Business

Strong Support, Harsh Criticisms Linger as Gov. Newsom’s Budget Begins Final Negotiations

Newsom’s budget includes increased investments to the tune of hundreds of billions of dollars in education (at all levels), housing, the private sector, clean energy, agriculture, reproductive health, public safety, and more. As California makes investments and builds programs, the governor said, its spending must reflect its values.

Published

2 years ago

May 30, 2022

Oakland Post

California state capitol. File photo.

By Tanu Henry, California Black Media

On May 13, Gov. Gavin Newsom held a press conference in Sacramento to present his $300.6 billion revised budget for fiscal year 2022-23. He has dubbed the spending plan the California Blueprint. It is the largest budget proposal in the 172-year history of the state.

During the briefing, Newsom also announced that the state is expected to have a whopping budget surplus that will increase to $97.5 billion by the summer of 2023.

“Simply without precedent: No other state in American history has ever experienced a surplus as large as this,” said Newsom.

“Backed by a robust surplus and grounded in our unshakable values, we’re paving the California way forward to prosperity and progress for all,” Newsom continued, summarizing his spending plan.

“With historic investments, we’re doubling down on our formula for success and making sure no one is left behind – supporting working families and businesses, tackling climate change, expanding health care access, making our communities safer, and more,” he said.

As California makes investments and builds programs, the governor said, its spending must reflect its values.

“California values make us competitive globally,” said Newsom. “There is a reason California’s economy outperforms every other economy in the Western Hemisphere – 7.8% GDP growth just in the last year.”

State Assemblymember Chris Holden (D-Pasadena), a member of the California Legislative Black Caucus and chair of the Assembly Committee on Appropriations, praised the governor’s spending plan.

“I commend the governor for conveying the message through programs, healthcare, and pay equity that California will continue to thrive,” Holden said. “The proposal sets strong precedent for those still struggling through the disparate impact of the pandemic and ensures that California continues to keep the environment top of mind.”

Reacting to the governor’s budget announcement, Republican leadership in the California Assembly criticized theNewsom’s proposal, calling it “ineffective.”

“The Governor may not want to acknowledge it, but California is in crisis,” read the statement authored by Assembly Republican Leader James Gallagher (R-Yuba City) and Assemblymember Vince Fong (R- Bakersfield), Vice Chair of the Assembly Budget Committee.

“Everyday Californians are being crushed by an affordability crisis worsened by 40-year high inflation,” Gallagher and Fong’s statement continued. “While the governor makes flashy political headlines, he continues to fail to make investments that will help Californians endure these tough financial times.”

On the other hand, California’s second African American Superintendent of Public Instruction, Tony Thurmond, said Newsom’s plan to invest $128.3 billion in education, “lifts up the most critical needs” of students and schools across the state.

“As we continue to recover from the COVID-19 pandemic, California public schools will see a much-needed infusion of investments at a time when students and schools, especially those that have been traditionally underserved, require more support than ever before,” Thurmond said.

Throughout his budget presentation, the governor acknowledged the challenges Californians are facing because of rapid inflation.

“The most important thing on people’s minds, understandably, is ‘How do I lower costs?’ High inflation. Record inflation,” said Newsom. “What are we going to do to ease that burden?”

“That’s why we are proposing $18.1 billion to put back in the pockets of tens of millions of Californians,” Newsom continued.

The governor’s inflation relief plan includes $11.5 billion in tax refunds; $2.7 billion in emergency rental assistance; $750 million for free public transit; $933 million in stipends for hospital and nursing home staff; $1.4 billion to help low-income families pay utility bills; $304 million in middle class health care subsidies; $439 million to offset a proposed diesel tax pause; $157 million to cover fee waivers for childcare, among other investments.

Assemblymember James Ramos (D-Highland), the only Native American member of the California Legislature, says he looks forward to working with the governor to hammer out the details of the budget plan.

“Confronting the deadly fentanyl crisis, retail theft, supporting mental health services and fighting to reduce the numbers of murdered and missing Indigenous people have also been the focus of my legislation since assuming office,” Ramos said.

Three days after the governor unveiled his budget proposal, California’s non-partisan, independent Legislative Analyst’s Office (LAO) warned that the state could face an economic downturn soon.

“Predicting precisely when the next recession will occur is not possible. However, certain economic indicators historically have offered warning signs that a recession is on the horizon. Many of these indicators currently suggest a heightened risk of a recession within two years,” the LAO report stated.

