Newsom Signs Budget and $100B Recovery Package
Gov. Gavin Newsom recently signed SB 129, legislation that reflects the majority of the 2021-22 state budget agreement. This budget includes the biggest economic recovery package in California’s history: $100 billion.
The California Comeback Plan focuses on providing pandemic relief and major investments to address the state’s most persistent challenges. The plan provides immediate cash relief to middle class families and businesses hit hardest by the pandemic, creating one of the largest state tax rebates and small business relief packages.
“Harnessing the largest surplus in state history, we’re making transformative investments across the board that will help bring all our communities roaring back from the pandemic – and pay dividends for generations to come,” said Newsom.
Fueled by a resurgent economy, a surge in state revenues and additional federal recovery funds, the $75.7 billion surplus reflected in the plan stands in stark contrast to the $54.3 billion budget shortfall estimated just over a year ago. The budget is built on a strong fiscal foundation that includes more than $25 billion in reserves, pays off educational deferrals and continues to pay down long-term retirement debts. It also prioritizes one-time spending, allocating 85 percent of discretionary funds to one-time spending.
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