Money talks — and Gov. Gavin Newsom knows it.
In front of a mostly masked crowd of children and families waving “California Roars Back” and “California for All” signs, the governor on Tuesday signed into law a budget bill containing his oft-touted $100 billion stimulus plan. The package, made possible by federal relief funds and a state surplus that Newsom said had swelled from $76 billion to more than $80 billion, served as a launchpad for the governor to campaign against the quickly approaching recall election without ever mentioning it. He ran through the budget’s highlights: stimulus checks for two-thirds of Californians, rent relief, small-business aid, a historic investment in public education.
- Newsom: “People that have been directly impacted by this pandemic … we will pay 100% of your rent going back to April of last year … and going forward to Sept. 30 of this year. 100% of your rent. … And you say, ‘That’s great, but I’ve got this water bill, I’ve got this electric bill.’ We will pay 100% of those bills as well.”
“Harnessing the largest surplus in state history, we’re making transformative investments across the board that will help bring all our communities roaring back from the pandemic – and pay dividends for generations to come,” added Newsom. “Through this comprehensive plan, the state is taking on the inequities laid bare by the pandemic, expanding our support for Californians facing the greatest hardships, increasing opportunity for every child, confronting homelessness head-on and doubling down on our work to build resilience against the climate change impacts that threaten California’s future. I thank Pro Tem Atkins, Speaker Rendon and both houses of the Legislature for their incredible partnership in meeting the unprecedented challenge and opportunity of this moment.”
Although the governor’s speech projected confidence and control, other developments appear to be more frenetic — potentially complicating Newsom’s attempts to prove his competency to voters.
For example: The new fiscal year began two weeks ago, but Newsom still hasn’t signed the full budget into law, leaving key details up in the air. On Monday, the state Department of Public Health issued a rule ordering schools to ban unmasked students from campus — only to reverse itself hours later, giving districts discretion in handling students who refuse to wear face coverings. Also Monday, a judge ruled that Newsom will not be able to list himself as a Democrat on the recall ballot due to a filing error his lawyers made last year.
Meanwhile, his predecessor and fellow Democrat Jerry Brown poked a hole in Newsom’s budget bubble by calling the state’s spending “not sustainable” in an interview with NBC News Los Angeles. Brown also worried out loud about the federal government going into debt and spending “wildly.”
“We need a more frugal, sustainable, prudent way of doing business. I would predict, certainly within two years, we’re going to see fiscal stress,” he said — a prediction potentially reinforced by figures released Tuesday by the U.S. Labor Department. The Consumer Price Index, a key measure of inflation, jumped 5.4% in the year through June — marking the biggest rise since 2008.
In the Bay Area, for example, that translated to unleaded gas prices rising nearly 42% and used car and truck prices skyrocketing 44%.
