An Overview of Governor Jerry Brown's Fiscal Year 2017-2018 Budget Proposal for California

On January 10, Governor Jerry Brown revealed his proposed budget for the 2017-2018 fiscal year, which projects a state budget deficit ($1.6 billion) for the first time since 2012. The $179.5 billion proposal maintains the state’s commitment to implementing the Local Control Funding Formula (LCFF), preserving the California Earned Income Tax Credit, and expanding healthcare access to vulnerable groups. Unfortunately, the budget proposal also recaptures nearly $1 billion in one-time expenditures provided in the Budget Act of 2016 (Budget Act) and delays spending increases for various programs and services, some of which, like LCFF, are designed to improve outcomes for low-income communities and communities of color.
 
We applaud the Administration’s continued commitment to important issues like healthcare access, LCFF implementation, and transportation, but believe more should be done through the budget to build an equitable California, one where all of the state’s residents can participate, prosper, and reach their full potential. We urge the Governor to work with communities, advocates, and the Legislature in the coming months to develop a budget that allows California to address its intensifying housing crisis, maintain health insurance for the newly insured, guarantee immigrants targeted for deportation have effective legal representation, and protect and invest in the state’s most vulnerable populations.
 
Below we highlight areas of the budget that are likely to be of interest to equity advocates, including health and human services, education, housing, transportation, public safety, and climate change.
 
Health and Human Services
The budget maintains current spending levels for programs that ensure California residents have access to quality, affordable health care and services. For example, the proposal provides funding for the Children’s Health Insurance Program, as well as the expansion of Medi-Cal coverage to undocumented children and individuals earning up to 138 percent of the federal poverty level. It also maintains funding for substance abuse programs and the transition of new immigrants from Medi-Cal to Covered California. In addition to continuing financial support for these services, the budget provides new funding to reflect the repeal of the Maximum Family Grant rule.
 
While we are encouraged by these aspects of the budget, we urge the state to continue investing in care coordination and integration programs for vulnerable residents, including the Coordinated Care Initiative, health care workforce initiatives, community infrastructure grants, and children’s mental health services grants. 

Education
The education budget provides a small increase of $2.1 billion in Prop. 98 funding for K-14 education and proposes cost-of-living adjustments for LCFF funding targets, as well as for various programs funded outside of LCFF. Unfortunately, due to the projected revenue shortfall, the Governor’s proposal, while providing an additional $744 million for LCFF implementation, “maintains the implementation formula at the current-year level of 96 percent.”[1]  Though we understand the new economic reality the state faces, we urge the Governor to fully implement LCFF as quickly as possible.
 
The budget also boosts investment in California’s Community College system. Notable areas of increased spending include efforts to address student disparities; the Guided Pathways program, an institution-wide approach to improving student completion rates; and school facilities energy efficiency projects financed through the Prop. 39 Clean Energy Job Creation Fund, which, in addition to improving energy efficiency on school campuses, targets training and jobs to individuals with barriers to employment.
 
Despite these positive investments in the community college system, the budget disappointingly proposes to phase out the Middle Class Scholarship Program, which provides has helped thousands of student to afford enrollment at CSU and UC campuses.
 
Housing
Even though the state faces a growing housing affordability crisis, the budget provides virtually no new funding for affordable housing. The proposal recaptures $400 million for affordable housing development included in the Budget Act,  and conditions continued financial support for the Affordable Housing and Sustainable Communities Initiative (AHSC), a major source of state funding for affordable housing in recent years, on the extension of the cap-and-trade program by a two-thirds vote of the Legislature.
 
In the coming months, we urge the Administration to partner with the Legislature to allocate resources for AHSC without condition, provide meaningful new investments in affordable housing, and establish a permanent source of funding for the construction, preservation, and rehabilitation of affordable units.
 
Transportation Infrastructure
Although much of the transportation budget continues to focus funding on maintaining highways and roads in California, we are pleased to see an annual increase of $100 million for the state’s Active Transportation Program, which aims to improve the mobility, health, and safety of vulnerable residents by targeting walking and bicycling infrastructure in low-income communities.

