Home>Articles>Democrats Propose $100 Billion Stimulus Plan For California’s Economy

Assemblyman Philip Y. Ting. (Photo: Kevin Sanders for California Globe)

Democrats Propose $100 Billion Stimulus Plan For California’s Economy

‘It’s an extra $2,400 a month on top of a normal $1,200 a month in unemployment’

By Evan Symon, July 28, 2020 7:16 pm

On Monday, Democratic legislative leaders unveiled a $100 billion stimulus plan for Californians, potentially setting up small business protections, unemployment fund replacement, rent relief, and other divisive issues centering around the COVID-19 economic downturn.

Unemployment payment replacement in California

The $100 billion state plan will be largely contingent on what the second stimulus bill in Washington will cover. A large section of the California plan would be allocated to replacing the gap between the extra $600 a week currently available for unemployed people to what it will be set as after the additional benefit expires on Friday. While the Democratic-led House has already approved the extra $600 to be renewed into next year, the Republican-led Senate currently has a set limit in mind of an extra $200 a week to encourage workers to go back to work or find employment.

Should the Republican plan succeed, California, under their plan, would make up the extra $400 a week per person. Illegal immigrants who are also out of work and residing in California would also receive those benefits. If the Federal plan is not renewed or changed in time, and if California does not pass the Democrat’s plan, then average jobless payments in California will plummet to $338 a week.

Assembly Democrats have said that this is unacceptable and that millions of Californians would not be able to pay rent or mortgages, buy food, or pay for other necessities such as utilities without that extra $600 each week.

“We’re hearing from so many people that they’re one unemployment check away from getting evicted, from losing their home,” said Assemblyman Phil Ting (D-San Francisco), one of the authors of the California plan. “If we can forestall financial disaster for them, there’s a huge long-term benefit for those families, but also for the state.

“It is a huge economic stabilizer.”

Republicans have maintained that the extra $600 a month has kept unemployment rates high by de-incentivizing workers from re-entering the job market.

“It’s an extra $2,400 a month on top of a normal $1,200 a month in unemployment,” said “Max,” an aide in the State Capitol, to the California Globe. “That’s more than what people would make by working lower paying jobs here. We need to get the economy going again, so we need people to get out there and work. There are hard times now, but it won’t help anyone extending it out more than would be needed.”

Questions over ‘future tax vouchers’ and other pandemic related measures

Another measure under the plan would be “future tax vouchers” that would have taxpayers prepay their estimated taxes for a future tax year at a slight discount, allowing California to easily pay for the unexpected COVID-19 and unemployment costs now. Democrats behind this proposal said that wealthier people would be more inclined to do this, allowing the state to have more funds to get back on their feet and be strong enough in four years to take the projected tax loss from people paying early.

“I think we could sell as few or as much as there is an interest in. Obviously we would have to juggle that with future revenue needs,” added Assemblyman Ting.

Other measures in the plan would cover housing, education, small businesses, and other currently struggling areas post COVID-19.

Eviction protection mixed with financial support for landlords and building owners would be included under the plan, as would funds to help schools reopen and expand internet access for students who cannot afford internet at home. Small businesses would see tax breaks and would allow for a delay in paying sales tax, as well as funds for California companies that make PPE equipment for the pandemic.

Earned-income tax credits would also be expanded.

Praise from Democrats, Skepticism from Republicans

The $100 billion needed would come from several sources. Pre-paid taxes would account for some of the funding, with most of the funding coming from borrowing against expected future revenue such as utility fees and cap-and-trade auctions. Certain programs could also be funded more directly, such as internet expansion for those who can’t afford it for distance learning being paid for by early telecommunication fee collections.

Gavin Newsom
California Governor Gavin Newsom. (Photo: Kevin Sanders for California Globe)

The gasoline tax would also be moved up to help pay for the program, adding about $5 billion more in revenue each fiscal year.

While many Democrats have been in favor of the plan, many prominent Democrats have yet to see or comment on it, including Governor Gavin Newsom.

“I’d be remiss to comment until I have a chance to review the details and happily will make our position well known,” said Governor Newsom on Monday. “We have to include a framework of bringing people along as we reopen our economy.”

Republicans who have yet to see the bill have also shown caution, noting that many other Democrat-led actions during the pandemic, such as earned income tax credits for illegal immigrants and the release of tens of thousands of prisoners from California prisons have been met negatively.

“They keep passing bills and doing things without thinking of the consequences,” continued Max. “We have a limited time for this plan of sorts, but we can’t rush it. People keep adding things into it and we seriously need to take a look at every piece to make sure that this will help people and businesses without dooming the state.”

“$100 billion is a lot of money here.”

The debate over the California plan is expected to intensify in August following the expected passage of the Federal Plan in Washington as any changes in the Federal Plan directly impact what California’s plan covers.

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12 thoughts on “Democrats Propose $100 Billion Stimulus Plan For California’s Economy

  1. Cap and trade income has collapsed yet they want to borrow from future income?
    If they would take away their boot to the economies neck this would be unnecessary. I think this is their first step towards a guaranteed income like bankrupt Stockton has tried.

    When deep in a hole you should stop digging!

  2. What exactly are they going to stimulate when they will be opening and closing the economy until November 4,2020 ? This absolute madness !!!

  3. Follow the money and I almost guarantee that it stops at friends and families of Democrat and some Republican politicians.

  4. Illegal aliens who are also out of work and residing in California would also receive those benefits, why? People who are in the country illegally will get money from the California state government. This is what Biden and democrats want for the whole country, give illegal aliens the same rights as US citizens. What does being a US citizen mean? Nothing.

  5. Illegal aliens who are also out of work and residing in California would also receive those benefits.
    Aiding and abetting illegal aliens is a felony no matter who does it.

    1. I’m so tired of this. I’m also tired of Democrats whining about making sure people continue get money to stay home and do nothing. If you were already at the poverty level before, this unemployment stimulus is not helping the situation, in fact it’s going to be even harder to get back on your feet. GO BACK TO WORK. Open up the economy 100%. The death rate is at 0.04%.

  6. How absurd. It amazes me how these politicians present this crap with a straight face. California is already bankrupt and near collapse and he comes up with this? How about stopping this criminal nonsense and open the state!

  7. I am to believe that “What’s Your Price” Phillip Ting wants to sincerely help the down trodden. Ask his ex girlfriend, Carmen Foster how he helped her out!
    It seems these guys like to use other people’s money for their penance!
    100 BILLION DOLLARS from where? This state is in debt!

    People who want to work know that their self worth is priceless, no thanks to these buffoons.
    Instead let those who can and are able the right to earn a living, the pursuit to happiness!

      1. Good Question K!
        A wise person once said, follow the money!

        Good point on making it harder to get back to work. This was not sold to us all as a cure , it was meant to blunt the curve. Hah!

  8. Time to start looking for stats on who has relocated out of CA. I expect 2020 to be at least twice the number of 2019. Between Garcetti threatening business owners with stopping electricity/water, the teacher’s union refusing to work until the LAPD is defunded and charter schools are on hold and Newsom resuming a shutdown while refusing to let kids go back to school, despite the science and now increasing taxes even more so illegals can sit on their fat butts, there is not one single reason to stay here. I am actively on my way out.

    1. I am leaving the state in 2020. I can hardly wait. But something to keep in mind, even states like Texas are having similar issues with their governor. Politics suck here in CA, but similar legislation and ideologies are growing across the country. At least the cost of living will be cheaper elsewhere. Midwest will likely stay Red for the predictable future and certain states in the South.

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