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From YouTube: Governor Newsom's May Budget Revision - May 14, 2020
Description
In the face of a global health crisis that has triggered a global financial crisis, Governor Gavin Newsom today submitted his 2020-21 May Revision budget proposal to the Legislature - a balanced plan to close a budget gap of more than $54 billion brought on swiftly by the COVID-19 recession.
Recorded May 14, 2020 in Sacramento
For more information regarding the impact of the COVID-19 outbreak in Cupertino, please visit https://www.cupertino.org/coronavirus
B
Alright
well
good
afternoon,
everybody,
it
goes
without
saying
that
these
are
not
ordinary
times
and
as
a
consequence,
this
will
not
be
an
ordinary
budget
presentation.
I
come
up
to
you
today
with
no
notes
and
just
four
simple,
slides,
slides
that
lay
out
where
we
are
and
where
I
believe
we
are
going.
B
But
first
I
want
to
talk
about
where
we
were
just
a
few
months
back
standing
right
here
on
this
stage,
standing
right
here
in
front
of
you
introducing
my
January
budget
was
a
time
the
state
of
California,
where
we
were
regaling
folks
about
our
economic
growth
and
incredible
economic
vibrancy
and
economic
output
that
the
state
was
enjoying
3.1
trillion
dollar
year
economy,
the
nation's
largest
economy.
In
the
world's
fifth
largest
economy.
We
were
talking
about
record
low
unemployment.
B
We
were
talking
about
our
record
reserves
and
we
were
debating
how
to
balance
a
record
amount
of
surplus.
We
had
remarkable
bragging
rights
in
this
state
where
we
reflected
on
the
fact
that
one
out
of
seven
American
jobs
since
the
Great
Recession
were
created
here
in
the
great
state
of
California.
We
talked
in
terms
of
California
being
the
tentpole
of
the
American
economy
in
terms
of
economic
output
and
also
job
creation.
We
enjoyed
a
surplus
that
we
were
projecting
modestly
at
five
point,
six
billion
dollars,
but
everybody
knew
that
number
was
on
the
lower
end.
B
In
fact,
there
was
one
estimate
that
came
out
of
the
legislative
analyst
office
that
said
that
that
surplus
number
did
not
include
what
we
referred
to
as
the
MCO
tax.
Remarkably,
we
were
successful
in
getting
the
support
of
the
MCO
tax
that
would
have
increased
that
surplus
by
at
least
one
point:
seven
billion
dollars.
B
Of
course,
that
was
January
a
few
weeks
after
that
budget,
we
started
to
work
with
the
federal
government
on
repatriation
flights
coming
over
from
mainland
China
six
flights
related
to
this
corona
virus.
We
clearly
the
time
had
an
expectation
that
this
was
serious,
but
none
of
us
had
a
sense
of
how
serious
the
focus
appropriate
at
the
time
was
Public
Health.
But,
as
you
can
see
from
this
slide,
not
only
was
the
state
of
California
impacted
by
what
was
to
come,
but
the
entire
nation
and,
of
course,
the
world's
economy.
B
B
Of
an
eye
in
fiscal
terms,
certainly
a
blink
of
the
eye
sixty
seventy
eighty
days
later
in
a
completely
different
position,
not
just
again
the
state
of
California
but
the
entire
nation.
The
good
news,
though,
for
those
that
watch
and
follow
the
work
that
has
been
done
here
in
this
capital
work
done
by
the
previous
administration,
Governor
Brown
the
outstanding
leadership
that
he
advanced
in
terms
of
his
fiscal
stewardship
of
the
state
over
the
last
two
terms,
combined
with
the
talents
and
similar
stewardship
by
legislative
leaders.
B
We
enter
into
this
moment
in
a
much
better
place
than
we
have
previously
entered
into
any
recessionary
moment
and
I
say
that
soberly
not
naively
and
I.
Don't
say
that
triumphantly
oh,
we
are
going
to
be
dealing
with
challenges
that
we
haven't
faced
in
some
time,
but
it
is
important
to
note
when
we
talked
in
terms
of
the
surplus
that
we
were
debating
last
year,
that
operating
surplus
was
in
the
range
of
21
and
a
half
billion
dollars.
That
was
last
year's
operating
surplus
that
we
were
responsible
for
balancing.
B
We
debated
that
surplus
and
we
did
a
lot
of
things
that
I
think
make
I
hope
make
this
situation
a
little
bit
better.
Today
we
paid
down
debt
and
the
final
4.5
billion
dollars
in
debt
from
that
wall
of
debt,
the
infamous
wall
of
debt,
here
in
the
state
of
California
that
at
the
time
it
totaled
thirty
four
point:
seven
billion
dollars.
The
final
payment
was
done
last
year,
4.5
billion
dollars
completely
eliminating
that
debt.
B
We
were
thoughtful,
perhaps
more
so
than
even
the
last
decade
and
a
half
of
using
those
surplus
dollars
very
prudently,
even
more
so
than
in
prior
years,
where
88
percent
of
those
one-time
surplus
dollars
went
to
pay
down
one-time
obligations
or
to
invest
in
just
one
fiscal
year's
investment,
meaning
we
tried
to
reduce
the
amount
of
ongoing
expenditure
substantially.
Thus,
the
12%
reflected
in
this
slide
of
new
ongoing
commitments
in
budget
terms.
B
We
weren't
just
asserting
fiscal
discipline.
We
were
proving
it
so
much
so
that
our
bond
rating
increased
twice
last
year
and
was
increased
the
highest
level
in
over
two
decades
and
as
a
consequence
of
that
borrowing
costs
for
the
state
of
California
declined.
It's
a
long
way
again
of
saying
we're
entering
into
this
time
of
uncertainty
in
much
better
place
than
we
entered
into
it
in,
for
example,
2003
or
for
that
matter,
2009
or
in
more
contemporary
terms.
B
2011.
We
are
in
a
position
where
I
can
advance
at
least
a
commitment
to
you
that,
while
the
numbers
have
certainly
changed,
our
values
remain
and
we
are
committed,
despite
the
headwinds
of
a
50
4.3
billion
dollar
budget
shortfall,
that
we
are
entrusted
to
balance
in
the
current
fiscal
year
and
into
the
next
budget
year
to
advance,
and
not
only
an
effort
to
balance
the
budget,
but
also
to
balance
our
principles
and
to
advance
our
values
and
those
core
values.
Those
core
principles,
I
think,
are
well
reflected
in
the
slide.
B
You
see
next
to
me,
public
education,
public
health,
public
safety
and
always
an
eye
on
people
that
have
been
hit
hardest
by
kovat
19.
I
am
not
naive
by
any
stretch
of
the
imagination,
while
as
painful
as
the
state's
budget
may
be
personal
budgets.
For
so
many
of
you
watching
are
even
more
devastating
you've
exhausted
your
savings.
Your
credit
has
been
completely
destroyed.
You
are
desperate
to
get
a
sense
of
not
only
your
fate
about
our
collective
future.
Some
4.6
million
of
you
have
filed
for
unemployment
claims
just
since
March
12th.
B
We
are
at
a
time
that's
simply
unprecedented
and
when
I
mean
unprecedented,
we
talk
in
terms
of
that
Great
Recession
that
Great
Recession.
We
had
unemployment
that
peaked
at
twelve
point
three
percent
in
the
third
quarter
in
2010,
some
2.2
million
people
we're
out
of
work
I'll
go
back
to
what
I
just
said:
4.6
million
Californians,
just
since
March
12th
have
filed
for
unemployment,
insurance
claims
or
assistance
under
our
PU,
a
program
to
point
to
the
peak
in
2010,
now
4.6
million
filing
claims.
B
So
far,
just
since
March
we
are
projecting
in
our
documents
we're
putting
out
today
in
our
May
revise
of
that
January
budget,
that
unemployment
will
peak
north
of
twenty
four
and
a
half
percent,
one
could
argue
we're
already
there.
We
are
projecting,
though,
that
as
a
peak
the
budget
year,
we
are
projecting
that
we
will
come
in
roughly
at
about
an
eighteen
percent
unemployment
number.
This
is
simply
without
precedent.
These
numbers,
this
unemployment
numbers,
the
economic
consequences
of
kovat
19-
are
not
only
being
felt
statistically,
but
they
haven't
been
felt
like
this.
A
B
Talk
about
this
year's
budget
in
more
specific
terms,
the
current
budget
proposal
may
revise
that
we're
putting
out
reflects
a
decline
of
22.3%
in
revenue
from
the
January
budget.
The
budget
we
put
out
today
is
one
hundred
and
thirty
three
point:
nine
billion
dollar
general
fund,
some
two
hundred
and
three
point
three
billion
dollar
overall
budget.
The
general
fund
reflects
a
nine
point.
Four
percent
decrease
from
the
budget
act
of
2019
the
overall
budget.
About
a
four
five
point:
four
percent
decrease
from
the
2019
budget
act.
B
It's
important
to
note
that
the
revenue
decline,
the
twenty
two
point:
three
percent
revenue
decline
that
I
referenced
just
a
moment
ago,
that
comes
from
three
major
carrot:
categories:
personal
income,
tax,
corporate
tax
and
sales
tax.
Not
surprisingly,
our
sales
tax
revenue
projections
are
taking
the
biggest
hit;
consumers,
obviously
not
able
to
make
the
kind
of
purchases
they
once
were,
only
essential
people,
obviously
tightening
their
belt.
B
That's
the
baseline,
no
longer
a
projected
surplus
north
of
six
billion
dollars,
but
now
a
projected
deficit
for
the
current
fiscal
year
and
the
budget
year
that
we
are
announcing
in
advancing
here
today
of
fifty
four
point:
three
billion
dollars.
Now,
let
me
explain
why
we
believe
it's
fifty
four
point:
three
billion
dollars:
we
cleaned
up
the
2018
and
2019
budget
year,
not
surprising
that
showed
up
as
a
net
gain
of
about
seven
hundred
million
dollars.
B
I,
don't
want
to
lose
to
many
of
you
on
this,
but
I
do
want
to
just
quickly
sum
up
the
foundational
challenge
that
we
have.
So
we
had
some
good
news
there,
but
in
the
current
fiscal
year,
obviously
some
bad
news.
Nine
point:
seven
billion
dollar
reduction
in
our
projected
deficit
and
into
the
next
fiscal
year
we're
projecting
a
thirty
two
point:
two
billion
dollar
budget
shortfall.
So
roughly
forty
one
point:
two
billion
is
the
projected
deficit
and
that
assumes
no
increased
caseload,
no
increased
costs
and
expenses
to
help
the
most
vulnerable.
B
California's
ones
cannot
assume
that
and,
as
a
consequence,
we
add
a
roughly
thirteen
billion
dollars
to
that
total
thirteen
point,
one
billion
to
be
exact.
Thus
the
total
budget
projected
deficit
for
the
current
fiscal
year
and
the
budget
year
of
fifty
four
point:
three
billion
dollars.
So
that's
that
that's
the
magnitude
of
what
we're
called
upon
to
address
you
may
say:
well,
that's
the
biggest
budget
deficit
we've
ever
heard
in
California's
history
in
a
remarkable
way.
It
is
not.