To ensure our increased transportation spending achieves state equity and climate goals, funding should be targeted to grow investment in transit operations and complete streets, prioritize transportation projects that provide meaningful benefits to low-income people of color, and connect disadvantaged community residents to transportation sector training and jobs.
 
Public Safety and Justice
While the budget’s public safety proposal highlights many of the anticipated positive effects of Proposition 57[2], we hope the revised budget will deepen California’s commitment to investing in our people and communities, divesting from systems that separate families and perpetuate trauma, and eliminating policies that serve as barriers to the success of low-income people and people of color. These values are reflected in the budget’s proposal to end the use of driver’s license suspensions as a debt collection tool, a counterproductive practice that has caused financial insecurity throughout California’s low-income communities of color.
 
We hope the May Revision will build on the proposed repeal, by reducing funding for harmful institutions, including immigration detention centers, prisons, and law enforcement, and investing in reintegration services, quality legal representation for immigrants, and support for other vulnerable groups.
 
Climate Change and Natural Resources
The budget proposes a $2.2 billion dollar Cap-and-Trade Expenditure Plan using revenues generated through the State’s carbon trading program. This plan includes needed investments in transportation, housing, pollution reduction, and other programs that provide benefits to low-income, pollution-burdened communities. Unfortunately, the budget makes allocation of these proposed investments contingent upon the Legislature approving an extension of the state’s cap-and-trade program. Accomplishing this will require support of two-thirds of the Legislature and poses a significant hurdle to securing these important investments.
 
The Governor’s environmental and natural resources proposal also acknowledges the severe drinking water challenges faced by disadvantaged communities across California and commits to working with the Legislature and stakeholders to address these challenges. This commitment is very encouraging. However, with over one million Californians being served drinking water from systems that do not meet safe drinking water standards, we urge the Administration to take this commitment further and prioritize developing a sustainable funding source to ensure that all Californians have safe and affordable drinking water.

Conclusion
As we learn more about the incoming presidential administration’s policy goals, the Governor’s budget proposals are likely to change. In the coming months, advocates should engage their legislators and the Governor to ensure that hard fought gains for California’s low-income communities and communities of color are protected and expanded.
 
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[1] Governor’s Budget Summary – 2017-18, “K-12 Education,” 20, http://www.ebudget.ca.gov/2017-18/pdf/BudgetSummary/K-12Education.pdf.
[2] Proposition 57 allows non-violent offenders who have completed the prison term for their primary offense to be considered for parole and authorizes the Department of Correction and Rehabilitation to establish a “credit” system under which individuals can earn an early release from prison. The law also provides that only judges may determine whether juveniles 14 and older can be prosecuted or sentenced as an adult.

January 2017

Race, Place, and Jobs: Reducing Employment Inequality in America's Metros

Overview

The latest brief from the National Equity Atlas team, Race, Place, and Jobs: Reducing Employment Inequality in America’s Metros, analyzes the relationship between racial and spatial inequality in employment across America’s largest 150 metropolitan regions. We find that in several regions with large racial gaps in employment such as Youngstown and Milwaukee, unemployed workers of color tend to live in a small number of neighborhoods. In these places, neighborhood-targeted workforce development and job access strategies have the potential to increase racial equity and reduce disparities at the regional level, building stronger and more inclusive regional economies.

October 2016

Healthy Communities of Opportunity: An Equity Blueprint to Address America’s Housing Challenges

Overview

From San Francisco, California to Flint, Michigan, the nation is facing an escalating housing crisis. Skyrocketing rents, inadequate infrastructure and stagnant wages are some of the barriers that are preventing millions of low-income Americans and communities of color from reaching their full potential. Healthy Communities of Opportunity: An Equity Blueprint to Address America’s Housing Challenges weaves together insights from the fields of healthcare, housing and economic security to outline a case for progressive, equity-focused policy.

