Lake County Information,California – Governor, legislative leaders announce $9 billion financial stimulus motion to assist Californians experiencing pandemic hardship
Governor Gavin Newsom, Senate President Pro Tempore Toni G. Atkins, and Congregation Spokesman Anthony Rendon announced Wednesday that they had reached an agreement on a $ 9 billion package that includes immediate action to expedite the aid needed to individuals Families and businesses that have been hardest hit include economic hardship from the COVID-19 recession.
The package, which, according to Senator Mike McGuire, who represents Lake County in the Senate, is California’s largest economic recovery package in generations, builds on the governor’s budget proposal initiatives to relieve low-income Californians cash support for small businesses and license renewal fee exemptions Companies affected by the pandemic.
In addition to these measures, the agreement provides tax breaks for businesses, provides additional resources for critical childcare services, and funds emergency financial aid for community college students.
“As we continue to battle and recover from the pandemic, I am grateful that the Legislature Partnership provides California families and small businesses with urgent help and support where they are most needed,” said Governor Newsom. “From childcare to small business owner facilitation to direct cash assistance for individuals, financial assistance for community college students, and much more, these efforts are vital to the millions of Californians who embody the resilience of the California spirit.”
“We have been in this pandemic for nearly a year and millions of Californians continue to feel the impact on their wallets and bottom line. Companies struggle. People find it difficult to make ends meet. This agreement builds on Governor Newsom’s proposal and improves it in many ways so that we can deliver the kind of relief that families and small businesses urgently need right now, ”said Senate President pro Tempore Atkins. “People are hungry and hurt, and companies that have loved our communities for decades are in danger of closing their doors. We are at a critical moment and I am proud that we have come together to give the Californians the relief they need. “
“The Californians were injured. Our response addresses the human and economic impact of COVID in a way that mirrors President Biden’s American rescue plan and helps those who are most injured. We are creating an economic foundation for job restoration, small business and indeed for our daily lives, ”said spokesman Rendon.
McGuire, a member of the Senate Budgets Committee, said he would endorse this stimulus package on Thursday in committee. It will be voted on by the Senate and the Assembly next week before being submitted to the governor for signature.
“California’s landmark stimulus package will benefit millions of working families and seniors and will invest heavily in small business recovery,” said McGuire. “This is California’s biggest stimulus package in generations, and it will be a much-needed shot in the arm for local communities by investing billions in small business grants and making PPP loans compliant with state income taxes. The package will put groceries on the table for families and our most vulnerable neighbors, help them pay their bills, support farm workers affected by Covid-19, fund the operation of food banks and our colleges by restoring previous cuts to the UC – and to support the CSU system. “
McGuire said it has been almost a year since California’s first wave of pandemic business closings, lost jobs, lost dreams, illness and heartache, noting, “The realities that California families have faced this year have been nigh unbearable . “
He added, “But we will persevere and rise up from one another in our greatest time of need. That’s what we do in California, and that economic incentive is an important step in our collective golden state recovery. “
Separately, the governor and lawmakers said discussions will continue on measures to safely reopen state K-12 schools, including strategies to address the learning loss caused by the pandemic.
The following are the main provisions of the Emergency Action Agreement.
Direct relief for individuals and families
The agreement includes the governor’s Golden State Stimulus Plan to support California households that have borne the disproportionate economic burden of the COVID-19 recession – those with incomes below $ 30,000 as well as those wrongly excluded from previous federal stimulus payments .
The agreement provides a one-time relief of $ 600 for households receiving the California EITC for 2020. Additionally, the agreement provides for a one-time payment of $ 600 for taxpayers with individual tax identification numbers (ITINs) who were denied access to the $ 1,200 per person federal payment problems last spring and the most recent $ 600 federal payments. The agreement would provide the $ 600 payments to households with ITINs and incomes below $ 75,000. ITIN taxpayers who also qualify for the California EITC would receive a total of $ 1,200. Payments will be made to these households shortly after filing their 2020 tax returns.
The agreement extends this original plan to include more help for lower-income Californians through a one-time grant of $ 600 for households participating in the CalWORKS program, as well as recipients of SSI / SSP and Cash Assistance Program for Immigrants (CAPI). Grant payments for CalWORKS households are expected by mid-April. The timing of SSI / SSP and CAPI grants is currently being discussed with federal officials.
Taken together, the agreement includes a total of 5.7 million payments to low-income Californians.
Instant relief for small businesses quadrupled
The agreement reflects a quadrupling of grants of up to $ 25,000 for small businesses affected by the pandemic, from $ 500 million to over $ 2 billion. In addition, US $ 50 million will be made available for cultural institutions.
The agreement also partially aligns California tax law with the new tax treatment of loans through the Paycheck Protection Plan, allowing companies to deduct up to $ 150,000 in expenses covered by the PPP loan. Any company that has borrowed $ 150,000 or less could maximize its withdrawal for government purposes. Larger companies that have taken out larger loans are still subject to the same $ 150,000 deductibility limit. California small businesses have raised more than 750,000 PPP loans. This tax treatment would extend to the catastrophe loans for economic injury.
Fee waiver for most affected licensees
The agreement provides a two-year fee relief for approximately 59,000 restaurants and bars licensed by the state Department of Alcohol Control, which can range from $ 455 to $ 1,235 annually. The agreement also reflects fee reductions for more than 600,000 hairdressers and beauticians who are licensed through the Department of Consumer Affairs.
More resources for critical childcare
The agreement calls for just over $ 400 million in new federal funding that provides grants of $ 525 per child enrolled to all government-subsidized childcare and preschool providers who care for approximately 400,000 children in subsidized childcare nationwide. The new federal funds will extend the care of children of essential workers until June 2022 and improve access to subsidized childcare for more than 8,000 children of essential workers and children at risk – who are currently not cared for in the system – until June 2022.
Additional help for individuals and families
The agreement provides an additional $ 24 million in financial assistance and services through Housing for the Harvest – a program to assist farm workers who are in quarantine due to COVID-19. The agreement also provides a combined total of $ 35 million for food banks and diapers.
Emergency financial assistance to support community college students
The agreement provides an additional $ 100 million in emergency financial aid for qualified, low-income students promoting six or more units. The premium amounts must be determined on site and made available by the beginning of April. The agreement also provides $ 20 million to re-engage students who either left their community college degree because of the pandemic or to recruit students who are at risk of leaving.
Contacting CalFresh students and support with applications
The agreement provides approximately $ 6 million to aid public relations support and application by University of California, California State University, and California Community College students who are new to CalFresh – the federally administered supplementary food aid program – come into question. The agreement also provides US $ 12 million in government funding to support the county’s administrative workload.
The agreement also contains the following provision:
Restoration of discounts
Effective July 1, the agreement restores previously enacted cuts for the University of California, California State University, the Justice Department, childcare services, and middle-income homes.