The
economic
consequence
is
the
personal
and
professional
consequences.
B
Those
unemployment
numbers
certainly
are,
but
the
budget
numbers
are
not
in
this
respect.
Not
only
do
we
come
in
more
fiscal
with
more
fiscal
health
than
we
have
in
the
past
in
to
this
recession,
with
more
ample
reserves
and
more
capacity
for
deferrals
the
ability
to
borrow
where
it's
appropriate
under
these
circumstances,
but
also
we
come
in
with
a
substantially
larger
general
fund
than
we
have
seen
in
the
past,
just
to
put
it
in
statistical
terms-
and
this
is
cold
comfort
for
those
watching.
B
Roughly
45%
was
the
budget
shortfall
in
2003
58
percent
in
2009
58
percent
in
2009.
You
may
recall
this
2009
budget
deficit
came
in
a
roughly
sixty
billion
dollar
shortfall
2011.
It
was
about
thirty
point,
eight
percent
thirty,
one
percent
of
the
challenge
this
year
we
project
roughly
thirty,
seven
percent,
so
this
is
challenging.
This
will
be
trying,
and
this
certainly
will
be
a
multi-year
opportunity
and
effort
and
I
say
that,
because
I
want
to
begin
there,
we
are
not
arguing
to
solve
a
fifty
four
point:
three
billion
dollar
shortfall
over
night.
B
We
are
looking
not
only
at
the
current
fiscal
year
and
next
year's
budget
year,
but
we're
looking
at
a
multi-year
strategy
to
work
through
this
budget
deficit.
Let's
start
with
the
reserves,
sixteen
point:
two
billion
dollars
of
reserves.
We
are
calling
to
pull
down
some
seven
point:
eight
billion
dollars
in
year,
one
from
the
sixteen
point,
two
billion
dollars
of
reserves
in
year.
Two.
We
want
to
bring
down
an
additional
five
point:
four
billion
dollars
in
year,
three
to
point
nine
billion
dollars.
B
So
we
are
committing
in
the
documents
we're
putting
out
here
today
to
use
all
of
the
sixteen
point,
two
billion
dollars
in
the
rainy
day
reserve,
but
do
it
over
a
three
year
period
because,
no
matter
what
we
do
this
year,
it
won't
be
enough
to
address
the
shortfall
next
year
and
we
have
to
be
mindful
of
our
responsibility
to
balance
the
budget
every
year,
but
do
so
strategically.
Remember
no
printing
press
here
in
the
state
of
California.
We
are
constitutionally
obliged
to
pass
a
balanced
budget.
You
don't
get
to
off.
You
skate!
B
You
don't
get
to
mediate.
You
don't
get
to
deviate
from
that
foundational
principle.
It's
a
responsibility
to
submit
and
to
approve
a
balanced
budget,
and
that
is
our
requirement
through.
The
next
number
of
weeks
has
to
be
done
by
July.
1St
of
this
year,
but
again
we're
looking
at
a
multi-year
strategy
and
that
strategy
will
include
pulling
down
that
rainy
day
reserve
in
a
sequential
way.
Seven
point:
eight
five
point:
four
two
point:
nine
billion
dollars
I
mentioned
just
a
moment
ago.
B
The
rainy
day
reserve
is
one
of
a
number
of
reserve
accounts
in
the
state
of
California.
The
other
reserve
account
was
created
a
few
years
ago
by
the
outstanding
leadership
of
our
budget
chair
in
the
Senate
Holly
Mitchell
was
her
brainchild
to
put
together
a
safety
net
reserve,
and
thankfully
she
did
that
with
her
colleagues
and
with
leadership
in
the
assembly
and
the
Senate
and
the
support
of
our
administration
and
the
previous
administration,
that
reserve
account
has
900
million
dollars
in
it.
B
We
proposed
to
the
legislature
that
we
use
450
million
dollars
in
this
budget
year
and
an
additional
450
billion
dollars
in
the
subsequent
budget
years.
So,
like
the
rainy
day
reserve,
we
draw
down
over
three
years
the
safety
net
reserve
we
draw
down
over
two
years,
so
there
you
have
seven
point:
eight
rainy
day
reserve
four
hundred
and
fifty
million
dollars
in
the
safety
net
reserve.
Finally,
there
was
a
reserve
that
was
little
noticed,
but
certainly
hotly
debated.
B
That
was
probably
never
even
imagined
that
we'd
ever
see
Trigorin
in
our
lifetime
under
the
prop
98
guarantee
and
that's
the
guarantee
that
supports
our
through
14
education
system.
That
reserve
went
in
to
effect
a
couple
years
ago
we
started
putting
money
in
the
reserve.
Last
year
we
had
five
hundred
and
twenty
four
million
dollars
in
that
reserve
and
thankfully
we're
going
to
pull
all
five
hundred
twenty
four
million
dollars
of
that
surplus
in
to
pay
down
this
deficit
and
help
support
our
education
system
this
year.
B
So
you
have
those
three
reserve
accounts,
roughly
all
totaling
8.8
billion
dollars,
so
that's
8.8
billion
on
our
way
to
solving
a
fifty
four
point:
three
billion
dollar
problem:
that's
nice!
That's
roughly
sixteen
or
so
percent
of
the
solution.
The
obvious
question
is:
what
else
are
we
gonna
do?
Well,
we
clearly
have
been
blessed
by
the
credible
leadership
of
Speaker
Nancy
Pelosi
and
the
strong
support
bipartisan
support
of
our
congressional
delegation
and
Democrat
Republican
leaders
across
this
country
and
the
president
himself
with
the
cares
Act.
B
Series
of
specific
proposals
that
we
made
in
January
the
overwhelming
majority
of
those
proposals
we
are
now
pulling
back.
Those
are
enhancements
to
the
baseline
budget,
the
vast
majority,
not
all,
but
the
vast
majority
were
pulling
back.
That
represents
an
equivalent
15
percent
of
the
solution,
reserves,
18
percent
federal
government,
15
percent.
The
pulling
back
of
these
new
programs
that
we
were
hoping
to
invest
in
in
January
provides
us
an
additional
15%.
B
There
are
three
additional
categories
now
that
ultimately
get
us
to
a
balanced
budget.
The
number
one
area
of
consternation
that
the
a
year
and
a
half
or
so
ago
that
I
highlighted
was
some
of
the
borrowing
from
special
funds
and
some
of
the
deferrals
into
new
fiscal
years
that
were
done
in
the
past
and
I
made
an
oblique
comment.
I
said,
I'm,
looking
forward
to
ending
these
things
and
first
budget
that
I
submitted
on
becoming
governor.
But
I
also
did
that
and
made
a
side
comment.
B
I
said,
play
the
tape,
because
it's
not
unlikely
that
I'll
be
forced
by
conditions
to
come
back
and
utilize.
Some
of
those
examples
in
the
future
I
never
imagined
to
be
back
a
year
later
under
these
extraordinary
circumstances,
but
the
ability,
because
we
had
cleaned
all
of
that
up
because
we
had
fixed
all
of
that,
because
we
had
tightened
our
belt
and
are
better
positioned
to
go
in
here.
That
opportunity
affords
us
about
19%
in
solutions
in
this
budget.
So
we're
going
to
use
a
little
bit
of
that.
D
B
That
leaves
us
with
two
areas
that
more
traditionally
are
defined
in
terms
of
balancing
budgets,
and
that
is
how
do
you
find
some
revenue,
and
how
do
you
define
what's
appropriate
to
cut
nothing
breaks,
my
heart?
More
than
making
budget
cuts.
We
have
been
making
historic
investments
in
the
last
many
years
in
the
state
of
California
and
now
being
forced
back
into
this
position
where
we
are
having
to
make
cuts,
breaks
my
heart,
because
one
thing
I
know
about
cuts.
B
There's
a
human
being
behind
every
single
number
behind
every
category
is
a
dream
that
is
either
deferred,
in
some
case,
a
dream
that
is
denied
I'm
sober
about
it.
I'm,
not
naive
about
cuts.
26
percent
of
our
solutions
would
come
into
this
category
of
cuts,
but
cuts
with
a
caveat
and
I
want
to
make
this
crystal
clear.
We
have
been
making
crystal
clear
over
the
course
of
the
last
many
many
weeks,
and
that
is
these
are
cuts
that
can
be
triggered
and
eliminated
with
a
stroke
of
a
pen.
B
President
United
States
with
a
stroke
of
a
pen
could
provide
support
for
speaker,
Pelosi's
new
heroes,
Act
and
these
cuts
would
be
eliminated.
These
cuts
would
be
triggered
and
the
language
in
our
budget
directly
triggers
the
elimination
of
these
cuts.
It's
in
the
control
section
of
the
budget,
Act
reason
I
use
that
in
technical
terms,
is
I.
Want
you
to
know,
that's
not
rhetorical.
B
You
will
hear
of
cuts
that
not
make
none
of
us
proud,
but
the
values
nonetheless,
we
are
holding
on
to
I,
think
and
hope
will
and
I'm
gonna
get
to
those
in
a
minute
as
proof
points
that
that
also
is
not
just
rhetorical
flair,
so
26
percent
are
in
the
category
where
the
federal
government
provides
the
support
and
relief
for
states,
cities
and
counties
that
those
cuts
will
not
go
into
effect.
The
final
point
is
about
an
eight
percent
solution
on
net
operating
losses
and
tax
credits
that
we
want
to
tighten
up.
B
That's
on
the
revenue
side,
roughly
four
point:
five
billion
dollars
of
the
total
solution,
so
you
had
all
those
numbers
up
you
get
to
a
hundred
percent.
You
had
all
those
numbers
up
what
those
percentages
reflect
and
budget
dollars.
That's
your
fifty
four
point:
three
billion
dollars
of
scaffolding
and
architecture
around
this
budget,
but
let
me
go
back.
I
talked
to
you
about
values.
I
talked
to
you
about
what
we're
protecting
I
want
to
now.
Make
that
visible.
Make
that
real,
not
just
again
rhetorical.
B
When
we
talk
in
terms
of
values
as
I
said,
numbers
change,
values
don't
have
to
values,
remain
the
values
that
not
only
I
ran
on
become
your
governor,
but
I
think
the
values
we
overwhelmingly
hold
dear,
regardless
of
our
political
stripes,
regardless
of
our
time
of
life,
values
that
we
hold
dear
precious
on
the
investment
in
the
future
investment
in
our
children.
You
want
to
look
in
the
eye
of
a
child
to
see
the
mirror,
the
reflection
of
our
capacity
as
a
society.
It's
always
reflected
in
the
eyes
of
young
children.
Right
now.
B
Those
eyes
are
reflecting
back
a
19
billion
dollar
impact
to
proposition
98
in
the
education
sector
and
in
this
budget.
Nineteen
billion
dollars,
but
I
want
you
to
know
that
we
are
not
just
gonna
roll
over
and
accept
19
billion
dollars
of
cuts
to
public
education,
and
let
me
be
specific
and
tell
you
what
I
mean
we're
going
to
use
some
four
point.
Four
billion
dollars
from
the
cares
Act
to
allow
for
real
discretion
in
real
time
and
put
that
money
rather
than
in
the
general
fund.
