GSBE Business Update 12/01/20
Newsom issues evening curfew ahead of Thanksgiving week
Starting Saturday night, nearly all Californians will be subject to a curfew aimed at curbing a statewide surge in coronavirus infections. Under the terms of the “limited stay-at-home order” Gov. Gavin Newsom unveiled Thursday, nonessential work and gatherings will be prohibited between 10 p.m. and 5 a.m. in the 41 counties currently in the most restrictive purple tier, which comprise 94% of the state’s population.
The order, which will remain in effect through Dec. 21, appears to target bars and late-night gatherings — Californians will still be able to get takeout, go to the grocery store and leave their homes after 10 p.m., as long as they aren’t gathering with other households.
Leg Analyst Predict $26B State Budget Surplus (so much for the need for split roll)
The nonpartisan Legislative Analyst’s Office projects California will have a $26 billion BUDGET SURPLUS in the next budget cycle. This windfall is something completely unexpected after almost a year of economic shutdowns.
The LAO’s California Fiscal Outlook says the predicted economic disaster of COVID shut downs has not actually befallen the economy and that state revenue’s continue to hit levels more consistent with rosier economic times. The report notes that schools and community colleges can expect a record one-time surplus of $13.1 billion in 2021-22.
This surplus will make the budget discussion even more interesting as we expect it to trigger lively discussions over how the state spends this money and whether the Legislature commits one-time funds to ongoing programs.
Gov Releases Task Force on Business & Jobs Recovery Report
From the office of the Governor: Amid surge in COVID-19 cases, the report by Co-Chairs Ann O’Leary and Tom Steyer reaffirms the state’s health-first approach as the foundation for a safe and sustainable reopening. Report highlights innovative proposals and partnerships launched by the Task Force and identifies priorities and challenges as the state works to rebuild a more equitable, sustainable and resilient economy. Click here to read the full report.
State Reports Cities Most Impacted by COVID
The CA Auditor published data on the CA cities whose financial revenues have been most severely hit by COVID-19. Hotel tax revenue losses are by far the biggest contributor to these impacts. Read more.
Pfizer to Test COVID-19 Vaccine Distribution in Four States:
Pfizer announced it would test distribution of its coronavirus vaccine in four U.S. states: Rhode Island, Texas, New Mexico, and Tennessee. These states were picked because of their difference in size, population diversity, and their urban and rural settings. Read more.
Status Update: Congress & the Legislature
Due to several very tight races in which leads have swapped back and forth, there is no clear outcome on the partisan makeup of the Congressional Delegation nor the CA State Legislature yet.
However, as it currently stands the Congressional Delegation has a net increase of four Republicans – 42 Democrats and 11 Republicans.
The California State Senate has a net increase of two Democrats – 31 Democrats and 9 Republicans.
The California State Assembly has a net increase of one Republican – 60 Democrats and 19 Republicans and one independent (No Party Preference).