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Op-Ed:
California reveals $75 billion budget surplus after Congress bailed them
out
[The Center Square] Adam Andrzejewski
California collected loads
of tax revenue from high earners, which is bringing the state to an
unexpected $75.7 billion state budget surplus. On top of the surplus,
California state government is getting $26 billion from President Joe
Biden’s American Rescue Plan Act – a federal coronavirus aid bill signed
into law in March. |
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 Yes, the Golden State is getting rich from federal taxpayers
across the country. Consider this:
When U.S. House Democrats, led by House Speaker Nancy Pelosi, changed the state
bailout allocation from population to unemployment rate in the Rescue Plan,
California picked up an additional $6.6 billion. Big losers were states like
Georgia (-$1.5 million) and West Virginia (-$900 million) – their federal tax
dollars were sent to California (and New York, plus $6 billion!).
So, what is California Gov. Gavin Newsom going to do with the largess? Dole out
$8.1 billion to residents in the form of “stimulus checks.”
The state legislature would need to approve the budget measure, which would give
$600 rebate checks to households making up to $75,000 and another $500 to
families with children.
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top of second column] |
Newsom, currently facing a recall election, is
receiving criticism for his spending spree. John Cox, a 2018
Republican gubernatorial candidate and current candidate in the
recall election, accused the governor of “making one-time payments
to Californians to avoid being recalled,” as reported by The Wall
Street Journal.
California localities received another $16 billion
in congressional “bail out” money – in addition to the $26 billion
to the state government.
California’s sunny playgrounds receiving big bailouts including
Manhattan Beach ($6.6 million), Newport Beach ($9 million), Palm
Springs ($11 million), Palo Alto ($12 million), Brentwood ($12.1
million), Napa ($15 million), San Jose ($22 million), Santa Barbara
($22 million), Santa Monica ($29 million), Huntington Beach ($31
million), and even Berkeley ($68 million).
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