Category Archives: California Governor Gavin Newsom

California Governor Gavin Newsom, Coronavirus, Covid 19, COVID-19 Recession, Economy, Re-opening

Governor Newsom proposes huge cuts to address $54 billion budget gap brought on by the COVID-19 recession

Governor Newsom Submits May Revision Budget Proposal to Legislature

Press Release,

SACRAMENTO – In the face of a global health crisis that has triggered a global financial crisis, Governor Gavin Newsom today submitted his 2020-21 May Revision budget proposal to the Legislature – a balanced plan to close a budget gap of more than $54 billion brought on swiftly by the COVID-19 recession.

“COVID-19 has caused California and economies across the country to confront a steep and unprecedented economic crisis – facing massive job losses and revenue shortfalls,” said Governor Newsom. “Our budget today reflects that emergency. We are proposing a budget to fund our most essential priorities – public health, public safety and public education – and to support workers and small businesses as we restart our economy. But difficult decisions lie ahead. With shared sacrifice and the resilient spirit that makes California great, I am confident we will emerge stronger from this crisis in the years ahead.”

The May Revision proposes to cancel new initiatives proposed in the Governor’s Budget, cancel and reduce spending included in the 2019 Budget Act, draw down reserves, borrow from special funds, temporarily increase revenues and make government more efficient. Due to the size of the challenge, there is no responsible way to avoid reductions. The budget will show that the most painful cuts will only be triggered if the federal government does not pass an aid package that helps states and local governments.

The proposal responds to the dramatic economic and revenue changes since January, when prudent fiscal management was reflected in a multi-year balanced budget plan with a $5.6 billion surplus and record reserve levels. The rapid onset of the COVID-19 recession in California has resulted in more than 4 million unemployment claims being filed since mid-March, the unemployment rate is now projected to be 18 percent for the year, and there is a $41 billion drop in revenues compared to January’s forecast. With a higher demand for social safety net services increasing state costs, the $54.3 billion deficit is more than three times the size of the record $16 billion set aside in the state’s Rainy Day Fund.

This recession-induced swing of nearly $60 billion in just four months underscores the necessity of additional federal funds to protect public health and safety, public education and other core government functions, as well as to support a safe and swift economic recovery. If additional federal funds are not forthcoming, the May Revision spells out spending cuts necessary to meet the constitutional requirement for a balanced state budget.

While difficult decisions are required to close this sudden deficit as the state navigates to recovery, the May Revision is guided by principles of prudent fiscal management to protect public health, public safety, and public education; provide assistance to Californians who have been hurt the most by the pandemic; and invest in a safe and quick economic recovery.

Protecting Public Health, Public Safety, and Public Education

The May Revision proposes $44.9 billion in General Fund support for schools and community colleges and $6 billion in additional federal funds to supplement state funding. To address the decline in the constitutionally-required funding for schools and community colleges resulting from the COVID-19 recession, the May Revision proposes to reallocate $2.3 billion in funds previously dedicated to paying down schools’ unfunded liability to CalSTRS and CalPERS to instead pay the school employers’ retirement contributions. It also proposes a new obligation of 1.5 percent of state appropriation limit revenues starting in 2021-22 to avoid a permanent decline in school funding that grows to $4.6 billion in additional funding for schools and community colleges by 2023-24.

The May Revision prioritizes $4.4 billion in federal funding to address learning loss and equity issues exacerbated by the COVID-19 school closures this spring. These funds will be used by districts to run summer programs and other programs that address equity gaps that were widened during the school closures. These funds will also be used to make necessary modifications so that schools are prepared to reopen in the fall and help support parents’ ability to work. The May Revision also preserves the number of state-funded child care slots and expands access to child care for first responders.

The May Revision preserves community college free tuition waivers and maintains Cal Grants for college students, including the grants for students with dependent children established last year. Many workers return to higher education and job training after losing a job; continuing this initiative will prioritize affordability and access to these programs.

