SACRAMENTO, California – California lawmakers on Monday paved the way for 5.7 million people to receive at least $ 600 in one-off payments, part of a state coronavirus aid package designed to help poor people cope. that they hope to be legs of the pandemic.
The state legislature passed the bill by a large margin on Monday, acting faster than his colleagues in Congress, who are also considering another round of stimulus checks for the country.
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Governor Gavin Newsom said he would sign the law on Tuesday. People who are entitled to the money must receive it between 45 and 60 days after receiving the refund of the state tax, according to the Franchise Fiscal Council.
One such person is Judy Jackson, a 75-year-old former teacher and cancer survivor who lives on about $ 1,000 a month from other government programs. Jackson said he would use part of the money to pay for a freezer he bought so he could receive food at his home and avoid going out to buy groceries during the pandemic.
“In most months, I am concerned at the end of the month whether the money will run out before the month,” said Jackson, who said he was at greater risk of contracting COVID-19 because of his age and several underlying problems. healthy conditions. “It will make it possible to have a little more and maybe buy an ice cream occasionally.”
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The stimulus payments are part of a broader aid package that the state legislature approved on Monday for $ 7.6 billion. Includes more than $ 2 billion in donations to small businesses, dispenses about $ 25.6 million in commercial fees for distressed restaurants and hairdressers, and provides $ 30 million in aid to food banks and another $ 5 million to help diaper seats.
Stimulus checks target fewer people than federal stimulus payments last year. About $ 2.3 billion will go to those who claim and receive income tax credit earned in California. In general, they are people who earn $ 30,000 a year or less.
Another $ 470 million will go to people who earn a maximum of $ 75,000 a year after deductions and use an individual taxpayer identification number to file their income tax. Most are people who do not have a Social Security number, including immigrants.
Some people fall into both categories. In such cases, they will receive $ 1,200, not $ 600. The Democratic-controlled state legislature did this because most people who declare their taxes in this way are immigrants who were not entitled to federal stimulus checks approved by Congress last year.
About $ 993 million will go to people who receive help from state programs aimed at low-income families, the elderly, the blind and the disabled.
California has the money to do this in part because the state – the most populous in the country, with almost 40 million residents – has many wealthy people who have been less affected by the pandemic and continue to pay taxes.
California lost 1.5 million jobs last year, mainly to low-income workers in the hospitality and restaurant industry. Meanwhile, employment among people earning $ 60,000 a year or more has increased in the past year, as people have started working from home.
The result is that California has an estimated surplus of $ 15 billion to spend this year, a figure that could grow even further at the end of this year, when more people file their tax returns.
“We need to recognize that this pandemic has not affected all of us equally,” said state deputy Joaquin Arambula, a Democrat from Fresno.
California has some of the strictest commercial coronavirus rules in the country, banning indoor dining in much of the state and requiring retailers to limit the number of people allowed in its stores.
Last year, Newsom used its emergency authority to set aside $ 500 million for grants of up to $ 25,000 to small businesses affected by the pandemic. But in the first round of financing, the state received more than 334,000 requests, totaling more than $ 4.4 billion in donations.
On Monday, the Legislature added another $ 2 billion to that program. Companies with revenues between $ 1,000 and $ 2.5 million are eligible and must be open or at least have a plan to reopen when permitted.
Representative Mike Gipson, a Democrat from Carson, said that small business owners in his district have “prayed for an answer”.
“This is the answer to your prayers,” he said.
But some Republicans, while voting in favor of the bill, criticized Newsom for the “harm and damage” he did to companies by ordering statewide shutdowns during the height of the pandemic.
“This project didn’t have to be as big as it is today,” said Representative James Gallagher, a Republican from Yuba City. “This governor decided arbitrarily and unilaterally to close most small businesses in this state. As a result, many companies have already closed and that should be a problem for each of us.”