Clean vehicles top priority

Illustration by Anne Wernikoff, CalMatters; iStock

Gov. Gavin Newsom on Tuesday unveiled a $4.5 billion plan for business and job recovery, dedicating one-third of the funding to eliminating new gas-powered cars by 2035.

The plan offers a glimpse into Newsom’s priorities for the 2021-22 budget, which will be released in full on Friday, kicking off months of negotiations with the Legislature. However, Newsom wants lawmakers to immediately approve nearly $1 billion — mainly for small businesses and housing — when they return to Sacramento on Monday. Legislative leaders seemed amenable to this request, even as they emphasized that they had proposals of their own — signaling they don’t want a repeat of last session, when many felt their role was reduced to “simply giving a yes or no answer to the governor’s priorities,” in the words of then-state Sen. Holly Mitchell, a San Diego Democrat.

• Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon: “A unified effort is critical to success, and we look forward to working with the governor on the specifics of his, and legislative, proposals to take early action in providing meaningful additional relief.”

Here’s a closer look at Newsom’s recovery package:

• $1.5 billion for constructing electric charging and hydrogen fueling stations, and subsidizing purchases of zero-emissions cars
• $777.5 million for job creation and retention
• $575 million in small-business grants (on top of $500 million allocated last year)
• $500 million to build more than 7,500 permanently affordable homes
• $353 million for workforce development
• $300 million for deferred maintenance of state properties
• $70.6 million for fee waivers for businesses and individuals impacted by the pandemic

Whether the package will satisfy financially ravaged businesses — and frustrated Californians — remains to be seen. Former San Diego Mayor Kevin Faulconer, who recently launched a gubernatorial exploratory committee, excoriated Newsom’s proposal Tuesday.

• Faulconer: “In the middle of a pandemic and deep recession, California’s highest priority should not be zero-emission vehicles. We need K-12 education at the top of the list.”

Also expected in Newsom’s budget proposal: $2 billion to accelerate school reopenings and $300 million for vaccine distribution.

     CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics. 

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