We're
gonna
put
it
into
public
education.
B
Four
point:
four
billion
to
address
the
issue
of
learning
loss
to
address
the
social
emotional
challenges
that
our
kids
are
facing.
The
trauma
and
stress
their
families
are
facing
because
of
not
only
lost
school
time.
Challenges
with
distance
learning.
But
the
anxiety
induced
this
moment
to
help
with
summer
school
and
to
help
with
the
flexibility
that
the
districts
are
going
to
need
to
consider
on
their
own
and
a
district
by
district
basis.
B
What
they
feel
is
best
for
them
to
address
the
learning
loss,
and
that
includes
possibly
extending
the
school
year,
bringing
that
school
year
later
into
the
some
and
the
like.
But
this
will
be
discretionary
money
to
substantively
address
some
of
the
short-term
anxiety.
That's
four
point:
four
billion
dollars
additional.
Additionally,
we
had
made
commitments.
B
The
top
of
this
I
mentioned
those
commitments
around
paying
down
long-term
pension
obligations,
our
purrs
and
our
stirs
system
we're
going
to
use
one
of
those
payments
that
was
scheduled
to
pay
down
these
pension
obligations,
but
under
the
circumstances
the
immediate
needs
I
think
require
this
of
all
of
us
we're
going
to
use
2.3
billion
dollars
that
was
scheduled
to
be
invested
for
over
a
30-year
period
to
pay
down
pensions
to
address
the
immediacy
of
the
crisis
in
our
public
education
system,
so
4.4
and
another
2.3
billion
dollars.
I
mentioned
net
operating
losses.
B
I
mentioned
tax
credits
about
1.8
billion
dollars
of
that
4.5
billion
revenue
that
would
be
generated
would
go
in
to
that
98
account
also
reducing
the
stress,
there's
an
additional
1.6
billion
dollars
that
comes
independent
of
the
state
contribution
and
in
terms
of
the
cares
Act
that
goes
directly
to
K
through
14
that
money,
1.6
billion
dollars
obviously
also
goes
to
reduce
the
size
of
that
19
billion
dollar
shortfall.
You
start
adding
this
up
now
we're
north
of
10
billion
10.1
billion
dollars
in
terms
of
quicker
solutions
to
other
things
we
are
committing
to
do.
B
The
deferrals
also
are
in
this
category,
which
we
believe
can
help
obviate
some
of
the
stress
related
to
this
system.
There
reserves
that
exist
also
within
the
school
districts
and
there's
this
very
important
point.
We
are
committing
1.5
percent
of
our
general
fund
and
I
know.
This
can
be
very
technical
and
I'm
going
to
lose
90%
of
the
people.
99
percent
of
you
watching
at
home.
We
have
something
called
the
maintenance
factor.
B
There's
a
lot
of
complexities
around
how
proposition
98
was
advanced
to
protect
public
education
funding
and
we
are
obvious
to
those
concerns
and,
as
a
consequence,
we
are
committing
as
a
recommendation
to
the
legislature.
All
of
this,
as
a
recommendation
to
the
legislature,
we
are
committing
to
taking
1.5
percent
of
the
general
fund
averaging
about
two
billion
dollars
a
year,
going
up
to
4.6
billion
dollars
a
year
to
do
a
supplemental
payment
under
prop
98,
so
that
the
cuts
and
by
the
way
the
19
point,
1
billion
annual
eise's
at
about
13
billion
I.
B
You
can
ask
me
a
question
on
that.
I,
don't
want
to
confuse
you,
but
with
these
additional
supports
that
I
mentioned,
and
the
commitment
of
a
supplemental
payment
and
knowing
that
commitment
will
be
made
not
just
advanced
of
a
minimum
and
roughly
two
billion
dollars
a
year,
it
will
communicate
very
clearly
it
should
to
these
districts
that
these
cuts
are
not
permanent
and,
as
a
consequence,
make
decision
making
with
that
mindset.
I
think
a
lot
easier,
more
flexibility
in
that
space.
B
So
when
we
talk
about
values
in
education,
we
mean
it
but
again,
I'm
not
naive.
There
is
a
cut
the
lcff
we're
not
going
to
touch
the
categoricals
or
the
supplementals,
so
we
have
an
equity
lens
in
terms
of
our
approach.
Another
value
we
hold
dear,
but
the
lcff
cuts
of
10
percent
clearly
are
going
to
be
a
challenge
and
we
look
forward
to
working
with
our
district
and
we've
already
been
working
very
closely
with
superintendent
of
public
education,
who
has
been
a
champion
of
putting
front
and
center.
B
These
concerns,
not
only
on
my
desk
about
our
teams
desk
and,
of
course,
Linda
darling-hammond
who's
been
working
overtime
to
help
us
with
these
proposals
as
well.
I
just
want
to
congratulate
and
thank
them
for
all
their
hard
work
and
I
recognize
that
work
is
just
beginning
now
that
the
clarity
in
terms
of
the
may
revise
is
coming
in
to
a
clearer
picture.
Let.
E
B
Just
make
one
final
point
on
education,
I'll,
move
on
to
two
additional
items
and
then
answer
questions
and
then
we'll
have
the
detailed
Buzzle
budget
presentation
by
my
finance
team.
I
care
deeply
about
special
education
and
I
could
not
in
good
conscience,
be
part
of
dismantling
of
a
commitment
we
had
made
well
over
a
year
ago
to
substantially
improve
special
education
in
the
state
of
California.
Nothing
breaks
my
heart
more
than
seeing
people
physical
and
emotional
disabilities
people
you
know
so
often
left
behind
and
forgotten
falling
even
further
behind.
B
We
are
not
even
close
to
where
we
need
to
be
in
terms
of
protecting
those
folks
and,
as
a
consequence,
we're
gonna
analyze
that
645
million
dollar
commitment
for
special
needs
children
and
not
cut
that
in
this
budget
under
prop
98.
Forgive
me
for
that
expression.
It's
personal
expression,
not
just
a
professional
one,
but
it
is
a
point
of
pride
and
privilege
that
at
least
in
this
may
revise
that
I
am
NOT
going
to
make
that
case
that
that
budget
be
dismantled.
B
B
Budget
is
about
dollars
and
cents
makes
sense
to
some
maybe
less
to
others,
but
we
also
have
to
talk
in
terms
of
life
and
death,
and
we've
been
talking
in
terms
of
life
and
death
as
the
first
state
to
do
the
stay-at-home
order
to
take
seriously
this
pandemic
to
flatten
that
curve,
so
it
never
increased.
We
believe
we've
saved
lives.
We
believe
we
protected
the
public
health,
the
people,
the
state
of
California.
B
We
are
proud
in
this
state
to
have
done
more
in
terms
of
expanding
health
care
to
those
without
it
and
deepening
subsidies
for
those
with
it
into
the
middle
class
than
any
state
in
this
country,
and
we're
not
going
to
back
away
from
that
progress.
We
wanted
to
make
more
progress
and
with
the
January
budget,
unfortunately,
that
progress
will
be
delayed,
but
the
foundational
eligibility
and
the
foundational
base
programs
will
not
be
cut.
Let
me
be
specific.
B
We
made
great
progress
last
year
to
deepen
subsidies
for
the
middle
class
people
earning
four
to
six
hundred
percent
of
federal
poverty.
That's
families
earning
up
to
$150,000
in
deepened
subsidies,
no
state
in
America
provided
deeper
subsidies,
any
subsidies
frankly
most
provided
none,
these
kinds
of
subsidies
into
the
middle
class,
we're
not
going
to
walk
away
from
that
program.
Nor
are
we
going
to
dismantle
the
supports
and
eligibility
and
the
expansions
that
we
had
already
put
into
place.
However,
there
are
areas
where
we
clearly
can't
do
what
we
wanted
to
do.
B
Keely,
we'll
talk
a
little
bit
about
that
with
prop
56,
which
may
not
mean
a
lot
to
those
watching.
I
mean
a
lot
more
to
those
that
understand
the
reimbursement
side
of
things
and
some
other
programs
that
clearly
we're
just
not
in
a
position
to
do,
but
those
again
can
be
triggered
immediately
back
with
the
support
of
the
federal
government
and
don't
think
for
a
second
I'm
not
going
to
keep
coming
back
to
that,
including
before
I
end.
This
presentation
so
foundationally
as
it
relates
to
public
health
and
we're
going
to
keep
the
system
intact.
B
Now
I
say
that
not
naively
there
are
areas
where
we're
going
to
have
to
defer
and
there
are
areas
where
we
will
delay
and
there
are
areas
that
are
part
of
that
26
percent
in
cuts,
but
foundationally
in
terms
of
the
eligibility
foundationally.
In
terms
of
those
expansions
we
had
already
put
into
place.
We're
gonna
hold
the
line,
the
subsequent
expansions.
We,
unfortunately,
are
not
in
a
position
to
do
at
this
moment,
so
that's
Public,
Health,
Public
Safety
yesterday
I
laid
out
and
very
detailed
and
prescriptive
terms.
B
The
commitment
we
have
to
public
safety
in
this
state
and
remember
public
safety
for
us
is
broadly
defined.
Certainly
its
police
and
fire
Public
Safety
defined.
Clearly,
by
our
Corrections
system
in
our
reentry
programs
and
the
like,
yesterday,
we
tried
to
break
down
the
concerns
that
many
have
and
express
privately
many
publicly
that
we're
walking
right
back
into
wildfire
season,
and
what
are
we
going
to
do
to
address
wildfires
we're
trying
to
put
out
the
fire
or
the
spread
coronavirus?
B
We
I
think
I
made
clear
to
all
of
you
that
we're
not
walking
back
from
our
responsibility
to
keep
you
safe
to
do
many
things
at
once,
not
just
two
things
at
once.
You
saw
that
there'll
be
enhancements
in
terms
of
the
number
of
cAL
FIRE
personnel.
We
still
don't
have
the
people
and
the
equipment
we
need
in
this
state,
with
the
Hots
getting
so
much
hotter
and
the
drys
getting
so
much
drier
to
address
climate
change
and
address
the
reality
of
of
wildfire
management,
we're
doing
historic
amount
of
vegetation
management
prescribed
burns.
B
We
talked
about
that.
Yesterday.
We
had
35
high-profile
projects,
34
done
the
last
one
will
be
done
in
seven
days
on
highway,
just
off
highway
17.
We
are
continuing
to
do
our
part.
The
investor-owned
utilities,
including
PG&E
having
to
do
their
part
and
I,
highlighted
their
obligations
on
hardening
and
underground
the
work
that
the
Public
Utility
Commission
is
doing
on.
B
Creating
this
whole
new
division
on
wildfire
safety
and
the
commitment
in
this
budget
to
get
that
division
up
we're
not
going
to
delay
that
it's
too
important,
106
individuals
$30,000,000
build
that
division
to
hold
our
investor-owned
utilities,
accountable,
PG&E,
included
to
making
sure
they're
keeping
you
safe
and
mitigating
the
concerns
around
these
power
shut
offs,
the
PS
PS.
So
we
we
put
out
all
of
that
yesterday.
It's
a
point
that
we
are
emphasizing
here
today.
