Small Business Group Urges Governor Newsom to Sign Final California Budget Agreement

For Immediate Release: 
Tuesday, June 18, 2024

Statement by Bianca Blomquist, California Director for Small Business Majority, in response to the final budget agreement passed by the state legislature on June 15

“Governor Gavin Newsom has an opportunity this budget cycle to support Main Street by investing in programs that will boost entrepreneurship and quality jobs. While we were disappointed that the May budget revision failed to invest in key programs for small businesses, the state legislature righted these wrongs in the final budget that was passed last week by investing in the following provisions: 

  • Business assistance: The legislature’s final budget rejects the governor’s proposal to slash $13 million from the Small Business Technical Assistance Program (a 56% reduction to the program), which provides free support and education to the state’s small businesses. We’re pleased that the budget agreement passed last week retains the program’s annual funding of $23 million.
  • Healthcare affordability: Governor Newsom’s budget proposal contained cuts to healthcare services that would have left California’s most vulnerable small business owners behind. For example, millions of dollars were taken from the Health Care Affordability Reserve Fund, which is intended to reduce healthcare costs for those enrolled in Covered California, many of whom own or work for a small business. 
  • Childcare: We applaud the legislature for remaining true to its commitment to reaching the state’s goal of 200,000 new, subsidized childcare slots. Small childcare businesses rely on these slots to keep their doors open. Meanwhile, entrepreneurs and small business employees need access to affordable and quality childcare in order to fully participate in the workforce. This investment is a win-win for California’s economy. 

Unfortunately, the final budget agreement did miss some opportunities to fund measures that support the small business ecosystem. This includes failing to fully fund California Jobs First, an inter-agency partnership to support resilient and equitable regional economies, lack of funding for the Employee Ownership Hub under CalOSBA, and support for additional programs that are needed to shore up the state’s childcare industry. 

Small business owners are hopeful that policymakers will continue to build on the innovative policies and investments of previous budget cycles. We urge Governor Newsom to sign this budget agreement in order to invest in critical programs and policy solutions that are necessary to the success of California’s small business ecosystem.”  


About Small Business Majority

Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

Press State: