On May 13, 2021, Governor Gavin Newsom released the 2022-23 May Revision to the state budget draft, building upon the January budget proposal with several adjustments and additional investments totaling $300 billion in the areas of education, workforce training, economic recovery, and support services for underserved Californians. EDGE applauds Governor Newsom for advancing significant funding to support community colleges, apprenticeship programs, and resources to support small businesses; while also maintaining budget priorities from his January proposal like investments in health care career pathways, adult education, and dual enrollment opportunities. Although this year’s budget seems optimistic due to the state’s high revenue allocations and surplus, in addition to not exceeding the Gann Limit (a constitutional spending cap requirement), the May Revision proposes significant one-time investments that raise questions about the sustainability of some of the education and training initiatives. As budget negotiations between the Governor and Legislature progress, EDGE has identified a number of proposals that we respectfully urge state leaders to prioritize and invest in that will support our most underserved populations such as undocumented immigrants, adult learners paid low wages, and opportunity youth facing barriers to access education and employment. EDGE also urges our state leaders to support innovative workforce strategies that will uplift Californians out of poverty and open the door to economic mobility.
The following is an overview of the May Revision which highlights key investments, many of which are aligned with EDGE’s policy priorities.
INVESTMENTS IN WORKFORCE DEVELOPMENT & THE ECONOMY
- Health Care Workforce. $933 million one-time to provide retention payments for workers in hospitals, skilled nursing facilities, and psychiatric hospitals – supporting approximately 600,000 workers.
- SUD Workforce. $29 million one-time for substance use disorder provider workforce training at the Department of Health Care Services, for a total of $51.1 million for this program.
- Employment Development Department:
- $136 million one-time over 5-years to modernize EDD and improve the benefits system, call centers, and upgrading tech tools.
- Maintains the $30 million to the EDD Workforce Services Branch to expand the English Language Learner (ELL) pilots in the Integrated Education and Training (IET) programs to 15 sites. These programs will combine English language instruction with vocational skills training for in-demand occupations. Online Job Training. An increase of $1.4 million in one-time funding to support online job training and workforce development programs through local libraries for older adults and veterans at local libraries, building upon the Governor’s January proposal of $8.8 million to support two additional years of these free programs.
- Climate Change Workforce. $80 million one-time to expand San Diego State’s Brawley Center to support the local workforce pipeline to address climate change needs.
- EWIG. $15 million one-time to support the Educator Workforce Investment Grant program (EWIG) over 3 years to support educator training and continue the work in the areas of special education & English learners.
- Apprenticeship Programs:
- $45 million one-time to create the CA Healthy School Meals Program, a pre-apprenticeship and apprenticeship pilot program for food school service workers.
- $16.9 million ongoing to align the Apprenticeship Program Related and Supplemental Instruction (RSI) rate with the Student Centered Funding Formula credit rate, as opposed to the noncredit rate.
- $17 million over two years to the CA Workforce Board to expand High Road Training Partnerships (HRTP) in industries that support the state’s response to extreme heat, such as heating, ventilation and cooling, cool roofs, urban forestry, climate-smart natural resource mgt.
- Immigrant Workforce. Maintains the $11.6 million in 2022-23, and $500,000 annually thereafter, for GO-Biz to support statewide coordination for immigrant integration through enhanced services for immigrant communities at the state and local level, and support for economic development activities, including at the California-Mexico border.
- Hard-Hit Small Businesses. $500 million one-time for the California Small Business Hard-Hit Industries Grant Program, administered by the Office of the Small Business Advocate, to help eligible small businesses and nonprofits receive grants ranging from $10,000 to $50,000, depending on annual gross revenue.
- Small Business Technical Assistance Programs (TAEP). Maintains the $6 million one-time in 2022-23 and $23 million ongoing to permanently support the program.
- CalCompetes. $120 million one-time to extend for a second year the CalCompetes to incentivize businesses to locate and grow in California while investing in underserved areas of the state.
- Employment Training Panel:
- Makes a reduction to the $90 million proposed investment in January down to $50 million (reduction is offset by the increased investments in the Division of Apprenticeship Standards) to support job entry and career advancement for entry-level and other workers in health and human service settings.
- Maintains the $20 million investment to expand workplace literacy training in contextualized English, digital skills, and technical skills training for incumbent workers.
- High Road Training Partnerships for Health and Human Services. Makes a reduction of $57 million to the HRTP program (reduction is offset by the increased investments in the Division of Apprenticeship Standards). Funding will be used for training and career advancement programs for people with barriers to employment and to improve workforce development programs for health and human service careers.
INVESTMENTS IN EDUCATION & STUDENT SUPPORT SERVICES
- Community Colleges:
- 6.56% Cost of Living Adjustment, an increase from 5.33%, totaling an ongoing investment of $493 million dollars to support community colleges. In addition, the same COLA increase is proposed for several categorical programs, including Adult Education, Extended Opportunity Programs and Services (EOPS), Disabled Students Programs and Services (DSPS), and CalWORKS Student Services.
- $750 million one-time to community college districts for discretionary block grants to address issues related to the pandemic and to reduce long-term obligations.
- NextUp. $20 million ongoing to expand the NextUp Program to support foster youth students attending community colleges.
- C2C Data System. Provides additional resources (7 new positions) to support the Cradle-to-Career data system implementation efforts.
- UC Labor Centers. $13 million ongoing to support existing UC Labor Centers and Occupational Safety and Health Programs, and invest in similar new initiatives throughout the UC system.
