Selected Highlights of the Governor’s Proposed Budget for 2022-23

Below is a selected list of budget proposals from the Governor's proposed 2022-23 Budget.

New and Expanded Economic Development Programs at GO-Biz

  • $1.2 billion in federal State Small Business Credit Initiative funds to be split evenly between the IBank and the California Pollution Control Financing Authority to provide loan guarantees and loss reserve and collateral credit supports.

  • $150 million GF to recapitalize the Small Business COVID-19 Relief Grant Program with $20 million being reallocated from the nonprofit cultural institution grant program and $120 million GF.

  • $45 million GF to the Office of Tourism to implement a coordinated strategic media tourism recovery campaign through Visit California.

  • $25 million GF to the IBank for the Climate Catalyst Fund to support programs that create a healthy, resilient, and equitable food system; promote climate smart agriculture to support long term sustainability and resilience; and address economic recovery and high-road job growth.  This is part of a $1.1 billion agriculture package.

  • $23 million ongoing (a $6 million annual increase from prior years) for the Small Business Technical Assistance Expansion Program and the program is proposed to be made permanent. 

  • $20 million GF to be expended over four years and used to expand, revise, and rebrand the iHub program as the “Accelerate CA: Inclusive Innovation Hubs program,” which focuses on inclusive economic growth and includes the designation of three additional centers and the funding for each of the 13 centers to provide each of five businesses with a $100,000 seed grant.

  • $11.6 million GF in 2022-23, and $500,000 annually thereafter, for GO-Biz to support statewide coordination for immigrant entrepreneur integration and support other economic development activities for underserved small businesses and entrepreneurs.

  • $3 million ongoing GF (same funding level as prior years) for the California Capital Infusion Program and the program is proposed to be made permanent.

Tax Credits and Other Tax Relief

  • $5.5 billion to restore business tax credits, including research and development credits and net operating losses that were limited during the COVID-19 Recession.  Early Budget Action Package

  • $500 million in additional tax relief over several years through state tax conformity for qualified California recipients of federal relief grants in significantly impacted industries, including the federal Restaurant Revitalization Fund and the Shuttered Venue Operators Grant.  Early Budget Action Package

  • $3.4 billion Unemployment Insurance (UI) Package:

  • $3 billion over two years ($1 billion in 2022-23, and $2 billion GF in 2023-24) to pay down a portion of the state’s UI debt.

  • $470.1 million to pay the forecasted UI interest payment, which will accrue over the full federal fiscal year and come due in September 2022.

  • $250 million per year for three years to establish a new California Headquarter Tax Credit, which would be available to companies headquartered in CA which are investing in research to mitigate climate change.

  • $100 million over three years for a Green Technology Tax Credit for companies that develop green energy technologies.

  • $39.8 million to waive for one year certain documents small businesses are required to file with the Secretary of State.

New and Expanded Economic and Workforce Development Programs – Other Agencies

  • $1.7 billion to expand the state's health and human services workforce, including training strategies to increase the state’s workforce of nurses, social workers, emergency medical technicians, behavioral health care providers, and community health care workers.

  • $1.5 billion one-time Proposition 98 GF over four years to support the development of pathway programs focused on technology (including computer science, green technology, and engineering), health care, education (including early education), and climate-related fields.

  • $1.2 billion over two years for projects that improve goods movement on rail and roadways at port terminals, including zero-emission equipment upgrades.  This includes, but is not limited to:

    • $30 million GF to provide funding for operational and process improvements at the ports.

    • $9.5 million to increase DMV’s capacity to provide commercial driver license tests in northern Los Angeles County and the Bay Area to support commercial drivers that deliver essential products and supplies.

  • $110 million to CWDB in 2022-23, and $120 million in 2023-24 and in 2024-25, to establish, expand, and improve workforce development programs for health and human service careers.

  • $90 million GF to ETP to provide training for incumbent health and social workers through High-Road Training Partnerships for Health and Human Services.

  • $30 million to the CWDB in 2022-23, and $40 million in 2023-24 and in 2024-25, for a Goods Movement Training Campus in southern California.

  • $30 million over two years to the California Community Colleges to train, develop, and certify forestry professionals.

  • $30 million GF to the EDD’s Workforce Services Branch to expand the English Language Learner pilots in integrated education and training programs.  

  • $30 million GF to CDFA in 2022-23 to expand the California Farm to School Incubator Grant Program to serve additional schools across the state and $2.9 million General Fund ongoing to support 16 regional Farm to School Network coordinators and market specialists.

  • $30 million GF to the California Arts Council, to be spent over three years, to support the existing 14 cultural districts and to expand the cultural districts program to serve traditionally underserved communities, represent a cohort that reflects the geographic and racial diversity of the state, and enable the California Arts Council sufficient capacity to provide technical assistance.

  • $30 million GF to OPR for the California Education Learning Lab to establish and make up to 30 awards under the Golden State Awards Program for incentivizing, celebrating, and elevating high-impact innovations based at or in association with a CSU or UC.

  • $20 million GF to EDD from 2022-23 through 2024-25 to provide targeted training for Emergency Medical Technicians.

  • $20 million GF to EDD to expand its workplace literacy training.

  • $10 million GF to CWDB to expand learn-and-earn community change career pathways for community college students.

