California paying for coronavirus from reserves + Stalling foreclosures + What about evictions?
It’s Thursday, California. Kinda like every other day of the week in this era. But enjoy this almost-Friday and take some time this weekend if you can to — physical distancing considered — breathe some fresh air.
WITHDRAWAL
The Department of Finance on Wednesday announced it is pulling $1.3 billion from the state’s traditional reserves, the Special Fund for Economic Uncertainties, to buy supplies and prepare for coronavirus patients.
The state usually uses it in natural disasters, like wildfires. There’s some $3.9 billion in the account as of the 2019-2020 budget cycle, according to the Legislative Analyst’s Office.
The state controller is allowed to ”transfer as necessary” from the fund “amounts that are needed to meet cash needs of the general fund.”
Once the general fund is rebuilt, the money is legally required to be transferred back into the emergency fund. It was the second budget announcement in two days from the Finance Department.
On Tuesday, the department sent letters to the Legislature and state agencies advising them that the Newsom administration is recasting its budget projections to account from the economic downturn caused by the outbreak.
Department spokesman H.D. Palmer said the $1.3 billion would immediately finance equipment and supplies needed in the state’s battle against COVID-19.
These funds will be utilized to secure personal protective equipment and critical medical supplies, enhance the surge capacity of hospitals and medical facilities, and procure other items necessary to support the state’s efforts to protect public health and safety and reduce the spread of the COVID-19 outbreak,” a department letter to the Legislature’s Budget and Appropriations chairs read.
California is expected to have another $20 billion in its “rainy day fund,” and about $900 million in a social safety net reserve.
NEWSOM’S PRESS CONFERENCE
California Gov. Gavin Newsom held his every-other-day press conference (at a much earlier start time than usual) on Wednesday.
He spent much of it discussing the economic hardship Californians’ have endured since the virus compelled many of them to stay home. Already, the state has notched 1 million unemployment claims since March 13.
The big news: Four of the the nation’s five biggest banks — Wells Fargo, U.S. Bank, Citibank, and J.P. Morgan Chase — have agreed to allow homeowners affected by the coronavirus to apply for a 90-day mortgage payment waiver. This comes in addition to 200 state-chartered banks and credit unions promising to delay foreclosures and mortgage payments, Newsom said.
The big bank that hasn’t agreed to 90-day waivers?
Bank of America, though they are offering a 30-day waiver, Newsom said.
“I hope they will reconsider and join those other banks that are willing to do the right thing by at least extending that commitment to their customers for 90 days,” he said.
Bill Halldin, Bank of America spokesman, said in a statement that “Bank of America is deferring mortgage payments on a monthly basis until the crisis is over.”
Halldin also noted that Bank of America has paused all foreclosures, evictions and repossessions.
Newsom also praised a proposed increase in unemployment benefits that is in the latest coronavirus relief package moving through Congress. It would give workers up to $600 a week in addition to the $40 to $450 a week Californians on unemployment already receive.
That’s coming at a critical time, Newsom said.
“By the way, the reason I say it’s timely, we just passed the 1 million mark in terms of the number of claims just since March 13. 1 million Californians have now claimed the need to get unemployment insurance, so this cannot happen soon enough,” Newsom said.
THE RENT IS DUE
Nearly 40 California lawmakers have signed a letter to Newsom on Wednesday, asking him to issue an immediate statewide executive order prohibiting evictions for the duration of the COVID-19 emergency. Previously, Newsom signed an executive order that empowered cities to enact local eviction moratoriums.
In the letter, lawmakers argued that “it is no longer practical” to leave the matter up to local jurisdictions.
“Around the state, there is enormous apprehension by countless renters about the upcoming April rent due date. As you know, our Legislature is adjourned at least until April 13 and quite possibly longer, and the fastest legislative action on this topic would require weeks or months that we simply do not have,” the letter reads in part. “At this time of crisis, we respectfully ask you to take action immediately to provide relief to millions of California renters and to ensure that sheltering-in- place policies can flatten the curve and reduce casualties due to the coronavirus.”
In his Wednesday press conference, Newsom was asked about a statewide order to postpone evictions.
“We are very concerned about what’s happening and not happening at the local level,” Newsom said.
The governor said he has a team reviewing the legal parameters surrounding a moratorium on evictions.
“Issues are much more complicated than they may appear. For me it’s practice, not promise.” he said.
Newsom said he would speak further on the issue when he has more information.
“Hopefully within the next day or two, we’ll have absolute clarity on the next steps,” he said.
BECERRA TELLS WHOLE FOODS, AMAZON TO ‘STEP UP’
California Attorney General Xavier Becerra announced he is joining 14 other state attorneys general in calling on Whole Foods and parent company Amazon to “step up” efforts to protect both workers and the general public by offering paid sick leave consistent with Centers for Disease Control and Prevention guidelines.
“The COVID-19 health crisis highlights the critical need for paid sick leave policies that adequately protect workers and public health,” Becerra said in a statement. “The employees that keep Whole Foods and Amazon running, like many of their peers around the country, are providing essential services that help American families keep food on the table. These workers, and all hardworking Americans, deserve the basic workplace protection of paid sick leave. The COVID-19 global pandemic makes this clearer than ever before. It will take all of us working together to solve this unprecedented challenge.”
The letter urges the companies to provide 80 hours fully paid sick leave for full-time employees. It also urges the companies to offer part-timers fully paid sick leave equivalent to the amount of hours that they work in a two-week period.
Finally, the letter calls on Amazon and Whole Foods to offer up to 12 weeks, at two-thirds pay, for employees who have to care for a relative diagnosed with COVID-19 or a child whose school or childcare provider has closed.
“We know that when workers are not provided with paid sick days, they go to work sick, which puts other workers and their customers in danger. Given the contagiousness of the coronavirus and the danger it presents, particularly to elderly and vulnerable individuals, forcing workers to make this choice is simply a risk we cannot afford to take,” the letter reads in part.
CENSUS REMINDER
This weekend, why not take a little time while sheltering at home to fill out the Census.
Next Wednesday is Census Day AKA the day you tell the U.S. Census Bureau where you live. As a spokesperson for the California Census team put it, filling out the nine-question survey is “a perfect social distancing activity.”
You can fill the census out by visiting my2020census.gov.
QUOTE OF THE DAY
“UPDATE: CA has tested almost 67,000 people for #COVID19. 2535 have tested positive. 37 of those were people under 17. 51% were between ages of 18-49.This disease can impact anyone. Stay home. Practice social and physical distancing. Take this seriously.”
- Gov. Newsom, via Twitter.
Best of the Bee:
Judges asked for emergency order releasing California inmates as coronavirus spreads, via Sam Stanton
If California wants to increase unemployment insurance benefits to help workers cope with the economic fallout from the new coronavirus, the higher payments could be delayed up to a year because the state employment department isn’t prepared for the job, via David Lightman.
An office that reviews state worker pay is urging the California State Legislature to stop giving raises to correctional officers until the Legislature can find out how the officers’ pay compares to similar jobs in local government, via Wes Venteicher.
Here’s how the federal stimulus deal would affect Californians, via David Lightman.