Republican leaders criticized what they called the Governor’s ineffective proposals on the rising price of gas, housing affordability and the critical water shortage the state is facing. “Ignoring the people’s financial burdens, the governor refuses to provide immediate gas tax relief,” said Gallagher and Wong in their joint statement. “He did not propose any permanent tax relief to deal with a worsening affordability crisis exacerbated by his policies. Given the bone-dry conditions caused by the third year of drought, he stubbornly dismisses the cry to build more water storage and accelerate wildfire prevention projects.”

Under California state law, the governor and Legislature must complete the budget negotiation process and approve the spending proposal for the next fiscal year by June 15. The governor has until June 30 to sign it into law.

“This year’s budget is unprecedented in some of the challenges that it presents, but the Assembly has been preparing for months to meet those challenges,” said Assembly Speaker Anthony Rendon (D-Lakewood). “It is also reassuring to have the Senate and Pro Tem Toni Atkins as teammates for this budget process. We know how to work together to present Governor Gavin Newsom with a budget he can be proud to sign by the constitutional deadline.”

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Oakland Post: Week of April 24 – 30, 2024

The printed Weekly Edition of the Oakland Post: Week of April 24 – 30, 2024

Published

13 hours ago

April 26, 2024

Oakland Post

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State Controller Malia Cohen Keynote Speaker at S.F. Wealth Conference

California State Controller Malia Cohen delivered the keynote speech to over 50 business women at the Black Wealth Brunch held on March 28 at the War Memorial and Performing Arts Center at 301 Van Ness Ave. in San Francisco. The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

Published

6 days ago

April 20, 2024

Oakland Post

American Business Women’s Association Vice President Velma Landers, left, with California State Controller Malia Cohen (center), and ABWA President LaRonda Smith at the Enterprising Women Networking SF Chapter of the ABWA at the Black Wealth Brunch.

By Carla Thomas

The Enterprising Women Networking SF Chapter of the American Business Women’s Association (ABWA) hosted the Green Room event to launch its platform designed to close the racial wealth gap in Black and Brown communities.

“Our goal is to educate Black and Brown families in the masses about financial wellness, wealth building, and how to protect and preserve wealth,” said ABWA San Francisco Chapter President LaRonda Smith.

ABWA’s mission is to bring together businesswomen of diverse occupations and provide opportunities for them to help themselves and others grow personally and professionally through leadership, education, networking support, and national recognition.

“This day is about recognizing influential women, hearing from an accomplished woman as our keynote speaker and allowing women to come together as powerful people,” said ABWA SF Chapter Vice President Velma Landers.

More than 60 attendees dined on the culinary delights of Chef Sharon Lee of The Spot catering, which included a full soul food brunch of skewered shrimp, chicken, blackened salmon, and mac and cheese.

Cohen discussed the many economic disparities women and people of color face. From pay equity to financial literacy, Cohen shared not only statistics, but was excited about a new solution in motion which entailed partnering with Californians for Financial Education.

“I want everyone to reach their full potential,” she said. “Just a few weeks ago in Sacramento, I partnered with an organization, Californians for Financial Education.

“We gathered 990 signatures and submitted it to the [California] Secretary of State to get an initiative on the ballot that guarantees personal finance courses for every public school kid in the state of California.

“Every California student deserves an equal opportunity to learn about filing taxes, interest rates, budgets, and understanding the impact of credit scores. The way we begin to do that is to teach it,” Cohen said.

By equipping students with information, Cohen hopes to close the financial wealth gap, and give everyone an opportunity to reach their full financial potential. “They have to first be equipped with the information and education is the key. Then all we need are opportunities to step into spaces and places of power.”

Cohen went on to share that in her own upbringing, she was not guided on financial principles that could jump start her finances. “Communities of color don’t have the same information and I don’t know about you, but I did not grow up listening to my parents discussing their assets, their investments, and diversifying their portfolio. This is the kind of nomenclature and language we are trying to introduce to our future generations so we can pivot from a life of poverty so we can pivot away and never return to poverty.”

Cohen urged audience members to pass the initiative on the November 2024 ballot.

“When we come together as women, uplift women, and support women, we all win. By networking and learning together, we can continue to build generational wealth,” said Landers. “Passing a powerful initiative will ensure the next generation of California students will be empowered to make more informed financial decisions, decisions that will last them a lifetime.”

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Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

6 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”