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California’s coffers are almost exhausted, and forcing the state to cover some of the prolonged unemployment benefits would cause “great economic strife and great stress,” Gov. said. Gavin Newsom on Monday.
Despite strong state reserves earlier in the year, Newsom said, President Trump’s latest executive action would put the state in a dangerous position.
Over the weekend Trump bypassed Congress, signing an executive action that would extend expired unemployment payments to $ 400 a week for those whose jobs have disappeared in the wake of the coronavirus pandemic. However, the plan requires states to provide a quarter of the payments.
This is simply not possible, according to Newsom, which added that it would cost $ 700 million a week to take control of all the state’s unemployed residents.
“There is no money sitting in the pig car of the previous CARES Act to be regenerated or rebuilt for this purpose,” Newsom said. “It simply does not exist.”
Since mid-March, which marks the start of the nationwide closure, more than 8 million people have applied for unemployment insurance.
Newsom added: “This would create a burden, the likes of which” the state has never experienced.
It would also lead to painful cuts to the state budget, the governor warned, calling the executive action “unusual”.
“Usually the federal government affords the money, recognizing the lack of resources during an economic crisis,” he said.
Newsom also touched on the immediate dismissal of the senior State Department official of the Department of Public Health. Dr. Sonia Angell resigned as department director and state health official on Sunday.
Angell was the first Latina to hold the position, and her resignation comes less than a year after the job cut.
While she did not process the sudden move, it comes after a disastrous week for the department. A couple of looks at the state’s daily system for reporting coronavirus cases showed that infections had dropped, when in reality the numbers were much higher. However, these figures were used by various municipalities to determine whether they would reopen businesses and schools.
“Decisions have been made, and we are moving forward,” Newsom replied Monday when asked about Angell. “No one is trying to hide this, no one is trying to disguise it. We are owning it.”
Two people have been chosen to replace Angell. One will be the interim health director, while the other will be the interim public health officer.