B
Public
safety
includes
protecting
people
from
wildfires
and
know
that
we
have
now
a
more
robust
capacity
to
do
it
than
even
a
year
ago.
Still
a
lot
of
work
to
do.
In
this
space.
Closing
we
talked
about
people,
people
being
hit
the
hardest
by
kovat,
19
and
I
just
want
to
again
make
this
point.
I
talked
in
terms
of
a
state
budget
where
people
obviously
are
dealing
with
different
challenges,
as
it
relates
to
their
own
personal
finances.
B
The
reality
at
the
end
of
the
day
is
we
need
to
do
more
to
help
individuals
that
are
struggling
and
in
need.
We
talked
about
unemployment,
insurance,
4.6
million
people
that
tragically
have
found
it
necessary
to
have
unemployment
insurance.
Three
point:
well,
forgive
me.
Those
numbers
reflect
a
substantial
increase
again
versus
what
we've
seen
in
the
past
that
require
of
us
a
responsibility
to
meet
the
needs,
not
just
in
the
short
run,
but
the
long
run.
B
Working
poor
people
struggling
to
get
into
the
middle
class
and
I
believe
it's
incumbent
upon
us
from
any
from
a
moral
and
ethical,
but
also
an
economic
paradigm,
to
continue
to
support
that
program
without
any
cuts
we
also
and
that
by
the
way,
provides
up
to
$1,000
for
individuals
with
children
under
the
age
of
six.
We
are
committing
to
doubling
down
on
that
cause.
Accordingly,
we
want
folks
to
know
that
we're
not
going
to
touch
the
grant
enhancements
for
CalWORKs.
We
worked
hard
with
again
Senate
leaders,
assembly
leaders
to
increase
Cal
Grant
supports.
B
We're
gonna
protect
people
protect
the
PUA
program,
protect
the
unemployment
insurance
program,
protect
the
CalWORKs
program,
protect
the
ability
to
do
more
on
AITC,
and
so
we
want
to
advance
those
in
a
very
public
way
and
also
remind
people
we're
not
going
to
touch
the
Cal
Grant
program
either
we
did
enhancements
for
mothers,
fathers
with
kids
that
wanted
to
go
back
to
school.
There
was
some
conversation
about
pulling
back
that
program.
B
B
In
the
state
of
California
I
know,
this
is
the
last
thing
that
our
partners
want
to
hear,
but
unfortunately
we're
in
a
position
where
it's
required
of
all
of
us
and
by
the
way,
including
me
and
including
my
entire
staff,
we're
looking
for
additional
5%
efficiencies
in
sectors
of
government
across
the
board.
One
thing
about
this
pandemic
is
that
it's
opened
our
eyes
to
possibilities
that
we
may
never
have
seen
even
three
or
four
months
ago
we
talked
about
work.
B
B
Just
thinking
of
the
DMV
just
the
DMV
alone,
we
estimate
97%
of
the
transactions
are
virtual
now
in
the
DMV,
the
ability
to
reimagine
the
DMV
conversations
that
we've
had
for
years
and
years
now,
with
the
Zen
Buddhist
beginner's
mind,
you
start
to
think
anew
about
how
we
can
advance
those
reforms
and
do
things
a
little
bit
differently.
You
still
need
the
field
offices,
but
we
can
do
a
lot
of
the
work
very
differently
than
we
have
in
the
past.
B
B
These
present
themselves
as
opportunities
also
challenges,
because
change
is
difficult
and
I
recognize
that,
but
we
are
committed
to
advancing
that
change.
We
are
committed
to
being
more
efficient
and
more
effective
as
we
move
through
this,
as
well
so
across
the
spectrum
we're
trying
to
meet
this
moment.
As
so
many
of
you
are
compelled
to
meet
this
moment
in
your
private
lives.
We
are
committed
to
advancing
our
values
and
we
recognize
these
cuts
are
devastating
to
so
many
people.
B
None
of
us
are
naive
about
the
challenges
in
front
of
us
and
I
just
want
to
extend
a
point
of
personal
privilege
and
appreciation
to
the
legislature.
They're
back
in
session.
We
have
a
very
short
period
of
time
to
make
very
difficult
decisions,
work
together
in
a
collaborative
spirit
and
I
want
them
to
know.
I
want
you
to
know
of
my
commitment
to
them
again,
not
to
be
an
ideologue
to
be
open
to
argument
in
and
different
approaches,
different
strategies.
B
B
Let
me
thank
them
in
advance
for
their
contribution
to
this
process
again,
a
very
short
period
of
time,
enormous
amount
at
stake,
a
multi-year
approach
and
we'll
get
through
this,
and
we
will
get
through
it
and
we
will
get
through
it
stronger,
more
nimble,
more
capable
more
resilient
than
ever.
We
are
not
in
a
permanent
state.
B
We
are
in
a
state
of
constant
re-imagination
and
I
couldn't
be
more
proud
to
be
governor
of
a
state
that
prides
itself
on
reinventing
itself
and
reimagining
the
future,
not
just
re,
imagining
the
future
manifesting
a
brighter
future,
one
where
we're
not
just
growing,
but
one
where
we're
growing
together,
and
in
that
spirit
of
growth
and
inclusion
and
health.
We
submit
this
budget,
and
we
do
so
final
words
with
a
recognition
that
the
enormity
of
task
at
hand
cannot
just
be
borne
by
a
state.
B
The
federal
government
has
a
moral
and
ethical
and
economic
obligation
to
help
support
the
states.
After
all,
what
is
the
point
of
government,
if
not
to
protect
people,
their
safety
and
the
well-being
of
citizens?
This
is
an
opportunity
to
make
real
our
purpose
and
advance
our
values.
It
is
not
just
the
state
of
California
and
its
governor
that
is
making
an
announcement
along
these
lines,
its
governor's
all
across
this
country,
the
federal
government
we
need
you.
These
cuts
can
be
negated.
B
They
can't
be
dismissed
with
your
support.
This
is
your
moment.
I
want
to
thank
again
credible
leadership
of
Nancy
Pelosi
and
I,
encourage
my
Republican
friends,
those
on
the
other
aisle
in
the
Senate
to
help
support
the
state's
help,
support
the
cities,
help
support
counties,
help
support
America
and
Americans.
The
hero.
Act
is
the
best
approach.
B
Everything
is
negotiable.
I'm
not
naive
about
that,
but
the
opportunity
to
move
forward
and
to
make
real
the
values
at
a
federal
level
will
help
us
make
real
and
visible
the
values
here
at
a
state
and
local
level.
You
want
to
protect
firefighters,
support
that
effort.
You
want
to
protect
our
police
officers
and
sheriff's
protect
them.
By
supporting
that
effort,
you
want
to
protect
our
nurses
and
doctors
protect
them
by
supporting
those
efforts
at
the
federal
level
you
want
to
protect
our
kids
and
our
teachers,
our
teachers,
let's
support
what
Nancy
Pelosi
is
doing.
B
Let's
support
that
federal
appropriation
and
if
we
do
that,
we'll
soften
the
blow
and
give
us
that
pathway
to
get
back
on
our
feet,
much
quicker
and
help
grow
and
once
again
support
the
economy
as
we
have
supported
the
recovery
of
this
nation
more
than
any
other
state
over
the
last
decade.
Thank
you
now
I'm
happy
to
take
any
questions.
Hi.
F
Governor
public
health
officials
on
the
front
line
of
this
pandemic
say
despite
the
deficit,
it's
imperative
to
invest
millions
more
in
ongoing
public
health
funding
for
across
California
they're,
asking
specifically
for
a
hundred
and
fifty
million
ongoing
annual
money,
and
it
looks
like
your
budget
has
of
a
small
fraction
of
that
about
four
point.
Eight
million,
so
there's
big
concern
that,
without
a
greater
investment,
the
state
will
be
ill-prepared
not
only
in
the
coming
months,
but
for
the
next
disaster.
The
next
crisis
that
the
state
can't
anticipate.
So
are
you
open
to
that
conversation?
B
Government
support
the
heroes,
Act
Nancy
Pelosi,
let's
put
out
a
pathway,
a
strategy,
help
support
half
a
trillion
dollars
states
to
help
support
with
close
to
half
a
trillion
dollars,
cities
and
counties
that
substantially
answer
that
question
very
specifically,
state
of
California
as
large
as
we
are
nation's
fifth
largest
economy.
We
came
into
this
three
point:
one
trillion
dollars:
output
simply
cannot
do
all
that
is
needed
at
this
moment
we
need
the
federal
government.
F
A
few
months
ago,
you
were
very
excited
about
a
historic
investment
and
transforming
the
state's
medical
program
and
investing
a
large
amount
of
money
and
combating
homelessness,
expanding
behavioral
health,
mental
health
care
and
I.
See
in
your
budget
that
you're
still
you're
looks
like
you're.
Postponing
the
Cal
aim
initiative.
Can
you
specifically
explain
what
so
it's
a?
Is
the
state
still
pursuing
the
federal
waivers
that
are
critical
to
that
effort?
What
is
going
forward
and
what's
on
the
back
burner
for
now
la.
B
Me
forgive
folks
and
wondering
what
it
what
are
we
talking
about?
It
was
a
695
million
dollar
proposal
worked
on
it
for
about
a
year
was
a
centerpiece
of
my
state
of
the
state.
This
is
one
of
the
proposals
in
the
January
budget
that
we
have
to
pull
back.
It's
just
the
reality
of
the
moment.
That
said,
it's
also
one
of
the
proposals
that's
triggered.
B
B
I
just
got
here.
It
feels
like
years,
but
it's
been
less
than
a
year
and
a
half
as
your
governor
next
few
years,
I
hope
be
back
in
a
position
where
not
only
we
get
the
federal
support,
we
can
jumpstart
those
efforts,
so
we're
not
gonna
walk
away
from
them.
Still
enormous
amount
of
work
will
be
done
on
them,
but
without,
unfortunately,
the
kind
of
resources
that
would
have
helped
compel
them
further
and
faster.
That
said,
that
was
a
19-15
be
waiver.
B
You
asked
a
specific
question:
we
will
yes
pursue
our
traditional
1335
1115
waivers,
forgive
me
which
one
is
relevant
in
that
case,
but
we
will
continue
to
pursue
waivers
and
the
more
traditional
type
under
the
whole
person
care
construct
again.
That
may
mean
something
to
a
few
folks.
Most
of
you
may
be
more
confused
by
that,
except
to
say,
we
will
continue
to
move
forward
to
do
justice
to
those
base
programs
protect
those
base
programs
and
protect
those
most
vulnerable.
B
I
want
to
continue
to
reinforce
we're,
not
walking
away
from
our
commitments
to
reform
our
health
care
delivery
system
to
do
more
on
prescription
drugs
to
draw
down
cost
as
a
single
purchaser
leveraging
our
purchasing
power
continuing
to
do
more
to
integrate
behavioral
health
and
brain
health
even
and
physical
health.
Even
if
we
don't
have
the
capacity
under
kalium
there's
still
a
lot
in
that
reform
space
that
we're
not
walking
away
from.
G
Yeah,
governor
Jeremy
white
with
Politico,
can
you
hear
me
through
the
mask
great,
so
assembly
budget
leadership
has
suggested
they
may
need
to
seek
new
revenue
this
year?
