Bloomberg Quicktake: Now published this video item, entitled “Newsom Proposes New Round of Stimulus Checks in California Amid Recall Effort” – below is their description.
California Governor Gavin Newsom said he plans to use a massive tax-collection windfall to help finance a $100 billion economic recovery package, with the centerpiece a proposal to give $11.9 billion of direct cash payments to most Californians.
The plan would build on a previous program distributing $600 checks to qualifying low-income residents by expanding eligibility to the middle class. Two out of three Californians would receive a check of at least $600, with families with children receiving an additional $500. It would create the biggest state tax rebate on record, Newsom said Monday at a press conference in Oakland.
“We believe people are better suited than we are to make determinations for themselves on how best to use these dollars,” Newsom said.
The Democratic governor is seizing on an unprecedented $75 billion operating budget surplus, fueled by a surging economy and capital-gains taxes, to greatly expand the state’s role in the recovery just as he is facing a potential recall election later this year. The windfall leaves Newsom and lawmakers with $38 billion extra to spend as they see fit, since some of the money is already earmarked.
The state will get an estimated $27 billion from President Joe Biden’s stimulus plan, according to latest Treasury figures.
Newsom’s plan would also spend $5.2 billion on what he said would be the largest renter assistance package in the country and would allow low-income residents to cover their back-rent and their rent for several months into the future. It also spends $2 billion to cover overdue water and utility bills.Bloomberg Quicktake: Now YouTube Channel
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