*Provided by the League of California Cities
The Legislature agreed to invest in significant new investments to shelter homeless Californians, expand housing-related infrastructure and provide safe drinking water to all residents when they passed the FY 2019–20 Budget Act on Thursday, June 13, which establishes the state’s financial plan for the fiscal year that begins July 1.
Associated trailer bills are expected to be approved in the coming weeks.
The architecture of the final budget largely reflects the framework and funding levels proposed by Gov. Gavin Newsom, with a total spending of $214.8 billion, and an additional $19 billion set aside in the state’s “rainy day” reserves.
Despite a healthy surplus of nearly $20 billion, most of these excess funds are used prudently to repay debts and obligations and prefund state and school pension obligations. Where new expenditures and program expansions are made, they are often one-time allocations or accompanied with sunset dates.
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