Governor Newsom’s Proposed Recovery Investments 2021-22
The Covid recession has cost many their jobs and forced many small employers to shut their doors. When it is over, the expectation is that the economy will come roaring back; however due to virus mutations, slow vaccine roll-outs, vaccine hesitancy and the lingering distrust engendered by Trump in mask wearing and social distancing, it is uncertain when the pandemic will end. Those holding jobs or running businesses in leisure and hospitality have been particularly hurt hard by job losses. Others work from home with little loss of pay and increased convenience. Essential workers in health care have been putting their lives on the line for their patients, and those essential workers living in multi-generational families in crowded housing have lost lives and family members. Kids have lost a year of learning, and those worst impacted have been the younger, the minorities, the low income, the English learners, and those with learning disabilities.
The Governor’s proposed initiatives cover income losses, small business’ resurgence, schools reopening and extended learning. He proposes that many of the initiatives be enacted now while the economy is still in tatters from the Covid recession.
$4.3 billion is targeted to individuals and small employers.
· Golden State stimulus tax refunds -- $2.4 billion. These are $600 refundable tax rebates for low and moderate income Californians.
· Small businesses -- $1.8 billion. These are a mix of grants and loans and fee waivers to hard hit small businesses, and tax credits to encourage small business growth in California.
$6.5 billion is dedicated to schools reopening and extended learning for students whose educations have been most hurt by school closing and the shift to remote learning.
$350 million is proposed for workforce development programs, $1.5 billion is for zero emission vehicles, $500 million for new housing, and $300 million for infrastructure maintenance.
Prepared by: Lucien Wulsin
Dated: 1/27/21