After spending most of 2020 telling small businesses to close and limit their customers, California Gov. Gavin Newsom on Tuesday proposed $4 billion worth of state spending he says will help them survive in 2021.
Newsom was the first U.S. governor to impose a statewide stay-at-home order because of the coronavirus pandemic in March, earning praise at the time for decisive action to contain the spread. But a recent surge of cases has caused those restrictions to linger into 2021, shuttering bars, restaurants, barber shops, gyms and movie theaters for months at a time while imposing strict limits on capacity inside retail stores during the year’s busiest shopping season.
Those restrictions have had an uneven impact on the world’s fifth largest economy. While people with higher incomes kept their jobs by working from home, people with lower incomes, including retail and restaurant workers, either lost their employment or were put on unpaid furlough as small business owners struggled to stay afloat during the pandemic.
Mounting frustration over Newsom’s orders, even as virus cases overwhelm hospitals, has fueled a recall effort. Newsom is set to release his new budget proposal on Friday. But Tuesday, he offered a preview by revealing more than $4 billion worth of state spending aimed at creating jobs and helping small businesses.