Details of the $100 billion ‘California Comeback Plan’ as Newsom outlines economic recovery strategy
Saying "California will roar back from this pandemic," Governor Gavin Newsom's office announced that the state's leader would be unveiling details of an economic recovery package this week. Late Monday morning, Newsom tweeted that "2 out of every 3 Californians will now benefit from a stimulus check of at least $600. And families with kids will now get an additional $500."
Newsom spoke at 10 a.m. Monday. He announced that the state is looking at a $75.7 billion surplus. “This time last year we announced a 54.3 billion dollar projected shortfall,” said Newsom.
The economic recovery package, estimated at $100 billion, is the biggest in the state's history, the Governor's office announced. There will be a $12 million tax rebate to the people in the state of California earning up to $75,000. Two-thirds of Californians will be eligible for $600, qualified families with children will be eligible for an additional $500. The tax rebate will impact 80% of tax filers where people "will get a direct stimulus check, will get a direct relief,” said Newsom.
This week, we unveil the biggest economic recovery package in CA’s history - the $100 billion California Comeback Plan. We will take on our most persistent challenges - and start with immediate, direct relief to Californians.
— Office of the Governor of California (@CAgovernor) May 10, 2021
California will roar back from this pandemic. pic.twitter.com/5a9hpFBntM
It comes as Newsom faces a likely recall election later this year, and his Republican rivals quickly criticized the effort. Businessman John Cox, accused Newsom of engaging in a publicity stunt.
“The governor's got a lot of money to hand out. And of course, he's worried about his own neck," Cox said at a campaign event in Los Angeles.
He and Kevin Faulconer, another Republican candidate, both said a one-time infusion of cash wouldn't solve California's problems.
“Californians need permanent, real tax relief, not just one-time stimulus checks," Faulconer, the former San Diego mayor, said in a statement.
A law passed by voters in the 1970s requires the state to give some money back to taxpayers if the surplus hits a certain limit. The state estimates it will be $16 billion over that threshold. Newsom does not have to act immediately, but is choosing to do tax rebates now, H.D. Palmer, a spokesman for the state Department of Finance said.
The governor also announced allocating $5.2 billion for rent payments. “With the goal of getting 100% of the back rent paid and provide 100% support over the next few months to renters who have been impacted during this pandemic,” said Newsom. An additional $2 billion will be set aside for utility bills for water, gas, and electricity. He proposed $1 billion be specifically set aside to address water in California. The governor said this was just one of many announcements to come this week. “California is not coming back, California is going to come roaring back,” said Newsom.
California will be sending out a round of stimulus checks in the coming weeks.
The stimulus aims to support low-income Californians and help those facing a hardship due to COVID-19.
How do you know if you’re eligible?
For most Californians who do qualify, the good news is you don’t need to do anything to receive the payment other than file your 2020 taxes. The payments are scheduled and issued twice a month after eligible 2020 tax returns are processed. Some individuals might have already received the payments via direct deposit or a check in the mail.
You can find more information on eligibility and the timeline for receiving the stimulus payment HERE.
