Gov. Gavin Newsom proposed a $300.7 billion budget, which includes the largest small business relief program in the nation.
Some $4 billion of $18.1 billion in direct grants will be allocated to small business owners.
“The fact that he is investing $4 billion in direct grants to small business owners as part of this package is going to help put more money back in the pockets of small business owners right now, and allow them to reinvest and rehire,” said John Kabateck, NFIB’s California state director.
Led by gross domestic product growth of 7.8%, the budget includes a $97.5 billion surplus, according to a press release issued by Gov. Newsom's office.
“We believe the use of that $97 billion surplus in a way to help job creators, to get people moving, to get people rehired, and get our communities rolling is going to be important,” Kabateck told the Southern California Record. “We just want to make sure that our leaders are spending it responsibly and honestly, and that they are turning to their very constituents to get that input.”
The budget also includes $660 million for public safety with funding for new officers and mental health support for law enforcement and support for sex trafficking victims.
“The governor's support of more law enforcement and expanded tools for them is going to help because small business owners are right now stretched and live in fear of shoplifters, smash and grabbers, and porch piracy in our neighborhoods of items that are trying to get to people's front doors from small businesses, not just Amazon,” Kabateck said.
A proposed 12-month pause on the sales tax for diesel fuel that's included in the budget is expected to bring relief to the commercial sector and drivers.
Kabateck views the $439 million pause as a start.
“We'd like to see more relief for high gas prices," he added. "I think the governor pressing the pause button on the diesel tax, at least for the moment, is good, but are there other opportunities to offset those high gas prices for struggling businesses like florists, restaurants, and retailers that might have a fleet of vehicles where the costs will go up? So additional relief for high gas prices would be welcome."
The legislature has proposed $250 million in grants for small businesses and nonprofits that have up to 150 employees to help offset the cost of the recently enacted paid sick leave program, according to Kabateck.
"We were displeased with the unfortunate approval of the paid sick leave, but we are very grateful to see the bipartisan proposal of $250 million in grants that would help offset these huge costs that businesses are going to face with yet one more unnecessary paid leave program," he said.
The California Constitution requires that the annual state budget, which is currently being deliberated, be approved by the legislature on or before June 15.