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PRESS STATEMENT: State Budget Compromise Protects Health/Education Imperatives, Delays Promised Payments


LOS ANGELES – The budget compromise announced late last week by Gov. Newsom, Senate President Pro Tem McGuire and Assembly Speaker Rivas places priority on California safety net programs while aiming to close an estimated $75 billion deficit over the next two years. 

But we worry that this deal delays important promised spending on programs that keep California communities of color thriving, including environmental and climate justice investments. 

“In a deficit year, Gov. Newsom and negotiators have managed to protect important investments in early childhood and TK-12 education, including community schools, and expansion of Medi-Cal benefits to children ages 0-5,” said John Kim, President and CEO of Catalyst California. “We also appreciate the reduction across the state of a criminal legal system that disproportionately criminalizes communities of color. 

We are glad the agreement puts in place responsible budget management by ending tax loopholes for oil companies and delaying other corporate tax breaks.

Catalyst California is also pleased to see efforts to exclude the rainy-day fund from the state’s antiquated spending limit so California can responsibly build reserves to shield revenues during downturns. 

We encourage our state lawmakers to continue protecting our vulnerable communities even as they face down difficult budgets. 

Our policy experts are available for comment:   

Please contact us to arrange follow-up interviews. 


Catalyst California advocates for racial justice by building power and transforming public systems. We partner with communities of color, conduct innovative research, develop policies for actionable change, and shift money and power back into our communities.