Return of the masks + California banks stimulus money + First Latina labor secretary

Welcome to Thursday! Here’s what you need to know:

FIRST UP: Counties are recommending masks again. Where is Newsom?

The Delta variant of the COVID-19 virus is becoming more prevalent in California. As a precaution, some counties are recommending residents resume masks indoors — regardless of vaccination status.

It’s been exactly a month since June 15, the state’s big opening day that did away with color-coded reopening and was supposed to mark the start of the “California Comeback.” Gov. Gavin Newsom marked the occasion at Universal Studios by drawing $15 million worth of prizes for vaccinated Californians.

But amid rising rates of the highly-transmissible Delta variant, Yolo County officials on Wednesday recommended its residents wear masks indoors, even if they have the vaccine. Los Angeles County made a similar move in late June. Both Yolo and LA county’s guidelines are recommendations, not mandates.

“I am erring on the side of caution to slow the spread of the highly infectious Delta variant,” Yolo County health officer Dr. Aimee Sisson said in a prepared statement. “Vaccines remain the absolute best form of protection against COVID-19, and I implore everyone who is eligible to get fully vaccinated as soon as possible.”

The Centers for Disease Control reports that the Delta variant makes up more than 60% of cases in region 9, which includes Arizona, California, Hawaii and Nevada. But whether state officials will re-tighten mask rules is yet to be seen. The Capitol recently reinstated its mask mandate after an outbreak was reported among employees, though Sacramento County itself has not updated its guidance.

Current guidance from the California Department of Public Health says masks are not required for vaccinated individuals, except in certain circumstances, including public transport, healthcare settings and homeless shelters.

The governor’s office directed questions about masking guidelines to state public health officials, who did not say whether they were planning on updating guidance in light of concerns about the variant.

Resuming statewide masking could be politically tricky for Newsom, who capitalized on the state’s reopening and has touted the “California Comeback” as a key message of his campaign to fight the recall.

At the June 15 reopening celebration, Newsom was asked whether he saw any scenario where restrictions would need to be reimposed.

“The bottom line is we’re not ideological, we’re open to evidence. We’re not putting down our guard as it relates to the vigilance... we have taken the mutations very, very seriously,” he said. “We’ll look at hospitalization rates, we’ll look at preparedness, as the primary consideration for making any subsequent determinations.”

CALIFORNIA BANKS COVID RELIEF MONEY

Via Wes Venteicher...

Ever wonder how exactly all those billions in federal coronavirus relief money reach states?

The State Treasurer’s Office explained the process in a recent newsletter praising its employees for handling California’s $27 billion allotment from the American Rescue Plan, which Congress approved in March.

The U.S. Treasury sent the money through three wire transfers in June to depository banks the Treasurer’s Office works with, and the state’s investments division invested all of it over seven days, with a one-day high of $8 billion, according to the newsletter.

The office invested the money quickly to earn interest on the investments, according to the newsletter, putting most of the money into Treasury bills backed by the federal government. Some of the money also was also used to purchase securities of federal agencies, certificates of deposit and commercial paper issued by corporate borrowers.

“It’s a Herculean effort,” Deputy Treasurer Tim Schaefer said in the newsletter. “And, it’s clearly indicative of why the California Treasurer’s Office is home to some of the most professional staff in government treasury functions in the U.S.”

NEWSOM APPOINTS FIRST LATINA LABOR SECRETARY

Natalie Palugyai is set to be the next secretary of California’s Labor and Workforce Development Agency, Gov. Gavin Newsom announced Wednesday, following Julie Su’s confirmation to the U.S. Labor Department earlier this week. As labor secretary, Palugyai will face the challenge of tackling California’s fraught EDD system, which has been plagued by fraud and a backlog of calls throughout the pandemic.

Palugyai, a daughter of immigrants and an immigrant herself, is the first Latina to be appointed to the position, according to the governor’s office. Her appointment requires confirmation by the State Senate.

“Raised by immigrant parents, Natalie brings a unique perspective to helping millions of Californians recover from the pandemic and will fight for the essential workers who kept California running throughout the pandemic,” Newsom said in a statement.

Palugyai, 40, currently lives in Maryland, where she has held the role of senior advisor for strategic initiatives at Johns Hopkins University since 2018. She has also worked in the U.S. Department of Labor, the General Services Administration and FEMA.

State Sen. María Elena Durazo praised Palugyai on her appointment.

“As Chair of the Latino Legislative Caucus, I look forward to working with her to solve issues of wage theft, expand health and safety provisions in the workplace, and create access to new good-paying jobs through High Road Partnerships,” Durazo said in a statement.

Newsom also announced Stewart Knox of West Sacramento as LWDA Undersecretary. His position does not require senate confirmation.

QUOTE OF THE DAY:

“It’s because of them I am here today. It’s because of them I have the f****** strength to speak up against my family who have silenced me for years.”

- Britney Spears, in a Los Angeles Court on Wednesday, speaking about the #FreeBritney movement. Fans celebrated a win for the pop star, who was granted the right to hire her own attorney in her battle to rescind the conservatorship she has lived under for 13 years.

Best of the Bee:

• Another chapter in the EDD saga: Federal agents say they have broken up an unemployment insurance fraud ring based in Maryland that targeted California and numerous other states with more than $2.6 million in claims. via Sam Stanton
• Early release rules stand: In an order issued late Tuesday, Sacramento Superior Court Judge Shama Mesiwala rejected a request for a preliminary injunction that would have forced the California Department of Corrections and Rehabilitation to go back on its new rules, designed to speed up the release of more than 76,000 inmates. via Sam Stanton
  
  
• Help wanted: As of May, CalOSHA was down more than a quarter of its inspector staff, with the number of vacancies going up nearly every month since the start of the pandemic, according to records obtained by The Sacramento Bee. Now it has a mandate to hire dozens more. via Jeong Park