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Newsom: State can't afford White House unemployment benefits plan

'The state does not have an identified resource of $700 million per week that we haven't already obliged.'

California would spend about $700 million to $3 billion in taxpayer funds per week under the White House's plan to extend unemployment benefits, Gov. Gavin Newsom said at an Aug. 10 press conference. Screenshot obtained via Office of the Governor of California livestream.

The state of California does not have the financial wherewithal to afford the White House's plan to extend expanded unemployment benefits during the COVID-19 pandemic, Gov. Gavin Newsom said Monday.

Newsom said in his daily coronavirus briefing Monday that the state would have to cover 25 percent of the costs associated with a $400 per week unemployment insurance payment, as outlined in a memorandum President Donald Trump announced over the weekend.

That 25 percent would amount to the state spending between $700 million and $3 billion in taxpayer funds per week. The state would have to make sharp cuts to public services to foot that bill, Newsom said.

"The state does not have an identified resource of $700 million per week that we haven't already obliged," he said.

While the state received billions from the Coronavirus Aid, Relief and Economic Security Act passed by Congress in March, Newsom said all of that funding has already been allocated.

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"We're going to need the federal government to provide the support, that 25 percent, or we are at peril of being in a position where we're making false commitments, false promises to millions of Californians that, ultimately, we simply cannot meet," Newsom said.

Trump announced an executive order and several accompanying memoranda over the weekend after Congressional leaders and White House negotiators could not come to a compromise for a second coronavirus relief bill.

The executive order Trump signed targets evictions, but does little to keep renters and mortgage-payers in their homes. Rather, the order encourages federal agencies to use the powers they already have to "consider" policies that would prevent evictions.

Newsom said a full three-quarters of the state's tenants who have fallen behind on their rent payments are Black or Latino.

The state's own eviction moratorium runs out as soon as Friday. Newsom said state legislators and his office are collaborating on a solution to extend those eviction protections deeper into the year.

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"We have every hope and expectation that we will organize a collaborative framework" to prevent evictions at least through the end of August, Newsom said.

The extension would give the Legislature the chance to codify an eviction moratorium before its session ends at the end of the month.

Newsom also acknowledged the tumult within the state's Department of Public Health and its coronavirus data collection issues, but played coy when asked about the sudden resignation of State Public Health Officer Dr. Sonia Angell.

"I try not to have personnel conversations in public," Newsom said, later adding "she wrote a resignation letter and I accepted her resignation."

Angell resigned Sunday amid revelations that the state's coronavirus tracking system, the California Reportable Disease Information Exchange, had a backlog of nearly 300,000 cases, sowing doubt about which direction the virus' spread was trending across the state.

Former Alameda County Public Health Officer Dr. Erica Pan was named the state's interim health officer following Angell's resignation.

Newsom blamed the state's years-long bout with information technology infrastructure and suggested the CalREDIE system was never built for the influx of data the state has seen since the pandemic began.

"It is clear based upon what has been reported over the last week that we had a little bit of trouble," Newsom said.

Newsom and California Health and Human Services Secretary Dr. Mark Ghaly both claimed that the backlog would be cleared later in the week, with Newsom ensuring that the state's figures would be accurate both in the short and long term.

"This is the most critical time for this state to assert the kind of collective resolve that is required of a state as large as ours, 40 million strong in meeting this moment, mitigating the spread and getting us back to some modified semblance of normalcy," Newsom said.

Find comprehensive coverage on the Midpeninsula's response to the new coronavirus by Palo Alto Online, the Mountain View Voice and the Almanac here.

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Newsom: State can't afford White House unemployment benefits plan

'The state does not have an identified resource of $700 million per week that we haven't already obliged.'

by /

Uploaded: Tue, Aug 11, 2020, 9:39 am

The state of California does not have the financial wherewithal to afford the White House's plan to extend expanded unemployment benefits during the COVID-19 pandemic, Gov. Gavin Newsom said Monday.

Newsom said in his daily coronavirus briefing Monday that the state would have to cover 25 percent of the costs associated with a $400 per week unemployment insurance payment, as outlined in a memorandum President Donald Trump announced over the weekend.

That 25 percent would amount to the state spending between $700 million and $3 billion in taxpayer funds per week. The state would have to make sharp cuts to public services to foot that bill, Newsom said.

"The state does not have an identified resource of $700 million per week that we haven't already obliged," he said.

While the state received billions from the Coronavirus Aid, Relief and Economic Security Act passed by Congress in March, Newsom said all of that funding has already been allocated.

"We're going to need the federal government to provide the support, that 25 percent, or we are at peril of being in a position where we're making false commitments, false promises to millions of Californians that, ultimately, we simply cannot meet," Newsom said.

Trump announced an executive order and several accompanying memoranda over the weekend after Congressional leaders and White House negotiators could not come to a compromise for a second coronavirus relief bill.

The executive order Trump signed targets evictions, but does little to keep renters and mortgage-payers in their homes. Rather, the order encourages federal agencies to use the powers they already have to "consider" policies that would prevent evictions.

Newsom said a full three-quarters of the state's tenants who have fallen behind on their rent payments are Black or Latino.

The state's own eviction moratorium runs out as soon as Friday. Newsom said state legislators and his office are collaborating on a solution to extend those eviction protections deeper into the year.

