California woke up to some more good news on the economic stimulus issue. Governor Gavin Newsom and other leaders divulged plans to help the state economy with stimulus checks, and additional support with rent and utilities. The total costs are expected to be $100B.
The California Comeback Plan will partially expand the Golden State Stimulus recovery package. It is a one-time stimulus check for Californians. According to the California Franchise Tax Board, this fund is aimed to help Californians economically affected by the pandemic. It will target families earning $75,000 or less.
Around $12B has been set aside to send $600 as payments to around two-thirds of all Californians.
Funding The California Stimulus Check
The Comeback Fund worth $100 billion is expected to be funded through the $75.7B generated through operating budget excess. The federal government will pay the outstanding $26B. Any plan to utilize funds from the surplus budget would need the approval of the California State Legislature. A shortfall of around $54.3B was predicted last year.
One area that demands immediate action is the accumulated back rent. Billions will be needed to clear these rents that have accumulated since April last year. The relief package proposes to double the rental assistance for Californians. Around $5.2 billion has been allocated towards pending rent payments.
Another $2 billion will help pay utility bill dues, including gas and water. $1 billion will be reserved towards the water crisis. Governor Newsom plans to reveal the total plans by next week. It also includes funds allocated towards bringing back students by the next fall.
More funds have been allocated for health and safety, revealed Governor Newsom. The Governor also urged Californians to get their COVID shot as there has been a slow down in the drive. He said that the economic recovery of California was based on a total end to the pandemic.
The positivity rate has gone down to 1% for the 7-day rate. The first dose has been administered to 62% of the population, which was encouraging, revealed the Governor. While some doctors have predicted herd immunity, others have cautioned against a slowdown in the vaccination drive.
Newsom’s opponents have criticized his plan for a separate stimulus check and other monetary support. They have stressed that it is more important to open up the economy and bring back the jobs. But economists have predicted that California would recover faster than other states from the economic downturn caused by the pandemic. They have pointed to the robust economy of the Golden State.
The Governor has remained imprecise when asked if his stimulus check drive was part of his election campaign.
