Over the weekend, Governor Gavin Newsom of California approved a budget to address the state’s $46.8 billion deficit. The total budget for the upcoming fiscal year is $297.9 billion, which will be used to close the financial gap through a combination of spending cuts, reserve funds, and the suspension of certain tax breaks for businesses. Governor Newsom stated that this budget is a responsible approach that not only addresses the current deficit but also invests in important programs that benefit millions of Californians on a daily basis.
This year’s budget includes a significant allocation of $12 million for reparations for the state’s Black residents. The decision to provide reparations comes after the state established a task force in 2020 to explore the possibility of reparations for the 2.5 million Black residents in California. Despite California entering the union as a free state, the history of slavery and ongoing discriminatory policies have hindered the ability of Black Californians to build wealth over generations.
It’s important to note that California’s financial situation can vary greatly from year to year, as seen in the contrast between the recent deficit and the record surplus the state had just two years ago. My colleague Shawn Hubler has provided detailed information on the specific jobs and programs that were affected by the budget cuts, shedding light on the factors contributing to the state’s fluctuating finances.
This budget not only addresses immediate financial challenges but also sets the stage for future economic stability in California. The inclusion of funds for reparations highlights the state’s commitment to addressing historical injustices and working towards a more equitable future for all residents. As we navigate the complexities of budget planning and financial management, it is crucial to prioritize investments in programs that support the well-being and advancement of all Californians.