Newsom May Budget Revision is a Mixed Bag for Small Businesses

“Gov. Gavin Newsom’s 2024-25 May budget revision leaves opportunities on the table to invest in entrepreneurship and quality jobs. Despite some serious shortcomings in the governor’s proposal, however, the May revise supports long-term recovery efforts for California’s smaller firms, including:

• Expanding healthcare coverage for more Californians. Newsom’s revision sustains funding to expand Medi-Cal eligibility for all low-income Californians, regardless of immigration status, which will close a gap in healthcare access and ensure more uninsured entrepreneurs have access to the healthcare they need. This expansion is particularly important for immigrants, who are twice as likely to own a small business compared to those born in the United States. 

Unfortunately, the May budget revision also misses several opportunities to build on the progress made over previous budget cycles that supports the small business ecosystem, including:

• A $150 million reduction to California Jobs First, an inter-agency partnership to support resilient, equitable, and sustainable regional economies.
• A pause in expanding slots for subsidized child care at the current level until economic conditions allow for resuming expansion.
• Reducing the Small Business Technical Assistance Expansion Program (TAP) by $13 million for the next two years. This 50% cut would drastically diminish the power of TAP to provide critical support for small businesses.  

Small business owners are hopeful that the final budget agreement will continue to build on the innovative policies and investments of prior budgets. We urge Gov. Newsom to invest in healthcare, critical programs and increased technical assistance resources necessary to the success of California’s small business ecosystem.”