California gov. proposes massive budget spending

In mid 2020, because of Gov. Gavid Newsom’s stay-home order to slow the coronavirus outbreak, the economy had constrained and a projected $5.6 billion surplus turned into a $54.3 billion shortfall. However, the California budget went from boom to bust and back to boom when  state’s coffers began overflowing  with a $15 billion surplus in Newsom’s proposed $227.2 billion budget.The January 2021 $227.2 billion fiscal blueprint included governor’s $5 billion immediate action plan.

Even with the progress, Newsom still called California’s future “tenuous” and preached “prudence” and “fiscal”, but situation has drastically changed from January this year to now-California today has the country’s lowest inflation rate.

Newsom has proposed massive funding with the $15 billion surplus has ballooning up to five-fold  projected $75.7 billion increasing the budget to $267.8 billion.

Newsom’s California Comeback Plan which his office calls “the biggest economic recovery package in California history,” places major focus in 5 top domains-economic support to businesses that suffered because of the pandemic, housing affordability and combating homelessness, improvement in public education, transportation and dealing with aftermath created because of climate change circumstances.He proposed funding the plan with $100 billion.

However, the Republicans criticized the move as the governors strategy to buy more votes with California Republican Party Chairwoman Jessica Millan Patterson said in a statement “Gavin Newsom’s job-killing policies devastated small businesses during this pandemic, Newsom and the Democrats are responsible for California’s astronomical unemployment rate, one of the highest in the nation.”