California’s Governor Proposes $2.7 Billion Covid Budget Package
California’s Governor Proposes $2.7 Billion Covid Budget Package
(Bloomberg) -- California Governor Gavin Newsom is proposing a $2.7 billion Covid-19 emergency response package in his budget Monday to boost testing and its health-care system following a surge in cases caused by the omicron variant.
A total of $1.2 billion will be used to bolster testing capacity, according to a statement from the governor’s office Saturday. The state’s positive test rate climbed to 21.7%, one of its highest levels since the start of the pandemic.
While the Golden State has taken some of the most stringent measures to curb the latest wave, such as extending its mask mandate till Feb. 15, it’s also facing an unprecedented surge in cases where omicron now makes up more than 80% of infections, overwhelming its health-care system.
“From day one California has taken swift and direct action to battle Covid-19 with policies that have saved tens of thousands of lives, but there’s more work to be done,” he said in the statement.
Newsom wants to be prepared for an omicron wave that could last longer than expected given a prolonged delta surge in California compared with other areas, according to officials in his administration. The trends are hazier than previously as day-to-day case rates don’t often offer a clear picture of the latest outbreak, they added.
On Friday, Newsom activated the California National Guard to add testing facilities and capacity, supplementing the existing 6,000 testing sites across the state.
Newsom is set to unveil a budget with another multi-billion dollar surplus as the world’s fifth-largest economy continues to benefit from top earners amassing even more wealth during the lopsided recovery from the pandemic.
The first-term Democrat will release a spending plan for the fiscal year beginning in July that will show a sizable surplus coming on the heels of this year’s $75.7 billion windfall. The state’s nonpartisan fiscal adviser in November estimated it could be about $31 billion.
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