California Budget 2025: Balancing Progressive Goals and Fiscal Responsibility with a Focus on Sustainable Development Goals (SDGs)

Overview

On Friday, California Governor Gavin Newsom signed a $321 billion budget that reduces several progressive initiatives, including a landmark healthcare expansion for low-income adult undocumented immigrants, in order to close a $12 billion deficit. This marks the third consecutive year that California, the nation’s most populous state, has had to scale back or halt programs championed by Democratic leaders.

The budget agreement, passed earlier by lawmakers, is contingent upon legislation to ease housing construction being sent to the Governor by Monday. State leaders emphasized that the budget avoids the most severe cuts to essential safety net programs by utilizing state savings, borrowing from special funds, and delaying payments.

Emphasis on Sustainable Development Goals (SDGs)

The budget touches on multiple SDGs, including:

1. SDG 3: Good Health and Well-being – through healthcare program adjustments.
2. SDG 11: Sustainable Cities and Communities – via housing legislation requirements.
3. SDG 13: Climate Action – by allocating funds from the cap-and-trade program for firefighting and climate initiatives.
4. SDG 16: Peace, Justice, and Strong Institutions – through funding for public safety and criminal justice reforms.
5. SDG 10: Reduced Inequalities – by addressing immigrant healthcare and legal services.

Key Budget Areas

1. Health Care

• Enrollment of new adult undocumented immigrants in the state-funded Medi-Cal program will cease starting in 2026.
• A $30 monthly premium will be introduced in July 2027 for immigrants under 60 remaining on the program, including some with legal status.
• The budget removes $78 million in funding for mental health phone lines, affecting services for approximately 100,000 people annually.
• Funding for dental services for low-income individuals will be eliminated in 2026.
• Implementation of legislation requiring fertility services coverage by health insurance is delayed by six months to 2026.
• Funding is secured for in-home domestic and personal care services for low-income residents and people with disabilities.
• Planned Parenthood funding is preserved despite proposed cuts.

These healthcare adjustments impact SDG 3 (Good Health and Well-being) and SDG 10 (Reduced Inequalities), reflecting challenges in balancing universal health coverage goals with fiscal constraints.

2. Environment

• $1 billion from the state’s cap-and-trade program will be allocated to firefighting efforts.
• The cap-and-trade program, designed to reduce carbon emissions, continues without a renewed commitment to allocate $1 billion annually to the high-speed rail project.
• Funding is approved to transition part-time firefighters to full-time roles to improve wildfire prevention and response.
• An additional $10 million is allocated to increase daily wages for incarcerated firefighters.

This section aligns with SDG 13 (Climate Action) and SDG 11 (Sustainable Cities and Communities) by addressing climate change mitigation and disaster resilience.

3. Public Safety

• $80 million is allocated to implement a tough-on-crime initiative approved by voters, including:
• Making shoplifting a felony for repeat offenders.
• Increasing penalties for certain drug charges.
• Providing judges authority to order treatment for individuals with multiple drug charges.
• $50 million will support counties in building behavioral health beds.
• $15 million is designated for probation officers’ pre-trial services.
• $20 million will assist courts with increased caseloads.

These measures contribute to SDG 16 (Peace, Justice, and Strong Institutions) by enhancing public safety and justice system capacity.

4. Other Priorities

• The state’s film tax credit is increased from $330 million to $750 million annually to support the entertainment industry, effective through 2030.
• $10 million is allocated to immigration legal services, including deportation defense.
• No new funding is provided for homelessness programs, potentially risking the loss of thousands of shelter beds.
• The budget does not advance Governor Newsom’s proposal for a large underground water tunnel project.

These priorities touch on SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities), while the lack of funding for homelessness relates to SDG 1 (No Poverty) and SDG 11 (Sustainable Cities and Communities).

Challenges and Fiscal Outlook

• California faces potential federal cuts to healthcare programs and broad economic uncertainties.
• Federal policies on tariffs and immigration enforcement may reduce state tax revenue by an estimated $16 billion.
• Future deficits could range from $17 billion to $24 billion annually.
• The budget avoids raising new taxes on everyday Californians but increases borrowing and uses rainy day funds.

Conclusion

The 2025 California budget reflects a complex balancing act between sustaining progressive social programs and addressing significant fiscal challenges. While the budget supports several Sustainable Development Goals, including health, climate action, and justice, it also entails cuts and delays that may impact vulnerable populations and long-term sustainability efforts. The emphasis on housing legislation and climate funding highlights the state’s commitment to SDGs 11 and 13, while healthcare and public safety allocations address SDGs 3, 10, and 16.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 3: Good Health and Well-being
   • Health care expansion for low-income adult immigrants
   • Mental health services funding
   • Dental and fertility services for low-income people
2. SDG 10: Reduced Inequalities
   • Access to health care for immigrants regardless of legal status
   • Support for immigrant communities
3. SDG 11: Sustainable Cities and Communities
   • Housing development legislation to ease building
   • Addressing homelessness and shelter bed availability
4. SDG 13: Climate Action
   • Cap-and-trade program to reduce carbon emissions
   • Funding for firefighting and wildfire prevention
   • Transitioning part-time firefighters to full-time
5. SDG 16: Peace, Justice and Strong Institutions
   • Tough-on-crime initiatives
   • Behavioral health beds and pre-trial services
   • Support for courts and probation officers
6. SDG 8: Decent Work and Economic Growth
   • Raising wages for incarcerated firefighters
   • Film tax credit to boost local economy

2. Specific Targets Under the Identified SDGs

1. SDG 3: Good Health and Well-being
   • Target 3.8: Achieve universal health coverage, including financial risk protection and access to quality essential health-care services
   • Target 3.4: Reduce premature mortality from non-communicable diseases through prevention and treatment
2. SDG 10: Reduced Inequalities
   • Target 10.2: Empower and promote social, economic and political inclusion of all
3. SDG 11: Sustainable Cities and Communities
   • Target 11.1: Ensure access for all to adequate, safe and affordable housing and basic services
4. SDG 13: Climate Action
   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters
   • Target 13.2: Integrate climate change measures into policies and planning
5. SDG 16: Peace, Justice and Strong Institutions
   • Target 16.3: Promote rule of law and ensure equal access to justice
   • Target 16.6: Develop effective, accountable and transparent institutions
6. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all

3. Indicators Mentioned or Implied to Measure Progress

1. SDG 3 Indicators
   • Proportion of population covered by health insurance or a public health system (Medi-Cal enrollment rates)
   • Number of people served by mental health phone lines
   • Access to dental and fertility services for low-income populations
2. SDG 10 Indicators
   • Health care access for immigrants regardless of legal status
   • Inclusion of immigrant communities in social programs
3. SDG 11 Indicators
   • Number of new housing units built due to eased legislation
   • Availability of shelter beds for homeless populations
4. SDG 13 Indicators
   • Amount of funds allocated from cap-and-trade program for firefighting
   • Number of full-time firefighters employed
   • Carbon emission levels (implied by cap-and-trade program)
5. SDG 16 Indicators
   • Funds allocated for behavioral health beds and pre-trial services
   • Number of felony cases processed under the tough-on-crime initiative
6. SDG 8 Indicators
   • Wage levels of incarcerated firefighters
   • Economic impact of film tax credit program

4. Table: SDGs, Targets and Indicators

Source: nypost.com