‘No money in the piggy bank’: CA cannot afford extra unemployment benefits
Aug 11, 2020 - 05:42 AM
LMBC BUSINESS – California Governor Gavin Newsom said on Monday that the state cannot afford extra unemployment benefits stated in President Donald Trump’s new expansion of unemployment benefits.
Trump’s executive order would provide an additional $400 per week, of which $300 will be sourced by the federal government and the remaining $100 would come from the states.
In a press conference, the governor lamented that the state would shell out $700 million per week to cover its 25 percent share of the expanded financial assistance.
“The state does not have an identified resource of $700 million a week that we haven’t already obliged,” Newsom lamented.
“There is no money sitting in the piggy bank from the previous CARES act,” he added.
The governor said California might have huge cuts in other state programs to afford its unemployment benefits share.
However, the additional $400 is supposed to be a huge benefit for distressed California workers.
The additional $400 will benefit affected California workers, adding to the average weekly benefit in the state of $305. The maximum benefit without the supplement is $450.
Trump, meanwhile, said he is open to negotiations for Covid-19 relief and the federal government can consider funding the entire unemployment aid if the states cannot afford to pitch in.
Aside from the extra unemployment benefits, Newsom also addressed the glitch on its reporting system which led to a backlog of between 250,000 and 300,000 unprocessed health records and coronavirus test samples.
California Department of Public Health Director and State Health Officer Dr. Sonia Angell has stepped down from her position over the weekend.
The state on Monday has a total of 561, 911 confirmed Covid-19 cases.
This data, however, represents an underreporting of actual positive cases in one day due to issues with the state’s laboratory reporting system.