Gov. Newsom signs 2024 State Budget Supporting Fiscal Stability and Core Programs
SACRAMENTO – Gov. Gavin Newsom June 29 signed 2024 state budget legislation that brings stability to state finances while preserving key investments in safety net programs, education, addressing homelessness, mental health care reform and more.
As outlined in the agreement announced by the Governor and legislative leaders, the legislation balances the budget in both 2024-25 and 2025-26. It also preserves budget resilience by maintaining $22.2 billion in total reserves at the end of the 2024-25 fiscal year.
The state has taken several measures to manage revenue volatility in recent budget cycles, including setting aside a record amount of reserves, focusing most of the surplus on one-time and near-term spending instead of potentially unsustainable long-term and ongoing obligations, and paying tens of billions of dollars toward the state’s long-term debt.
The budget addresses a $46.8 billion shortfall through a balanced package of solutions, including spending reductions of $16 billion.
It avoids deep program cuts, maintaining service levels for several priority issues including Proposition 98 funding for education and investments in Medi-Cal expansion, encampment resolution grants, nonprofit security grants, summer food assistance, updated foster care rates and more. Additional details on the 2024 state budget can be found in this fact sheet.
California remains the 5th largest economy in the world and for the first time in years, the state’s population is increasing and tourism spending recently experienced a record high. California is number one in the nation for new business starts, number one for access to venture capital funding, and the number one state for manufacturing, high-tech and agriculture.
California to Add Financial Literacy As a Requirement to Graduate High School
SACRAMENTO — Gov. Gavin Newsom, Senate President pro Tempore Mike McGuire (D-North Coast), Assembly Speaker Robert Rivas (D-Salinas), and a national financial literacy non-profit — NGPF Mission 2030, an affiliate of Next Gen Personal Finance — June 27 announced an agreement to make financial literacy required content to graduate high school.
This agreement is reflected in AB 2927, sponsored by NGPF Mission 2030, which the Governor will sign. The legislation will require a semester-long personal finance education course available for all California high school students by the 2027-28 school year and make personal finance a graduation requirement starting with the 2030-31 graduating class.
Once the Legislature passes this legislation, proponents of the California Personal Finance Education Act initiative eligible for the November 2024 ballot have agreed to withdraw their measure.
College savings accounts
The financial literacy bill aligns with state efforts to prepare students early on for a healthier financial future. California’s CalKIDS program invests $1.9 billion into accounts for low-income school-age children in grades 1-12 and for newborn children born on or after July 1, 2022 – indicating the need for early financial literacy. All families of low-income public school students – 3.4 million across the state – are able to access college savings accounts created in their children’s names.