Search
Close this search box.

CA EDGE Coalition’s Overview of the Enacted 2022-23 State Budget

State Budget / By /

On June 30th, Governor Gavin Newsom signed the 2022-23 State Budget – a total of $300 billion will be invested in the areas of education, workforce training, and economic recovery strategies that respond to the rising inflation crisis and other socioeconomic barriers continuing to impact Californians across the state. This budget reflects an agreement and collaboration between the Governor and the Legislature after months of negotiations on how to best meet the needs of all Californians. EDGE applauds the tremendous work of our state leaders for investing significant funding to support immigrants, adult learners, workers paid low wages, opportunity youth facing barriers to employment and education, and relief for small businesses – all while bolstering the state’s workforce and opening doors to economic mobility. The budget strengthens health care career pathways, dual enrollment opportunities, advances a social safety net for underserved Californians, and for the first time commits to transform and provide ongoing funding for Cal Grant – the largest student financial aid program in California. 

Additionally, the budget remains under the Gann Limit, a constitutional spending cap requirement which was a concern in the January budget proposal. State leaders have expressed interest in addressing the Gann Limit in 2024 via a state ballot measure to modernize and prevent reductions to education and other programs investments. It is important to also note that although significant investments were made for the 2022-2023 fiscal year, a lot of the resources are one-time investments, which raises questions about the sustainability of some of the education and training initiatives that were approved. 

This year’s budget has proved to be a historic investment that centers students, opportunity youth, and working families. However, there is work left to do to truly advance racial and economic equity for those who continue to be left out of our state’s prosperity. As we approach the final weeks of the legislative session, EDGE remains committed to elevating strategies to advance education and workforce development policies that address workforce shortages and create pathways to advance economic mobility and provide opportunity for all Californians. 

The following is an overview of the enacted state budget which highlights key investments, many of which are aligned with EDGE’s 2022 policy priorities. 

INVESTMENTS IN WORKFORCE DEVELOPMENT & THE ECONOMY 

  • Health Care Workforce: 
    • Workforce for a Healthy California for All Program. $1.5 billion one-time General Fund (GF) over 3 years to create more workforce opportunities in the health and human services sector, which include:
        • Recruit, train, and certify 25,000 community health care workers by 2025. ($281 million)
        • Comprehensive Nursing Initiative to increase the number of registered nurses in the state. ($220 million)
        • Increase the number of social workers in the state by expanding training programs and providing scholarship opportunities. ($126 million)
        • Expands High Road Training Partnerships to help bolster the health care and human services workforce. ($135 million)
        • Expand the Psychiatric Resident Program to increase behavioral health providers. ($50 million)
        • Increase substance use disorder workforce training programs. ($26 million one-time from the Opioid Settlements Fund) 
  • Employment Development Department. $136 million one-time over 5-years to modernize EDD and improve the benefits system, call centers, and upgrading tech tools.
  • Integrated Education and Training for the English Language Learners (ELL) program. $20 million one-time GF for the EDD Workforce Services Branch to expand the ELL program which combines English language instruction with vocational skills training for in-demand occupations. Also adopts budget language to include undocumented immigrants.
  • Women in the Skilled Trades. $15 million ongoing GF to support the Women in Construction Unit at the Department of Industrial Relations, intended to support women and nonbinary individuals in the skilled trades sector.
  • Statewide Reentry Grant Program. $50 million one-time GF for community-based organizations to support workforce training & support services for justice-involved individuals.
  • Online Job Training. An increase of $10.2 million one-time GF to support 2 additional years of free online job training and educational upskilling programs available through local public libraries.
  • Apprenticeship Programs: 
    • $175 million over 3 years to fund the Apprenticeship Innovation Fund (AIF) to expand non-traditional apprenticeships in the state.
    • $45 million one-time Prop 98 funding to create the CA Healthy School Meals Program, a pre-apprenticeship and apprenticeship pilot program for school food service workers.
    • $20 million ongoing Prop 98 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.
  •  Immigration Integration and Economic Development Program. $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 such as training programs and curriculum aimed at underserved business owners, including immigrant entrepreneurs.
  • CA RISE Program. $25 million one-time GF 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.
  • Relief for Small Businesses: 
    • $6 million one-time GF in 2022-23 and $23 million ongoing to permanently support the Small Business Technical Assistance Programs (TAEP).
    • $3 million ongoing funding to support the Capital Infusion Program.
    • Adds $150 million one-time for COVID-19 Relief Grants, bringing in a total of $4.2 billion ($2.7B GF & $1.5B federal funds, this occurred in Feb 2022); and also expands the definition of who qualifies for these grant dollars, opening the pool for other qualified small businesses.
    • $250 million one-time GF to address supplemental paid sick leave for small businesses and non-profit organizations with up to 150 employees.
    • $1.5 billion one-time GF for Unemployment Insurance cost relief, including $1 billion over 2 years to begin paying down federal loans, and $500 million one-time to provide rebates to small businesses to reimburse them for their increased costs. 
  • Employment Training Panel: 
    • $25 million one-time GF dollars to establish the Healthcare Workforce Advancement Program, which aims to support job entry and career advancement for entry-level and other workers in healthcare and human services social work settings. Funding must meet “high-road” requirements and include reporting on job commitments, number of jobs and quality of wages and benefits.
    • $10 million one-time GF to establish the Workforce Literacy Pilot Program, intended expand workplace literacy training in contextualized English, digital skills, and technical skills training for incumbent and new workers, including unemployed English language learners. 

