CALIFORNIA, USA — A discussion on key investments California plans to make in the proposed 2021-22 budget turned to the state's continued, albeit toned down due to the coronavirus pandemic, success in business and entrepreneurship.
Gov. Gavin Newsom broke down many parts of his proposed 2021-22 budget during an event hosted by the California Chamber of Commerce, and in turn, touched on what he called misconceptions of California's economic progress.
“Someone described it as hating on the Yankees or something,” Newsom said. "That's the attitude people have about California."
Newsom addressed "the haters" during his statement to the Chamber of Commerce. He was critical of people who say California is not doing enough for business, countering that notion with examples of the California's 99 IPOs this year to date, the state's success with start-up companies and venture capitalism, and the number of job creators that have made Fortune 500 lists, all coming out of the Golden State.
"Eat your heart out," Newsom said.
Any recent successes of the state, however, have been tempered by the pandemic, Gov. Newsom acknowledged. He said that on Friday, his office would be announcing an additional $4 billion in small business grants. The Democratic governor said Thursday that he will ask state lawmakers to add $1.5 billion to that program that gives up to $25,000 grants to small businesses. That program already has $2.5 billion to give away.
“With federal money through Paycheck Protection Program loans having run its course, the governor’s announcement today that California would step in to fill the void for small businesses still in need of financial help is welcome news for mom-and-pop enterprises that have been hanging on for dear life this past year,” said John Kabateck, California state director for the National Federation of Independent Business (NFIB), in a press release.
Newsom also said the state will double the California Competes Tax Credit (CCTC) program, which is an income tax credit available to businesses that want to locate in, or stay and grow in California.
More details on these two announcements will be in Newsom's May revision of his proposed budget Friday. California is scheduled to get $27 billion in federal coronavirus aid. He also announced new spending this week on homelessness and rebates for taxpayers.
"I just have deep reverence and respect for all of you that put everything on the line," Newsom said to guests at the California Chamber of Commerce. "It's about your lives, your family's lives. It's about your identity, your dignity. It's not about 'business' in the context of P&Ls and just profit/loss. Moreover, it's about what makes this state great. That entrepreneurial spirit."
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