Statement on Governor Newsom’s January Proposed Budget
The California Budget should reflect the values of all Californians, and while the January 10th proposed budget includes important investments in the Master Plan for Early Learning and Care, the Master Plan for Aging, education, health, housing and climate, the budget should have done more to invest in the well-being of California workers and their families. With another historic budget surplus, California must extend COVID-19 Supplemental Paid Sick Leave, and make Paid Family Leave and State Disability Insurance accessible to all Californians.
The Governor’s stated top budget priority is to address COVID-19 and we appreciate the Governor’s support for extending COVID-19 Supplemental Paid Sick Leave. Now, the Administration and the Legislature need to immediately enact this extension of COVID-19 Supplemental Paid Sick Leave without delay. In 2021, COVID-19 Supplemental Paid Sick Leave was the only policy that allowed many California workers to follow public health advice to stay home when potentially infectious, to care for children exposed to COVID-19 at school, or to get vaccinated without risking their job or pay. As we face record rates of infection due to the Omicron variant, it has never been more clear that California cannot recover until workers know that they can take leave from work to protect their coworkers and customers without sacrificing their paycheck. Every day that workers cannot access COVID-19 Supplemental Paid Sick Leave, infection rates rise needlessly and families continue to suffer.
While we applaud the emphasis on restoring COVID paid sick leave, the budget fails to address another critical need for working families: wage replacement rates for Paid Family Leave and State Disability Insurance programs. Low rates prevent workers from being able to take the leave they need for their health and their families’ health. Updating these rates would address a key barrier to these programs. Paid Family Leave and State Disability Insurance are entirely worker funded and form a critical safety net for workers who are sick, caring for sick loved ones, or bonding with new children. Currently, most workers in California receive benefits equal to 60% of their weekly wage, up to a maximum of $1,540. Full-time workers earning minimum wage ($15 an hour in 2022) who wish to access the program must attempt to live on 60% of the minimum wage, or $360 a week. As a result, many California workers do not apply for paid leave at all, or are forced to return to work much too early after giving birth or recovering from a serious illness simply to make ends meet. A 90% wage replacement rate would ensure that SDI and PFL are accessible to the low-wage workers.
With a historic budget surplus for the second year in a row, California has the resources to make these important investments in families by extending COVID-19 Supplemental Paid Sick Leave and improving wage replacement rates for Paid Family Leave and State Disability Insurance. These investments will help ensure that all Californians can protect themselves and others from COVID-19, recover from serious illnesses, care for seriously ill loved ones, and bond with a new baby.
The California Work & Family Coalition is a statewide alliance of community organizations, unions, non-profits, and individuals dedicated to helping parents, caregivers, and families thrive. We are united in the belief that all people should have the time and resources to care for themselves and each other.
