming with a record surplus, leading to the creation of a host of programs reflecting the state’s liberal ideals.
Democrats who control the state Capitol have funded pilot projects to test new ways to support young people, help oil workers transition to cleaner industries and prevent more Californians from being homeless – some of the ambitious ideas that became reality when the budget was refined.
Now, with the state facing a huge budget deficit that the nonpartisan Office of Legislative Analysts projected in February could reach $73 billion, some of those programs could come to a screeching halt.
Gov. Gavin Newsom and Democratic lawmakers are considering dramatically scaling back some of the initiatives they recently helped launch while promising to “protect our progress.”
That reflects both California’s wild budget swings and what can happen in a one-party state known as a pioneer in progressive politics when the financial situation is good.
For Republicans, this is an “I told you so” moment.
“The surpluses were absolutely abnormal. They should have put a lot more money in the budget reserve than they did,” said Sen. Roger Niello (R-Fair Oaks), vice chairman of the Senate Budget Committee.
Newsom’s budget last year included record reserves of nearly $38 billion, but for minority party members like Niello, more could have been set aside instead of creating costly new programs.
“Let’s not get too crazy with these huge revenues” is the approach Democrats should have taken, Niello said.
Organizations such as the California Budget Policy Center, which advocates for low-income residents and policies aimed at reducing inequality, say there’s nothing wrong with trying new ideas when the money is available.
“The state needs these opportunities to experiment and practice innovation because you can improve efficiency and effectiveness during these times,” said Chris Hoene, executive director of the center. “The deficit is forcing them to cut a significant portion of their programs, but … if there are better revenue periods ahead, they have said they will continue to make these investments.”
It’s better to scale back or completely eliminate new programs that are still being tested than to eliminate long-established programs that Californians rely on, said HD Palmer, a spokesperson for Newsom’s Department of Finance.
“These are clearly proposals that would not be advanced if we did not have a significant deficit,” Palmer said. “It is understandable that people have objections to these proposals. The question then becomes: What alternatives would people want to propose, if you choose not to implement these measures, that would allow us to save that much money to close the deficit?
Sen. Dave Min (D-Irvine) put it more bluntly during a legislative budget meeting held at the Capitol last week: “I’ll just be honest, it sucks. »
Newsom signed into law a budget deal reached with lawmakers this week that reduces the deficit by $17 billion, though it’s only a first step toward closing the yawning gap in the state’s spending plan.
As negotiations continue until the June 15 deadline for lawmakers to pass a budget, here are some of the pilot programs Newsom has suggested scaling back or eliminating:
Support for public defenders and eligible prisoners
Prisoners who cannot afford private lawyers and who qualify for a reduced sentence could potentially stay behind bars longer due to a proposed funding cut.
In 2021, a public defense pilot program was created to help attorneys address the backlog of cases involving prisoners eligible for early release under the state’s latest progressive punishment laws.
Under the program, county public defender offices received $100 million, collectively helping to release more than 8,000 people in the first six months of the program, according to the California Board of State and Community Corrections. Many of these beneficiaries were charged with murder due to their involvement in a crime that resulted in death, even though they were not the actual killer — a holdover from a law that California overturned in 2019.
The program now faces a $40 million cut — a move its supporters say could render some of California’s sanctions laws useless because understaffed and overburdened offices won’t be able to help suitably eligible persons.
A representative for Newsom said the funding awarded so far “still provides data for evaluating the results” of the program. But Los Angeles County Public Defender Ricardo Garcia says it will hamper the state’s efforts to “correct some of the mistakes of the past.”
In Los Angeles County, the program has led to the release of more than 100 prisoners, representing 685 fewer years of total potential incarceration, according to Garcia. The program has allowed Garcia’s office to hire more public defenders, social workers and support staff as they represent more than 800 eligible clients awaiting resentencing.
“Having all these laws in place … isn’t very helpful if we don’t have the resources to actually implement them and make them effective,” Garcia said.
Help for children in difficulty
Since 2019, thousands of children in foster care – and some of their guardians – have been able to call a 24/7 hotline for help with everyday conflicts and receive support from experts .
The crisis response system was driven by concerns about “placement disruptions” that can lead to instability and possible homelessness for already vulnerable young people.
The hotline serves about 5,000 foster and caregiver children each year, according to state data.
Child welfare advocates are calling on the governor and lawmakers to reconsider a proposed $30 million cut — one they say would end the program.
Foster care changes in California have declined 16% since the hotline launched, data shows, and advocates say that’s no coincidence.
“We are confident that removing this measure will result in serious negative consequences for children in foster care, including increased hospitalizations and criminalization,” said Ted Lempert, president of Children Now.
Financing social housing
In 2023 alone, more than 100,000 Californians had to move because their homeowners fell behind on their bills, according to the Community Landtrust Network.
The Foreclosure Home Preservation Program was launched as a way to prevent tenant displacement. It provides grants to residents and nonprofits so they can buy properties facing foreclosure and keep them available as low-income housing.
Supporters of the program have called it an “unprecedented” solution to the state’s homeless crisis because it allows at-risk tenants to stay where they are instead of potentially being forced into the street or in shelters.
Newsom proposed cutting $248 million for the program over three years, about half of its total budget. His defenders are urging him to change his mind because the funding has not yet been disbursed.
“The need for the program is too great and (the California Department of Housing and Community Development) and other key stakeholders have invested too many resources in this pioneering housing strategy to hinder it now,” the Community Landtrust said Network in a press release.
A multitude of climate-friendly programs
Low-income Californians who are most at risk of seeing their homes destroyed by wildfires, and oil and gas workers who are at risk of losing their jobs, are among those who could bear the brunt of climate programs now being implemented. wrong.
Funding cuts are proposed for a home improvement initiative, a program that helps workers find new jobs as the state moves away from fossil fuels and a program that promotes composting in local governments.
The proposed cuts worry environmental activists, even though the proposed budget maintains billions in investments to fight climate change and California is seen as an international leader on the issue.
“The state needs to accelerate its efforts to prepare, not retreat, especially in vulnerable and underresourced communities,” said Zack Cefalu, legislative affairs analyst for the League of California Cities.
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