HOPE’s Response the 2022 California State Budget

Last week, Governor Newsom announced the California Blueprint Budget, a 286.4 billion dollar proposal that has the power to positively impact millions of Californians and sets the framework for unprecedented investments in Health Care Access, Education and the Economic Prosperity of Latinas and all Californians.

“HOPE is encouraged to see the numerous investments that are centered in access and equity in the January Budget Proposal. These resources are a much needed first step. Next, we must work together to ensure these investments reach the Latino Community so that we can survive, heal and thrive in a California for All.”

-Helen I. Torres, CEO & Executive Director of HOPE

The State of Latinas

One in five Californians is a Latina, and our young and diverse population will only continue to grow in the next decade. Comprising nearly 8 million people, Latinas are critical to the economic growth and the future of the state. However, as the COVID-19 pandemic persists, policies that center health, equity, and access are essential to meet this moment. We are encouraged by the following proposals and look forward to working with Governor Newsom and the California Legislature to ensure that the final budget truly meets the needs of the diverse and growing Latino Community.

K-12 Education

Achieving educational equity and closing achievement gaps is directly tied to supporting Latino Students, who are 55% of the state’s K-12 population. Building on the historic investments made last year, specifically the creation of Universal Transitional Kindergarten, the expansion of College Readiness Courses, and more funds allocated to the Local Control Funding Formula, California has made important steps to supporting students of all backgrounds in their educational success. Looking ahead, supporting Latino students, English Learners, Foster Youth and Low-Income Students will be necessary in mitigating the learning loss experienced during distance and hybrid learning. HOPE is encouraged by the following investments:

• $119 Billion for K-12 education, which increase California’s per pupil spending to $20,855 and lands California as the 21st in the nation for Per Pupil Funding.
• $1 Billion for transitional kindergarten, $4.5 Billion to expanding after-school and summer programming, and sustaining universal meals across the state for all students.
• $1.5 Billion Children’s Behavioral Health in Schools which will support students with their mental health and wellness needs.
• $54 million to help districts recruit teachers, including by waiving examination and credentialing fees to support.

Higher Education

Expanding Higher Education access and opportunity for Latinas to achieve their full potential is critical for the future the economy, our communities, and the state. In California, 15% of Latinas had at least a bachelor’s degree, a 2% increase between 2015 and 2018 which is commendable growth yet is considerably lower than 43% of White women who have at least a bachelor’s degree — a gap of 28 percentage points. Progress towards closing the opportunity gap has been made, due in large part to policies such as AB 705, Reformation of Remedial Course placement, and the Associate Degree to Transfer (ADT) which create streamline pathways for Latinas and all students achieve their academic goals. Though progress has been made, the opportunity gap persist.

“While historic numbers of Latinx students are graduating from high school prepared for college and are enrolling in higher education, these numbers are still too low. Inequitable access to college opportunity and success in graduating with a degree is very real. Today, most high schools fail to prepare the majority of their Latinx students for college.”

-The State of Higher Education for Latinx Californians Report by The Campaign for College Opportunity (2021)

HOPE is encouraged by the following higher education investments:

• Setting a bold 70% Degree Completion Goal tied to dedicated funding increases over the next 5 years.
• 21,000 more slots to the UC/CSU systems in the next 5 years, a historic commitment. All new funding and slots are contingent on progress towards eliminating achievement gaps and meeting other goals such as reducing college costs, and preparing more students for the workforce, a historic and bold initiative.
• $65 million one-time Proposition 98 General Fund Expansion of the Associate Degree to Transfer (ADT) and the resources required to implement a common course numbering system.
• An increase of $515 million ongoing General Fund, for a total of $632 million ongoing, to support a modified version of the Middle-Class Scholarship Program and help cover non-tuition costs for more families.
• Multi-year agreements with UC and CSU, and a roadmap with the CCC Chancellor’s Office, focused on improving equity and outcomes, which can increase student success while reducing total cost of attendance through timely degree completion.
• $10 million ongoing to support the sustainable implementation of Equal Employment Opportunity program best practices to diversify community college faculty, staff, and administrators.
• $233 million one-time General Fund to support the construction of the CSU Bakersfield Energy Innovation Center, to support equipment and facilities at the CSU University Farms, and for deferred maintenance and energy efficiency projects.

