May 26, 2021 - Scott Graves (CA Budget & Policy Center), Roy Shepard (Gridley)

This time of year, across the state of California, governing bodies at all levels are preparing their budgets.  At the state level, the Governor submits a draft budget in January, and then in May, with theoretically more accurate revenue projections, the governor submits a REVISED budget, called the May Revision, or for short, the May Revise. 

Last year at this time, here on The Real Issue, we discussed the projections that there would be a $54 billion shortfall in the budget as a result of the expected recession resulting from the pandemic.  But, even with the COVID recession, the Governor recently announced an unexpected $76 billion budget surplus.  So, tonight on The Real Issue, for the first half of the program, we will talk about what’s in the May Revision, how Governor Newsom proposes to use the massive surplus as we dig out of the recession, and if Newsom’s proposed budget is investing in California’s future.

Then, during the second half of the program, we will talk about the class action lawsuit filed against the City of Gridley, for what it claims is illegal taxing of utility services.  The City of Gridley is 25 miles south of Chico, along the along Highway 99 corridor to Sacramento.  This corridor is slated for development so the actions of the City of Gridley may be instructive for how Butte County may be developed.

On May 14th, Governor Gavin Newsom released his revised budget proposal, calling it the ‘California Comeback Plan’, for the upcoming fiscal year that starts in June.  For the larger state in the union, California’s projected budget is almost $286 billion, which is an increase of more than 33% of the current budget.

In response to the May Revise, the California Budget and Policy Center issued its analysis of the impact of this proposal, concluding, “California’s state leaders have a once-in-a-lifetime opportunity to make bolder investments to create a more equitable California. The policies state leaders advance and the legacy they build must be focused on ongoing investments in the Californians left out of our state’s economic successes. This is how policymakers can build a stronger, more equitable, and more sustainable economic future for our state and its people.”


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