Newsom proposes $600 stimulus checks in proposed California budget

(The Center Square) – Californians making less than $30,000 annually could see a $600 stimulus check from the state of California if Gov. Gavin Newsom’s proposed budget becomes a reality.

Newsom unveiled his spending plan Friday for the coming fiscal year, which starts July 1. At $227 billion, the budget spends nearly $15 billion in what the governor calls an effort to stimulate the economy.

The proposal focuses on vaccine distribution, a record $85.8 billion in school funding, wildfire strategy and small business recovery funds.

“Taken together, these proposals help us tackle the challenges we faced as a state before, during and through the pandemic,” Newsom said Friday. “The budget makes progress towards the goal we set when we took office to put the California Dream within reach of more Californians.”

Called the Golden State Stimulus, the proposal includes one-time state payments of $600 to residents making less than $30,000 annually. The idea, estimated to cost $4 billion, would be separate from the $600 federal stimulus payment.

During a news news conference, Newsom expressed optimism about an influx of additional federal dollars since Republicans in the U.S. Senate no longer could block aid efforts to states. The surplus stands in stark contrast to the current fiscal year budget, which saw a $54 billion deficit and included layoffs and furloughs of state workers.

Unlike many other states hobbled by pandemic-induced shutdowns to local economies that drove millions into the unemployment line, California’s higher-earning taxpayers responsible for the majority of annual income tax revenue kept working since most could do so from home.

Since the state’s progressive income tax means revenue hinges on high-income residents, having the nation’s highest number of unemployed workers didn’t cut into revenue as much as thought. This, according to state reports, resulted in an estimated $74.4 billion in tax revenue, $13.7 billion more than expected.

The new money, Newsom said, includes $6.7 billion for K-12 education. Newsom’s proposed budget spends $61.2 billion on K-12 education, a more than $10 billion increase from the current fiscal year.

The largest price tag item is human services, currently at $70.4 billion but at $79 billion under Newsom’s budget. It also includes billions of dollars for environmental projects such as expanded electric vehicle charging infrastructure, housing law enforcement and a requirement that all high school seniors complete a federal student aid application starting next fall.

The proposal must be considered by the California Legislature and returned to Newsom for signature. In California, the governor must submit a balanced budget by Jan. 10. The Legislature sends a version back to the executive branch in May and then has until June 15 to pass a final version.

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