Governor Newsom and the legislature in June approved a record state budget – appropriating more than $300 billion for the fiscal year 2022-23. Included among the 1,000+ page budget bill, a “budget bill jr.” (or two) and several so-called trailer bills are dozens of appropriations that will support nonprofits and their partnerships with the state in the years ahead. These funds will come in the form of direct grants, as relief funds, and via new or enhanced contracts for specific services and projects.

There are many, many victories for nonprofits and communities in the budget. We applaud all the nonprofit advocates who brought forward proposals, worked with legislative champions and budget staff, and pushed tirelessly to ensure a state budget that invests in improving the lives of vulnerable Californians, protects our beloved environment, and supports the development of the arts and the nonprofit workforce. 

COVID-19 Supplemental Sick Leave Relief Grants – State leaders allocated $250 million for grant relief to those nonprofits and small businesses required to comply with the state’s COVID-19 supplemental paid sick leave mandate covering Jan 1 - Sep 30, 2022. CalNonprofits led the charge for this cost offset and is working with state leaders to ensure maximum eligibility and smooth and timely implementation.

PSLF (Public Service Loan Forgiveness) Outreach & Support – The budget appropriated $10 million to The CA Department of Financial Protection and Innovation (CDFPI) to help as many student borrowers as possible move closer to loan forgiveness before the current waiver ends on Oct. 31 of this year. $7.2 million will be distributed as grants to programs that provide direct support to borrowers with the remainder used for expanded outreach. CalNonprofits is hosting a webinar Sept. 8 with Celina Damian, the Student Loan Servicing Ombudsperson for CDFPI, to address questions about consolidating loans and applying for PSLF prior to the waiver deadline. Please join us! 

Continuing COVID Relief Grants – CalNonprofits pushed hard for more COVID relief funding for nonprofits and more inclusive eligibility guidelines to assure more organizations would qualify. We applaud the state’s approval of $100m additional dollars and adoption of new language to allow fiscally-sponsored organizations to receive funding. We look forward to continuing to work with GO-Biz to help get the word out about these funds and to help nonprofits successfully pursue them.

Arts & Culture Funding – More than $175 million will invigorate arts and culture in the state, with $30 million going to the California Cultural Districts Program and a re-appropriation of $20 million in COVID relief funding for nonprofit cultural institutions, including the opportunity for applicants to re-apply. The budget also included more than $60 million in earmarked funds for individual museums, zoos and aquariums across the state. And the California Association of Museums continues its push for $125 million for the California Cultural and Historical Endowment and the state’s Museum Grant Program.

Funds to Combat Hate ­– Gov. Newsom and the legislature agreed to fund $90 million to help nonprofit organizations that are targets of hate-motivated violence and hate crimes to improve their security and will also support nonprofits or community-based organizations that provide services to victims of hate incidents, including legal services, health care, mental health, victim’s compensation, or counseling. Significant funding was also approved that will support organizations focused on senior and homeless housing, rehabilitative programs in prisons, legal aid and more.

While a majority of the decisions around the FY 2022-23 budget were made in June and approved by the legislature and Governor ahead of of the start of the fiscal year on July 1, some specific funding decisions will still be made and important implementing language will be adopted ahead of the end of the legislature’s adjournment on August 31.