Pay Equity Investments

With California Latinas facing the largest pay gap in the nation at 42 cents to the dollar earned by White men, the following proposals are an encouraging sign that the State Budget will prioritize this crisis:

• $716,000 to Study Pay Equity Data, specifically 4 positions for the Department of Fair Employment and Housing to focus on collecting and analyzing pay data.
• $1.4 million in ongoing General Fund investments to improve awareness of workplace rights and enforcement against those that violate labor laws. Workforce equity, including pay equity, is strengthened by initiatives that make laws and protections more accessible to workers.

Small Business Investments

Despite the persistent impacts of the COVID-19 pandemic, HOPE’s research in “The Latina Pulse: Champions of Change” a Latina Centered Public Poll released in 2021 found that even during the pandemic, Latinas’ inherent entrepreneurial spirit perseveres.

“Latinas are drivers of the U.S. economy and have always been positive contributors to American society, specifically our ability to overcome the barriers of racism and sexism, while starting businesses, working essential jobs and protecting our families is a demonstration of our determination and perseverance.”

- Helen I. Torres

Latinas are powerhouses of industry: Latinas don’t wait for opportunities, they create them.

• 4 in 10 Latinas were negatively impacted in their jobs due to COVID-19.
• Latinas are almost 2x more likely to own or plan to open their own business in the next 3 years compared to non-Latinas.
• Latinas are more likely to pursue higher education (58%) compared to non-Latinas (41%).

HOPE is encouraged by the following investments:

• $4 Billion to sustain the California Small Business COVID-19 Relief Grant Program to administer grants of up to $25,000 to eligible small businesses and nonprofits with an added $150 million General Fund in 2022–23 to capture any small businesses that did not receive a grant in 2021.
• $39.8 million one-time General Fund to waive State filing fees to create a small business on a one-time basis for all new businesses registering with the Secretary of State from July 1, 2022 through June 30, 2023 to encourage business growth in California.
• $250 million in workforce development services directed toward immigrant communities. This includes $30 million for an expansion of English Language Learner (ELL) pilots; and $20 million to expand workplace literacy training for workers.
• $600,000 in 2022–23, and $200,000 annually in following years, to increase the availability and translation of Business Quick Start Guides and professional licensing navigational guides to support immigrants looking to start their own business and enter new industries.
• The budget also includes $150,000 to support statewide convening and coordination, $2 million for targeted programs to assist immigrant entrepreneurs and small businesses with successfully exporting their goods

Health Access

Ensuring California’s nearly 8 million Latinas have equitable access to health insurance is critical to the health of our community. In California, 11% of Latinos had no health insurance coverage in 2018 and represented 63% of all uninsured people in the state. Latinos are the population least likely to have health insurance coverage, owing primarily to holding lower paying jobs that either do not offer insurance or pay too little to afford insurance premiums and eligibility restrictions due to documentation status1.

Last year, the historic expansion of full scope Medi-Cal to include 50+ Undocumented Seniors was a step towards a #Health4All reality but left 700,000 26–49-year-olds barred from health access. HOPE is encouraged by the following proposals:

• $2.2 Billion to expand access to full-scope Medi-Cal to income-eligible adults ages 26 to 49, regardless of immigration status, making California the first in the nation in providing health insurance to all low-income state residents. The expansion would take effect in 2024 and cover about 700,000 more people.
• $2.7 Billion to COVID Response including $1.2 Billion to bolster testing by expanding hours and capacity at testing sites throughout the state to help slow the spread and distributing millions of COVID-19 antigen tests to local health departments, community clinics, county offices of education and schools. Additionally, this allocation would include $182 million for additional vaccine distribution and administration.

The health of California’s economy is directly tied to the health, economic, educational prospects of Latinas. We feel encouraged by these investments that will best support Californians most impacted by COVID-19 and look forward to partnering with decision-makers to ensure that the final budget propels Latinas and all Californians forward.

Resources

2022–23 Governor’s Budget

Legislative Analyst Office Forecast

HOPE 2020 Economic Status of Latinas Report