Californian economic planning for the coronavirus pandemic
California has been one of the most affected states during the coronavirus pandemic in the United States, but Gov. Gavin Newsom aims to keep supporting the people.
California has been one of the five states in the United States that has been most affected by coronavirus in the nation. As of 15 May, 74,936 people had tested positive for Covid-19 and 3,108 had sadly died.
Californian funding
According to Gov. Gavin Newsom’s plan, the state is using federal stimulus money to redirect pension payments and temporarily raising corporate taxes to minimise the losses. But California is still facing a near $7 billion shortage next year for school funding, the biggest single item in the state budget, as the coronavirus pandemic ravages the economy.
The financial blow comes as many school districts already find themselves hurting for cash because of rising pension payments and other costs. Safety protocols to prevent the spread of the virus that would allow schools to reopen in the fall would add a new burden. Education advocates are anticipating a repeat of the mass layoffs, pay reductions and program cuts that hit schools during the last recession a decade ago.
The state budget is still to be negotiated with the government, and must have a plan passed by 15 June or go without. Funding levels for schools and community colleges are largely locked in by Proposition 98, a formula that voters approved in 1988. But at a news conference on Thursday, Newsom said he would prioritise school funding, which he called 'an investment in the future'.