Supporting Californians Facing the Greatest Hardships

With the COVID-19 recession hitting harder on families living paycheck to paycheck, the May Revision prioritizes funding for direct payments to families, children, seniors and persons with disabilities. It maintains the newly expanded Earned Income Tax Credit, which targets one billion dollars in financial relief to working families whose annual incomes are below $30,000 – and including a $1,000 credit for those families with children under the age of six. It maintains grant levels for families and individuals supported by the CalWORKs and SSI/SSP programs. It prioritizes funding to maintain current eligibility for critical health care services in both Medi-Cal and the expanded subsidies offered through the Covered California marketplace for Californians with incomes between 400 percent and 600 percent of the federal poverty level. It estimates unemployment insurance benefits in 2020-21 will be $43.8 billion – 650 percent higher than the $5.8 billion estimated in the Governor’s Budget.

The May Revision also targets $3.8 billion in federal funds to protect public health and safety. It also proposes $1.3 billion to counties for public health, behavioral health, and other health and human services programs, and also proposes $450 million to cities to support homeless individuals.

State Government Savings and Efficiency

In addition to baseline reductions in state programs, savings in employee compensation are also necessary in the absence of federal funds. Negotiations will commence or continue with the state’s collective bargaining units to achieve reduced pay of approximately 10 percent. The May Revision includes a provision to impose reductions if the state cannot reach an agreement. In addition, nearly all state operations will be reduced over the next two years, and nonessential contracts, purchases and travel have already been suspended.

The COVID-19 pandemic has required an unprecedented shift to telework for state government that has allowed state managers, led by the Government Operations Agency, to rethink their business processes. This transformation will result in expanded long-term telework strategies, reconfigured office space, reduced leased space, and flexible work schedules for employees when possible. The Administration also continues working with state departments in delivering more government services online – including expansion of the Department of Motor Vehicles’ virtual office visits pilot to other departments and agencies with more face-to-face interactions with Californians.

Supporting Job Creation, Economic Recovery, and Opportunity

Given the critical role of small business in California’s economy, the May Revision proposes an augmentation of $50 million for a total increase of $100 million to the small business loan guarantee program to fill gaps in available federal assistance. This increase will be leveraged to access existing private lending capacity and philanthropy to provide necessary capital to restart California small businesses. To support innovation and the creation of new businesses, the May Revision retains January proposals to support new business creation by exempting first-year businesses from the $800 minimum franchise tax.

During this time of unprecedented unemployment, the Administration will work in partnership with the Legislature to help get people back to work and support the creation of good-paying jobs. It will develop proposals and actions to support a robust and equitable recovery both in the near term and the long term. To this end, the Administration is considering options to support job creation including: assistance to help spur the recovery of small businesses and the jobs they create, support for increased housing affordability and availability, and investments in human and physical infrastructure. Any investments and actions will focus on equity, shared prosperity and long-term growth.

The Governor has convened a Task Force on Business and Jobs Recovery – a diverse group of leaders from business, labor, and the non-profit sector – to develop actionable recommendations and advise the state on how the state’s economic recovery can be expedited. The Administration is committed to additional actions, informed by the Task Force and other stakeholders, to support a safe, swift, equitable and environmentally-sound economic recovery. The Administration is also committed to working with colleges and universities to build on their experience with distance learning and develop a statewide educational program that will allow more students to access training and education through distance learning.

More details on the May Revision are available online at www.ebudget.ca.gov.

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California Governor Gavin Newsom, Coronavirus, Covid 19, Economy, Re-opening

RE-OPENING: CA Governor Newsom issues new guidance for Counties and businesses

Governor Newsom Releases Updated Industry Guidance

Press Release published

Guidance will help drive reopening for some sectors – including retail, manufacturing and logistics – with modifications, beginning Fri, May 8

Regional variance allows for counties to move further into Stage 2 when they attest to meeting certain criteria

SACRAMENTO – Following up on the state’s announcement that it will begin modifying the stay at home order on Friday, May 8, Governor Gavin Newsom today released updated industry guidance – including for retail, manufacturing and logistics – to begin reopening with modifications that reduce risk and establish a safer environment for workers and customers.

Click here to see the new guidance.

