California Leads the Way in Massive COVID-19 Budget Deficits

Mark Rightmire/Orange County Register via ZUMA

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

From the LA Times:

Gov. Gavin Newsom says that unemployment in California amid the COVID-19 pandemic has far exceeded what it was during the peak of the Great Recession, with 4.7 million people filing for jobless benefits, requiring the state to borrow billions of dollars more from the federal government to cover claims. At a news conference Thursday to present a revised state budget for the fiscal year starting July 1, Newsom said the state will need $43.8 billion to cover unemployment claims in the new year, a 650% increase over what was originally proposed.

The federal government is covering the $600 per week bonus payment to unemployed workers, but state governments are still responsible for base unemployment benefits. Thanks to COVID-19, this has skyrocketed from about $6 billion to $44 billion in California, and every other state is facing a similar situation.

And that’s just the start. Not only are expenses going up, but revenue from sales taxes and income taxes have cratered. The result is massive cuts in education, Medicaid, and social welfare programs for the poor. And since California, like most states, is required to balance its budget, there’s no way around this unless the federal government comes through with a huge aid package. At the moment, though, there’s no telling whether Donald Trump and his fellow Republicans are willing to do this. They are willing to urge everyone to engage in behavior that will make the COVID-19 pandemic even worse, but so far that’s about all they’ve been willing to commit to.

THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

payment methods

THE TRUTH...

is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate