May Revise Released

Last week, Governor Gavin Newsom released the May Revision to his proposed state budget. The revised budget continues the Administration’s focus on promoting prosperity for all Californians, while maintaining fiscal sustainability for the state at large.

With revenue growth slightly higher than was previously projected, the revised budget makes investments into the state’s reserves and pays down current state debts, while simultaneously increasing support to those most in need. Below are several highlights and updates from the May Revision.

Longitudinal Data System

The January budget included $10 million for the planning and development of a longitudinal education data system, called the Cradle-to-Career Data Insights Act. The intent of the Act is to build a data system that (1) promotes privacy and security, (2) is adaptable to future needs, (3) directly serves students and families, (4) enables entities to plan for and optimize education, workforce, and health and human service programs, and (5) allows for research on how to improve policies within the cradle-to-career spectrum. A workgroup, led by the State Board of Education with partners in all represented fields, will be created to advise on the development and implementation of the system. The May Revise only makes technical changes to the originally proposed language.

Investments in Training and Workforce

The May Revise builds upon workforce investments made in the Governor’s January Proposal to include:

• $100 million to implement the 2020-2025 Workforce Education and Training (WET) Five-Year Plan. This plan will offer a host of strategies that the state, local governments, community-based organizations, and educational entities can use to address shortages of mental health professionals in the public mental health system.

• $1.4 million to implement the Apprenticeship Conservation Corps Program, operated in partnership with the Department of Juvenile Justice and the California Conservation Corps. This program will provide participants with opportunities for skills development, job training, and access to career pathways upon completion.

• $8 million for additional job training and apprenticeship opportunities to address the shifting workforce demands as the state moves towards a carbon-neutral economy. When combined with the funding provided in the Governor’s January Budget, this investment totals $35 million annually for five years. These funds would provide pre-apprenticeship and apprenticeship programs in climate change and new technology fields and implement a new High Road Training Partnership program to enhance connections between the labor market and communities in areas traditionally dependent on fossil fuels. This will be done though new and continued partnerships between labor, industry, and community partners and administered by the California Workforce Development Board.

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