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HomeMy WebLinkAbout01.05.21 FW_ Governor Newsom to Propose $4.5 Billion for Equitable Recovery for California’s Businesses and Jobs in 2021 Budget From:Ring, Brian To:Alpert, Bruce;Bennett, Robin;Clerk of the Board;Connelly, Bill;Cook, Holly;Cook, Robin;Kimmelshue, Tod;Lambert, Steve;Lucero, Debra;McCracken, Shari;Paulsen, Shaina;Pickett, Andy;Ring, Brian;Ritter, Tami;Rodas, Amalia; Sweeney, Kathleen;Teeter, Doug Cc:Pickett, Andy;Snyder, Ashley Subject:FW: Governor Newsom to Propose $4.5 Billion for Equitable Recovery for California’s Businesses and Jobs in 2021 Budget Date:Tuesday, January 5, 2021 4:57:56 PM Attachments:image001.png Gov Slides 1.5.21.pptx Newsom Econ update 1.5.21.pdf More information on the governor’s proposed economic recovery package. Brian Ring Assistant Chief Administrative Officer Administration 25 County Center Drive, Oroville, CA 95965 T: From: SYASL County Info <SYASLCountyInfo@SYASLpartners.com> Sent: Tuesday, January 5, 2021 3:49 PM To: SYASL County Info <SYASLCountyInfo@SYASLpartners.com> Subject: Governor Newsom to Propose $4.5 Billion for Equitable Recovery for California’s Businesses and Jobs in 2021 Budget ATTENTION: This message originated from outside Butte County. Please exercise judgment before opening .. attachments, clicking on links, or replying. To: County Administrative Officers and Interested Parties From: Paul J. Yoder and Karen Lange Date: January 5, 2021 RE: Governor Newsom to Propose $4.5 Billion for Equitable Recovery for California’s Businesses and Jobs in 2021 Budget Today, Governor Newsom announced his Equitable Recovery for California’s Businesses and Jobs plan, the business and workforce recovery elements of his 2021-22 State Budget aimed to help California through the COVID-19 pandemic and advance an equitable, broad-based recovery. Please see the press release below for details. We have also included below a joint statement from legislative leadership regarding the same. We have attached slides from the Governor’s briefing and SYASL staff notes for your review. You may catch the replay of his presentation on his Facebook page at the link highlighted in the press release. -Paul and Karen View this email in a web browser | Forward to a friend Office of the Governor FOR IMMEDIATE RELEASE:Contact: Governor's Press Office (916) 445-4571 Tuesday January 5, 2021 Governor Newsom to Propose $4.5 Billion for Equitable Recovery for California’s Businesses and Jobs in 2021 Budget Calls for immediate action to support small businesses, including $575 million on top of the $500 million previously allocated to California’s Small Business COVID-19 Relief Grant, bringing total support to more than $1 billion SACRAMENTO – Governor Gavin Newsom today previewed his Equitable Recovery for California’s Businesses and Jobs plan, the business and workforce recovery elements of his 2021-22 State Budget that will help California through the COVID-19 pandemic and advance an equitable, broad-based recovery. Watch the Governor provide a brief overview of his Equitable Recovery for California’s Businesses and Jobs plan here. Building on actions the state has taken to support California’s businesses throughout the pandemic, including emergency aid and regulatory relief, these proposals double down on the Newsom Administration’s commitment to rebuilding the economy, with investments across sectors and benefits for businesses of all sizes. Notably, the Budget proposes an immediate action to approve $575 million more for California’s small businesses, the backbone of the state’s economy, as they work to adapt their operations amid the COVID-19 pandemic. This immediate action proposal is on top of the initial $500 million allocated in partnership with the Legislature to the California Small Business COVID-19 Relief Grant, bringing the total for California’s small businesses to more than $1 billion. “California’s economy is known the world over for our innovation, inclusion and resilience. That spirit will carry us through this pandemic and beyond,” said Governor Newsom. “These budget proposals reflect our commitment to an equitable, broad- based recovery that ensures California remains the best place to start and grow a business – and where all Californians have an opportunity to reach their dreams. I look forward to continuing to partner with the Legislature to advance these priorities so our economy can emerge stronger, fairer and more prosperous than before.” The COVID-19 pandemic brought unprecedented challenges to California. However, prudent fiscal management in the past and present has allowed California to provide ongoing support to impacted Californians where they need it most. Building on supports for California businesses before, during and through the pandemic, the Governor today previewed the following budget proposals: Small Business Grants Prior to the pandemic, small businesses created two-thirds of new jobs and employed nearly half of all private-sector employees. California is home to 4.1 million small businesses that employ nearly half of the state’s total workforce. To help keep these businesses afloat, the Governor is proposing a total of $1.075 billion for the State’s Small Business COVID-19 Relief Grant Program. To put money into the hands of the most impacted small businesses as quickly as possible, the Governor has proposed immediate legislative action on $575 million in additional