California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Newsom Unveils Rules About Speed of Reopening, Outlines Big Budget Hit
California Governor Gavin Newsom this week continued to make moves to relax the state’s stay-at-home order issued on March 19 to limit the spread of the coronavirus. Yet on a more cloudy note, analysis released Thursday by advisors to the Governor also reported that the state has an enormous $53.4 billion budget shortfall through next summer, all attributed to the COVID-19 pandemic.
Gov. Newsom said on Thursday at a press briefing, “We’re better positioned to deal with this shortfall than we have shortfalls of the past. We’ll get through this. This will be challenging. We’ll get through it by working together in a collaborative spirit of shared responsibility.”
The state had an estimated budget surplus of $6 billion in January, but now the Golden State is facing the largest projected fiscal hole in state history. Newsom’s budget team forecasts a $41.2-billion drop in tax revenue compared to estimates four months ago. The state’s main sources of revenue, personal income taxes, sales taxes and corporate taxes are projected to drop by roughly 25%.
Reopening the state’s economy could help soften the blow. But before reopening, retail business must create a plan to protect employees and customers, train employees on how to limit the spread of COVID-19, have measures in place to screen for employees who may be ill and implement disinfecting and social distancing policies. The safeguards and protocols cover retail stores and workplaces eligible to reopen today and will continue in the weeks ahead, provided respective county public health officials can show that the spread of COVID-19 has stabilized in the area.
In the coming weeks, the reopening plan will encompass in-restaurant dining, car washes, shopping malls and some office buildings. Manufacturers and suppliers that provide goods for those businesses can also resume operations. Earlier in the week, the Governor said such businesses as bookstores, music stores, toy stores, florists, sporting goods retailers, clothing stores and others offering curbside pickup could open sooner.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Economy