A
lot
of
local
leaders,
the
mayor
of
San,
Francisco
and
others
are
really
looking
to
this
split
role,
ballot
proposition
to
help
them
stave
off,
potentially
the
worst
in
cuts
to
local
services.
B
Yeah
we're
look.
There
are
many
many
different
proposals
out
there.
That
is
perhaps
the
most
important
of
all
the
proposals
and
obviously
it's
the
proposal
that
marks
consideration
of
everything
else
that
is
being
advanced,
so
I'm,
very
mindful
of
that.
Not
surprisingly,
but
I'm
also
mindful
of
this
moment,
to
consider
all
the
other
proposals
in
and
around
that
proposal
that
are
coming
to
the
fore,
including
in
multiple
proposals
that
came
out
of
the
Senate
just
a
few
days
ago.
B
Others
some
of
the
leaders
that
have
ideas
and
then
economic
recovery
task
force's,
large
and
small
ours,
as
well
as
local
and
regional
task
forces
that
have
their
own
ideas.
In
that
space,
we
made
it
very
clear.
Take
a
look
at
the
introductory
letter
in
the
May
revise
that
I,
provided
that
we
are
considering
a
revenue,
acceleration
strategies,
we're
considering
other
approaches,
including
other
revenue
strategies,
but
all
of
that
has
to
be
put
in
context
and
all
I
ask
to
be
considered
against
proposals
that
are
currently
on
the
table
so
answers.
B
H
Could
you
there's
been
a
lot
of
different
categories
of
cuts
and
categories
of
funding,
and
so
could
you
just
please
detail
what
are
some
of
the
highlights
of
the
things
that
are
in
the
category
that
could
be
reversed
through
the
federal
action
you're
talking
about,
and
then
how
would
you
respond
to
criticism
that
that's
basically
playing
politics
with
those
people
who
would
benefit
from
those
services
by
making
them
subject
to
these?
This
leveraging
of
the
federal
government
I'd.
B
Rather,
give
people
the
hope
that
we
care
enough
about
these
programs
that
we're
not
going
to
cut
them
without
considering
ways
of
obviating
the
need
to
cut
them.
I,
don't
know,
that's
anything
but
principle,
and
the
extent
that
we've
done
that
for
26
percent
of
the
budget
solutions
we
have,
but
not
every
single
thing.
It's
in
that
category.
B
Cal
aim
is
one
of
them
they're
in
the
category,
a
lot
of
work
that
we
want
to
do,
and
criminal
justice
reforms
and
that
kind,
their
series
of
things
and
you're
gonna
have
the
opportunity
to
go
through
every
single
line
item
in
detail.
In
a
moment
when
Kili
comes
up
with
her
presentation
but
I
think
under
the
circumstances,
it's
appropriate
considering
the
magnitude
of
this
shortfall
and
having
a
trigger
language
that
again
is
written
into
the
budget.
Act
I
I
hope
gives
people
some
optimism
and
hope
same
time.
It's
a
balanced
budget
constitutionally.
D
You've
got
her.
This
is
adam
beam
with
The
Associated
Press.
Your
Medicaid
medical
budget
includes
eliminating
a
proposal
that
would
give
expand
coverage
to
sick
people.
65
and
older
living
in
the
country
illegally
would
also
eliminate
expansion
of
some
of
the
disabled
residents,
but
between
123
to
138
percent
of
poverty
was
just
curious.
How
you
justify
these
cuts
in
the
middle
of
a
pandemic,
including
you
know,
given
that
these
are
some
vulnerable
populations.
Well,.
B
B
That
I
announced
at
least
my
support
and
intention
in
January
that,
unfortunately,
we're
not
in
a
position
at
this
time
to
advance
the
core
programs
in
the
Medicaid
programs,
those
expansions
that
were
well
underway,
the
work
we
did
to
put
back
the
core
construct
of
the
Affordable
Care
Act
the
work
we
did
during
this
pandemic,
with
credible
leadership,
repeatedly
to
expand
number
of
people
that
have
enrolled
on
to
cover
California.
That
foundationally
will
continue
and
we're
proud
of
that,
and
we
believe
that
is
absolutely
justifiable.
E
Governor
john
mayer,
small
Los,
Angeles
Times,
a
couple
of
things
really
quickly:
I
want
to
clarify
on
the
school
funding.
It's
a
pretty
substantial,
quite
substantial
cut
in
prop
98
funding
from
what
you
envisioned
in
January
and
it
looks
like
you
are
not
funding
schools
in
the
2021
budget
year,
the
one
that
you're
rolling
out
at
a
level
that
even
they
thought
would
maintain
current
services
and
some
of
the
early
reaction
is
that
cuts
of
these
magnitude
simply
won't
let
schools
reopen
under
the
conditions
that
exist.
What
do
you
say
to
fear?
Well,.
B
I
say:
there's
been
a
pandemic
that
is
precipitated
in
a
twenty-two
point:
three
percent
reduction
in
revenue
just
over
a
hundred
days,
completely
unanticipated
I,
say
to
them,
and
none
of
us
expected
this
moment.
As
you
know,
Jonah
announced
and
I
believe
it
was
here
in
January,
a
record
investment
in
public
education.
That
was
the
budget
I
put
forward.
You
are
correct.
The
budget
Act
last
year
was
eighty
1.1
billion
dollars.
B
The
current
projected
investment
in
that
budget
is
seventy
point,
five
billion
dollars
that
represents
about
a
thirteen
percent
decline
from
what
was
approved
in
the
Budget
Act.
So
when
no
one's
been
hiding
that
it's
a
very
challenging
moment
and
that's
why
I
want
folks
to
know
that
we're
using
Care
Act
dollars
that
gives
the
state
discretion
and
putting
4.4
billion
dollars
into
our
education
system?
B
To
answer
the
concern
that
you
highlighted
specifically
to
provide
flexibility
and
to
provide
funding
that
directly
can
address
learning
loss
and
provide
the
kind
of
flexibility
through
the
summer
and
fall
that
can
meet
the
needs
of
the
system.
As
we
work
together
to
address
the
need
to
get
the
federal
government
to
continue
to
do
more.
For
education,
not
just
here
in
the
state
but
across
the
country.
Could.
E
I
ask
you
just
in
terms
of
your
revenue
projections.
What
is
your
team
telling
you
about
how
much
worse
this
could
be.
There's
a
lot
of
discussion.
You
know
the
LA
o
is
talked
about
a
u-shaped
curve
or
an
L
shaped
curve.
There's
a
lot
of
discussion.
It
could
be
worse
than
maybe
what
you're,
assuming
what's
the
what's
the
outlier
I
mean?
Is
there
the
potential
for
significantly
their
pain?
I
know
the
answer
to
that
is
yes.
Well?
What
can
you
tell
us
about
what
they've
been
telling
you
I
mean.
B
It
certainly
is
yes,
we're
very
sober
about
all
this
by
the
way,
I
should
just
note,
as
of
today,
19
counties
have
self
attested.
The
attestations
are
up
and
those
counties
19
now
are
moving
deeper
into
the
second
phase
and
reopening
large
sectors
of
their
economy.
I'll
remind
people
that
70%
plus
the
economy
in
many
parts
of
the
state
now
reopened
manufacturing
warehousing
logistics
in
very
large
number
of
places,
now
back
operational
again
conditioned
on
modifications,
no
one's
naive
about
that.
So
we're
doing
what
we
can
to
move
forward
as
we
committed
in
that
space.
B
That
said,
these
unemployment
numbers
are
jaw-dropping
and
you'll
see
some
numbers
that
we
put
forward
in
the
budget
presentation
or
the
budget
package
that
we
provided
you
in
materials.
We
present
it
that
the
show,
if
the
economic
conditions
do
not
improve
possibility
of
seeing
north
of
30
percent
unemployment
presents
itself
as
an
outlier
prospect.
So
that's
specific
example
of
what
I've
been
told
and
I'm
sharing
very
formally
with
the
public
in
terms
of
the
economic
consequences
that
we're
all
facing
across
this
country.
B
You
saw
the
new
unemployment
numbers
that
just
came
out
nationally
and
those
still
lag.
Those
numbers
just
reinforce.
This
is
not
spared
any
of
us
in
any
part
of
the
country.
The
concern
we
all
have
is
reopening
doesn't
mean
much
if
customers
don't
feel
safe
and
customers
aren't
ready
to
spend
again
and
that's
why
this
is
a
very
stubborn
reality
that
we
are
living
through
and
that's
why
we
have
to
be
always
mindful
of
health
and
the
economy,
not
health
or
the
economy,
health
and
the
economy.
The
sooner
we
can
make
people
feel
healthier.
B
The
sooner
our
economy
will
start
opening
up
at
full
throttle,
not
just
modest
phase,
and
so
that's
my
hope
and
expectation
that
we
could
continue
to
tame
the
spread,
suppress
the
spread.
I
should
note
that
we
saw
2.2
percent
reduction
yesterday
in
ICUs
we
saw,
unfortunately,
a
1.2
percent
increase,
modest
increase
in
hospitalizations.
Forgive
me,
those
two
numbers
are
flipped,
but
you
get
the
sense
again
we're
within
that
margin
sort
of
bouncing
around
stable,
but
still
not
where
we
need
to
be
over
2,000
a
dish.
People
tested
positive
yesterday
as
well.
B
I
Governor
Nicole
Nixon
with
cap
radio,
some
Republican
senators
have
indicated
that
the
heroes
Act
is
essentially
a
non-starter
given
the
price
tag.
So
should
speaker
Pelosi,
propose
or
negotiate
a
smaller
relief
package?
Isn't
it
better
for
states
to
get
less
than
what's
proposed
than
nothing
at
all?
You're.
B
But
she's
also
I
thought
very
forthright
and
honest
when
she
says
the
costs
of
not
doing
something
will
bear
out
a
longer
economic
pain,
longer-term,
recession
and
suffering,
and
the
biggest
mistake
we
can
make
is
not
taking
seriously
this
moment
and
magnify
the
opportunity
to
mitigate
this
moment
by
diminishing
the
time
to
getting
back
on
our
feet
by
focusing
on
the
needs
of
getting
our
cities
in
our
states
going
again.
What
is
the
national
economy
if
nothing
more
than
the
sum
total
of
state
and
local
economies?
J
Governor
Sophia
Bullock
here
from
the
Sacramento
Bee
on
the
topic
of
the
increased
costs
in
this
may
revision
related
to
kovat
19
use
the
last
week
that
you
were
going
to
direct
your
state
agencies
to
expedite
releasing
the
contracts
that
outline
those
costs.
But
my
colleagues
and
I
still
have
not
gotten
many
of
the
ones
we've
requested.
We've
been
directed
to
go
through
Public
Records
Act
requests
what
you're
taking
weeks?
Let's.
B
K
Governor
Katie
Orr
KQED
news,
two
questions
for
you,
one
a
process:
question:
are
you
anticipating
having
another
budget
process
in
August?
Actually
after
we
actually
get
our
tax
revenues
in
from
the
July
15th
tax
deadline
and
also
on
Environmental
Protection?
Can
you
comment
on
that?
