Budget Bill 2019-20: AB 74
Includes important anti-poverty measures: expands Earned Income Tax Credit, increases CalWORKs grants, expands access to Medi-Cal, and provides significant funding for anti-homelessness measures
Governor Gavin Newsom and the California Legislature have reached a budget deal for FY 2019-20. Some details are still being negotiated, including housing provisions and the state Earned Income Tax Credit; we will provide updates as additional details are available. The Budget Bill must be passed by midnight on Saturday, June 15, 2019.
The budget will result in significant positive gains for California’s most vulnerable residents. The budget includes many Western Center priorities, most notably, it increases the California Earned Income Tax Credit (CalEITC) for families, ends the “senior penalty” for accessing Medi-Cal, and expands Medi-Cal to undocumented young adults. It also provides a major boost to CalWORKs grants, and includes $650 million in funding to address homelessness. Unfortunately, the budget does not include funding to restore massive SSI (Supplemental Security Income) grant cuts from a decade ago, or to expand Medi-Cal to undocumented seniors.
The increased spending in the 2019-20 budget is made possible by a three-year $21.5 billion surplus. The surplus is from a combination of higher revenue than estimated, and lower state spending than anticipated. The budget includes reserves and a Rainy Day Fund that exceed $20 billion, the largest in state history.