Newsom unveils state budget proposal with record education investment, billions for COVID-19 recovery

Gov. Gavin Newsom unveiled his proposed budget for the 2021-2022 fiscal year Friday, touting record investments in education and a $15 billion budget surplus in spite of the economic uncertainty wrought by the coronavirus pandemic.

The $227 billion proposed budget, with a $164.5 billion general fund, represents a stark difference in the state’s financial outlook from last year, when plummeting sales, personal income and corporate tax revenue during the pandemic’s early days resulted in a $54 billion budget deficit.