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CA 2022 budget: How it may pay rent and get you a $600 check

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Newsom proposed the largest budget in California history to the state legislature Friday, here's how it could impact you.

Video Transcript

- Today the governor presented his 100 billion dollar budget proposal to the state legislature. It's called California's Comeback Plan designed to help the state recover from the economic devastation piling on from the pandemic. ABC 7 News reporter, Stephanie Sierra is live tonight to break it all down for us. Stephanie.

STEPHANIE SIERRA: Yes, Alma, this proposal marks the final stretch for the governor after a week long tour highlighting the biggest challenges facing the state. He laid out solutions in this recovery package funding to tackle everything from rent relief, education, homelessness, climate change to support for our small businesses. California's recovery isn't cheap. In fact, the governor's proposed budget through 2022 is the largest in the state's history.

GAVIN NEWSOM: That 100 plus billion dollar comeback plan is the biggest economic recovery package. Period. Full stop.

STEPHANIE SIERRA: Bouncing back from a $54 billion budget shortfall last year. This year, California has a better problem. A $75 budget surplus. Here's how some of it will be put to use. A $12 billion tax rebate for Californians earning up to 75,000 a year.

GAVIN NEWSOM: It's two out of every three Californians will receive at least, at least a check of $600 once they file their taxes. This is a good inducement, an incentive to file your taxes on Monday.

STEPHANIE SIERRA: This applies to close to 80% of tax filers in the state. Another perk.

GAVIN NEWSOM: Families with dependents will receive an additional $500 just one time, not per child.

STEPHANIE SIERRA: Another two billion dollars is proposed to support renters paying off 100% of past due rent, water, and electricity bills. Plus more perks on parking. $300 million proposed for traffic fine forgiveness.

GAVIN NEWSOM: A lot of debt that has been owed for fines and fees associated with traffic fines, this is for low income Californians, that accrue this debt.

STEPHANIE SIERRA: Low income Californians would get any traffic ticket received during the pandemic through June 30 of this year waived. Eligibility will be determined by the state's Judicial Council. Aside from immediate relief, the recovery plan also includes funding to fight long term challenges. $20 billion to invest in public schools. $5.1 billion to tackle the state's drought water infrastructure and climate change. Plus a $12 billion plan to address homelessness, that includes cleaning up our streets.

GAVIN NEWSOM: Another big thing we need to implement we can't just promote is to clean this damn state up and forgive my language. State's too damn dirty.

STEPHANIE SIERRA: Now I do want to point out the governor hinted part of the plan to address homelessness may require local governments to essentially set forth specific plans to build either homeless housing or implement incentives to clean up encampments in order to qualify for that aid. Now could counties potentially face fines if they don't? That part is still to be determined. Stephanie Sierra, ABC 7 News.