JEDE COVID-19 Weekly Update - June16 Edition

MAJOR ANNOUNCEMENTS

  • California COVID-19 Update:   Below is the most current CalOES status update.  www.covid19.ca.gov

  • Beyond the Blueprint:  Governor Newsom is lifting pandemic executive orders in advance of the June 15 re-opening and shifting to guidance issued under his Beyond the Blueprint initiative.  https://www.gov.ca.gov/wp-content/uploads/2021/06/Beyond-the-Blueprint-Fact-Sheet.pdf  According to the announcement, this includes terminating the Stay-at-Home Order and retiring the Blueprint for a Safer Economy.  Effective June 15, restrictions such as physical distancing, capacity limits, and the county tier system will end.

  • California is on the Rise:  Bloomberg released an opinion by Matthew Winkler, “California Defies Doom With No. 1 U.S. Economy - The Golden State has no peers when it comes to expanding GDP, raising household income, investing in innovation and a host of other key metrics.”   https://www.bloomberg.com/opinion/articles/2021-06-14/california-defies-doom-with-no-1-u-s-economy?utm_campaign=socialflow-organic&utm_medium=social&utm_content=view&utm_source=twitter&cmpid%3D=socialflow-twitter-view   Below are a couple of excerpts of the article.

    • “No one anticipated the latest data readout showing the Golden State has no peers among developed economies for expanding GDP, creating jobs, raising household income, manufacturing growth, investment in innovation, producing clean energy and unprecedented wealth through its stocks and bonds. All of which underlines Governor Gavin Newsom's announcement last month of the biggest state tax rebate in American history.  By adding 1.3 million people to its non-farm payrolls since April last year -- equal to the entire workforce of Nevada -- California easily surpassed also-rans Texas and New York. At the same time, California household income increased $164 billion, almost as much as Texas, Florida and Pennsylvania combined, according to data compiled by Bloomberg. No wonder California's operating budget surplus, fueled by its surging economy and capital gains taxes, swelled to a record $75 billion.”

    • “In a sign of investor demand, the weight of California companies in the benchmark S&P 500 Index increased 3 percentage points since a year ago, the most among all states, according to data compiled by Bloomberg. Faith in California credit was similarly superlative, with the weight of corporate bonds sold by companies based in the state rising the most among all states, to 12.5 percentage points from 11.7 percentage points, according to the Bloomberg Barclays U.S. Corporate Bond Index. Translation: Investors had the greatest confidence in California companies during the pandemic.”

  • Upgrading Domestic Supply Chain:  The US. Department of Energy (DOE) today announced new immediate policy actions to scale up a domestic manufacturing supply chain for advanced battery materials and technologies. https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/08/fact-sheet-biden-harris-administration-announces-supply-chain-disruptions-task-force-to-address-short-term-supply-chain-discontinuities/  These efforts follow the 100-Day review of advanced batteries—directed by President Biden’s Executive Order on America’s Supply Chains—which assesses vulnerabilities and opportunities in the current and forecasted battery supply chain landscape, and identifies policy recommendations to address them. Together, these actions will position the U.S. to lead an emerging global market, secure the nation’s long-term economic competitiveness, and create good-paying jobs for American workers, while supporting the Biden Administration’s bold decarbonization goals.

  • US and EU Settle Aircraft Subsidy Dispute:  The US and the European Union (EU) announcced a major breakthrough in the Boeing-Airbus trade dispute, which has lasted more than 16 years. Under the agreement, both US and EU agreed to suspend tariffs for five years, and to work together to “challenge and counter China’s non-market practices in this sector that give China’s companies an unfair advantage.”  https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/15/statement-by-president-joseph-r-biden-jr-on-agreement-with-the-european-union-on-boeing-airbus/  According to the fact sheet, the aerospace sector directly employs over 500,000 workers, which indirectly support over 700,000 jobs in related industries. Through its supply chain, the aerospace sector purchases over a billion parts from over 10,000 US businesses. https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/15/fact-sheet-u-s-eu-understanding-on-a-cooperative-framework-for-large-civil-aircraft/

    • "I am delighted that the European Union and the United States have resolved their dispute over the production of large commercial aircraft. This has been one of the longest running and most taxing disputes in the history of the WTO and the two sides have shown that even the most seemingly intractable differences can be resolved. This agreement proves that with hard work and political will WTO members can achieve historic results,"  notes Director-General Ngozi Okonjo-Iweala of the World Trade Organization  https://www.wto.org/english/news_e/news21_e/disp_15jun21_e.htm

  • Child Tax Credit Awareness Day:  The White House has declared Monday, June 21st, as Child Care Tax Credit Awareness Day.  The Administration will release guidance for three elements of the American Rescue Plan, including: $15 billion for the Child Care and Development Block Grant, an historic expansion of the Child and Dependent Care Tax Credit, and six months of extended support for small and midsize employers offering paid sick and family leave in response to the pandemic through the Paid Leave Tax Credit.

  • New Information on California Budget:  The Assembly and the Senate reached a historic compromise on the budget weeks ahead of the June 15 deadline.  On June 14, both Houses voted to approve AB 128.  

