State budget proposes boost to schools, small businesses

Catalina’s Assembly representative supports governor’s plan

On Friday, Jan. 8, California Gov. Gavin Newsom released a $227.2 billion budget proposal for the fiscal year that will begin on July 1. The budget focuses heavily on COVID-19 pandemic relief and support for education to help students get caught up on schooling and return to classrooms as soon as possible.

“The Budget reflects the Governor’s call for immediate legislative action to provide rapid relief to individuals, families and small businesses hit hardest by the COVID-19 pandemic, as well as funding needed to begin a return to in-person learning starting next month,” the proposed budget statement reads.

Among the proposed actions are:

• $2.4 billion for the Golden State Stimulus – a $600 state payment to low-income workers who were eligible to receive the Earned Income Tax Credit in 2019, as well as 2020 Individual Taxpayer Identification Number (ITIN) filers

• $575 million to more than double this year’s funding for grants to small businesses and small non-profit cultural institutions disproportionately impacted by the pandemic

• $70 million to provide immediate and targeted fee relief for small businesses including personal services and restaurants

• $2 billion targeted specifically to support and accelerate safe returns to in-person instruction starting in February, with priority for returning the youngest children (transitional kindergarten through 2nd grade) and those with the greatest needs first

• Initial $372 Million Set Aside for COVID-19 Vaccinations

The budget would push the state’s education funding to its highest level ever, earmarking $90 billion towards the K-14 level schools.

“The historic investment centers on equity in and for our school communities, especially as they navigate the inequitable impacts of the pandemic,” the budget proposal states.

Critics of the governor’s proposal said that the proposal does not do enough for businesses, which they contend are fleeing the state and taking away vital tax revenue.

“California is facing crisis after crisis. We are in a results-oriented business and under that criteria, the Governor is failing–that reality does not change no matter how many new programs and taskforces are created in his budget,” Assembly Budget Committee Vice Chair Vince Fong, R-Bakersfield, said in a released statement.

Assemblymember Patrick O’Donnell (D – Long Beach), who represents Catalina Island and is the Chair of Assembly Education Committee called the proposal a win for education and small businesss.

“Governor Newsom’s third proposed budget is a fiscally prudent roadmap. As a parent, a teacher, and Chair of the Assembly Education Committee, I applaud the Governor’s proposed increase for schools. Distance learning has been ineffective for students. The increased funds to address learning loss is crucial for getting students back on track. These funds will help prevent further widening of the academic achievement gap and support our students in credit and grade recovery. Reopening schools safely, which must include adequate testing and vaccination of teachers and other school staff, must also be a priority for consideration by the Governor and Legislature,” O’Donnell said in a released statement.

The budget includes a surplus of $34 billion, which O’Donnell cautioned to use with restraint. However, he added that helping small businesses recover and succeed is crucial to the state’s economic recovery. He also said paying down long-term debt, such as PERS/STRS pension liabilities is key.

“I look forward to working on a responsible budget that supports our schools and paves the way for our economic recovery in the midst of the COVID pandemic,” O’Donnell said.