Sacramento, CA — Senator Patricia Bates (R-Laguna Niguel) issued the following statement on Governor Gavin Newsom’s budget proposal for the 2022-2023 FY.

“On Monday, Governor Newsom unveiled his budget priorities for the 2022-2023 FY, and while I commend the Governor for some of his administration’s proposals, I do not believe his budget does enough to address some of California’s top priorities.”

“While I am thankful the Governor’s proposal includes $750 million for drought resistance projects, I urge Governor Newsom to support the proposal by Senate Republican to fund new water storage projects and repair existing infrastructure.”

“I applaud Governor Newsom’s commitment to focus on California’s homeless population. To help combat this crisis, Sacramento should be offering solutions that not only help those experiencing homelessness, but also the multitude of communities across California that have been struggling with this issue for years. Such a challenging and complex issue requires the Legislature’s full attention, which is why joined my colleagues and called on the Governor to convene a Special Session of the Legislature. Unfortunately, the Governor denied our request and mocked our efforts as ‘political theatrics’.”

“The Governor’s commitment to $255 million in grants for local law enforcement to combat retail theft is a positive step; however, existing policies pushed by this Governor have made it difficult for California law enforcement to hold those responsible accountable for their actions. Unless there is a complete overhaul of these soft-on-crime policies, any additional financial commitments will have little to no affect.”

“Additionally, I want to commend the Governor for restoring the Research and Development (R&D) tax credit and the Net Operating Loss (NOL) deductions in his proposal. These tax incentives will continue to spur innovation and create high-paying jobs in California’s innovative economy. The jobs in this sector provide many California residents with the means to achieve the American Dream, which is why I attempted to lift the suspension of the tax incentives last year. Regrettably, my Senate colleagues rejected my efforts.”

“The Covid-19 pandemic, and the lockdown measures that followed, forced thousands of Californian’s out of work. As a result of massive unemployment, the Unemployment Insurance Fund accrued a nearly $20 billion deficit. Although the Governor’s proposal to commit $3 billion toward the deficit is a good first step, more must be done to avoid additional, huge multi-year payroll tax increases on employers.”

“Governor Newsom’s budget blueprint does make some notable strides, but with an expected massive operating surplus there should be no excuse as to why we can’t do more to provide long-term solutions to California’s problems.”
 ### Senator Patricia Bates (R-Laguna Niguel) represents the 36th Senate District in the California Legislature, which covers South Orange County, North San Diego County, and Marine Corps Base Camp Pendleton.