Newsom Reveals California Stimulus Plan

A surplus in the state budget will be passed on to citizens.

A surplus in the state budget will be passed on to citizens.

Yesterday, California Governor Gavin Newsom announced a new proposal that would provide both state-wide stimulus checks to California residents and renter’s assistance to those affected by the COVID-19 pandemic. Altogether, this would cost approximately $12 billion for the checks and $5 billion for renter’s assistance over the next several months, plus an additional $2 billion for paying overdue utility bills.

The source of this money is a massive surplus in the California state budget, around $75.7 billion, earned on the back of Silicon Valley’s technological advancements allowing a large portion of the local population to work from home during the height of the pandemic. Should Newsom’s proposal be accepted, approximately 2 out of every 3 California citizens, specifically those making less than $75,000 annually, would receive a payment for $600, plus an additional $500 for families with children or dependents.

“People were talking last year about a $54 billion shortfall; to then go to a $75 billion surplus is surreal,” said Anthony Wright, executive director for Health Access California. “It’s even more surreal for those of us who have been around for a couple of decades and have experienced a lot more lows than highs with regard to the budget cycles.”

Follow @TwistityNews