Newsom plans $4B for economic recovery

SACRAMENTO >> California Gov. Gavin Newsom on Tuesday proposed a $4 billion spending plan he says will create jobs and help small businesses recover from the economic downturn brought on by the coronavirus pandemic.

Close to half of that money — $1.5 billion — would help people purchase electric cars and build the charging stations necessary for drivers to use them. That proposal is part of Newsom’s goal to ban the sale of new gas-powered cars in California by 2035.

Small businesses would get $575 million. The money would pay for grants of up to $25,000 each to small business owners, with priority given to areas and industries most affected by the pandemic. That money includes $25 million for small museums and art galleries that have been forced to close during the pandemic.

Newsom and the state Legislature have already given $500 million to this program, so this proposal would make more than $1 billion available.

In a normal year, California’s budget would not take effect until July 1. But Newsom said he will ask the Legislature to approve the money for small businesses before July 1, although it’s unclear when that could happen.

In a joint statement, Assembly Speaker Anthony Rendon and Senate President Pro Tempore Toni Atkins said they would work with Newsom “to take early action in providing meaningful additional relief.”

“Californians are hurting and need immediate assistance to weather the current crisis,” they said.

Newsom also wants to give $430 million worth of tax credits to businesses that stay in California and create full-time jobs. That proposal comes as a record number of people are leaving the state, slowing California’s growth rate to its lowest since 1900.