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Antonio‌ ‌Ray‌ ‌Harvey‌

Inflation Worries Grow as California Legislature Approves State Budget

During the public comment section of the Assembly Budget Committee hearing on June 13, Adrian Mohammed, an African American representative of the Bay Area Health Initiative spoke about the exclusion of a $500 million proposal to address Black housing and anti-displacement in the Bay Area in the budget the Legislature passed. “We believe that this is an incredibly timely and incredibly necessary ask and we ask that you continue to work with us to get this to come to fruition,” Mohammed told lawmakers.

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If the governor approves the budget, it will take effect July 1, the beginning of the 2022-23 fiscal year. However, negotiations are expected to continue through the end of August as lawmakers hammer out final details.
If the governor approves the budget, it will take effect July 1, the beginning of the 2022-23 fiscal year. However, negotiations are expected to continue through the end of August as lawmakers hammer out final details.

By Aldon Thomas Stiles and Edward Henderson, California Black Media

Diane Lanette Barkum is an in-home care provider and mom of three. She commutes about 40 minutes every workday between the Riverside County cities of Lake Elsinore, where she lives, and Moreno Valley, where she works.

Over the last few months, Barkum says she has been stressed and scraping by, struggling to balance sharp increases in the cost of gas and food with making enough money to pay for other expenses.

“What worries me most about rising prices is that they’ll continue to rise, making it more difficult for low-income working parents to be able to support their families,” she said.

Terence Henry, who lives in Patterson in the Central Valley, used to drive 77 miles to the Bay Area to make deliveries as an independent contractor. He says the high cost of gas forced him to give up the job late last year and opt for only making local runs.

“It used to cost me about $50 each way to fill up the tank to get to Oakland, San Francisco and other cities,” he said. “It just was not worth it anymore. I was losing money.”

Barkum says she hopes there is relief around the corner for people like her who are working hard, raising children and still unable to make ends meet.

Barkum and Henry are not alone. According to the Public Policy Institute of California, 27% of Californians say jobs, the economy and inflation are their top concern over housing costs and availability (12%) and homelessness (11%).

Across the United States, the inflation rate is 8.6% — up from 4.7% last year, according to the U.S. Department of Labor. And the American Automobile Association reports that the average price per gallon of regular gas in California has risen above $6. Several economists agree that the effects of inflation hit poor and working-class families the hardest.

In Southern California, the inflation rate in Riverside and San Bernardino counties in the Inland Empire has risen to 9.4%, according to the UCLA Anderson School of Management. That number is among the highest of increases in the country.

Last week, the California Legislature approved a record $300 billion-plus budget for the next fiscal year, the largest annual spending plan in the state’s history. The package includes a surplus of close to $100 billion dollars, half of which must be used to fund schools by law.

Included in the budget are plans to spend the other half. So far, legislators have allotted $8 billion in rebates to taxpayers. Another $1.3 billion has been designated for grants to small business and non-profit organizations. Another $600 million has been specified for tax credits to the lowest-income Californians.

While lawmakers – both Democrats and Republicans – and the governor’s office agree that addressing spiraling inflation is urgent, they have not reached agreement on how to provide relief to struggling families.

Anthony York, Newsom’s senior advisor for communications, said in a statement that the governor still wants “more immediate, direct relief to help millions more families with rising gas, groceries and rent prices.”

At the federal level, U.S. Federal Reserve Chairman Jerome Powell approved a three-quarter (0.75) percentage point rate hike — the highest single percentage rate increase since 2008.

“African American-owned businesses and families are experiencing the damaging effects of inflation including the current interest rate increase instituted by the Federal Reserve Board.

“It is important for financial institutions to work with Black-owned businesses and their families to help navigate the rising cost of capital needed to operate and sustain all businesses,” said Timothy Alan Simon, board chair of the California African American Chamber of Commerce.

By statute, Newsom has until June 30 to veto the legislators’ budget bill or sign it into law.

If the governor approves the budget, it will take effect July 1, the beginning of the 2022-23 fiscal year. However, negotiations are expected to continue through the end of August as lawmakers hammer out final details.

