Briefs

California Roars Back: Transforming Public Schools and Small Business Relief

Gov. Newsom Announces $20 Billion in Investments for Transforming Public Schools

See recent RLn Briefs highlighting the Governor’s actions under California Roars Back here;

SACRAMENTO — Gov. Gavin Newsom May12, unveiled another component of his $100 billion California Comeback Plan: transforming California public schools into gateways of equity and opportunity. Governor Newsom’s plan represents the highest level of state school funding in California history, investing an additional $20 billion to support the potential of every California student and make the structural change necessary to reduce barriers while increasing opportunities across the board, including massive investments in K-12 public schools, creating universal Pre-K and college savings accounts for 3.7 million low-income children in public schools.

Under the California Comeback Plan, the state will make targeted investments of $20 billion into public education to transform every public school into a complete campus every parent would want for their child: before- and after-school instruction, sports and arts, personalized tutoring, nurses and counselors, and nutrition – paired with new preventative behavioral health services for every child in California. This includes $3 billion to create thousands of full-service community schools, with wraparound mental health, social and family services; $4 billion over five years to transform the youth behavioral health system to identify and treat behavioral health needs early; and additional billions more toward investments in accelerated learning and teachers and school staff. 

To make college more accessible to low-income children, the Governor proposes investing $2 billion to seed college savings accounts for vulnerable students currently enrolled in K-12 public schools, including a $500 base deposit for students from low-income families, English learners and foster youth, and a $500 supplemental deposit for foster and homeless youth. The savings account can be used later in life for higher education or to start their own business. California will also finally achieve universal Pre-K, providing high-quality, free transitional kindergarten to all four-year-olds in California, regardless of income or immigrations status. The Comeback Plan also adds 100,000 child care slots and subsidies to bring down the cost of child care.

COVID-19 presented a crisis without precedent this century, especially for school communities throughout California and the nation. The Newsom Administration is investing in a safe return to full in-person instruction for all schools, with $2 billion to implement health and safety measures, including improved ventilation and measures to expand access to vaccines and testing.

California Launches the Largest Small Business Relief Program in the Nation

SACRAMENTO — Gov.Gavin Newsom, May 12, unveiled another component of his $100 billion California Comeback Plan: making historic investments in small business relief. Governor Newsom’s plan expands the state’s COVID-19 Small Business Relief Grant program to a total of $4 billion, representing the largest such program in the entire country. That’s in addition to the Governor’s $6.2 billion tax cut for those businesses hit hardest by the pandemic, the largest state tax cut of its kind in history.

These grants are already supporting diverse small businesses throughout California, with 88.3 percent of grants in rounds one and two going to minority/people of color-owned businesses, women-owned businesses, veteran-owned businesses and businesses located in low to moderate income communities. To date, approximately 198,000 small businesses and nonprofits either have been or will be awarded grants, which includes finalized awards for 43,874 small businesses and nonprofits representing all 58 California counties for a total of $475,001,244. 

In addition, Gov. Newsom has taken action to invest in those sectors of the economy that are crucial to California’s recovery, including: 

  • Estimated $895 million investment in the State Small Business Credit Initiative (SSBCI), which works to strengthen state programs that support financing of small businesses.
  • Increasing the CalCompetes tax credit program to $360 million, and establishing a one-time $250 million grant program, to incentivize businesses to relocate to California.
  • $250 million investment in California’s ports to address revenue loss and bolster future economic activity.
  • $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to promote, grow and incentivize green manufacturing in California.
  • $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.
  • $95 million to jumpstart California’s tourism industry, one of the largest economic drivers in the state that was particularly impacted by the pandemic.
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