INVESTMENTS IN EDUCATION & STUDENT SUPPORT SERVICES

  • Community Colleges: 
    • 6.56% Cost of Living Adjustment (COLA), totaling a $492.2 million ongoing investment, including a $600 million base increase for the Student Centered Funding Formula.
    • 6.56% COLA increase for several categorical programs, including Adult Education, Extended Opportunity Programs and Services (EOPS), Disabled Students Programs and Services (DSPS), CalWORKs Student Services, and Puente Project.
    • $650 million one-time Prop 98 to create the Learning Recovery Emergency Fund to support a block grant to address barriers to learning, reengagement strategies, grants to faculty to develop online learning modules, professional development opportunities for faculty and student services, investments to close the digital divide, or to discharge unpaid fees owed by a student to a community college.
    • $30 million ongoing Prop 98 to expand the NextUp Program to support foster youth students attending community colleges.
    • Increase of $15 million ongoing Prop 98 (totaling $25 million) for the Rising Scholars Program to support justice-involved students.
    • $30 million one-time Prop 98 to establish the Hire UP Pilot Program to provide justice-involved individuals with services and training to reenter the labor market.
    • $25 million ongoing Prop 98 to expand availability of the California College Promise Program fee waiver to returning community college students, rather than restricting it to first-time students, as long as they have not previously earned a postsecondary degree or certificate. Budget language also requires colleges to maximize resources to support basic needs for students as part of the program.
    • $250 million ongoing Prop 98 to increase Student Success Completion Grant award amounts and to expand available funds for students newly eligible for the Student Success Completion Grant due to establishment of the Cal Grant Entitlement Awards from last year’s budget.
    • $100 million Prop 98 ($75 million one-time & $25 million ongoing) to address modernization of technology infrastructure, including data protection efforts at community colleges. 
  • Cal Grant Reform. The budget makes a commitment to prioritize Cal Grant Reform in 2024, only if general funds are available. If fully implemented, it would address longstanding structural inequities within the student financial aid program by removing barriers, such as the removal of the GPA verification – expanding access to underserved students, opportunity youth and adult learners. We are grateful to our state leaders for acknowledging the importance of modernizing the financial aid system, which will help rebuild the state’s workforce pipeline and fuel California’s economic recovery.
  • AB 705 Implementation. $64 million one-time Prop 98 to establish the California Community College Equitable Placement and Completion Grant Program, which provides funding to colleges to support students in completing college-level math and English courses.
  • C2C Data System. Reappropriates $13 million GF and provides an additional $646,000 to support the Cradle-to-Career data system implementation efforts.
  • UC Labor Centers. $13 million ongoing GF to support existing UC Labor Centers and Occupational Safety and Health Programs and invest in similar new initiatives throughout the UC system.
  • Dual Enrollment. $200 million one-time Prop 98 funding over 5 years to expand dual enrollment opportunities tied to student support services.
  • K-12 Golden State Pathways Grant Program. $500 million one-time Prop 98 funding over 7 years 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.
  • Immigrant Students. $20 million one-time Prop 98 investment to fund the Emergency Student Financial Assistance Grants for eligible AB 540 students. To qualify, students must self-certify they are enrolled in at least 6 semester units or quarter equivalent, have an emergency financial aid need, qualify as low income, and certify they have either earned a GPA of at least 2.0 in one of their previous three semesters or four quarters, or receiving services through Disability Services and Programs for Students (DSPS).
  • Adult Ed Health Care Pathways. $130 million one-time Prop 98 investment over 3 years for the Adult Education Program to support healthcare-focused vocational pathways for English language learners to increase language and cultural diversity in the field.
  • Empowering Opportunity Youth. In addition to Cal Grant Reform commitment, AB 705 implementation, and other college & career readiness pathways, below are other key investments that will support opportunity youth in California: 
    • CA Youth Leadership Corps. $60 million one-time GF 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 barriers to education and employment. An additional $10 million one-time to expand the existing program to create a pipeline for community-based immigration legal services and other immigrant rights and social and climate justice organizations.
    • CA Youth Empowerment Commission. $1.5 million ongoing GF 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 one-time GF to create opportunities for underrepresented youth and fill a critical workforce need in the healthcare field.
    • Impact Justice CA. $15 million one-time GF to support youth and adult workforce development, training and apprenticeship programs, and reentry wraparound services.
    • CA Youth Apprenticeship Program. $65 million one-time GF over three years to expand apprenticeship and pre-apprenticeship opportunities for youth. 