During the public comment section of the Assembly Budget Committee hearing on June 13, Adrian Mohammed, an African American representative of the Bay Area Health Initiative spoke about the exclusion of a $500 million proposal to address Black housing and anti-displacement in the Bay Area in the budget the Legislature passed.

“We believe that this is an incredibly timely and incredibly necessary ask and we ask that you continue to work with us to get this to come to fruition,” Mohammed told lawmakers.

On June 15, Republican leaders held a rally at the State Capitol blasting their Democratic colleagues for their inaction on addressing the high cost of gas.

“Legislative Republicans are gathered here to remind Californians that it has been 100 days since the governor and the Democrats here in Sacramento promised California consumers relief on gas prices. One hundred days is far too long,” said Assemblymember James Gallagher (R-Yuba City). After 100 days, we are still waiting with no relief in sight. We need action now. We’ve been calling since January to suspend the gas tax.”

Senate Pro Tem Toni Atkins (D-San Diego) said the state’s wealth needs to work for hardworking Californians. She pointed to a provision in the budget that provides $200 rebates to working families earning up to $250,000 a year and $125,000 for single filers.

“We are focused on providing struggling families the relief they need to weather rising costs of fuel and groceries, investing ongoing funding in core programs and services, funding one-time infrastructure projects that will keep California moving for years to come,” she said.

Assembly Speaker Anthony Rendon (D-Lakewood) echoed Atkin’s optimism.

“We share a firm belief that our state is strongest when it cares for the weakest among us,” said Rendon. “Our budget proposal continues to lay the groundwork with infrastructure and other investments for future prosperity.”

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Antonio‌ ‌Ray‌ ‌Harvey‌

Sacramento Lawmakers Step Up Push for “Smart Solutions” on Crime, Public Safety

Assemblymember Tina McKinnor (D-Inglewood) and Sen. Lola Smallwood-Cuevas (D-Ladera Heights), both members of the California Legislative Black Caucus (CLBC), have joined other lawmakers and criminal justice reform advocates to address public safety in the state.  On April 2, CLBC members gathered outside the State Capitol for the unveiling of the #SmartSolutions Public Safety Policy Platform, a package of 30 bills that addresses the top concerns of retailers, retail workers, the fentanyl crisis, and support for victims and survivors of crime.

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Assemblymember Tina McKinnor (D-Inglewood), second right, and Assemblymember Eloise Gómez Reyes (D-Colton), right, have introduced bills that would protect victims, reduce recidivism, and treat substance-use disorders. CBM photos by Antonio Ray Harvey.
Assemblymember Tina McKinnor (D-Inglewood), second right, and Assemblymember Eloise Gómez Reyes (D-Colton), right, have introduced bills that would protect victims, reduce recidivism, and treat substance-use disorders. CBM photos by Antonio Ray Harvey.

By Antonio Ray Harvey, California Black Media

Assemblymember Tina McKinnor (D-Inglewood) and Sen. Lola Smallwood-Cuevas (D-Ladera Heights), both members of the California Legislative Black Caucus (CLBC), have joined other lawmakers and criminal justice reform advocates to address public safety in the state.

On April 2, CLBC members gathered outside the State Capitol for the unveiling of the #SmartSolutions Public Safety Policy Platform, a package of 30 bills that addresses the top concerns of retailers, retail workers, the fentanyl crisis, and support for victims and survivors of crime.

“Instead of being tough on crime, we need to be smart on crime,” Smallwood said at the press briefing. “I am not saying that we’re not going to be holding folks accountable for the actions that they take. But we will not rely on incarceration as a solution.”

McKinnor, Smallwood-Cuevas, a coalition of advocates, addiction treatment experts, and Yurok Tribal leaders joined Sen. Nancy Skinner (D-Berkeley), and Assemblymember Eloise Gómez Reyes (D-Colton) at the press conference organized to promote legislative solutions that ensure safety and justice.

Organizers say #SmartSolutions is an intersectional campaign that combats criminalization and mass incarceration by pushing for the redirection of state resources to fund housing, health care, schools, services for victims, and programs that reduce recidivism and promote accountability, beyond incarceration.

Opponents of the bills proposed in the #SmartSolutions campaign say their colleagues who support reform-focused strategies are looking the other way on crime and encouraging lawlessness.