“Californians, working together, have flattened the curve. Because of that work, our health data tells us that California can enter the next stage of this pandemic and gradually begin to restart portions of our economy,” said Governor Newsom. “It’s critical that businesses and employers understand how they can reduce the risk of transmission and better protect their workers and customers. COVID-19 will be present in our communities until there is a vaccine or therapeutic, and it will be up to all of us to change our behavior and eliminate opportunities for the disease to spread.”

Resilience Roadmap

Californians are flattening the curve as part of the stay at home order issued on March 19, 2020. These efforts have allowed the state to move forward on the roadmap for modifying the statewide order. The Resilience Roadmap stages that California is using to guide its gradual reopening process are:

  • Stage 1: Safety and Preparedness
  • Stage 2: Lower-Risk Workplaces
  • Stage 3: Higher-Risk Workplaces
  • Stage 4: End of Stay at Home Order

When modifications are advanced and the state’s six indicators show we’ve made enough progress, we can move to the next stage of the roadmap. We are now moving into Stage 2, where some lower-risk workplaces can gradually open with adaptations. Stage 2 expansion will be phased in gradually. Some communities may move through Stage 2 faster if they are able to show greater progress, and counties that have met the readiness criteria and worked with the California Department of Public Health can open more workplaces as outlined in the County Variance Guidance.

Industry Guidance to reduce the risk

California will move into Stage 2 of modifying the state’s stay at home order on May 8, 2020. The state’s progress in achieving key public health metrics will allow a gradual reopening of California’s economy.

The state recognizes the impact of economic hardship, but the risk of COVID-19 infection is still real for all Californians and continues to be fatal.

That is why every business should take every step possible to reduce the risk of infection:

  • Plan and prepare for reopening
  • Make radical changes within the workplace
  • Adjust practices by employees and help educate customers

The state has outlined guidance for each early Stage 2 business to follow. The goal is a safer environment for workers and customers. Businesses may use effective alternative or innovative methods to build upon the guidance.

Each business should review the guidance that is relevant to their workplace, prepare a plan based on the guidance for their industry, and put it into action.

When complete, businesses can post the industry-specific checklist (below) in their workplace to show customers and employees that they’ve reduced the risk and are open for business.

Before reopening, all facilities should:

  1. Perform a detailed risk assessment and implement a site-specific protection plan
  2. Train employees on how to limit the spread of COVID-19, including how to screen themselves for symptoms and stay home if they have them
  3. Implement individual control measures and screenings
  4. Implement disinfecting protocols
  5. Implement physical distancing guidance

The state has also set up a mechanism to gather input on future industry guidance through the California Recovery Roadmap survey.

While many elements of the guidance are the same across industries – such as cleaning and physical distancing – consideration was given to industry-specific methods. For example:

  • Retailers should increase pickup and delivery service options and encourage physical distancing during pickup – like loading items directly into a customer’s trunk or leaving items at their door.
  • Retailers should install hands-free devices, if possible, including motion sensor lights, contactless payment systems, automatic soap and paper towel dispensers, and timecard systems.
  • Manufacturing companies should close breakrooms, use barriers, or increase distance between tables/chairs to separate workers and discourage congregating during breaks. Where possible, create outdoor break areas with shade covers and seating that ensures physical distancing.
  • Warehouses should minimize transaction time between warehouse employees and transportation personnel. Perform gate check-ins and paperwork digitally if feasible.
  • Warehouse workers should clean delivery vehicles and equipment before and after delivery, carry additional sanitation materials during deliveries, and use clean personal protective equipment for each delivery stop.

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California, California Governor Gavin Newsom, Coronavirus, Covid 19, Economy, Stay-at-home

Gov. Newsom: 4 Stage Plan to Reopen California’s Economy

From Gov.ca.gov – Update on California’s Pandemic Roadmap, 4/28/20

Below is the powerpoint Governor Newsom used at his noon press conference today to outline the process for California’s road to modifying stay-at-home orders and re-opening the businesses and workplaces.  A good summary can be found at CBS8 San Diego.  (A print version is likely to appear soon on the Governor’s coronavirus page.)

