Article IV, Section 12(a) of the California Constitution requires the Governor within the first 10 days of the year to submit to the Legislature, with an explanatory message, a budget for the ensuing fiscal year. Last Tuesday, Governor Gavin Newsom submitted his proposed state budget for the 2023-2024 fiscal year. The legislature now has until June 15 to pass a budget. Cal. Const. Art. IV, Sec. 12(b)(3).
Governor Newsom is proposing to continue to grow the number of authorized positions at the Department of Financial Protection & Innovation from 818 to 845. He is, however, proposing to cut the Department's overall expenditures by slightly more than 9%. This is not an across-the-board cut. Most programs administered by the Department will enjoy increases in expenditures. The budget axe is falling predominantly on the Department's CalMoney Smart program. The Governor is cutting expenditures in this program by over 97%. The CalMoney Smart program provides grants to specified nonprofits for financial education and empowerment services to unbanked and underbanked populations in this state. See Cal. Fin. Code Sec. 24000 et seq.
Additional budget detail with respect to the DFPI is available here.
Update: After publishing this post, I received the following clarification from the DFPI explaining that the more than $11 million proposed decrease in expenditures for the CalMoney Smart program:
- This does not represent a decrease in terms of the grants available to non-profits.
- The $340,000 is the annual appropriation to administer the program.
- In addition, $10 million was continually appropriated to the DFPI in 21-22 to be used through 2030. DFPI may award up to $2 million in grants per year. Funds not expended in 22-23 will carry over into 23-24 and subsequent years. Combined with internally funded grants, DFPI has approximately $9.0 million remaining to grant through 2030.