- Dual Enrollment. Maintains the $500 million one-time investment to expand dual enrollment opportunities tied with student support services.
- K-12 Golden State Pathways Grant Program. Maintains the $1.5 billion one-time investment to support career pathways focused on technology, health care, education, and climate-related fields. These programs will require local partnerships that bring together K-12, higher education institutions, employers, and other community partners.
- High-Skilled Career Pathways. Maintains the $20 million in one-time investment for a High-Skilled Careers Grant program that incentivizes public-private partnerships that prepare students in grades 9 to 14 for the high-skill fields of education and early education; science, technology, engineering, and mathematics (STEM); and healthcare.
- Immigrant Students. Maintains the $20 million one-time investment to fund the Emergency Student Financial Assistance Grants for eligible DACA students.
- Adult Ed Health Care Pathways. Maintains the $130 million one-time investment for the Adult Education Program to support healthcare-focused vocational pathways for English language learners to increase language and cultural diversity in the field.
- Multiyear Roadmap for Community Colleges. Provides further detail of the roadmap, outlining specific key goals and expectations of the community college system, such as strengthening equitable placement (AB 705), increasing competency-based education and credit-for-prior learning, and other student-centered goals.
INVESTMENTS TO ADVANCE A SOCIAL SAFETY NET
- CalWORKs. 11% increase to CalWORKs Maximum Aid Payment levels, which is estimated to cost $296.2 million in 2022-23.
- Tax Credits. May Revision proposes a $1,000 Young Child Tax Credit (YCTC) that can be claimed by eligible households with zero income and will be indexed to inflation in future years. The budget also invests $20 million ongoing towards providing eligible former foster youth with $1,000 in tax credits. However, the May Revision does not expand on the CA Earned Income Tax Credit that provides direct cash assistance to Californians paid low wages.
- Basic Needs. $1.4 billion to help Californians pay their electricity and water utility bills.
- Universal Health Care Coverage. Provides Medi-Cal coverage regardless of immigration status, with $819 million in 2023-24 and $2.7 billion annually after that until it reaches full implementation.
- Broadband. $500 million one-time in 2024-25 to support the completion of the Broadband Middle-Mile Initiative, expanding higher access to quality internet.
- Gasoline Costs. $400 rebates for Californians to support the high cost of gas, however, it excludes individuals who do not own vehicles.
- Child Care. $157 million in fee waivers for child care access until June 2023. Also, provides $270 million for 36,000 additional subsidized slots, and $413 million to support a full year of rate increases. Although we appreciate this investment, sustainable funding must be included to support the child care workforce.
- CA Food Assistance Program (CFAP). Maintains the $35 million investment to provide food assistance to Californians 55 and older, regardless of immigration status. However, to fully address food insecurity, the budget must remove ALL exclusions from CFAP, regardless of age or immigration status.
OTHER EDUCATION & WORKFORCE PROPOSALS STILL PENDING
As the Governor’s May Revision focuses on budget adjustments and additional investments in various education and workforce programs, there are still other priority budget items that were left out. We urge our state leaders to include the following in the final budget:
- Cal Grant Reform. Although last year’s budget addressed some barriers to accessing Cal Grants, like removing the time-out-of high school and age eligibility requirements, this budget proposal falls short in addressing another major barrier – the GPA verification requirement. The GPA requirement is a racial equity issue and should be addressed in the final budget to ensure California’s most underserved students, particularly Black and Brown adult learners and opportunity youth, who should not be defined by a GPA number to demonstrate skills, competencies, or ability to be successful in education and training programs. The Cal Grant Equity Framework will achieve the state’s goals of closing equity gaps and supporting our most underserved students.
- CA Youth Leadership Corps – $100 million to expand CYLC which would provide earn-and-learn training opportunities and resources for underserved students of color, immigrant youth, and opportunity youth who are experiencing poverty and are facing significant barriers to education and employment.
- CA Youth Empowerment Commission. $1.38 million to establish the Commission, intended to empower underrepresented youth ages 14-25 with opportunities to engage in California’s civic process with a focus on education, social services, workforce development, and public safety.
- Emergency Medical Services Corps. $60 million to create opportunities for underrepresented youth and fill a critical workforce need in the healthcare field.
- CA RISE Program. $25 million to establish the RISE Program, intended to support employment social enterprises to provide targeted, specialized employment and workforce training, and connect them with local public partners, training providers, and private sector employers to accelerate economic mobility for individuals that experience employment barriers.
- Excluded Workers Pilot Program. This pilot will provide critical unemployment insurance benefits to excluded immigrant workers in California who can not access these benefits due to immigration status. The proposal would provide undocumented immigrants experiencing unemployment with $300 per week for up to 20 weeks.
- Reentry Housing and Workforce Development Program. $200 million to fund evidence-based housing, support services, and workforce development programs for people who were formerly incarcerated in state prisons and who are experiencing homelessness or at risk of homelessness.
As budget discussions continue, EDGE stands united in its commitment to securing meaningful and equitable investments that support the advancement and economic mobility of all Californians. As more budget details emerge via trailer bill language proposals, we look forward to working with the Administration, Legislature, and partners to ensure businesses, workers, adult students, opportunity youth, and underserved communities are provided the support they need to compete in today’s labor market.
The Legislature has until June 15th to approve and pass a balanced budget.
For questions, please contact Anna Alvarado, Policy Director, at email@example.com