Governor Newsom’s May Revise Outlines $27.6 Billion Shortfall; United Ways of California Urges Against Cuts Impacting Struggling Families - United Ways of California

Governor Newsom’s May Revise Outlines $27.6 Billion Shortfall; United Ways of California Urges Against Cuts Impacting Struggling Families

Tuesday, May 14, 2024

FOR IMMEDIATE RELEASE

CONTACT:
Beylah R. Marks
(877) 355-8922 x16
bmarks@unitedwaysca.org

Governor Newsom’s May Revise Outlines $27.6 Billion Shortfall; United Ways of California Urges Against Cuts Impacting Struggling Families

United Ways of California, a nonpartisan nonprofit focused on improving the health, education, and financial stability of Californians, calls on the Newsom Administration to work with the Legislature to ensure working families are protected and prioritized in the 2024-2025 Budget, particularly via tax credits, affordable housing, and 211 infrastructure.

(Los Angeles, CA) — Statement from Peter Manzo, President and CEO of United Ways of California, regarding Governor Newsom’s proposed May Revision budget:

“As the state continues to navigate this year’s budget challenges, it’s imperative that we don’t do so on the backs of working families. We applaud the Governor and Legislature for their early action budget proposal that lessened the impact of the deficit from $37.9 billion, about $7 billion more than was estimated in January, to the current $27.6 billion.

Unfortunately, the Governor’s May Revision, in seeking to further close the deficit, relies too much on cutting programs and services critical to low-income households, such as delaying the state’s previous commitment to provide food access to undocumented immigrant Californians aged 55 and older, delaying early childhood programs, scaling down the Children and Youth Behavioral Health Initiative, and reducing critical funding for the CalWORKs program.

Unless we act now to revert these proposals, we risk undoing years of hard work and investment. Currently, one in three households in California do not earn sufficient income to meet their local costs of living, and thousands of families will fall further behind if the state carries out the proposed cuts. We call on Governor Newsom to continue working with the Legislature to ensure we are protecting and uplifting California households who are struggling—not balancing the budget at the cost of their wellbeing.

We urge the Governor and the Legislature to focus on supporting proven methods, such as tax credits, that put more money in the hands of families while simultaneously strengthening our economy. Tax credits are the most effective tool we have to combat poverty and help families afford basic necessities. As the cost of living continues to increase, spurred primarily by high housing and childcare costs, California must continue to prioritize children and families who struggle to make ends meet. We applaud the Governor for protecting key investments to programs like the California Earned Income Tax Credit (CalEITC) and Young Child Tax Credit (YCTC). We also urge the administration and legislature to ensure that programs supporting community-level tax credit education and outreach, like those outlined in AB 2191 (Santiago), are included in the final budget deal negotiated in the coming six weeks.

Further, as communities contend with the increased need for safety net access and navigation, we strongly urge the Legislature and Governor to invest in the 211 information and referral network, as outlined in AB 3020 (Reyes), as a statewide support system for all California residents, at all income levels, who need access to reliable local health and human service information and resources as well as critical aid during disasters. Every day, California’s 211 providers continue to show just how vital they are to linking Californians to assistance for housing, rent relief, food, and other critical resources.

United Ways of California will continue our work with the Legislature and Governor to pass a final budget that protects children, their families, our communities, and our future.”

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United Ways of California improves health, education, and financial stability for low-income families and individuals by coordinating the statewide advocacy and community impact work of California’s United Ways.

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