How is California’s Revised Budget leading to an Equitable Recovery for Latinos?

Governor Gavin Newsom presented California’s 2021-2022 proposed budget on January 8th; a point in time in which our focus continued to be how Latino and Black communities were disproportionately affected by the virus. A time in which Latinos accounted for nearly half of the total COVID-19 deaths and represent 58% of total cases even though they represent only 38% of the state population. Those living in the poorest areas of Los Angeles County had a 65% higher rate of contracting the virus than those in wealthier areas. 

Earlier this month, Governor Gavin Newsom announced the 2021-2022 revised budget. Our collective focus now has expanded to include vaccinating our communities in hopes of finding the light at the end of the tunnel.   

Given that there is an expected revenue increase of an estimated $40 billion for California, we remain hopeful in addressing the devastating impact of this past year. The unprecedented resources to meet the unprecedented need are here and we continue to look to the Governor’s revised budget proposal for investments that will lead to an equitable recovery from the pandemic because one thing continues to be true: if we don’t see change for the Latino population we risk the future of our entire state. 

How is the revised CA budget supporting K-12 education?

  • Full implementation of universal transitional kindergarten for all 4 year olds by 2024-2025
  • $1.1 billion to increase LCFF concentration grants to 65%
  • $2 billion one-time American Rescue Plan funds to establish a new program, the California Child Savings Accounts Program, which provides $500 college savings account for first-graders
  • $7 billion in American Rescue Plan and state funds over three years to expand broadband access

Over the past year, advocates have continued to raise the reality that the pandemic would cause detrimental impact on the educational trajectory of Latino students given that prior to the pandemic they were not being served well. Preliminary data shows that for low-income Latino kindergarten students there was a decrease in enrollment of 11% statewide.  Most schools have opened for some form of in person instruction but 55% of public school students statewide are still attending school virtually.  In LAUSD, we are seeing 40,000 current LAUSD high school students or more are at risk and could potentially not earn their high school diploma. It is also estimated that students on average can lose five to nine months of learning by the end of the school year, with students of color losing more, an estimated six to 12 months and a full recovery could take years increasing the impact on a whole generation of students

ABC’s Response: ABC is happy to see an increased investment of $4.8 billion in K-12 education and investments that address the digital divide as well as setting up students for future educational attainment.  We continue to call for funding investments to prioritize Latino students to ensure that we are prioritizing learning acceleration.

How is the revised CA budget supporting higher education?

  • $100 million to support student retention and enrollment at community colleges
  • $75 million to expand dual enrollment
  • $52.4 million to support workforce development initiatives at community colleges
  • $250 million to support regional K-16 collaboratives focused on pathways to employment

College dropout rates and enrollment in higher education has significantly decreased mainly due to COVID-19. Surveys from the U.S. Census Bureau estimate 30% of students have canceled college enrollment plans for fall 2021.

In California, college enrollment of graduates of high-poverty high schools dropped 32.6% compared with 16.4% at low-poverty schools. This is double the rate for low-income students. In addition, enrollment fell by 26.4% at schools with large proportions of underrepresented minorities compared with 18% at low-minority high schools. Many students chose not to enroll in the fall because of the inability to take classes online or did not like doing so along with other family and financial reasons.

ABC’s Response: Latino students have been the largest ethnic group in California’s K-12 public schools for two decades, yet in 2016 only 18% of Latino adults had a college degree compared to 52% of whites. Today, Latinos are the lowest proportion of college degree earners and the highest proportion of people who have not graduated from high school. ABC is happy to see an increased investment of $3.1 billion in higher education to support all students. We believe these investments begin to tackle the effects of the pandemic–especially to help students of color who have been hit the hardest. To ensure a full and inclusive recovery, community colleges will need a holistic approach to welcome back students and retain them. 

How is the revised CA budget addressing economic needs?

  • $1,000 payment to Californians who file taxes with Individual Taxpayer Identification Numbers (ITINs), have incomes of $75,000 or less, and have dependents. 
  • $35 million General Fund over five years for basic income pilot programs administered by cities or counties

Throughout this pandemic, low-income families have felt the financial burden the hardest. The California Budget & Policy Center’s report states that more than 60% of Black and Latinos households lost earning. Now, a year later, Latinos are 13% more likely to be unemployed.

ABC’s Response: ABC is happy to see the expansion of investments to families that have been suffering the deepest economic impact prior and during the pandemic.  These investments are a good first step and we call for a permanent investment and expansion of basic income pilot programs long term to mitigate the economic impact once the pandemic is over.

How is the revised CA budget addressing childcare needs?

  • $176.9 million for one-time stipends to all licensed child care providers in California
  • $25 million for the California Child Care Initiative Project to increase child care capacity for infants and toddlers in areas without providers
  • 100,000 new subsidized child care spaces 

Prior to the pandemic 60% of Californians lived in childcare deserts and 6 out of every 10 children under the age of twelve have working parents. Now due to the pandemic, 7,000 family child care providers shut down, 2,443 of those permanently. This pandemic has led to three in ten jobs in this industry having been lost, disproportionately impacting women of color.

ABC’s Response: ABC believes these investments are a good first step in moving towards increasing access and affordability for working Latino families. As parents, especially women, begin to return to work, a child care infrastructure must be in place that is high quality, supportive, and responsive to a family’s needs. Our call is for a permanent budget item  that corrects the lack of investment prior to the pandemic and the harsh impact of the pandemic on the wages of employment within this sector.  

How is the revised CA budget supporting health?

  • Expand comprehensive Medi-Cal coverage to income-eligible adults age 60 and older regardless of immigration status
  • $106 million General Fund to help older adults recover from the isolation and health impacts of the pandemic 

ABC’s Response: ABC is happy to see an increased investment of $1.3 billion for health and human services.  This pandemic has demonstrated that it does not discriminate based on documentation status and it does exacerbate existing inequities so it is crucial to protect our vulnerable populations in order for the larger state to see the light at the end of the tunnel.  However, to build a healthier community, we call for the expansion of Medi-Cal coverage for undocumented people under the age of 60.