Dear Constituent,

At the beginning of this year, I couldn't imagine that the state of California would experience a budget deficit and we would face having to make tough budgetary decisions. Back in February, state revenues were higher than expected, and my hope was that we could expand funding for education, homeless programs, and affordable housing.

But with the Covid-19-induced economic downturn, Governor Newsom presented the Legislature with a revised budget that projected an estimated $54 billion deficit. That budget proposal, if adopted, would have resulted in teacher layoffs as well as cuts to programs that Californians most impacted by this economic downturn rely on, such as senior meals, food assistance, childcare, and services for people with developmental disabilities.

The good news: My colleagues in the state Senate and the Assembly came together with an alternative proposal, drawing on funds from California's Rainy Day Fund, which the legislature set up after the Great Recession. Our alternative budget proposal was negotiated with the governor, and the end result is a budget that protects K-12 schools and prevents cuts to senior programs and more.

Here's a brief summary of the 2020-21 state budget:

• Maintains 2019-20 funding levels for our K-12 schools and community colleges, protecting teachers, custodians, and food workers from layoffs
• Protects vital services such as child care programs; in-home health aides; senior meals; dental care for Medi-Cal patients; health programs for low-income, medically fragile seniors; and services for people with developmental disabilities
• Increases funding to cities and counties for homelessness needs, and directs $550 million in federal dollars to convert hotels into more permanent housing for unsheltered residents
• Expands the state's Earned Income Tax Credit (Cal EITC) and Young Child Tax Credit to undocumented Californians and families with small children.
• Allocates money from the National Mortgage Settlement to provide housing counseling, mortgage assistance, and renter legal aid
• Funds California's I-Bank to provide loans to underserved small businesses
• Gives Californians who need food assistance easier access to enroll in Cal Fresh

And, in order to prevent cuts to education and social services programs, the governor and Legislature decided to cap the amount of tax credits that corporations can claim during the next two years.

As a member of the Senate Budget and Fiscal Review Committee, I want to thank Gov. Newsom; his staff; and our Senate and Assembly budget staff; as well as everyone who worked on this budget.

It is an honor to serve you in the state Senate.

Sincerely,

Nancy Skinner
Senator, 9th District