For example, Assemblymembers Wendy Carillo (D-Boyle Heights), Carlos Villapudua (D-Stockton) and Mike Gipson (D-Carson) are supporting Assembly Bill (AB) 1990, legislation that would allow a peace officer to arrest shoplifters without a warrant or without witnessing the theft.

Assemblymember James Ramos (D-Highland) authored AB 1772 and introduced it in January. The legislation proposes sterner penalties for retail theft, particularly for repeat offenders.

The #SmartSolutions campaign is co-sponsored by Ella Baker Center for Human Rights, Smart Justice California, American Civil Liberties Union (ACLU) California Action, Californians for Safety and Justice, and Californians United for a Responsible Budget (CURB).

Smallwood recently introduced two bills she hopes will provide solutions to the escalating retail theft problem in the state. Senate Bill (SB) 1446 addresses theft, technology and job security in retail establishments and aims to minimize workplace violence, according to supporters. SB 1282 requires counties to expand the use of a diversion program for theft cases.

“Restorative Justice is the essential pillar of making our criminal justice system more fair, just, and equitable,” McKinnor said. “Restorative justice recognizes the trauma of victims and preparatory of crimes and provides a constructive space for victims to find healing.”

Dr. Amiee Moulin, founder of the California Bridge program and chief of the Division of Addiction Medicine at the University of California (UC) Medical Center, said drug “addiction and overdose” are taking a toll on patients, families and the community.

“I believe that California’s proposed legislation focused on expanding access to treatment is a crucial step towards saving lives,” Moulin said. “By removing barriers to care and embracing evidenced-based strategies we can provide patients the support they need to heal and recover.”

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Antonio‌ ‌Ray‌ ‌Harvey‌

Advocates Weigh in on Calif. Black Caucus Reparations Package

On Feb. 21, the California Legislative Black Caucus (CLBC) held a press conference at the state Capitol to introduce a package of reparations legislation the lawmakers call “a starting point” to atone for the state’s legacy of discrimination. All 12 members of the CLBC were present to explain their efforts to rectify the damages caused by systemic discrimination against Black Californians detailed in the 1,100-page report by the first-in-the-nation California reparations task force.

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Assemblymember Lori Wilson (D- Suisun City) speaks at the press conference with all CLBC members in attendance discussing their 2024 Reparations legislative priority bills. Photo by Antonio Ray Harvey California Black Media.
Assemblymember Lori Wilson (D- Suisun City) speaks at the press conference with all CLBC members in attendance discussing their 2024 Reparations legislative priority bills. Photo by Antonio Ray Harvey California Black Media.

By Antonio Ray Harvey

California Black Media 

On Feb. 21, the California Legislative Black Caucus (CLBC) held a press conference at the state Capitol to introduce a package of reparations legislation the lawmakers call “a starting point” to atone for the state’s legacy of discrimination.

All 12 members of the CLBC were present to explain their efforts to rectify the damages caused by systemic discrimination against Black Californians detailed in the 1,100-page report by the first-in-the-nation California reparations task force.

The nine-member panel submitted the recommendations on June 28, 2023.

CLBC chairperson Lori Wilson (D-Suisun City) said it may take three to seven years to pass legislation aimed at implementing the task force’s recommendations.

The package the CLBC members presented consists of 14 legislative proposals, each designed to address different aspects of systemic racism and inequality.

One proposal, Senate Bill (SB) 490, put forth by CLBC Vice Chair Sen. Steven Bradford (D-Inglewood), calls for the establishment of the California American Freedmen Affairs Agency (CAFAA).

This agency would administer reparations programs and aid Black families researching their family lineage. The cost of implementing such an agency has not yet been estimated, but reparations advocates say its creation signifies a step toward acknowledging and rectifying past injustices.

Another proposal by Assemblymember Cory Jackson (D-Riverside), ACA 7, seeks to amend Prop 209, the initiative passed by voters in 1996 that prohibits considering race, color, sex, or nationality in public employment, education, and contracting decisions.

This amendment would allow the governor to approve exceptions to the law in order to address poverty and improve educational outcomes for African Americans and other marginalized groups.