You've
had
to
make
some
cuts
in
that
area,
and
it
comes
at
a
time
when
federal
support
is
basically
absent
for
those
and
a
lot
of
people
are
looking
to
California
as
a
leader
in
that
area.
B
So
it
goes
deep
into
that
zygous
of
the
frame
of
of
California
doing
more
in
this
space
and
continue
to
protect
and
preserve
our
gains
in
this
space.
As
we
continue
to
litigate
and
win
overwhelmingly
in
the
court
of
law,
including
a
big
victory
last
week,
and
so
look
we
we
can
do
as
much
as
we
can
like
to
be
able
to
do
more,
but
foundationally
I
think
we've
done
justice
in
this
budget
in
terms
of
protecting
those
core
regulatory
constructs.
As
we
can.
B
C
Hi,
governor
Alexi
Cosette
from
the
San
Francisco
Chronicle,
your
budget
proposal
mentions
trying
to
save
money
by
closing
two
state
prisons
over
the
next
two
years.
Has
your
staff
identified,
which
sites
those
would
be
and
are
you
expecting
a
permanent
reduction
to
to
prison
population
levels
because
of
something
that's
occurred
during
this
pandemic?
No.
B
No
there's
anything
specific
outside
of
this
pandemic
specific
in
terms
of
the
permanent
reduction
we'll
see.
That's
it's
a
fluid
and
dynamic,
as
it
relates
to
the
intake
and
number
of
people
in
and
out
of
the
system.
Look.
It's
relates
to
the
prisons.
I
made
a
commitment
when
I
ran
for
office.
I
made
a
commitment.
Last
year,
I
made
commitment
again
in
the
January
budget.
That's
my
intention
to
shut
down
state
prison
to
continue
to
invest
more
and
more
in
education.
B
It's
a
core
value
back
to
that
value
statement
and
the
value
slide
that
we
advanced
we're
not
walking
away
from
that.
In
this
budget
we
haven't
made
the
determination
of
the
specific
sites
and
and
respectfully
if
we
had
I
caution,
those
that
want
to
highlight
that
it
becomes
very
difficult.
If
you
do
make
that
determination
to
make
it
public
to
recruit,
retain
personnel
at
that
site,
it
could
create
all
kinds
of
problems
and
so
I
caution,
people
to
even
those
that
speculate.
B
One
thing
I
have,
though,
made
is
determination
not
just
to
shut
down
those
prisons,
but
I
also
have
committed
to
working
or
their
prison
guards,
unions
and
others
on
the
reforms
that
we
laid
out
in
January
and
I
want
folks
to
know
we're
not
walking
away
from
those
reforms,
specifically
as
it
relates
to
reimagining
one
of
our
state
prisons
and
making
it
a
world-class
second
to
none
example
of
Rehabilitation
at
scale.
There
was
a
specific
proposal
I
laid
out
in
the
January
budget.
We
are
committing
ourselves
and
I'm
hopeful.
B
We'll
have
concurrence
with
the
legislature
to
advance
that
proposal.
I
think
it's
incumbent
upon
us
to
do
more
and
better
in
the
rehabilitative
space
and
we've
had
a
wonderful
collaboration
with
the
leadership
of
the
Union,
that's
willing
to
work
with
us.
We
still
have
a
lot
of
issues
in
this
space
and
I
don't
want
that
momentum
to
go
away,
and
so
we
want
to
commit
to
advancing
that
and
that's
not
that's
not
going
to
be
deviated
from,
at
least
and
in
the
context
of
the
presentation
and
the
proposals
were
putting
forth
to
the
legislature.
B
Look
I
spoken
enough.
I'm
grateful
for
all
the
questions,
I
grateful
for
any
of
you
that
are
stuck
through
this
presentation.
You're
still
with
us,
I
again
want
to
just
express
my
deep,
deep
appreciation
to
the
people
of
the
state
of
California
and
also
just
express
my
deep
respect
for
the
struggles
for
all
that
you
are
asked
to
do
and
are
working
through
at
this
moment.
B
It
is
my
responsibility:
it's
the
governor,
the
state
of
California,
to
submit
a
balanced
budget,
but
I
do
so
soberly
with
a
recognition
not
only
of
the
impact
this
budget
on
the
lives
of
those
that
otherwise
would
be
beneficiary
the
budget,
but
an
impact
in
terms
of
getting
this
economy
moving
again.
One
thing
we
did
not
highlight
in
this
budget
is
our
commitment
to
small
business,
our
commitment
to
providing
more
loans
and
more
resources
to
minority
women-owned
businesses
that
otherwise
fall
through
the
cracks
on
SBA
loans.
B
In
the
PPP
program,
we
are
committed
in
parallel
to
working
with
the
legislature
to
fast-tracking
bonds
that
have
been
approved
but
haven't
been
sold
to
strategically
align
those
bonds
to
transportation,
investments
and
work
regions
to
region
to
work
locally
to
amplify
their
effort.
It's
from
an
economic
recovery
of
perspective,
I've
got
a
wonderful
taskforce,
that's
coming
out
with
advice
and
coming
out
with
recommendations
on
a
consistent
basis.
B
That
will
also
be
part
of
the
conversation
as
we
move
this
budget
forward
and
clearly
it
was
part
of
the
conversation
that
the
Senate
was
having
with
their
presentation.
I
know
the
assembly
is
doing
the
same,
and
so
it's
a
way
of
saying
this.
We
want
everybody
come
together.
We
want
everybody
in
the
spirit
of
collaboration
of
cooperation,
put
their
ideas
on
the
table
and
know
that
we're
not
going
to
dismiss
any
idea
out
of
hand.
We
want
to
be
able
to
be
considerate,
thoughtful
and
collaborative.
That's
my
commitment
to
legislature.
B
C
B
Any
nation,
it's
a
global
pandemic
that
GDP
number
I
showed
you.
We
have
never
seen
anything
like
that
in
our
lifetime.
The
conditions
that
have
presented
themselves,
because
this
health
crisis
have
manifested
in
this
economic
crisis.
The
magnitude
of
what
we
are
asked
to
do
is
very,
very
significant,
and
that's
why
the
federal
government
is
so
important
foundationally.
That's
the
purpose
of
the
federal
government,
protect
us
public
safety
and
protect
the
well-being
of
people,
individuals
of
seeing
their
savings.
B
Depleted
they've
seen
their
credit
rating
torn
apart,
we're
doing
our
best
to
help
support
people
in
need,
but
we
now
need
the
federal
government
to
help
support
not
only
a
state
of
California
but
other
states
across
this
country.
If
they
do,
if
they
meet
that
moment,
we
will
be
able
to
significantly
reduce
the
stress
and
the
anxiety
that
many
are
feeling
individually
and
those
that
have
the
benefit
of
supports
from
the
state,
and
we
are
hopeful
that
that
will
be
a
successful
endeavor,
even
one
as
challenging
as
the
one
the
speaker
has
put
forward.
B
This
is
a
multi-year
respond
ability.
We
can't
solve
everything
overnight
without
catastrophic
cuts
that
are
simply
too
much
to
bear,
but
we
have
put
out
a
blueprint
to
balance
a
budget
this
year
and
to
strategically
move
forward
collaboratively
to
utilize
our
reserves
utilize
our
capacity
to
deliver
a
very
thoughtful
multi-year
strategy
to
get
this
economy
back
on
its
feet
and
to
help
obviously
get
this
budget
back
in
to
the
category
where
we
left
off
as
early
as
January.
B
So
with
that,
I
will
leave
you
with
a
more
capable
budget
hand,
and
that
is
Keely
Bowser,
who
runs
our
finance
team
and
I
would
be
remiss
if
I
did
not
just
thank
her
and
thank
her
credibly,
talented
team.
There's
nothing
more
challenging
for
people
doing
this
kind
of
work
than
figuring
out.
What
is
the
best
approach?
None
of
them
are
enthusiastic
about
every
decision
that's
been
made
because
they
recognize
the
people
behind
the
numbers,
but
I
think
they've
done
a
magnificent
job,
always
with
the
eye
of
equity.
B
The
lens
protecting
the
most
vulnerable
to
put
out
a
blueprint.
Today
and
again,
their
values
speak
loudly
and
clearly
and
I
just
want
you
to
know
the
value
I
have
in
Keeley's
leadership
and
our
team's
leadership
and
I
want
to
thank
them
for
the
incredible
incredible
work,
they've
done
to
date
and
all
the
hard
work
we
have
to
Google
together
before
July
1st.
With
that
ask
my
finance
director
to
come
up.
L
Good
afternoon,
that's
the
pleasure
to
be
here
with
you
today.
I
first
wanted
to
thank
I,
wouldn't
want
to
thank
the
governor
for
that
very
gracious.
Thank
you
and
I
also
want
to
give
a
second
thanks
to
my
team,
at
the
Department
of
Finance,
putting
together
a
budget.
That's
really
so
radically
changed
from
our
January
outlook
and
under
far
different
conditions.
That
I
know
we're
all
faced
with
right
now,
given
the
pandemic,
I
was
going
to
go
ahead
and
I
was
advised
to
say
to
the
the
press
corps.
L
That's
here
today
that
we're
gonna
go
in
the
same
order,
but
I
was
going
to
go
into
more
detail
about.
What's
in
the
trigger
reductions,
I
think
that's
probably
one
of
the
areas
you're
gonna
want
to
understand.
Better
I
I
can
go
into
more
detail
about
the
pull
backs
or
the
the
canceled
expansions
as
well.
Those
are
a
little
bit
more
self-evident.
There's
a
lot
of
new
expanded
programs
that
were
proposed
in
January
and
across-the-board.
Those
are
for
the
most
part
pulled
back,
but
I
will
go.
I
will
start
with
actually
with
education.
L
Which
the
governor
did
go
through
quite
a
bit,
so
I'll
spend
less
time
here,
but
I
just
wanna
highlight
that
it's
equates
the
the
funding
at
the
the
constitutionally
required
level
does
end
up
with
a
15
point:
1
billion
dollar
funding
shortfall
that
that
needs
to
be
solved
for,
and
so
that
is
done
through
a
variety
of
things
we
talked
about.
The
governor
talked
about
the
deferrals,
but
also
we
are
proposing
a
10%
across-the-board
reduction
to
the
local
control
funding
formula
and,
in
addition,
there's
about
a
reduction
to
the
categorical
programs.
L
Excluding
special
ed
special
ed
is
prioritized
of
about
three
hundred
and
fifty
three
million.
There
is
also
did
the
deferrals
so
that
that's
those
are
the
the
main
categories
there,
as
well
as
the
use
of
the
public
safety
of
the
public
schools.
Stabilization
account
as
well
I'm
going
and
then,
in
addition
to
help
to
offset
the
impacts
of
that
reduction,
that
15
point
1
billion
dollar
reduction.
We
have
4.4
billion
in
federal
funds
that
are
discretionary.
L
The
governor
could
direct
that
we're
sending
for
learning
loss
and
mitigation.
2.3
billion
I
think
there
was
some
confusion
about
the
CalSTRS
and
CalPERS.
This
is
the
2.3.
That's
remaining
of
the
three
point:
1
5
billion,
which
was
a
supplemental
payment
that
the
state
made
on
behalf
of
school
districts.