  • $9.3 million GF to OPR to increase participation of underrepresented communities in biomedical research.

  • $8.6 million GF in 2022-23, and $10.5 million ongoing, to CDCR to expand California Prison Industry Authority janitorial services to space constructed through the Health Care Facility Improvement Program and to add supervisory staff.

  • $5 million GF in 2022-23, and $4.7 million ongoing, to CDCR to permanently fund Bachelor’s Degree Programs at seven institutions in collaboration with the California State University system.  These programs will be available to students upon successful completion of their community college programs and will enable them to further prepare to enter the workforce and find gainful employment upon their release from prison.

  • $2 million GF annually for two years to coordinate a market development strategy within the forestry sector.  These resources are part of a $1.2 billion package of investments that address the state’s wildfire risks.

New and Expanded Program to Address Climate Change

  • $9.1 billion for a Transportation Climate Alignment Package ($4.9 billion GF and $4.2 billion Proposition 1A bond funds) to support the continued development of an electrified high-speed rail system in California, regional transit and rail projects, bicycle and pedestrian projects, and climate adaptation projects, with a particular focus on aligning the state's transportation system with its climate goals.  This includes, but is not limited to:

    • $1.4 billion to Caltrans over two years for Climate-on-the-Move projects including active transportation, climate adaptation, bicycle and pedestrian safety, and a pilot to study converting highways to boulevards to improve equity and increase utility.  

  • $6.1 billion Zero-Emission Vehicle Package which includes, but is not limited to, the following:

    • $176 million to Caltrans to begin a multi-year process to replace high-mileage, high maintenance vehicles with new, efficient, greener models.

    • $170 million GF and $676 million GGRF to CARB in 2022-23, $500 million GF in 2023-24, $522 million GF in 2024-25, and $302 million GF in 2025-26, to equitably scale the zero-emission vehicle market and accelerate the state toward meeting its climate and transportation goals. 

  • $3.7 billion Climate Resilience Package which includes, but is not limited to, the following:

    • $364.7 million GF to OPR in 2022-23, and $399.7 million GF in 2023-24 to support the California Climate Action Core State Service Program, regional climate adaptation strategy development and implementation, and the Vulnerable Communities Platform and Cal-Adapt Mapping platforms.

    • $10 million GF to the Office of the EPA Secretary in 2022-23 and $5 million GF in 2023-24 to support environmental justice initiatives to assist eligible community organizations and federally-recognized Tribal governments to address issues in areas disproportionately affected by pollution and health and environmental hazards.

    • $50 million GF to DOC in 2022-23 to support a Biomass to Hydrogen pilot program.

  • $1.1 Billion Sustainable Agriculture Package:

    • $242 million GF to CDFA in 2022-23 to support the creation of a healthy, resilient, and equitable food system; promote climate smart agriculture to support long term sustainability and resilience; and address economic recovery and high-road job growth.

    • $150 million GF in 2022-23 for CARB to support the reduction of agricultural sector emissions by providing grants, rebates, and other financial incentives for agricultural harvesting equipment, heavy-duty trucks, agricultural pump engines, tractors, and other specified equipment used in agricultural operations.   

  • $715 million GF to support the phase-out of CA oil production:

    • $450 million over three years starting in 2023-24 to stabilize local government revenues as local economies transition to a net-zero-powered economy, including phase-out of oil production.

    • $215 million GF over two years for workforce training to support an oil and gas well capping initiative to improve the safety of communities while providing high-quality jobs.

    • $50 million GF to establish a fund for displaced oil and gas workers as the state continues to phase out oil production.

  • $250 million per year for three years to establish a new California Headquarter Tax Credit, which would be available to companies headquartered in CA that are investing in research to mitigate climate change.

  • $185 million GF to support UC climate initiatives, including $100 million at the UC for matching applied research grants, $50 million for regional incubators, and $35 million to create regional workforce development and training hubs focused on climate change

  • $100 million over three years for a Green Technology Tax Credit for companies that develop green energy technologies.

  • $65 million GF to CalRecycle in 2022-23 as part of a $270 million package to support a circular economy that recognizes waste as a resource, shifting the state’s focus to a more resilient and renewable economy in California.  These funds will support the implementation of goals to reduce short-lived climate pollutants, including advancing organic waste infrastructure, edible food recovery, and composting opportunities; and support other non-organic recycling opportunities.

  • $20 million GF to CWDB annually from 2022-23 through 2024-25 for a total of $60 million to fund its Low Carbon Economy Workforce grant program to support workforce development programs that align with strategies in the state's Climate Change Scoping Plan.

  • $20 million GF to OPR to support a grant to Carnegie Science for the Pasadena Climate Research Hub facility.

  • $20 billion in infrastructure-related investments to prepare/protect communities from climate change.

  • $20 million GF in 2022-23 for the Air Resources Board as part of a $2 billion Energy Package to accelerate progress on the state’s clean energy goals.  This includes funding to accelerate the adoption of ultra-low global-warming-potential refrigerants.

  • $574,000 ongoing Greenhouse Gas Reduction Fund (GGRF) to OPR to support the California Air Resources Board to update GGRF grant guidelines and eligibility, and support grant applicants connecting with workforce development resources in their region pursuant to AB 680, Chapter 746, Statutes of 2021.

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