California Gov. Gavin Newsom and his counterparts in four Western states have asked Congress for $1 trillion in pandemic relief for all states.
California Gov. Gavin Newsom and his counterparts in four Western states on Monday asked Congress for $1 trillion in COVID-19 pandemic relief for all states and local governments.
Newsom joined with the governors of Oregon, Washington, Nevada and Colorado, as well as legislative leaders from the five states, in asking the House and Senate for the aid. The governors said the funds would be critical for public health programs, law enforcement and schools. “Without federal support, states and cities will be forced to make impossible decisions — like whether to fund critical public healthcare that will help us recover, or prevent layoffs of teachers, police officers, firefighters and other first responders,” the letter stated. “And, without additional assistance, the very programs that will help people get back to work — like job training and help for small business owners — will be forced up on the chopping block.”.
Newsom’s budget team forecasts a $41.2-billion drop in tax revenue compared to their estimates from just four months ago, with state revenues from personal income taxes, sales taxes and corporate taxes — the state’s main sources of revenue — plummeting by roughly 25%. Newsom on Monday said that the state has processed approximately 4.5 million unemployment claims since mid-March, when businesses began closing their doors and laying off employees. Newsom said the state unemployment rate eventually could approach 25%.from the coronavirus crisis and agreed to work together to develop a plan to lift restrictions on daily life and reopen economies along the West Coast. Nevada and Colorado later joined the pact.
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