A Review of the 2023-24 California State Budget
Governor Newsom officially signed the 2023-24 California State Budget and all other budget related bills on June 27, 2023. This comprehensive budget amounts to $310.8 billion and despite unprecedented fiscal challenges, it demonstrates a commitment to safeguarding and prioritizing the well-being of young children and families. The Los Angeles Perinatal and Early Childhood Home Visitation Consortium appreciates the Governor's commitment to children and families and his efforts to promote equity in programs and services.
Below is a breakdown of some of the key investments of the official final 23-24 state budget.
Key Investments for Children
CalWORKS
CalWORKS plays a crucial role in supporting and protecting vulnerable individuals, particularly children and adults in need. Key highlights in the final budget include:
Eligibility requirements for the CalWORKS Home Visiting Program (HVP) for pregnant individuals in their early stages have been expanded, eliminating the previous limitation.
To improve financial support and provide continued assistance, the Maximum Aid Payment (MAP) levels will increase by 3.6 percent.
Provides ongoing funds to turn temporary 10 percent grant increase into a permanent grant increase to support California families struggling the most.
Approves Child Support Pass-Through to Formerly Assisted Families, which will allow formerly assisted families to receive child support.
Transitional Kindergarten (TK)
The Budget includes significant funding allocations for transitional kindergarten, highlighting the state's commitment to early childhood education. Key highlights in the final budget include:
Approximately $357 million in ongoing funds to support the first year of expanded eligibility. This expansion shifts the age eligibility from children turning five between September 2 and December 2 to those turning five between September 2 and February 2, benefiting approximately 29,000 children.
Establishes a requirement for TK classrooms to maintain a 1:10 adult-to-student ratio starting from the 2025-26 fiscal year. This ratio aims to ensure appropriate adult support and supervision for students.
Approves an 8.22% percent cost-of-living adjustment (COLA) in 2023-24.
Childcare & Preschool
The final state budget includes significant funding and reforms for childcare and preschool programs. These budget allocations aim to improve access to affordable childcare, support providers, and alleviate financial burdens for working families. Key highlights in the final budget include:
Provides a total of up to $2.83 billion in one-time funds for child care reimbursement increases, through the 2024-25 fiscal year, to increase all child care and preschool rates, subject to collective bargaining between the administration and Child Care Providers United – California (CCPU).
Reduces family fees for childcare and preschool to 1% of total family income, for families making at least 75 percent of the state median income, beginning October 1, 2023. Pre-pandemic family fee debts will be forgiven.
The budget maintains funding for previously added subsidized childcare slots and projects 20,000 new slots that were planned for 2023-24 to be funded in 2024-25.
Universal School Meals & Summer Meals
School meals are a vital component in child welfare and well-being. Key highlights in the final budget include:
Maintains all funds for universal school meals, which means an estimated 800 million meals are projected to be served through this program in 2023-2024.
Includes a $47 million one-time fund for outreach and automation costs of phasing in a new federal Summer EBT program for children who qualify for free and reduced-price school meals.
CalKids
The ScholarShare Investment Board administers the CalKIDS funds college savings accounts for all newborns in California. Key highlights in the final budget include:
Provides funding to support a statewide marketing and outreach campaign and to increase support for CalKIDS program.
Increases newborn incentive payments in the CalKIDS college savings account program from $25 to $100.
Key Investments for Families
Health
The state budget includes several significant provisions related to health. It emphasizes improving access, quality, and equity in healthcare services throughout the state. Key highlights in the final budget include:
Maintains full funding to expand Medi-Cal eligibility to all income eligible adults ages 26-49 regardless of immigration status on January 1, 2024.
Renews and accelerates the start date of the Managed Care Organization (MCO) Tax. The tax will generate approximately $19.4 billion in funding which will be allocated to various purposes:
Increases reimbursements for Medi-Cal providers in primary care, birthing care and non-specialty mental health care.
Maintains Medi-Cal eligibility and benefit expansions.
Provides funding to expand graduate medical education programs, increase the number of physicians, and address healthcare workforce shortages.
