The budget includes $12 million for reparations measures for the state’s Black residents.
Over the weekend, Gov. Gavin Newsom approved a budget for California that will close a state deficit estimated at $46.8 billion.
The $297.9 billion budget, for the fiscal year that begins today, covers that shortfall by cutting state spending, drawing from reserves and suspending some tax breaks for businesses, among other measures.
“This is a responsible budget that prepares for the future while investing in foundational programs that benefit millions of Californians every day,” Newsom said in a statement on Saturday.
My colleague Shawn Hubler explains exactly which jobs and programs were trimmed to balance the budget, as well as why California’s finances can fluctuate so widely from year to year. Perhaps you remember that two years ago, the state had a record surplus.
Despite the overall tightness of the state’s finances, this year’s budget includes a new line item: funds for reparations for Black residents.
The state created a task force in 2020 to look into possible reparations for its 2.5 million Black residents. Though California joined the union as a free state, Black people were still enslaved here, and experts say that for generations, discriminatory housing, voting and criminal justice policies made it harder for Black Californians to accumulate wealth.