Gavin Newsom’s budget has $4 billion in help for small businesses, green technology
Gov. Gavin Newsom wants to spend an additional $4 billion in the next state budget to help struggling businesses survive the coronavirus pandemic and invest in green technology, he announced Tuesday.
Newsom will ask lawmakers to approve nearly $1 billion of that money immediately once they get back this month. Lawmakers are scheduled to return Monday after they delayed their start date due to the surge in COVID-19 cases across the state.
Newsom says he plans to ask the Legislature to allocate $575 million in grants for small businesses immediately to help them through the pandemic. That will build on $500 million that Newsom and lawmakers allocated for small business grants last year, which can provide up to $25,000 for businesses hurt by the COVID-19 restrictions.
Newsom is also asking lawmakers to immediately approve $250 million for grants to build infrastructure to support new housing, including sewers and roads. He will seek an additional $250 million for the same program through the traditional budget process, during which Newsom and lawmakers will work for months to negotiate the state budget for the 2021-22 fiscal year that begins July 1.
He’s also seeking immediate approval of $70 million in fee waivers for businesses that have been disproportionately hurt by the pandemic shutdown, including bars, restaurants and salons, Department of Finance spokesman H.D. Palmer said.
“These budget proposals reflect our commitment to an equitable, broad-based recovery that ensures California remains the best place to start and grow a business,” Newsom wrote in a statement. “I look forward to continuing to partner with the Legislature to advance these priorities so our economy can emerge stronger, fairer and more prosperous than before.”
Newsom is also proposing the following through the regular 2021 budget process:
- more than $600 million in business tax credits and sales tax exclusions
- $353 million for workforce development programs
- $300 million for maintenance of state properties that Newsom says will help create jobs and reduce the state’s carbon footprint, including by installing electric vehicle charging stations
- $1.5 billion to help low-income Californians buy zero-emission vehicles and to build infrastructure to support them, including electric charging stations and hydrogen fueling stations
Newsom is scheduled to unveil his full 2021 budget proposal Friday. He has already said he will ask the Legislature to approve $2 billion for school reopenings through early budget action when they return this month, as well as $300 million for the state’s coronavirus vaccination campaign.
In a joint statement, Assembly Speaker Anthony Rendon and Senate President Pro Tem Toni Atkins endorsed the idea of acting quickly to provide some assistance to struggling Californians.
“Californians are hurting and need immediate assistance to weather the current crisis,” the legislative leaders wrote. “A unified effort is critical to success and we look forward to working with the Governor on the specifics of his, and legislative, proposals to take early action in providing meaningful additional relief.”
This story was originally published January 5, 2021 at 3:27 PM with the headline "Gavin Newsom’s budget has $4 billion in help for small businesses, green technology."