(ThePatriotSource.Com)- Democratic Governor for California Gavin Newsom has cost his state a massive $53.4 billion as a result of the statewide lockdown measures put in place to slow the spread of the Chinese coronavirus. On Thursday, Newsome discussed the efforts that have been made and the huge budget deficit his state faces.
He told the press that the stay-at-home measures implemented in March, which forced non-essential businesses to close, caused millions of Californians to file for unemployment benefits. He admitted that his administration is looking at an 18% unemployment rate over the coming weeks. It is a huge increase over the 3.9% unemployment rate his state enjoyed at the beginning of the year.
Courtesy of President Trump’s regulation and tax cuts…
“These numbers are jaw-dropping”, Newsom admitted in a public memo. “I just hope that people are preparing themselves…for the effort that we all need to engage to undertake to unwind that and get back on our feet.”
California, despite being run by Democrats, did manage to put together a “rainy day fund” of over $16 billion. Ever since the economic crash in 2008 saw the state’s deficit reach $40 billion, lawmakers in the state have been putting money away to protect themselves for a future problem. Combined with the president’s tax cuts and incentives for business to open and expand in the United States, California added more than 3.4 million jobs and grew a robust economy.
That hard-earned budget surplus, however, has been completely destroyed by the coronavirus pandemic. The huge budget deficit now means that the funding to be given to public schools in the state will be reduced by $18.3 billion. The state also needs to pay some $7 billion to homeless and unemployed residents in the state, courtesy of the hefty social security nets implemented in the Democrat-controlled state.
President Trump may have been inclined to help the state out if they weren’t spending money on illegal aliens. While American citizens suffer in the state, Newsom has established a “Disaster Relief Fund” that gives $75 million to illegal aliens in the city. Under his plan, individual illegal aliens in California can apply for a direct payment of $500, or up to $1,000 if they have a family.
Is that the best idea when legal citizens are struggling?