LOS ANGELES - A panel of budget specialists presented strategies last week to a newly formed Senate subcommittee that is remotely evaluating California’s spending in response to COVID-19.
Chaired by Sen. Holly J. Mitchell (D-Los Angeles), the bi-partisan Special Budget Subcommittee on COVID-19 Response entertained recommendations from the California Budget and Policy Center, which included addressing gaps in funding and support for populations that have historically been in need.
“We can't afford to do nothing or to do little,” said Chris Hoene, executive director of the California Budget and Policy Center. “The longer-term cost to our state, its economy and its people will far outweigh the short term budgetary costs.”
Chris Hoene
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Complicating matters, however, is the shutdown, which has significantly decreased revenue collection for the next three months due to the coronavirus.
“Both the federal and state government had to waive tax collections for most taxpayers from April 15 to July 15 and then there are some additional relief measures with regard to sales taxes for small businesses as well,” Hoene said.
The subcommittee, made up of nine senators, was created by Senate President pro Tempore Toni G. Atkins (D-San Diego) to review spending on the COVID-19 pandemic, according to a press release.
"We have been doing, and will continue to do, what California so often does best – examine possibilities, determine solutions, and take to heart the needs of all Californians," she said.
Hoene emphasized the need for policies that provide relief beyond what is happening presently due to COVID-19.
“It appears that the effects of the virus economically will continue beyond the next few weeks and months and that most of the federal relief could run out before the economy has recovered,” he said
Below are three areas the Senate subcommittee is being asked to prioritize:
Childcare for essential workers. The state is set to receive $350 million in relief to support federal childcare assistance programs, however most childcare providers are temporarily closed due to COVID-19. As a result, essential workers are struggling to find childcare.
“There will be a continued need in that arena going forward,” said Hoene.
For now, $50 million has been allocated to the Department of Education for extended access to subsidized childcare for children of essential workers and at-risk children as well as $42.6 million to CalWORKs for childcare provider reimbursements and child welfare services.
“The workers and families most affected are people of color,” Hoene said. “They are at high risk of losing jobs or hours because they work in highly affected industries. They are also workers who tend to have less education and are paid less.”
Housing for the homeless. Prior to the COVID-19 outbreak, homelessness was a persistent crisis but post-pandemic many more people will be at risk for falling into homelessness.
“A response should continue to prioritize funding for local governments, community-based organizations and provide some flexibility in terms of the range of needed assistance and supports,” said Hoene.
To date, some $100 million has been allocated to the Business Consumer Services and Housing Agency for COVID-19 prevention and containment among the homeless population and $50 million to the Department of Social Services for hotel, hotel beds and trailers for people experiencing homelessness.
Assistance for undocumented workers. California is home to 5.3 million women, 4.9 million men and 449,878 children who are immigrants, according to the American Immigration Council, and those most impacted by the pandemic include undocumented workers and their families, according to Hoene. “They are locked out of federal fiscal relief and many of the system supports that are available,” he said. As a result, some $63.3 million is allocated to assist undocumented immigrants negatively impacted by the virus.