L
Two
point:
three
billion
is
remaining
that
was
planned
to
be
used
for
reducing
long
term
liabilities,
given
the
significant
shortfall
we're
proposing
to
redirect
that
supplemental
payment
to
help
alleviate
school
budgets
in
the
budget
year
and
budget
year
plus
one,
and
we
actually
split
that
2.3
billion
over
the
two
years
about
a
billion
being
used
in
the
budget
year
to
reduce
payments
that
that
the
school
districts
have
to
make
to
person
stores.
So
there's
no
change
in
the
obligation
of
the
underlying
payments.
L
L
The
share
of
funding
to
prop
98
would
increase
to
40%
of
the
state's
general
fund
talk
just
a
little
bit
about
higher
education.
Obviously,
in
January,
we've
proposed
5%
augmentations
to
both
of
the
segments.
Those
have
been
pulled
back
and
we
are
proposing
in
the
trigger.
If
federal
funds
are
not
not
provided
an
additional
10%
base
cut
to
both
UC
and
you,
the
community
colleges
would
also
see
a
10%
reduction
within
proposition
98
to
the
student
centered
funding
formula
that
represents
about
593
million.
L
The
priority
in
higher
education
was
to
preserve
the
eligibility
in
the
Cal
Grant
program
so
that
those
people
who
are
out
of
work
can
go
back
to
college.
We
are
also
planning
to
work
with
all
of
the
higher
segments
higher
education
segments
on
really
capitalizing
on
all
of
the
good
work.
That's
been
happening
at
all
the
segments
in
distance
learning
and
really
perfecting
and
experimenting
with
new
ways
to
do
that.
L
There's
also
going
to
be
a
need
to
continue
to
work
on
distance
learning,
to
improve
rescaling
and
Retraining
individuals
as
changes,
the
composition
of
jobs
change
over
the
next
coming
years,
and
we'll
be
working
with
the
segment's
to
do
that
as
well.
In
the
Health
and
Human
Services
area,
as
the
governor
very
clearly
emphasized,
and
we
are
prioritizing
maintaining
eligibility
for
all
of
our
major
major
entitlement
programs.
We
are
also
preserving
the
the
grant
levels
at
their
current
levels
for
CalWORKs
and
SSI
ssp.
L
Some
of
the
reductions
I'm
going
to
highlight
that
are
in
the
trigger
again.
These
are
all
subject
to
you
know
would
be
only
implemented
if
additional
federal
funds
are
not
provided
are
eliminating
a
number
of
optional
benefits
in
the
medical
program,
and
this
includes
community
based
adult
services,
as
well
as
reducing
adult
dental
from
its
full
optional
benefit
to
the
partial
dental
benefit
as
well.
We
are
also
proposing
to
redirect
the
proposition
56
revenues
that
have
been
used
for
the
last
couple
years
for
supplemental
payments
to
providers.
L
We
are
now
proposing
to
withdraw
those
and
and
and
fund
medical
growth
directly,
and
so
that's
an
additional
1.2
billion
less
for
supplemental
payments
in
the
area
of
CalWORKs
the
priority
that
this
is
an
area
of
the
budget
where
there's
a
significant
increase
in
caseload,
which
is
exactly
how
it's
supposed
to
work.
Our
our
TANF
program
is,
is
still
designed
to
work
to
to
adjust
to
the
economic
conditions
and
the
needs
of
people
and
so
I
would,
but
because
of
the
we
wanted
to
maintain
the
grant
levels.
L
At
the
current
level,
there
is
a
significant
reduction
to
employment
services
and
childcare
and
subsidized
employment,
which
are
all
services
that
are
funded
that
have
been
funded
to
support
a
person's
on
CalWORKs,
getting
back
to
work
in
the
area
of
in-home
supportive
services
in
the
trigger.
There
is
a
7%
reduction
in
service
hours
to
IHSS
recipients,
again
maintaining
eligibility
in
the
medical
and
IHSS
program.
It
was
the
priority
on
SSI
ssp.
L
In
the
area
of
Corrections,
we
talked
a
little
bit
about
closing
two
prisons
that
that
is
what
our
current
estimates
of
population
will
allow.
The
the
budget
maintains
rehabilitative
programs
in
the
governor's
budget.
It
does
pull
back
the
expansions
that
were
proposed
in
January,
but
the
base
rehabilitative
programs
are
maintained
and
we're
also
proposing
some
efficiencies
within
the
prison
that
will
that
will
achieve
additional
savings,
including
reducing
the
time
it
takes
for
the
prison,
the
prisons,
to
move
inmates
from
reception
centers
to
mainline
institutions
where
they
start
their
programming
and
rehabilitation
programs.
L
We
are
also
looking
to
make
some
changes
to
good
conduct
credits
that
will
also
provide
over
time
a
opportunity
for
individuals
to
be
able
to
earn
those
credits
and
earn
release
in
a
more
timely
manner,
we're
also
proposing
to
consolidate
fire
camps.
We
plan
to
maintain
the
same
level
of
inmate
firefighters,
but
we're
proposing
to
reduce
the
number
of
camps
that
we
have
and
consolidate
inmates
on
fewer
camps
for
for
savings
and
we're
also
proposing
to
eliminate
a
few
other
programs,
some
of
them
that
support
our
parole
operation,
given
the
state's
budget
conditions.
L
There
also
will
be
a
provision
to
allow
for
an
earned
discharge
for
most
offenders.
The
parolees
excuse
me
at
twelve
months
and
that's
again
earned
discharge
so
based
on
their
the
activities,
and
while
they
are
on
parole
in
that
first
year,
another
proposal
we
have
in
the
budget.
As
you
will
recall,
last
year,
there
was
a
decision
made
the
governor
in
the
legislature
to
move
the
management
of
the
division
of
Juvenile
Justice
from
CDCR
to
the
Health
and
Human
Services
Agency.
L
We
are
now
proposing
to
a
different
direction
on
this,
but
really
in
the
same
spirit
of
really
improving
outcomes
for
the
young
people
who
have
been
committed
to
DJJ
and
doing
that.
We
are
proposing
to
realign
this
program
to
the
local
to
local
governments.
This
will
happen
over
time.
Gradually
it
will.
We
will
stop
intake
in
the
budget
years
the
proposal,
and
then
the
population
that's
currently
at
the
state,
would
then
at
writ
out
over
time,
and
we
would
move
additional
funding
to
the
local
governments
to
support
that
new
operation
at
the
local
government
level.
L
In
terms
of
the
judicial
branch.
The
judicial
branch
also
is.
We
are
proposing
a
10%
reduction
across
both
trial
courts
and
the
state
level
judiciary,
and
we
are
providing
them
with
some
additional
funding
in
the
budget
year
to
make
the
necessary
changes
to
really
modernize
their
court
operations
like
the
rest
of
us.
L
I
also
want
to
highlight
that
there
is
a
budget
proposal
from
January
I'm
regarding
the
ability
to
pay,
which
was
a
proposal
we
put
forward
in
conjunction
with
the
judicial
branch,
to
allow
for
individuals
who
high
numbers
of
fines
and
penalties
to
appeal
to
be
put
on
a
payment
plan
or
have
their
fines
and
penalties
significantly
reduced.
We
proposed
to
maintain
that
expanded
program
in
the
May
revision
I've,
given
the
hardship
again
that's
facing
so
many
Californians.
Given
the
the
recession
a
little
bit
about
the
natural
resources
and
budget.
L
L
I
then
wanted
to
just
turn
to
the
employee
compensation
that
is
approximately
again
10%
from
current
pay
levels,
and
that
represents
about
1.2
billion
in
general
fund
savings
in
the
budget
year
and
2.4
billion
total
funds
showing
that
that's
something
that's
also
going
to
apply
to
departments
in
the
special
fund
area
and
the
other
thing
I
wanted
to
say
about
efficiencies.
This
is
an
across
government
exercise
and
work
for
all
departments,
regardless
of
their
funding
source.
L
We
will
be
looking
for
a
5%
reduction
in
state
operations
is
the
term
of
art
we
used
in
the
budget
world
in
21
22
getting
there.
We
want
to
make
sure
that
we
are
making
the
the
the
investments
in
technology
and
and
also
reviewing
all
of
our
leased
space
and
thinking
about
restocking
existing
buildings
so
that
we
can
accommodate
a
smaller
footprint,
where
appropriate
after
analysis
by
government
operations
agency
working
with
the
departments,
I.
L
Will
probably
end
there
and
then
open
it
up
to
questions,
but
those
are
those
are
I,
think
some
of
the
I
think
well.
Oh
sorry
and
one
other
thing
childcare
and
we
are
proposing
to
maintain
access
to
childcare
and
we
actually
have
some
expansions
for
first
frontline
workers
that
are
in
the
budget,
but
there
are
10%
rate
reductions
for
both
the
the
centers,
as
well
as
the
family,
childcare
homes
and
those
are
also
in
the
trigger
cut.
So
if
federal
funds
are
available,
we
would
not
do
those
triggers.
L
So
in
terms
of
and
then
one
other
thing,
because
there
was
a
question
on
public
health
and
I
and
I
think
you
know,
there's
going
to
be
a
lot
of
conversation
about
public
health
in
the
coming
months
and
years.
There
are
a
couple
of
ways:
there's
this
there's
a
I
think
I
mentioned,
there's
an
augmentation
to
the
State
Department
of
Public
Health.
There
is
also
1.3
billion
of
the
coronavirus
relief
fund,
that's
being
sent
to
counties
to
support
public
health
and
also
vulnerable
communities.
L
It
is
we
assume
that
it's
extended,
it
falls
off
in
23
24.
That's
one
of
the
reasons
why
we
have
a
structural
deficit
of
almost
16
billion
in
23
24.
There's
a
few
things
happening
there,
but
the
MCO
tax
is
has
completely
triggered
off
by
then
I
think
it
triggers
off
how
like
halfway
through
22,
23,
I'm.
F
The
medical
caseloads,
the
to
the
14.5
million,
can
you
just
talk
a
little
bit
about
who
those
people
are
that
we're
expecting
to
enroll?
Have
you
guys
done
any
like
demographic
or
job?
Does
it
correlate
with
the
unemployment
claims,
for
example,
or
any
like
data
light
you
can
provide
on?
That
would
be.
L
Yeah
no
I
mean
obviously
caseload
the
estimating
that
we've
been
doing
on
caseloads.
We
took
all
of
the
best
information
we
had
at
the
time
when
we
were
putting
these
together
several
weeks
ago
now,
and
then
we
were
also
looking
at
what
had
happened
in
other
recessions
to
get
some
understanding
of
the
patterns.
L
So
I
don't
have
a
detailed
demographic
analysis.
I
don't
know
dr.
Ghali.
If
you
have
more
information
at
this
time
but
I,
you
know,
I
think
in
the
coming
weeks
and
months
you
know
we
were
working
very
closely
with
the
welfare
directors
and
and
getting
better
on.
You
know,
on-the-ground
information
about
what's
happening,
but
the
information
we
had
earlier
late
last
month
really
was
CalWORKs
caseloads
that
were
going
up
significantly
and
we
were
seeing
increased
enrollment
in
medical
and
then
the
CalFresh
was
really
an
area
where
there
was
significant
increase
in
caseloads
and
I.