"Healthy Communities of Opportunity provides an actionable roadmap to solve the interwoven housing and health crises that impact many people. This thorough review of the housing crisis from PolicyLink and their cross-sector approach to the solutions is a significant contribution to addressing the problem."
David Fukuzawa
Managing Director, The Kresge Foundation’s Health and Human Services programs

 

For low-income people of color, where you live not only determines access to education and employment but how long you live and how well you live. This new report from PolicyLink and the Kresge Foundation puts forth an action agenda to create far greater access to vibrant, healthy communities of opportunity.
Angela Glover Blackwell
PolicyLink President and CEO

Investing in Second Chances for Formerly Incarcerated People: An Interview with Department of Justice Fellow Daryl Atkinson

Sixteen years ago, Daryl Atkinson was like many of the 600,000 Americans leaving prison each year — excited to return home, but worried about the welcome he might receive as a formerly incarcerated person. Though his family refused to define him solely by his past mistakes and supported him as he pursued college and law school, society was another story. Not only did he face social stigma because of his past, he lost his driver’s license, making it difficult to find work; was barred from receiving federal financial aid for college; and, perhaps most importantly, is still denied the right to vote in his home state of Alabama.

It is this type of structural and cultural discrimination — the many ways that society forces those with a criminal record to continue to “serve time” even after they are released — that Atkinson now fights as the inaugural Second Chance Fellow at the U.S. Department of Justice (DOJ). Prior to this appointment, Atkinson was recognized as a White House “Reentry and Employment Champion of Change” for his work as a senior staff attorney at the Southern Coalition for Social Justice, where he advocated for the rights and needs of people with criminal records. America’s Tomorrow spoke with Atkinson about his many years working to shift the narrative about those who have been incarcerated, connecting them with the support, respect, and opportunity necessary for them to thrive.

You are the first Second Chance fellow at the DOJ, and you are a founding member of the North Carolina Second Chance Alliance. Can you explain what a “second chance culture” entails?

I often relate it to my personal experience after prison. I served 40 months in prison, much of it in a maximum security institution when I was in my twenties, and when my mom and my stepdad came to pick me up, they rented a Lincoln Town Car. I didn’t pay any particular attention at that time because I was so excited to get away from that place, but a couple of years later I asked my stepdad why. He said they wanted to make a grand gesture to send the message that my experience in prison didn’t completely define who I was and what I could be. They continued to support me — offering food and shelter and financial support — throughout college, and the combination of support and physical investment is a large part of what I view as a “second chance” approach. We need to invest in people’s success, so that they can be contributors to their community and society.

The Obama Administration has been instituting a number of policy solutions to cultivate this concept. The Second Chance Act, signed into law at the end of the Bush Administration, has resulted in more than 700 grants totaling over $400 million to reduce recidivism and improve outcomes for people returning from state and federal prisons, local jails, and juvenile facilities. These investments help people with criminal records by providing basic needs like housing assistance, job training, and substance abuse treatment. More recently, the Department of Education started the Second Chance Pell Program, which will allow over 12,000 eligible incarcerated students to pursue postsecondary education while in prison. These kinds of programs aren’t enough to meet the needs of the entire formerly incarcerated population, but they are helping the Administration build the evidence base for how powerful these programs are, which will aid in advocating for more funding for this work.

When you were at the Southern Coalition for Social Justice, you helped to pass a “ban the box” policy in Durham, North Carolina, that had incredible results. Can you describe how that campaign developed?

The Southern Coalition for Social Justice (SCSJ) is a civil rights advocacy organization that follows a community-lawyering model, meaning that we provide general counsel for the most vulnerable communities across the southeast, and we let them set the agenda of what issues are most important. Engaging the community around these issues is something that has guided my work at SCSJ and informs my work at DOJ. For instance, a few years back we were working on voting rights for those with criminal records in North Carolina, but when we engaged the community we realized that barriers to employment were the most pressing need. We were aware of the “ban the box” movement that had started in Oakland, California, and started a similar campaign in Durham, North Carolina, to remove criminal history questions from job applications and prohibit the use of a criminal record as an automatic bar to employment.

