Governor’s Budget Focuses on COVID and Economic Relief

Governor’s Budget Focuses on COVID and Economic Relief

Kitty Alvarado Connect

Governor Gavin Newsom’s $227 billion budget proposal for the 2021-2022 fiscal year was a surprise considering in June the state was looking at a $54 billion deficit.

“We are projecting if you include the operating reserve $2.9 billion, a $15 billion budget  surplus for the fiscal year,” said Newsom. 

The state’s wealthy tax base that was able to continue working from home shored up the economy.

The budget focuses on COVID and economic relief.  

The $85.8 billion allocated to schools and education includes money to help those who fell behind during the pandemic and reopening schools.

“That’s a $2 billion investment to safely, can’t do it safely, we can’t do it, but to safely reopen our schools for in person learning,” said Newsom.

And $195 billion for healthcare, $4.4 billion in COVID relief with nearly, $2 billion of that expected to come from federal support and $350 million for vaccines. 

“Getting out of the freezers and administering into peoples’ arms these vaccines, we must do that in order to safely reopen for in person instruction our schools, to reopen our small businesses as well as businesses large and small,” he said.

There will also be $575 million in grants to help small businesses and 71 million in fee waivers. 

“This will go directly to those businesses that have been disproportionately impacted by stay at home orders and this pandemic induced recession,” he said. 

There will also be a nearly $2 billion addition for homelessness, $50 million in food assistance and $600 stimulus checks for people that make less than $30,000.

“We think there’s urgency to get money into people’s pockets and that’s why we’re proposing a Golden State stimulus to basically make those $600 checks that people are starting to receive from the federal government to get them to $1200,” he says.  

There will also be a $1 billion dollar allocation for wildfire preparedness and emergency response that includes firefighters, helicopters that can fly at night and technology that can map better map fires. Some of that money will also go to upgrading our earthquake early warning system. 

Newsom is hopeful the incoming Biden administration will provide additional support and says the budget reflects California’s values, “We’re all better off when we’re all better off.”

Assemblyman Eduardo Garcia, (D) Coachella, sent this statement about the budget:

“As California moves to combat this pandemic, rebuild our economy, and uplift our families and communities struggling to make ends meet, I thank Governor Newsom for presenting us with a balanced budget that strongly aligns with our legislative priorities.

This plan includes a set of urgent policy action items to bring immediate relief to our small businesses, schools, and direct assistance to our most vulnerable California families.

This coming week, I will be returning to Sacramento and focusing all my energy to ensure that our district receives our fair share of these pandemic investments.”

For detailed information click here: CALIFORNIA BUDGET

For information on small business grants click here: CA GRANTS

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