Bradford also discussed proposal legislation aimed at compensating families whose properties were seized through eminent domain as a result of racism and discrimination.

The package of bills includes a measure proposed by Assemblymember Reggie Jones Sawyer (D-Los Angeles), Assembly Bill (AB) 3089 to formally acknowledge California’s history of slavery and discrimination, requiring lawmakers to issue a formal apology.

Additionally, a proposed constitutional amendment, ACA 8, sponsored by Wilson aims to ban involuntary servitude, particularly within the state’s prison system.

Reparations advocates and social justice groups from statewide organizations shared their support and criticism of the 14-bill reparations package with California Black Media (CBM).

A Coalition for a Just and Equitable California (CJEC) stated that the CLBC’s package does not address direct-cash payment, which, for that group’s leadership, is a non-negotiable component of any proposed compensation package.

“Our coalition’s unwavering commitment has been to pursue lineage-based reparations, encompassing direct monetary payments/compensation, state recognition of descendants as a protected class, and the establishment of the California American Freedman Affairs Agency through Senate Bill (SB) 490,” CJEC member Chris Lodgson outlined in a statement.

Lodgson continued, “We believe these vital components are imperative and a necessary first step toward true reparations. As we’ve communicated to elected officials directly for some time, we believe any reparations package must be targeted explicitly and exclusively to California’s 2 million Black American descendants of persons enslaved in the U.S. (American Freedmen).”

Media present at the news briefing persistently questioned Wilson and other CLBC members about direct payments.

Wilson mentioned that the budget deficit California is currently facing is being considered in discussions about compensation. A Legislative Analyst’s Office report released  Feb. 20, estimates that the state’s budget shortfall could expand to $73 billion by May.

“In regard to direct-cash payments to individuals, we will continue to have that discussion as we navigate the next few years,” Wilson said. “As noted, we’re halfway through a legislative session. We have about three months of the legislative process in each house (Senate and Assembly) to work through these existing bills.

“In the next session, we have two years, and during that two-year session, we will consider including additional payments whether they are direct-cash payments or direct payments to communities,” Wilson said.

The Alliance for Reparations, Reconciliation, and Truth (ARRT), a collaboration of California’s leading Black power-building and justice groups, supports seven of CLBC’s 14 reparations bills with proposals that include the restoration of property, establishing the property tax assistance for Descendants of Enslaved Persons program, a formal apology for human rights violations and crimes against humanity, amending the California Constitution to prohibit involuntary servitude for incarcerated persons, and prohibiting discrimination based on natural and protective hairstyles.

“The California Legislative Black Caucus reparations package marks a historic and meaningful moment in time. ARRT encourages lawmakers to pursue an even more expansive and definitive action to fulfill the reparations principles as recognized by the United Nations,” stated James Woodson, AART co-founder and executive director of the California Black Power Network. “Reparative justice must be impactful, transformative, and enduring, thus paving the way toward atoning for the wrongdoings deeply imprinted in the state’s history and healing this democracy.”

ARRT is a collaboration between the Black Equity Collective, the California Black Power Network, Catalyst California, Equal Justice Society, and Live Free USA, Live Free California.

Former members of the California reparations task force have partnered with AART: Loyola-Marymount clinical psychologist professor Dr. Cheryl Grills; Oakland-based civil rights attorney Lisa Holder; Dr. Jovan Scott Lewis, chair of the Department of Geography at the University of California Berkeley and Oakland-based attorney Donald Tamaki.

“We absolutely are (in support of direct-cash payments),” Woodson told California Black Media. “I think we got to have it all. There were multiple harms that were caused and one of them was financial and that needs to be compensated for with cash payments. And there are also systemic harms that were created. We need to change laws. We need to change how rules work because a lot of it flows out of anti-Black racism. We have to have everything because if you leave anything out it’s not for reparations.”

CBM also learned that there will be a series of listening sessions with the CLBC to help educate Californians about the reparation bills and the workings of the legislative process.

