FOR IMMEDIATE RELEASE
May 9, 2019
San Jose, CA – Governor Gavin Newsom unveiled a revised state budget today with potential funding for Bay Area and Silicon Valley priorities. The initial proposal, a $209 billion budget, was shared in January. In this May revised budget, $213 billion, there was an emphasis on California GDP growth but a projected slower US growth by the Federal Reserve and worldwide by the International Monetary Fund. Recognizing these risks, from the Silicon Valley Leadership Group’s point of view, the budget strove to set a good balance between budget resiliency and support for vital services and infrastructure needed for a healthy economy and communities.
Building Budget Resiliency
- The May Revision allocates $15 billion to building budgetary resiliency and paying down the state’s unfunded liabilities – $1.4 billion higher than proposed in January.
- The Governor increased the state’s support of preventing and mitigating homelessness by $1 billion – including allocation of $650 million to local governments for homeless emergency aid, $40 million for student rapid rehousing and services for the UC and CSU systems, and $1.75 billion to spur state-wide housing production.
- The budget supports infrastructure grants to local governments, expanding the state’s tax credit program and loan program for mixed-income housing and refocuses $500 million to removing barriers to building affordable homes and assisting California renters.
- The Governor’s budget also proposes revamping the Regional Housing Needs Assessment (RHNA) process.
Carbon Neutral Economy
- The Governor remains committed to achieving a carbon-neutral economy providing a $1 billion Cap and Trade Expenditure Plan to support programs that reduce greenhouse gases, providing an increase of $130 million for programs that reduce transportation emissions and $8 million to increase job training and workforce development as the state transitions to a carbon-neutral economy.
- While less than January, the Governor remains invested in expanding access to full-day Kindergarten programs with $600 million for constructing and retrofitting facilities.
- The Administration is also committed to all children having access to a high-quality preschool program before they begin kindergarten. Consistent with this priority, the Governor’s Budget proposed increasing access to the existing State Preschool program by providing 30,000 full-day, full-year State Preschool slots for all eligible low-income four-year-olds.
The President and CEO of the Silicon Valley Leadership Group Carl Guardino is available for comment by phone for media interested in a Silicon Valley perspective. If you would like to set-up an interview, please contact SVP of Communications Kimberly Ellis at [email protected]|(408) 501-7853 or Communication Manager Pam Kelly at [email protected]| (408) 501-7879.
About the Silicon Valley Leadership Group
The Leadership Group was founded in 1978 by David Packard of Hewlett-Packard and represents more than 350 of Silicon Valley’s most respected employers on issues, programs and campaigns that affect the economic health and quality of life in Silicon Valley, including energy, transportation, education, housing, health care, tax policies, economic vitality and the environment. Leadership Group members collectively provide nearly one of every three private sector jobs in Silicon Valley and contribute more than $3 trillion to the worldwide economy. For more information, visit svlg.org.