Flush with surplus, California government could gain billions more in Biden’s COVID-19 plan

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California state and local government could benefit from billions of dollars in new federal financial support if President-elect Joe Biden can convince Congress to pass a $1.9 trillion stimulus plan he unveiled Thursday.

Biden’s economic relief plan avoids a big aid package for state and local governments to use as they want. Republicans blocked that idea throughout 2020, complaining that the money would too often be spent irresponsibly.

Instead, Biden would designate the aid for specific uses.

It’s not clear yet exactly how much California would get from the proposal, but the massive spending plan includes hundreds of billions of dollars in aid for state and local governments, public health departments, and schools, all of which could directly benefit the Golden State.

If approved, the money would give Gov. Gavin Newsom and California lawmakers additional breathing room as they craft the state’s 2021-22 budget, which is already expected to benefit from a $15 billion surplus because of higher-than-expected state tax revenue. At the same time, Newsom’s proposal anticipates higher spending on social services because of massive needs related to the pandemic.

Biden’s plan would build on the $900 billion COVID-19 relief law that Congress passed in December. Newsom’s plan for the budget, which he unveiled last week, doesn’t yet account for money expected to come to California through that package.

Biden’s proposal would send $350 billion to state, local, and territorial governments so they can employ enough workers to distribute the vaccine, increase testing, reopen schools and maintain other public services.

Funding national vaccine program

It also includes $20 billion for a national vaccination program “in partnership with states, localities, Tribes and territories.” The effort would include launching community vaccination centers and deploying mobile vaccination units to hard-to-reach areas. Newsom had already planned to spend an estimated $372 million in state funding on accelerating vaccinations.

Biden wants to hire 100,000 additional public health workers nationwide to help with vaccinations and contact tracing.

County health departments were already pushing Newsom and lawmakers for more public health funding, so Biden’s proposal could make those negotiations easier.

Newsom has repeatedly pointed to testing as an area where the state could use more help from the federal government. Biden is proposing $50 billion to purchase rapid tests, expand lab capacity and otherwise increase testing with the goals of reopening schools, quickly identifying outbreaks at prisons and nursing homes and providing every American with free tests when they need them.

Reopening schools

Biden also wants Congress to approve $130 billion to help schools reopen safely. That money could be used to reduce class sizes, modify classrooms, hire more janitors and purchase protective equipment.

Newsom’s administration is negotiating with school districts over a reopening plan he unveiled late last month aimed at getting students back into classrooms as quickly as possible. Part of districts’ concerns centers on the amount of money, which Biden’s proposal could help address. But superintendents have also raised concerns about the short timelines and lack of statewide safety standards in Newsom’s plan.

Biden’s plan has $35 billion for public higher education institutions, and would provide what Biden estimates to be millions of students up to an additional $1,700 in financial aid from their college.

Biden’s proposed aid package would also more than double the emergency funding Congress already passed to help renters and small businesses through the pandemic. It also includes $5 billion in emergency assistance for homeless housing, enough for 200,000 homeless individuals and families to get stable housing, according to Biden’s transition team.

Newsom and lawmakers are currently negotiating to get California’s $2.6 billion share of the rental assistance money out the door quickly. Some lawmakers have also argued Newsom’s budget plan doesn’t include enough to help homeless people in California, where more than 150,000 are homeless, according to the most recent official count.

Biden’s plan also includes $20 billion for public transit agencies that have been hurt by the pandemic.