The members of the CLBC are Assemblymember Lori D. Wilson (D-Suisun City); Sen. Steven Bradford (D-Inglewood); Assemblymember Akilah Weber (D-La Mesa); Assemblymember Isaac Bryan (D-Los Angeles); Assemblymember Mia Bonta (D-Alameda); Assemblymember Chris Holden (D-Pasadena); Assemblymember Mike Gipson (D-Carson); Assemblymember Corey Jackson (D-Riverside); Assemblymember Reggie Jones-Sawyer (D- Los Angeles); Assemblymember Tina McKinnor (D-Inglewood); and Sen. Lola Smallwood-Cuevas (D-Los Angeles).

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Antonio‌ ‌Ray‌ ‌Harvey‌

Controller Malia Cohen: Despite $68 Billion Deficit, California Has Enough Cash to Pay Bills

Over the next few months, Californians will spend time processing the details of Governor Gavin Newsom’s 2024-2025 spending plan, which he is expected to present to the Legislature on Jan. 10 in Sacramento. However, reports of the state’s whopping $68 billion budget deficit — as projected by the nonpartisan Legislative Analyst’s Office (LAO) — have foreshadowed the Governor’s announcement with uncertainty.

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(File photo) Malia Cohen speaking at Life Changing Ministries in San Bernadino May 15, 2022.
(File photo) Malia Cohen speaking at Life Changing Ministries in San Bernadino May 15, 2022.

Antonio Ray Harvey
California
Black Media

Over the next few months, Californians will spend time processing the details of Governor Gavin Newsom’s 2024-2025 spending plan, which he is expected to present to the Legislature on Jan. 10 in Sacramento.  However, reports of the state’s whopping $68 billion budget deficit as projected by the nonpartisan Legislative Analyst’s Office (LAO) —‌ ‌have foreshadowed the Governor’s announcement with uncertainty.

Despite anticipation of deep budget cuts, State Controller Malia M. Cohen has expressed confidence that California’s fiscal cash flow is in the position to withstand any financial challenges caused by forecasted economic downturn.

“Despite reports from various sources indicating a budgetary deficit of approximately $68 billion, the state’s cash position remains strong, and, absent any unforeseen circumstances, the state has sufficient cash to pay its bills and meet its financial obligations through the end of the fiscal year,” Cohen said in a Dec. 19, 2023, letter.

Cohen is responsible for accountability and disbursement of the state’s financial resources. She has independent auditing authority over government agencies that spend state funds.

According to the LAO, the budget shortfall increased by $53 billion when compared to the projections used in the development of the current year budget – up from $15 billion when the 2023–24 Budget was signed in June. The LAO faced challenges in providing budget estimates due the IRS delaying tax filings until Nov. 16, 2023.

Regarding personal income, sales and property tax revenues, the state’s primary revenues, California entered an economic downturn in 2022 that is affecting the budget.

On Dec. 15, Senate Minority Leader Brian W. Jones (R-San Diego) and Senate Budget Vice Chair Roger Niello (R-Fair Oaks) wrote a letter to Gov. Newsom, urging him to “act early” to address the state’s worsening fiscal condition.

“This budget deficit will impact every California resident and doesn’t matter whether you’re a Republican or Democrat,” Jones stated. “That’s why we must roll up our sleeves and work together to bring spending in line with revenues.”

Cohen has been monitoring the state’s financial reports and clarified California is protected by its “rainy day reserves.”

“The state currently has more than $91.4 billion in available borrowable resources, due in large part to the Governor’s and Legislature’s foresight in building prudent rainy-day reserves in the Budget Stabilization Account,” Cohen stated.

The budget negotiations will involve new leaders of the legislature — Assembly Speaker Robert Rivas (D-Salinas) and incoming Senate President Pro tempore Mike McGuire (D-Santa Rosa).

Rivas added California Legislative Black Caucus members Assemblymember Dr. Akilah Weber (D-La Mesa and Assemblymember Corey Jackson (D-Moreno Valley) to the Assembly’s budget leadership team in December. Weber will lead Subcommittee 1 on Health while Jackson will guide Subcommittee 2 on Human Services.

“While legislators will have difficult choices to make in the new year, I am confident they will be deliberate in addressing the budget challenges before them, and I urge them to protect, to the extent possible, the health and social service programs designed to benefit those who are displaced, without shelter, or otherwise economically disadvantaged,” Cohen stated.

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