"We have every hope and expectation that we will organize a collaborative framework" to prevent evictions at least through the end of August, Newsom said.

The extension would give the Legislature the chance to codify an eviction moratorium before its session ends at the end of the month.

Newsom also acknowledged the tumult within the state's Department of Public Health and its coronavirus data collection issues, but played coy when asked about the sudden resignation of State Public Health Officer Dr. Sonia Angell.

"I try not to have personnel conversations in public," Newsom said, later adding "she wrote a resignation letter and I accepted her resignation."

Angell resigned Sunday amid revelations that the state's coronavirus tracking system, the California Reportable Disease Information Exchange, had a backlog of nearly 300,000 cases, sowing doubt about which direction the virus' spread was trending across the state.

Former Alameda County Public Health Officer Dr. Erica Pan was named the state's interim health officer following Angell's resignation.

Newsom blamed the state's years-long bout with information technology infrastructure and suggested the CalREDIE system was never built for the influx of data the state has seen since the pandemic began.

"It is clear based upon what has been reported over the last week that we had a little bit of trouble," Newsom said.

Newsom and California Health and Human Services Secretary Dr. Mark Ghaly both claimed that the backlog would be cleared later in the week, with Newsom ensuring that the state's figures would be accurate both in the short and long term.

"This is the most critical time for this state to assert the kind of collective resolve that is required of a state as large as ours, 40 million strong in meeting this moment, mitigating the spread and getting us back to some modified semblance of normalcy," Newsom said.

Find comprehensive coverage on the Midpeninsula's response to the new coronavirus by Palo Alto Online, the Mountain View Voice and the Almanac here.

Comments

Gary
Registered user
Sylvan Park
on Aug 11, 2020 at 12:31 pm
Gary, Sylvan Park
Registered user
on Aug 11, 2020 at 12:31 pm
2 people like this

So the contingent short-term funding President Trump offered cannot even be obtained by a "rich" state such as California. It was a trick. Trump wants laborers back at work and children back at school - sickness and disability and death - too bad. Trump also is angling for a low voter turnout so he might steal swing states with his base. Russian President Vladimir Putin might even be impressed. As to the State Legislature possibly enacting a conditional eviction moratorium before September 1st, no city or county should count of any such state action.


Dan Waylonis
Registered user
Jackson Park
on Aug 11, 2020 at 2:29 pm
Dan Waylonis, Jackson Park
Registered user
on Aug 11, 2020 at 2:29 pm
10 people like this

I think this is coming from the same Gavin Newsom who expanded programs and credits for residents and illegal aliens this past fall and spring. The state of CA needs to tighten its belt (like we all have) and start paring back the budget and programs.


Frank Richards
Registered user
Cuesta Park
on Aug 11, 2020 at 4:49 pm
Frank Richards, Cuesta Park
Registered user
on Aug 11, 2020 at 4:49 pm
Like this comment

Oof, the mask's slipping a bit there, Dan. "Illegal aliens"?

I'm interested to hear how you've tightened your belt, though.


Steven Goldstein
Registered user
Old Mountain View
on Aug 11, 2020 at 5:09 pm
Steven Goldstein, Old Mountain View
Registered user
on Aug 11, 2020 at 5:09 pm
Like this comment

Dan, lets take a reality pill.

The unemployment in CA is about 2,000,000 people conservatively. Say the state benefit on the average is $225 a week. Look at the last say 30 weeks of the economic collapse. That comes to $13.5 billion.

At the same time the economic activity has shrunk at least 50% in the state of California, thus any revenues the state receives was reduced by 50%. That has caused the state to expend money with no revenues. Please explain how Newsom could have done anything to account for such a loss of funds?

You know the state just like the federal government budgets based on predicted revenues and current expenses.

So please explain to us what could have been done to avoid this disaster regarding COVID and its damage it has done?

Please do more that complain? Give us some real information to work with?

This is the REALITY pill, not the CRAZY pill.


Steven Goldstein
Registered user
Old Mountain View
on Aug 12, 2020 at 12:05 am
Steven Goldstein, Old Mountain View
Registered user
on Aug 12, 2020 at 12:05 am
Like this comment

Just an update regarding the unemployment insurance cost on California.

The current count of unemployed in California is 5.1 Million people so if they collect $225 a week every week costs $1.14 Billion dollars a week. That is a very low estimate given if you earn more the $11,000 a quarter you get $450 maximum. The current YEARLY budget is $202 Billion. There has been more than 3 Million unemployed since April which that cost 13.25 Billion Dollars.

Since there is no sign of COVID going away, you can expect at least another 20 weeks of this unemployment, which means unemployment insurance is taking 10% of that budget.

So before you go off to say Newsome has done a bad job, you should really understand the lost money we have.

WHEN we can get the fundig restored by the Feds, then you can argue that the state should have the money.

Imagine this my friends say the state decided to allocate $100 per person per week this would come to $500 Million a week. and if this will be needed to the end of the year it will cost on top of the unemployment insurance there are 21 weeks left, thus this will cost $5 Billion dollars on top of the unemployment insurance.

Lets understand the unbelievably "huge" catastrophe that Donald Trump did not understand.


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