Allocates funds for public health workforce training, initiatives to address major health challenges, and expanding access to family planning and reproductive health services.
Funds loans and relief for distressed and small/rural hospitals.
Funds from the California Individual Shared Responsibility Penalty (ISRP) tax, the tax on Californians without health insurance, will go into a cost-sharing reserve fund to help lower copays and deductibles for Covered California enrollees.
One-time funds to pursue innovative opportunities for addressing major health challenges, such as diabetes-related morbidity and mortality, disparities in maternal and infant mortality, and preventing and mitigating infectious disease.
Regional Centers:
$85.1 million of ongoing funding to continue reducing service coordinator-to-child caseload ratios for children ages 0-5.
Expanded eligibility for regional center services to include children from birth through two years of age.
One-year extension of regional center family fee assessments, including the Family Cost Participation Program and the Annual Family Program Fee, until June 30, 2024.
Housing & Homelessness
The Budget acknowledges the growing issue of homelessness and makes substantial investments in housing strategies and homelessness programs to address this challenge. These budget initiatives demonstrate the state's commitment to addressing homelessness, providing housing solutions, and fostering greater accountability in tackling this pressing issue. Key highlights in the final budget include:
Provides $1 billion for a fifth round of Homeless Housing, Assistance and Prevention (HHAP) grants. This round emphasizes regional coordination and accountability, requiring counties, large cities, and Continuum of Care (CoCs) to develop coordinated plans that outline their roles, responsibilities, and actions to deploy resources effectively.
Maintains funding for behavioral health initiatives, such as the Behavioral Health Continuum Infrastructure Program and the Behavioral Health Bridge Housing Program. These programs aim to provide infrastructure and housing solutions for individuals with behavioral health needs.
Includes funding to provide up to six months of rent or temporary housing to eligible individuals experiencing homelessness or at risk of homelessness and transitioning out of institutional levels of care, a correctional facility, or the foster care system and who are at risk of inpatient hospitalization or emergency department visits as part of the CalAIM program.
Includes $400 million in one-time funds for a third round of Encampment Resolution Funding grants. These grants are awarded on a competitive basis to counties, cities of any size, and CoCs to assist in moving persons from homeless encampments into safe and stable housing.
Allocates $3 million to support tenant protection and enforcement of tenant rights to support tenant protection and enforcement of tenant rights.
Includes funding for housing programs including:
Multifamily Housing Program- provides low-interest, long-term deferred-payment loans for affordable housing projects, including new construction, rehabilitation, and preservation of rental housing for lower-income households.
CalHome- provides local agencies/nonprofits with grants to assist low-income first-time homebuyers with housing assistance.
Dream for All- provides shared-appreciation loans to help low-income/moderate-income first-time homebuyers achieve homeownership.
Foreclosure Intervention Housing Prevention Program- provides funds to nonprofits to acquire foreclosed property and operate as affordable housing.
Criminal Justice
The state budget includes various provisions related to criminal justice, aiming to maintain family and community connections, enhance support for incarcerated individuals, and address domestic violence. Key highlights include:
To facilitate ongoing family and community connections for incarcerated individuals, the budget includes one-time funds to support the implementation of the Family Dignity Act, which will facilitate an easier process for family and friends to visit their loved ones.Statutory changes expand items that visitors may bring, including additional items for infants and young children.
Includes $4 million one-time funds to conduct outreach and educate members of the public, law enforcement personnel, and others on how to obtain protective orders, such as gun violence restraining orders or domestic violence restraining orders to protect themselves and others from gun violence.
What’s Next
The state's new fiscal year began on July 1, 2023. From July onwards, the legislature may introduce budget amendments and other changes to the current budget package. From the Summer to the Fall, state departments and agencies are preparing budget proposals for the next fiscal year. It’s a crucial period for the public to engage with legislative staff, advocate for specific issues, and propose ideas for the upcoming year. After a series of meetings, the governor will make final decisions, and the proposed budget for the next fiscal year will be released in January.
Resources
If you would like to view the full 2023-24 California State Budget Summary, click here.
For further details and a comprehensive guide to the state budget process, click here.