On January 10, 2022, Governor Gavin Newsom released his proposed 2022-23 state budget, anticipating a General Fund budget of $213.1 billion, which is a $3B, or 1.5 percent increase from last year’s state budget.
The proposed state budget reflects a projected budget surplus of $45.7 billion, which is available along the following lines:
- $20.6 billion in General Fund discretionary resources
- $16.1 billion in additional Proposition 98 funding for K-14 education
- $9 billion in reserve deposits and supplemental pension payments
In terms of resources spending, the Governor’s proposed state budget continues a focus on climate and drought resilience investments. Building on the $15B climate investments in the 2021 state budget, the proposed 2022-23 state budget proposes an additional investment of $750M for drought resilience programs.
The release of the proposed state budget now turns the attention on budget development toward the Legislature. Soon, the Legislature’s budget subcommittees will begin the months-long effort of analyzing, evaluating, and synthesizing the Governor’s proposed state budget, eventually culminating in a legislatively-proposed state budget that the Legislature is constitutionally required to adopt by June 15.