With funding pegged for health care, higher and K-12 education and housing, the priorities outlined in Gov. Gavin Newsom’s proposed budget are being welcomed by many legislators and also sparked questions about the state’s path toward addressing its housing crisis and future spending in the face of economic uncertainty.
By proposing a $144 billion general fund budget with $4 billion dedicated to paying the state’s debts, $4.8 billion to build reserves and another $4.8 billion to be used toward unfunded retirement liabilities, the governor’s first budget proposal was viewed by many as one that struck a balance between increased spending priorities and a commitment to fiscal responsibility.