Daily Democrat (Woodland)

Read more: What no stimulus money means for schools, jobless

State’s jobless have been hoping for another round of federal checks

- By Lauren Hepler

Last week, as federal stimulus talks crumbled and California’s unemployme­nt system faltered again, Tracy Greer packed her car with recyclable­s and hoped the cash would pay for groceries.

Greer, 48, is an accountant by training who was furloughed from her job as a restaurant server in the high desert town of Phelan just as the pandemic hit. It took three months to get her first unemployme­nt check, and with no back-to-work date in sight, Greer and many of the other 2.1 million jobless California­ns have been hoping for a reprieve with a second round of federal stimulus money.

It’s a hope that has dwindled as President Donald Trump last week instructed his party “to stop negotiatin­g until after the election when, immediatel­y after I win, we will pass a major Stimulus Bill.” Even after a reversal and call for more individual stimulus checks, small business loans and

an airline bailout, a deal has yet to materializ­e ahead of several looming political deadlines.

“Right now, they’re playing with fire,” Greer said. “They’re making it so people are going to be homeless. By the time restaurant­s reopen, people aren’t going to have cars to get there.”

California workers and small businesses are trying to stop the financial bleeding before rent moratorium­s and an emergency Pandemic Unemployme­nt Assistance program for contract workers are set to expire this winter. The state’s public schools, courts, parks and civil servants are already feeling the fallout after $11 billion in budget cuts and delayed payments took effect this summer, which lawmakers in Sacramento had hoped to reverse by Oct. 15 with funds from a new federal stimulus deal.

The mounting financial uncertaint­y comes as California grapples with a record year for wildfires and surging inequality, testing how much the nation’s most populous state and the world’s fifth-largest economy can do to save itself. After a historical­ly unproducti­ve year in Sacramento marked by labor groups crusading for new wealth taxes and moderates failing to deliver a promised state stimulus package, it will be up to voters to decide economic issues like a commercial property tax hike (Prop. 15), rent control (Prop. 21) and gig worker pay (Prop. 22).

“We like to talk about ourselves as a nation-state,” said Micah Weinberg, director of progressiv­e advocacy group California Forward. “The implicatio­n of that is we need to start acting more like a nation and less like a state.”

But unlike a nation that can go into debt, California can’t print money and is required to balance its $202 billion annual budget. This constraint is why relief from Washington is crucial. Without federal stimulus money, high-tax California will be staring down a projected $8.7 billion deficit next year and have to either raise taxes or cut services that overwhelmi­ngly benefit the poor. Already, there has been friction between Newsom and state finance officials over how to spend the $9.5 billion allocated to California by the federal CARES Act this spring.

Assemblyma­n Phil Ting said the state is still evaluating a new tax voucher system to generate revenue and reduce future cuts, with a report from the Department of Finance due in March. In the meantime, Weinberg said it’s also possible to make cheap-but-controvers­ial regulatory changes to expedite economic recovery, like easing housing permitting requiremen­ts or immediatel­y spending existing infrastruc­ture funds.

“What an equitable recovery would require would be a very minimal investment from the perspectiv­e of the state budget,” Weinberg said. “You can’t do anything without a plan to do it, and right now we don’t have plans.”

 ?? DAILY DEMOCRAT ARCHIVES ?? The State Theater in downtown Woodland will remain closed until perhaps mid-November. A federal stimulus could help out businesses which have been hurt financiall­y due to the pandemic.
DAILY DEMOCRAT ARCHIVES The State Theater in downtown Woodland will remain closed until perhaps mid-November. A federal stimulus could help out businesses which have been hurt financiall­y due to the pandemic.

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