L
So
the
cuts
are
implied
in
the
budget
because
otherwise
the
budget
would
not
be
balanced.
So
does
the
federal
funding
is
the
preference,
but
if
the
federal
funding
doesn't
come
in,
then
the
the
cuts
would
would
trigger
by
by
law.
So
I
mean
it's,
it's
an
equivalent
amount
right.
So
if
federal
funds
or
or
cuts
so
I
guess
you
could
see
it
both
ways:
yeah
the
fourteen
billion,
the
four.
G
Million
and
then
my
other
question
is
the
governor
has
been
pretty
clear,
as
we've
been
slowly
reopening
the
economy
that
we
may
need
to
pull
back,
move
different
parts
of
the
state
back
into
phase
one.
Do
you
have
sort
of
contingency
projections
for
if
say,
there's
a
resurgence
and
a
bunch
of
businesses
have
to
close?
Yes,.
L
So
there's
1.8
billion
in
additional
state
expenditures
I
want
to
I
want
to
make
that
emphasis.
That's
the
state
general
fund
component
of
the
kovat
19
response.
We
also
have
added
an
additional
716
million
general
fund
which
we're
calling
a
kovat
contingency.
These
monies
are
supporting
the
the
array
of
activities
that
we've
been
talking
about,
and
the
governor's
been
talking
about.
L
We
have
brought
up
about
5,000
additional
hospital
beds
outside
of
the
hospital's
normal
surge
capacity,
and
really
working
to
make
sure
that
we're
calibrating
those
and
making
sure
that
they
are
available,
especially
as
we
move
into
the
fall
when
there's
still
a
lot
of
concern
about
a
resurgence
of
the
virus
and
the
need
for
additional
Hospital
capacity
beyond
what
we
have.
But
that's
something
that
dr.
Ghali
and
dr.
angel
and
the
entire
team
at
the
state.
Operations
Center
are
evaluating
literally
on
a
daily
in
real-time
at
real
time.
H
H
L
There
are
two
new
proposals,
so
that's
the
suspension
of
net
a
net
operating
losses
and
that's
about
1.8
billion.
There
is,
and
that's
for
three
years,
the
other
one
is
the
limiting
to
5
million.
The
amount
of
tax
credits,
then,
is
that
an
individual
or
a
company
can
take
and
any
given
what
the
given
year.
So
those
two
combined
and
that's
another
two
billion
dollars
in
increased
revenues
in
the
budget
year
and
that's
also
for
three
years.
L
We
would
be
limiting
the
credits,
those
to
actually
have
an
interaction
when
they
do
the
estimates
and
so
there's
an
additional
611
million.
That
is
also
scored
in
revenue
from
the
interaction
of
those
two
and
that's
because
if
you
only
eliminated
one
people
would
use
more
of
another
credit,
and
so
it's
just
a
convention
of
how
they
do
revenue
estimates.
L
There
are
also
the
the
e-cigarette.
The
vaping
tax
from
January
is
also
maintained
as
a
proposal
in
May
revision,
so
we're
continuing
to
pursue
that
in
budget
year
plus
one.
We
estimate
that
it
will
raise
about
thirty
thirty
three
million,
and
that
will
be
going
directly
to
offset
to
support
the
medical
program
in
our
proposal
and
we
do
also
support
a
flavor
ban
as
well
in
that
tax.
So.
H
D
A
D
L
So
I
think
that
the
the
bringing
the
guarantee
to
its
constitutionally
required
level
is
about
a
15
point:
1
billion
dollar
reduction,
and
so
that
is
done.
You
know
we're
doing
the
the
deferrals
which
are
about
5.3
billion,
so
that
allows
districts
to
preserve
program.
It's
still
a
hardship
on
the
districts
because
they
need
to
manage
cash
and
they
will
probably,
in
some
cases,
need
to
borrow
or
use
reserves.
L
In
order
to
be
able
to
do
that,
we
also
propose
to
again
reduce
the
lcff
by
10%
and
then
reduce
categoricals
in
half
some
of
the
things
that
are
kind
of
offsetting
that
are
the
4.4
billion,
which
is
all
from
discretionary
federal
funds.
So
these
are
not
funds
that
were
earmarked
in
the
bills
at
the
federal
level
for
schools.
L
Act
that's
going
directly
to
schools.
All
of
those
things
are
going
to
help
to
mitigate
the
harshest
reductions
and
in
the
budget
year,
but
again,
I
think
probably
more
important
to
schools
is
looking
at
budget
year
plus
one
and
this
additional
obligation
that
we're
proposing
to
increase
the
guarantee
at
a
faster
rate
than
it
otherwise
would
under
current
law.
There's.
D
L
E
E
L
E
E
L
So
I
can
I
can
probably
get
you
some
more
details
about
the
costs
that
have
gone
up
in
the
current
year
beyond
what
we
projected
in
January,
because
that
that's
certainly
something
so.
These
are
more
on
the
solution
side,
what
we're
doing,
but
on
the
costs
there's
there.
Certainly,
the
cost
that
we've
already
are
incurring
now
and
then
the
budget
year
projections
I,
don't.
E
L
L
So
this
number
is
the
eight
point.
Three
is
only
what
we're
using
to
offset
general
funds
so
that
this
is
like
a
budget
solution.
So
the
nine
five
from
the
coronavirus
relief
fund
were
allocating
in
the
following
ways:
we're
allocating
four
billion
of
that
to
schools.
So
of
the
four
point,
four
four
billion
is
from
that
coronavirus
relief
fund.
L
Then
we
have
about
3.8
billion,
that
is
for
Co
vid,
related
expenditures
that
are
on
the
state
general
fund
and
that
we
would
use
the
federal
funds
instead
of
the
general
fund
and
there's
a
lot
of
manure
for
costs
incurred
during
the
kovat
19
recess.
Kovat
19,
pandemic
and
I
want
to
be
clear
about
that,
because
the
federal
rules
have
been
very
clear
that
they
cannot
be
for
revenue
loss,
so
it's
not
for
revenue
loss,
but
it's
for
kovat
related
expenditures
that
we
have
in
our
state
budget.
That
would
otherwise
be
on
the
general
fund.
L
I,
guess
is
probably
how
I
should
have
phrased
that,
and
then
we
have
1.3
billion
for
the
county,
public
health,
behavioral
health
and
other
health
and
human
services
programs,
and
especially
for
those
counties
that
did
not
get
a
direct
allocation
from
the
US
Treasury.
And
then
we
have
another
450
million
for
cities
for
Public,
Safety
and
homelessness.
All
all
of
these
funds
have
to
be
real
for
expenditures
related
to
the
pandemic
and
they
all
have
to
be
utilized
by
the
end
of
the
calendar
year.
So
that's
how
we
use
that
that
coronavirus
relief
funds.
E
E
L
L
E
I
L
I
L
The
equity
programs
are
one
pull
back,
so
those
were
expanded
programs
in
January.
It's
not
that
those
are
not
really
important
programs,
we're
just
going
to
be
for
the
entire
budget
year,
really
dealing
with
the
lost
revenues,
because
Parks
has
a
significant
amount
of
general
fund,
but
is
also
very
much
dependent
on
their
fee
revenues,
and
so
we
have
budgeted
a
a
contingency
of
about
a
hundred
and
fifty
million
to
make
sure
that
we
can
continue
to
maintain
park
operations
and
do
all
of
the
activities
that
they
need
to
do
to
protect
public
health.
L
Then
then
current
law
and
then
the
other
item
was
providing
a
flat
stipend
amount
for
healthcare
costs
on
every
employee,
and
that
obviously,
is
a
much
greater
importance
from
a
percentage
of
payroll
than
to
lower
wage
workers
than
it
is
for
higher
wage
to
it.
So
it's
more
so
that
so
those
are
things
that
we
want
to
maintain
as
we
go
back
to
the
table
with
with
that
bargaining
unit.
That
has
the
majority
of
the
lower
paid
workers
in
state
government,
and
we
want
to
do
our
best
to
preserve
those
investments.
H
L
C
Could
you
talk
a
bit
more
about
this,
this
housing
section
it
looks
like
there's
a
you
know
this.
This
tax
credit
would
be
maintained,
but
there's
you
know,
discussion
of
Kline
back
some
500
something
million
dollars
from
from
some
programs
and
and
some
sort
of
you
know,
reorganization
of
a
comprehensive
strategy
and
then
something
about
using
the
mortgage.
C
L
To
you,
yeah
yeah,
so
housing,
and
so
obviously
this
has
been
a
huge
focus
for
the
governor
since
day,
one
of
his
administration.
We
continue
in
this
difficult
budget
time
to
prioritize
that
the
tax
credits,
the
low-income
housing
state
tax
credits,
which
are
really
important
to
getting
low
at
more
low-income
housing
built
in
the
state.
We
had
proposed
another
five
hundred
million
in
credits
in
the
January
budget,
and
we
do
propose
to
maintain
that.
L
That
was
included
that
was
still
available
to
provide
additional
budgetary
solutions,
all
difficult
choices,
but
the
three
buckets
are
250
million
that
was
allocated
for
mixed
income
development
over
the
next
three
years:
200
million
for
infill
infrastructure
grants
and
then
another
115
million
for
some
other
housing
funds
that
were
able
to
provide
general
fund
solution,
and
these
are
hard
decisions.
But
given
the
magnitude
of
the
the
impacts
on
all
parts
of
the
budget,
we
felt
this
was
prudent.
The
other
thing
is
the
national
mortgage
settlement.
L
There
was
obviously
an
action
on
a
lawsuit
that
stemmed
back
to
actions
many
many
years
ago
regarding
some
settlement
revenues
in
the
budget,
and
so
we
have
our
putting
forward
a
revised
proposal.
Last
year
we
talked
about
331
million,
going
primarily
to
legal
aid
for
for
renter
assistance
and
the
other
renter
legal
aid
services.
We
are
now
proposing
to
modify
that
proposal
to
provide
300
million
for
actual
mortgage
assistance
and
housing
counseling,
and
then
the
remaining
31
million
would
go
to
augment
legal
aid
resources.
So
that's
a
it's.
L
A
modified
proposal
from
what
we
were
pursuing
earlier,
but
I
think
really
starts
also,
will
provide
important
assistance,
given
the
potential
impact
or
the
the
impacts
to
many
households,
many
many
households
across
the
state.
We
are
also
committed
to
really
changing,
and
the
governor
talked
about
this
in
his
January
proposal.
L
So
there's
just
a
lot
of
coordination
when
a
low-income
housing
project
is
put
together,
it
usually
is
drawing
funds
from
many
different
sources
and
there's
a
lot
that
we,
when
we
reviewed
it,
and
that
we
could
do
on
our
end
to
better,
streamline
and
coordinate
those
processes
to
not
add
too
in
getting
those
projects
built.
So
that
continues
to
be
something
that
we
work
on
and
we
obviously
have
a
new
agency
secretary
over
the
business
consumer
services,
housing
and
she
has
been
digging
in
on
that
and
and
working
through
that
as
well.
We.