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EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA

BUDGET EMERGENCY PROCLAMATION

WHEREAS on March 4, 2020, I proclaimed a state of emergency to exist in
California, under the California Emergency Services Act, as a result of the threat
of COVID-19; and

WHEREAS the COVID-19 pandemic requires future expenditures of state
funds for personal protective equipment, medical equipment and other
expenditures as necessary to support a potential hospital surge, to provide
necessary services to vulnerable populations, and other expenditures necessary
to respond to the threat and spread of COVID-19; and

WHEREAS the COVID-19 pandemic has triggered a global economic crisis,
a recession, record job losses, severe impacts on small businesses, and a $54.3
billion state budget deficit; and

WHEREAS over the past several years, certain deposits have been made
into the state's rainy day fund, the Budget Stabilization Account, to provide

reserves to help the state meet fiscal challenges when a Governor declares a
budget emergency such as the budget emergency caused by the COVID-19
pandemic; and

WHEREAS the Budget Stabilization Account has $16.1 billion in reserves;
and

WHEREAS in order to address the COVID-19 pandemic, the state must use
a portion of the reserves in the Budget Stabilization Account in the 2020-21 fiscal
year to fund expenditures related to COVID-19 and provide other needed
services; and

WHEREAS upon a proclamation of a budget emergency, the Legislature
may pass a bill that ( 1) suspends for one fiscal year the transfer of moneys from
the General Fund to the Budget Stabilization Account required by the
Constitution, and (2) returns a certain amount of funds that have been
transferred to the Budget Stabilization Account to the General Fund for
appropriation to address the budget emergency.

NOW THEREFORE I, GAVIN NEWSOM, Governor of the State of California, in
accordance with the authority vested in me by State Constitution, DO HEREBY
PROCLAIM that the COVID-19 state of emergency constitutes an emergency
within the meaning of Article XIII B, section 3, subdivision (c), paragraph (2), and
a budget emergency within the meaning of Article XVI, section 22, subdivision
( b), paragraph { 1), of the State Constitution.