We knew that to successfully shift the narrative around employing formerly incarcerated people, we needed to ensure that people with criminal records were integrated into the policy-making process throughout. When there were city council meetings, we engaged with community partners to train local spokespeople who could speak in their own voice about the impact of not being able to work and how that affected their families. We reached out to faith-based organizations to put a moral force behind our campaign. We got some notable endorsements from the sheriff about how ban the box was consistent with public safety, because keeping people with criminal records from employment opportunities can force them back into an underground economy.

We also made the economic argument, pointing out that there are 1.6 million adults with criminal records who shouldn’t be sitting on the sidelines of the economy. By sharing these messages and engaging community members to tell their stories, we were able to convince the city and the county governments to pass ban the box policies that have had a huge effect. In the city of Durham, for example, the total percentage of city hires of people with criminal records was 2 percent in 2011, the year the policy passed; by 2014 it was over 15 percent — a greater than seven-fold increase.

How does the work you’re undertaking at the DOJ continue this work and connect to your larger goals of building a second chance culture?

In my fellowship at the DOJ’s Bureau of Justice Assistance (BJA), I advocate for the rights and needs of those with criminal history, and I also work to ensure that DOJ is hearing from the stakeholders most directly affected by the justice system. This part of my work draws heavily on the lessons I’ve learned at the local level. Having this bridge between the policymakers and those most affected by the policy is a game-changer. Not only does it provide important feedback on the effects of policy, it also helps change the temperature of the exchanges between communities and the federal government. When policymakers have real exchanges with folks from the community, and hear about their family obligations and experiences — like dropping their kids off at daycare — it diminishes the “us versus them” dynamic that can make it easier to enact negative public policies. In general, I think we need more open dialogue about how common interactions with the justice system are, and how it is not just some fringe part of society that deals with these issues.

Ten to 12 million people in the U.S. cycle in and out of city and county jails, and one in three Americans have an arrest or conviction history. This is a huge segment of our adult population, and to continue to marginalize them through stigma and discriminatory policies has significant consequences for our society as a whole. That is why part of my fellowship includes qualitative interviews with formerly incarcerated people who have gone on to become highly successful. I want to identify which interventions changed the trajectory of their lives, and lift up these successes to the federal government for future policymaking. I am also going to create a digital story bank of their stories, so that the public can access these stories and see that people who have been in prison can go on to be active, positive, influential members of their community. Both the public and policymakers need to hear these stories and realize not only the hunger for opportunity that people who are leaving prison have, but the potential they have to go on to great things. 

July 2016

Equitable Development: The Path to an All-In Pittsburgh (Summary)

Overview

Pittsburgh is on the rise. After decades of decline following the collapse of the steel industry, the region has successfully transformed its manufacturing economy into one driven by knowledge and technology. This resurgence brings great potential to deliver long-awaited jobs, economic opportunities, and neighborhood improvements to the region’s low-income communities and communities of color. However, the benefits of new growth and development will not automatically trickle down without a focus on equitable development. Produced by PolicyLink, along with Neighborhood Allies, and Urban Innovation21, this report presents a five-point agenda for realizing the vision of a new, “all-in” Pittsburgh, in which everyone can thrive, and highlights 16 specific recommendations for action. Download the full report.

Find other equity profiles here.

May 2016

An Equitable Food System: Good for Families, Communities, and the Economy

Overview

This issue brief describes the benefits of building an equitable food system for families, communities, and the economy.

Find other equity briefs here.

May 2016

Just and Fair Employment for All: Good for Families, Communities, and the Economy

Overview

This issue brief describes how connecting people to just and fair work benefits families, communities, and the economy.

Find other equity briefs here.

May 2016

High-Quality Education for All: Good for Families, Communities, and the Economy

Overview

This issue brief describes how creating an equitable pre-K through 12 educational system can benefit families, communities, and the economy.

Find other equity briefs here.

May 2016

Criminal Justice Reform: Good for Families, Communities, and the Economy

Overview

This issue brief describes how transforming the nation’s criminal justice system into one that distributes justice fairly and promotes rehabilitation would benefit families, communities, and the economy.

Find other equity briefs here.

March 2016

An Equitable Food System

Overview

Part of a series of issue briefs dedicated to helping community leaders and policymakers bolster their campaigns and strategies with the economic case for equity.

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