grants. The investment will add to the initial $500 million allocation announced in November. The Program offers grants up to $25,000 to micro and small businesses that have been impacted by the pandemic. These grants will be distributed across the state, with priority given to regions and industries impacted by the COVID- 19 pandemic, disadvantaged communities and underserved small business groups. The $575 million Early Action Budget proposal includes $25 million for small cultural institutions, such as museums and art galleries, that have been constrained by the pandemic in their ability to educate the community and remain financially viable. California Jobs Initiative The Budget also proposes sustained investments to preserve California’s competitiveness. The California Jobs Initiative, a $777.5 million proposal, focuses on job creation and retention, regional development, small businesses and climate innovation, including increased funding for: California Competes Tax Credit (CalCompetes), which incentivizes businesses to locate in California to stay, grow and create quality full-time jobs in the state and creates a new CalCompetes grant program to support job creation and investments in infrastructure ($430 million) Extended Main Street Small Business Tax Credit to encourage hiring new employees and rehiring former employees ($100 million). o As of January 4, almost 9,000 taxpayers had reserved over $54 million of the existing credit. Mitigating the SALT deduction limitation for S-corporation shareholders The California Dream Fund to seed entrepreneurship and small business creation in underserved communities ($35 million) Additional funds for the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center to provide small business loan and disaster loan guarantees ($50 million which will be leveraged to provide $250 million in loans) and for the California Rebuilding Fund ($50 million.) Expanded sales tax exclusions through the Treasurer’s Office to reduce the cost of manufacturing equipment in order to promote innovation and meet the state’s climate goals ($100 million) This funding also includes $12.5 million allocated, in partnership with the Legislature, in late 2020 to fully capitalize the California Rebuilding Fund to support $125 million low- interest loans to underserved businesses. Workforce Development The Budget proposes one-time and ongoing investments totaling $353 million to support California’s workers as they adapt to changes in the economy brought about by COVID-19. These investments lift up proven workforce development strategies like apprenticeship and High-Road Training Partnerships and encourage greater collaboration and coordination among California’s institutions of higher learning and local workforce partners. Demand-driven workforce programs can help California train the workforce of the future in key sectors including health care and technology. Fee Waivers The Budget proposes $70.6 million for fee waivers to individuals and businesses most impacted by the pandemic – including barbers, cosmetologists, manicurists, bars and restaurants. These waivers will assist those who have not been able to operate or are operating at reduced capacity during the pandemic. Deferred Maintenance In recognition of the job-creating potential of infrastructure projects on state-owned properties, the Budget includes a $300 million one-time General Fund for the most critical statewide deferred maintenance, including greening of state infrastructure. This proposal will help create jobs in California while achieving our state’s climate goals. Projects include the installation of electric vehicle charging stations at state-owned facilities. Housing Through the Infill Infrastructure Grant (IIG) Program, this Budget proposes $500 million to create jobs and long-term housing development to unlock more than 7,500 new permanently affordable homes for Californians. IIG grants to local governments and developers bring the cost down for new housing by defraying costs for things like sewers, roads and site preparation, all while putting thousands of people to work in good jobs building this housing-related infrastructure. $250 million of these funds are proposed for early action. Zero-Emission Vehicles and Zero-Emission Vehicle Infrastructure Building on California’s historic commitment to requiring sales of all new passenger vehicles to be zero-emission by 2035, this Budget proposes an additional $1.5 billion investment to accelerate our state’s progress toward these goals while creating jobs. The proposal will support jobs and economic growth and provide air quality benefits and support for low-income Californians to purchase cleaner vehicles. Funds will support purchases of clean trucks, buses and off-road freight equipment and Clean Cars 4 All programs. It will also support job-creating construction of electric charging and hydrogen fueling stations necessary to accelerate zero-emission vehicle adoption. The Budget proposal will leverage additional private sector capital to build the necessary infrastructure and create jobs to support California’s recovery. These 2021-22 Budget proposals build on the Newsom Administration’s work to support California’s businesses and workers. Among many actions, the Administration waived the $800 minimum franchise tax – often a costly barrier for start-up businesses – for the first year of operation. The Administration in November also extendedup