California, California Governor Gavin Newsom, Coronavirus, Covid 19

Newsom on plan to resume some “delayed health care” procedures, more testing

Governor Newsom Announces Plan to Resume Delayed Health Care that was Deferred as Hospitals Prepared for COVID-19 Surge

Press Release,

Decision based on progress toward preparing California’s hospitals and health care delivery system for a COVID-19 surge in patients – one of California’s six indicators to gradually modify state’s stay-at-home order

State also announces plans to add at least an additional 80 testing sites, mainly in underserved communities; train up to 10,000 contact tracers

SACRAMENTO — Today, California Governor Gavin Newsom announced plans to allow hospitals and health systems to resume delayed medical care for Californians – such as heart valve replacements, angioplasty and tumor removals, and key preventive care services, such as colonoscopies – which were deferred as the state’s health care delivery systems prepared for a surge of COVID-19 patients. The decision was based on progress toward preparing California hospitals and health systems for a surge in COVID-19 patients – one of the six critical indicators the governor unveiled last week as part of the state’s framework for gradually modifying California’s stay-at-home order.

As part of the Western State’s Pact, California will work with Washington and Oregon to share best practices on how our states can allow hospitals and medical providers to resume delayed medical care in areas that have sufficient hospital capacity, while ensuring the safety and health of our health care workers and patients. The Western states had previously announced a shared, science-based vision for gradually reopening their economies and controlling COVID-19 into the future.

“From the beginning, I have said California’s decisions will be guided by science, not politics, and that Californians’ health comes first,” said Governor Newsom. “Thanks to the work our health care delivery system has done expanding hospital capacity and reducing the rate of spread of COVID-19, hospitals and health systems can consider resuming medical care that residents have delayed during this crisis, such as heart valve replacements, angioplasty and tumor removals, when such care can be delivered safety and with appropriate protections for health care workers. It’s in the best interest of the overall health of our state to allow these procedures to resume when they can be done safely.”

Last week, Governor Newsom announced six indicators that would drive California’s decision to gradually modify portions of the state’s stay-at-home order. They include:

  • Expanding testing and contact tracing to be able to identify and isolate those with the virus;
  • Preventing infection in people who are most at risk;
  • Being able to handle surges in hospitals and the health care delivery system;
  • Developing therapeutics to meet demand;
  • Ensuring businesses, schools and child care facilities can support physical distancing; and
  • Determining when to reinstate certain measures like the stay-at-home order if need be.

Also today, Governor Newsom announced that President Trump has personally committed to sending the state 100,000 testing swabs next week and 250,000 swabs the following week.

Health officials also outlined progress toward the first indicator: expanding testing and contact tracing to be able to identify and isolate those with the virus.

To that end, the state announced the expansion of community testing in underserved areas. The state is contracting with Verily, an Alphabet company, in partnership with Community Organized Relief Effort (CORE) and with support from Rockefeller Foundation and an anonymous donor, to establish six new community testing sites focused on underserved communities such as farmworkers and communities of color. Additionally, the state is contracting with OptumServe, to establish an additional 80 community testing sites, which too will be focused on underserved communities.

“We know that communities of color are disproportionately affected by COVID-19,” said Governor Newsom. “We must ensure that we are deploying testing equitably in an effort to reduce the higher death rates we are seeing in African American and Latino communities.”

In addition, the state is:

  • Accelerating equitable COVID-19 testing by aiming to deploy 25,000 tests per day by April 30; establishing an additional 80-100 testing sites; and identifying five new high-throughput testing hubs.
  • Establishing a contact tracing workforce by surveying counties on their capacity; developing a statewide training academy; and training 10,000 public health connectors to conduct contact tracing.
  • Developing isolation protocols and supports by identifying regional alternate isolation sites and building private-public partnerships to support those who are isolated.
  • Deploying data management system and tools by publishing a symptom-check app; deploying a data management platform; and establishing a data dashboard for the public.

Now that testing has become more widely available across the state, California updated its testing guidance earlier this week to become the first state to recommend testing of some asymptomatic individuals such as health care workers, first responders and correctional workers. This action will better protect Californians and prevent COVID-19 spread in high-risk settings such as congregate living facilities and correctional facilities.

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