LOS ANGELES: Californiaâs governor Gavin Newsom unveiled plans Monday to send direct cash payments to two-thirds of residents under a $100 billion (RM 411.7 billion) plan to assist economic recovery from the Covid-19 pandemic.
The package which includes tax rebate checks for all residents earning less than $75,000 (RM 308,000), as well as additional support for households struggling with rent and utility bills, comes as Newsom faces a referendum on his leadership later this year.
âCalifornia is gonna come roaring back,â said Newsom at a press conference Monday.
âThis time last year, we announced a $54.3 billion (RM 233.5 billion) projected shortfall. Today we are announcing a projected $75.7 billion (RM 311.6 billion) budget surplus,â added Newsom, governor of a state that is the worldâs fifth-largest economy.
Two-third of Californians would receive a check for at least $600 (RM 2,400), with an additional $500 (RM 2,000) for families with children, under plans that need to be approved by the state legislature.
To tackle âthe stress and the anxiety over the course of the last year-plus in this pandemic-induced recession,â Newsom proposed another $5 billion (RM 20.5 billion) to help low-income Californians pay rent, and up to $2 billion (RM 8.2 billion) toward water, gas and electricity bills.
Newsom was initially praised for his handling of the pandemic but has come under growing criticism from some constituents â in particular small business owners â for keeping strict restrictions in place even as other parts of the United States reopened more quickly.
Despite those measures, California suffered one of the nationâs worst winter Covid spikes.
A petition calling for a vote on booting Newsom out of office has reached the required number of signatures to trigger a referendum.
Newsom is widely predicted by analysts and pollsters to keep his job following the vote â expected to take place by November â in a state dominated by his Democratic party. â AFP