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: 
    • $95 million ongoing to provide existing Young Child Tax Credit to zero-income filers. $1,000 can be claimed by eligible households with zero income and will be indexed to inflation in future years.
    • $20 million ongoing for the Foster Youth Tax Credit to provide a $1,000 credit to young adults who were in the foster care system. 
  • Health Care For All. Provides Medi-Cal coverage regardless of immigration status, with $835.6 million ($626.1 million General Fund) in 2023-24 and $2.6 billion ($2.1 billion General Fund) at full implementation and annually thereafter until it reaches full implementation, starting no later than January 2024.
  • Excluded Workers Pilot Program. Although we appreciate the investments made in providing Health Care for All, and other investments to support the immigrant community, the budget fails to provide critical unemployment insurance benefits to excluded immigrant workers who cannot access these benefits due to immigration status. The proposal would have provided undocumented immigrants experiencing unemployment with $300 per week for up to 20 weeks. We urge our state leaders to continue working on this issue to truly be inclusive of all working Californians who deserve the benefits they pay in to.
  • Broadband. $300 million one-time GF in 2023-2024 and $250 million in 2024-2025 to support the completion of the Broadband Middle-Mile Initiative, expanding higher access to quality internet.
  • Better for Families Tax Refund: $9.5 billion in tax refunds to provide relief to 17 million Californians from the impacts of high gas prices and other growing costs due to inflation.
  • Child Care. The budget continues to extend certain COVID-19 child care protections, such as family fee waivers for another year, including $100 million one-time federal funds for child care facilities. Although we appreciate the efforts made, sustainable funding must be included to support the child care workforce, increase reimbursement rates for subsidized child care providers, and increase the number of slots. We urge our state leaders to commit to stronger child care investments next year that will support California’s working families who continue to lack access to affordable child care.
  • CA Food Assistance Program (CFAP). $35 million GF, increasing to $113.4 million annually in 2025-26 to expand the CFAP program to Californians 55 and older, regardless of immigration status. This means California will be the first in the nation to provide food assistance to undocumented adults. While this is a major investment to address food insecurity, undocumented immigrants ages 55 and younger will continue to be excluded from these benefits. We urge our state leaders to remove all exclusions from CFAP, regardless of age or immigration status.

For questions, please contact Anna Alvarado, Policy Director, at aalvarado@caedge.org

Share This