California Gov. Newsom Allocates $4.5B for State’s Economic Recovery
California Governor Gavin Newsom unveiled a $4.5-billion spending plan on Tuesday that he says will help pull the state through the COVID-19 crisis and advance an equitable, broad-based recovery. The Governor previewed his Equitable Recovery for California’s Businesses and Jobs plan, the business and workforce recovery elements of his 2021-22 State Budget, that is expected to create jobs and help small businesses recover from the downturn brought on by the global health pandemic.
Gov. Newsom says, “California’s economy is known the world over for our innovation, inclusion and resilience. That spirit will carry us through this pandemic and beyond. These budget proposals reflect our commitment to an equitable, broad-based recovery that ensures California remains the best place to start and grow a business – and where all Californians have an opportunity to reach their dreams.”
The proposed plan includes $500 million to create jobs and long-term housing development by unlocking more than 7,500 new permanently affordable homes for Californians. Through the Infill Infrastructure Grant (IIG) Program, local governments and developers can bring the cost down for new housing by defraying costs for things like sewers, roads and site preparation, while putting thousands of people to work building housing-related infrastructure.
Also included in the proposed plan is $1.5 billion for people to buy electric cars and to build the needed charging stations.
The California Jobs Initiative, a $777.5 million component of the proposal, focuses on job creation and retention, regional development, small businesses and climate innovation. It includes increased funding for location incentives, job creation, infrastructure investment, hiring or rehiring tax credits as well as entrepreneurship and small business creation funds, business and disaster loan funds, and sales tax exclusions for manufacturing equipment.
The budget includes $575 million more for California’s small businesses to help them adapt operations amid the COVID-19 pandemic. This proposal is on top of the initial $500 million already allocated in partnership with the Legislature in November.
The proposed budget also includes one-time and ongoing investments totaling $353 million to support California’s workers through workforce development and training initiatives as they adapt to changes in the economy brought about by COVID-19.
For comments, questions or concerns, please contact Dennis Kaiser