End Child Poverty California Urges State Leaders to Adopt Necessary Revenues, Commits to Deepening Movement Building for More Equitable Budget

[PASADENA, CA] — We appreciate the Legislature and Administration for improving the final budget, protecting many anti-poverty investments compared to initial proposals, and for responding to the voices of Californians who rely on the safety net. However, this budget still includes deep cuts – particularly to immigrant Californians – by codifying discriminatory healthcare policies based on immigration status, even as these families are under escalating attack from the federal government. 

Our state leaders have framed much of the budget debate around the necessity to make cuts and looming pressure from the federal government. But, the reality is that cuts to vital basic needs, like healthcare and food assistance, are not only shortsighted, they’re dangerous. The cost of child poverty is roughly ten times as expensive as the cost to end child poverty. We cannot afford to send families and children already facing significant economic pressure into deeper poverty. 

While we acknowledge the onslaught of destructive, destabilizing actions from the federal administration, the real pressure on California’s budget is coming from Congress’ catastrophic choices to gut federal food assistance, healthcare, and education in the budget reconciliation process. Preemptively slashing state investments for critical anti-poverty programs and services that Californians rely on will only compound the devastating, and in many cases lethal, harm soon caused by federal disinvestment. 

“We thank the Legislature for listening to the children and families who spoke loud and urgently about the value of the programs they rely on, said Shimica Gaskins, President and CEO of End Child Poverty California. “Prioritizing their experiences in the budget negotiation process helped prevent some of the most harmful cuts. Still, this budget forces immigrant families to subsidize the healthcare of others via increased premiums, new asset limits, and an egregious Medi-Cal enrollment freeze. Rather than economically debilitate families who are responsible for California’s prosperity, we must demand fair investments from corporations and the ultra-wealthy. We are clear that even deeper movement building across sectors, and with children and families at the center, will be needed to move California leaders to make the bold choices for more equitable revenues and investments, so every child is valued and free.” 

We are deeply grateful for the Legislature and Administration’s commitment to streamline ReImagine CalWORKs, upending decades-old policies that rely on racist and sexist tropes to vilify low-income parents with a system that is family-centered, trauma-informed and anti-racist.

We appreciate the restoration of funding in the final budget to indispensable programs, including $10 million for HOPE Accounts — which helps honor the promise made to more than 55,000 foster youth and children bereaved by COVID-19 across California. Additionally, investments in foster youth, IHSS overtime eligibility, Food4All, and partial restorations to Medi-Cal premium and asset limit rollbacks, will allow families to access healthcare and stay housed, fed and secure. The Governor and Legislature continue to lead the nation with ongoing commitment to universal school meals and SUN Bucks to prevent child hunger year round. 

Both $10 million increases for One California and CHIRP and $7.5 million for the SEED Initiative demonstrate fiscal solidarity with our families and immigrant children. Leaders must remove harmful limitations placed on the use of Equal Access Fund resources, which weaken immigrant access to legal protections in an already-hostile climate, however.

This budget continued efforts to address child care cost, access, and provider rates; but there is much work to do and we stand in solidarity with parents and child care providers as we work to achieve the true cost of care and the alternate methodology. We are deeply disappointed to see Promise Neighborhoods – trusted, cradle-to-career initiatives – were left without funding needed to sustain staff and services, especially as these programs bear the brunt of federal attacks. 

We thank the Legislature and Governor for taking steps to progressively raise revenues, such as the single sales factor proposal. Despite the clear call by several Assemblymembers and Senators to call for additional, bold revenue solutions, this budget still falls short equitably funding California’s future. 

As Congress threatens the foundation of our anti-poverty programs, the Legislature and Governor will need to chart a different path, leading with California values that poverty is truly a policy choice. Ultra-wealthy individuals and corporations must pay what they owe to the communities and land responsible for building their wealth. In the 4th largest economy in the world, we have the wealth and resources to achieve a future in which we abolish child poverty.