A record-breaking budget up for votes + Labor slowly recovers + Psychedelic press conference
Good morning, and welcome to the A.M. Alert!
DON’T CALL IT A BUDGET DEAL
Legislative leaders late Friday announced they have most of a budget deal with Gov. Gavin Newsom, although they are still ironing out some details on a spending plan that’s expected to clock in north of $262 billion.
So far, we know Newsom gave ground on expanding health care coverage to undocumented Californians over age 50. He had called for a smaller expansion for undocumented residents over 60.
We also know Newsom agreed to a heft pay raise for day care workers represented by Child Care Providers. The union says 40,000 workers will see at least a 15% pay hike.
The record-breaking budget has a massive surplus of about $80 billion, Newsom said Friday, allowing him and lawmakers to dramatically increase spending on the state’s social safety net and add a new grade to California public schools called transitional kindergarten.
The state has so much money to spend because California’s tax structure relies heavily on the state’s top earners, who tended to do well during the coronavirus pandemic while low-income people bore the brunt of the economic hardship.
The budget deal steers billions in aid to those low- and middle-income Californians who Newsom and lawmakers say need help recovering as the state emerges from devastation wrought by COVID-19.
As a result, millions of Californians will receive $600 stimulus checks this summer, the state will offer new grants for businesses set back during the coronavirus pandemic and it will step up funding for homelessness, among other programs funded in the package.
The Bee’s Sophia Bollag has more here, and she’ll be covering the budget all day. Follow her on Twitter @sophiabollag.
CALIFORNIA LABOR FORCE SLOWLY RECOVERING
Give or take half a million fewer Californians are employed or looking for work, according to the Public Policy Institute of California.
That marks a slight increase of 12,000 people for the month of May, but labor force participation remains well below historical levels, according to the institute.
“Though some Californians may have left the labor force permanently — for example, those who retired — many want to work, but are not looking. These workers are categorized as ‘discouraged or marginally attached to the labor force.’ They may represent an important pool of workers poised to rejoin the workforce this summer. We estimate that the number of discouraged or marginally attached workers in May, along with underemployed (working part-time but prefer full-time), is similar to those who remain unemployed,” according to an institute blog post.
Unemployment is down by nearly half compared to this time in 2020, the institute found, while the share of underemployed people is down slightly less than half.
The latter group consists predominantly of low-income, young, Black and Latino workers, and is also slightly higher among women than men.
“Workers who are unemployed long-term face more challenges returning to work, as do those who’ve been detached from the labor force for some time. Though unemployment insurance and stimulus actions have sustained many workers over the past year, some of these supports will come to an end soon — or now require additional job searches,” according to the blog post.
The institute found that while an influx of job openings may create opportunities, there is no guarantee that they will be equitably distributed.
“It will take time for broader patterns to emerge around hiring and job search decisions. Meanwhile, many workers—especially low wage workers — may need near-term income support and access to job search and job training to support their return to a labor market transformed by the pandemic,” according to the blog post.
WIENER TO HOLD PRESS CONFERENCE FOR PSYCHEDELIC BILL
Sen. Scott Wiener’s bill decriminalizing possession of most psychedelic drugs made it out of the Senate, but it still has a way to go to make it to Gov. Gavin Newsom’s desk.
The bill is currently being considered by the Assembly committees on public safety and health.
Today, Wiener will hold a press conference at the Sacramento Capital Park Rose Garden to champion his bill. Wiener will be joined at 1:15 p.m. by Juliana Mercer, a Marine Corps veteran; Jesse Gould, Army veteran and founder of the Heroic Hearts Project; Dr. Mellody Hayes; and retired police Lt. Diane Goldstein of the group Law Enforcement Action Partnership.
“This press conference will highlight the voices of veterans who have sought therapeutic treatment for depression, trauma and anxiety with psychedelics, and will also highlight healthcare professionals and former law enforcement officers,” according to a statement put out by Wiener’s office.
QUOTE OF THE DAY
“Pay the rent. Pay all of it. A state budget is a statement of values, and we have to value keeping people in their homes as we ease our way out of the pandemic.”
- Assemblyman Isaac Bryan, D-Los Angeles, via Twitter.
Best of the Bee:
Since the start of the pandemic, xenophobia and bigotry against the Asian American and Pacific Islander (AAPI) community have escalated to unprecedented levels. Over the past year, I have worked with fellow Hollywood allies to bring awareness and action to fight these anti-Asian hate crimes. This problem — the explosion of hate toward Asian Americans — needs to be our utmost priority, via Ken Jeong.
A ribbon-cutting ceremony Friday celebrated the opening of the first new state office building in downtown Sacramento since 2003. The Allenby Building, a $232 million project that began in 2018, is the first of a new modern model of state workspaces with zero-net energy construction, via Isabella Bloom.
Gov. Gavin Newsom and state lawmakers announced a deal Friday to extend the state’s eviction moratorium and rent relief program that was set to expire at the end of this month. The eviction ban is now scheduled to sunset on September 30, 2021. The agreement includes $5 billion in federal rental assistance to landlords and tenants, via Hannah Wiley.