tobillions in immediate, temporary tax relief to businesses impacted by COVID-19 by extending deadlines for paying sales taxes for smaller businesses and expanding interest-free payment options for larger businesses particularly affected by significant restrictions on operations due to COVID-19. Additionally, the Administration built and funded the Great Plates Delivered program, a first-in-the-nation program that partners with local businesses to deliver nutritious meals to older Californians and other adults at high risk from COVID-19, which has supported more than 9,000 jobs per week on average. ### Governor Gavin Newsom State Capitol Building Sacramento, CA 95814 ForwardViewinBrowser FOR IMMEDIATE RELEASE January5,2021 CONTACT:NieshaFritz,Niesha.Fritz@sen.ca.gov (forProTemAtkins) KatieTalbot,Katie.Talbot@asm.ca.gov (forSpeakerRendon) Legislative Leaders Respond to Governor’s Proposed Economic Recovery Package SACRAMENTO— SenatePresidentproTemporeToniG.Atkins(D-SanDiego)andAssembly SpeakerAnthonyRendon(D-Lakewood)issuedthefollowingstatementregardingGovernorGavin Newsom’sproposedEquitableRecoveryforCalifornia’sBusinessandJobsPlan: “Californiansarehurtingandneedimmediateassistancetoweatherthecurrentcrisis.Aunified effortiscriticaltosuccess and welookforwardtoworkingwiththeGovernoronthespecificsof his,andlegislative,proposalstotakeearlyaction inprovidingmeaningfuladditional relief. Aswe worktowardpassingafinalbudgetinJune,wemustcontinueontheresponsiblepathofensuring ouractionsstrengthenCaliforniaandourcommunities,andnotaddtotheeconomicchallengeswe arefacing.” Website of Assembly Speaker Anthony Rendon:www.asmdc.org/speaker Toni G. Atkins is President pro Tempore of the California Senate. Having previously served as Speaker of the California Assembly, she began her tenure in the Senate in 2016. As Senator for District 39, she represents the cities of San Diego, Coronado, Del Mar and Solana Beach. Website of President pro Tempore Toni G. Atkins:www.senate.ca.gov/Atkins ### Governor Newsom - CA Economic Recovery Notes January 5, 2021 GGN I opened small business with one employee, and it is still around and has flourished I entrepreneurship and the magic of small businesses Today met small business leader and we had an opportunity to meet with her because she is part of the narrative of this great state, she employs eight people, worked to get money from PPP and now she is taking advantage of small business grants offered by the state of California What we are doing to support small businesses, this is a preview of budget package Putting out today a preview 4.5 billion of business supports, immediate relief and workforce development, effort for small business retention, small business strategies, housing supports and strategy to advance through zero-emission Putting out $1.075 billion to small businesses, building on existing grant program Provides grants from $5-$25K, want to build on program launched with the legislature, wants to provide additional $575 million th Grants available now, we extended first deadline through 13 of this month, careliefgrant.com. these are grants Putting out for immediate relief to move fee waivers forward, 59K licensees, 53K are part of an incredible of barbers and cosmetologists and we want to waive those fees into the 70.6 million Putting up ¾ of a billion to build on California Competes tax credit, Additional $430 million up for total grants Want to build on Main Street Tax credit program, tax credits for businesses employing people We are looking at loan guarantees up to $100 million, worked with Janet Yellen on this Want to leverage additional resources for those not getting PPE loans and other loans Want to do more sales tax exclusions, we want to provide exclusions to advance for innovation in climate space in energy and transportation Putting $35 million in dream fund, for people struggling to get loans from traditional sources Workforce development, $353 million for workforce development Want to line up education strategies, to ensure have degrees that have attainment in terms of jobs, and apprenticeship programs in forestry and healthcare, work base learning models and cyber Talking about deferred maintenance, not part of $10 billion for infrastructure, lots from SB 1, $300 million additional for deferred maintenance to leverage programs Housing also to get jobs going and getting multiples and indirect jobs Looming to provide one and half a billion in infill infrastructure programs, this was successful last year, and we want to put up We want to advance efforts for purchasing clean trucks and buses Mention in closing additional actions taken to date, $500 million in small business grants and $100 million hiring tax credit, we also put $100 million to waive $800 franchise tax, not lots of people know that We have sales tax relief, interest-free payment plans, float billions of dollars of sales tax We also provided exclusion for PPE loans th through February 6, want for folks to know that you should learn about this program You can go to business.ca.gov We have 86 small business centers to provide information on all these supports Small businesses are the backbone of our economy, I recognize the stress and all you have been put through over the past year This $4.5 billion is not all we will be doing for small businesses, but it is a significant action Looking to immediate and early access to help our businesses through this challenging time