    • Joint Statement by Senate President pro Tempore Toni G. Atkins and Speaker Anthony Rendon:  “The budget we’re sending to Governor Newsom reflects responsible budgeting as the Legislature’s top priority and makes vital investments in California’s future. Over the past 15 months, we’ve seen the benefits of a decade of prudent fiscal planning, which got us through the COVID downturn and served as a springboard for economic recovery. The Legislature has been working together not only to meet the needs of Californians, but help advance a plan that takes care of our state and all who live here without encumbering future budgets. Our budget plan includes continued stimulus funding for vulnerable individuals and families, help for the small businesses who are the backbone of our state’s economy, support for future generations through investments in childcare, increased financial support for housing, and substantial commitments to address climate change and wildfire prevention. The Governor proposed a strong budget in the May Revision, and we are proud of the improved version approved by the Legislature today. We look forward to working with the Governor to finalize the budget in the coming days as we build a greater tomorrow for California.”

    • AB 128 (Ting) Budget Bill Text:   https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB128

    • Assembly Budget Committee Floor Report on the 2021-22 Budgethttps://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/Floor%20Report%20of%20the%202021-22%20Budget%20-%20%28June%2011%2C%202021%20Version%29.pdf

    • Senate Budget Committee Bill Analysis of AB 128:   https://sbud.senate.ca.gov/sites/sbud.senate.ca.gov/files/June_14_2021_Hearing_Agenda.pdf   

    • DOF Tracking List of 2021-22 Trailer Billshttps://esd.dof.ca.gov/trailer-bill/public/trailerBill/pdf/-1

    • Statement by Governor Newsom:  “California's economy is coming roaring back. With the largest surplus in California history, we're using this once-in-a-generation opportunity to create an economic recovery that will leave nobody behind – with money going directly back to Californians, the nation’s largest small business relief programs, and unprecedented investments to address California’s most persistent challenges such as homelessness, climate change and equity in our education system.

“And while we proudly embrace the California Comeback, this last year reminds us that we need to plan for the unexpected. We must maintain a strong fiscal foundation that does not overcommit the state to long-term spending it cannot afford, which could lead to future cuts.

“I’m grateful for the Legislature’s partnership and am confident we will reach a budget agreement that reflects our shared values and keeps California on a sustainable path of recovery and growth. I look forward to working with legislative leaders to reach an agreement that will address California’s longstanding challenges to give every Californian family – regardless of their race or zip code – the opportunity to thrive.”

DATA, SURVEYS, AND ANALYSES

  • May US Employment Data (most current):  US Bureau of Labor Statistics (BLS) released national-level employment data for May 2021.  https://www.bls.gov/news.release/empsit.nr0.htm  According to the report, total US nonfarm payroll employment increased by 559,000 jobs in May, reflecting a 5.8% unemployment rate.  In releasing the data, the BLS stated: “Notable job gains occurred in leisure and hospitality, in public and private education, and in health care and social assistance.”  Unemployment among selected worker groups:  9.6% for Teenagers, 5.4% Adult Women, 5.9% Adult Men, 9.1% for Blacks, 7.3% for Hispanics, 5.5% for Asians, and 5.1% for Whites.  

  • April California Employment Data (most recent):  The Employment Development Department released state-level data for April 2021.  https://www.laborma rketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf     California’s seasonally adjusted unemployment rate was 8.3% in April.  Nonfarm payrolls increased by 37,000 jobs from the prior month.  The civilian labor force was up 33,000 workers from the prior month and 383,000 (2%) from the prior year.  Unemployment among Blacks and Latinx remained significantly higher than the statewide average, reported as 13.9% and 11.8% respectively.

  • May Real Earning Summary: The US Bureau of Labor Statistics released a national-level real wage summary on June 10, 2021, called “Real Earning Summary” with data ranging from April to May 2021. https://www.bls.gov/news.release/realer.nr0.htm Real average hourly earnings for all employees from April to May 2021 increased by 0.2% (seasonally adjusted).  Real average weekly earnings decreased -0.2% over the month due to the change in real average hourly earnings being combined with no change in the average workweek.  Real average hourly earnings decreased -2.8%, from May 2020 to May 2021.  The change in real average hourly earnings combined with an increase of 0.6% in the average workweek resulted in a -2.2% decrease in real average weekly earnings over this period.

  • The US and EU Relationship:  In conjunction with the US President Biden attending the G-7 and NATO meetings, the While House issued a fact sheet, Rebuilding, Revitalizing, and Raising the Ambition of U.S.-EU Relations, which highlights outcomes from the various meetings. https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/15/fact-sheet-rebuilding-revitalizing-and-raising-the-ambition-of-u-s-eu-relations/  According to the release, The United States is committed to working with the EU to ensure global health security, stimulate global economic recovery, tackle climate change, enhance digital and trade cooperation, strengthen democracy, and address mutual foreign policy concerns.   https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/13/fact-sheet-g7-to-announce-joint-actions-on-forced-labor-in-global-supply-chains-anticorruption-and-ransomware/

  • June US Census Bureau Small Business Pulse: US Census Bureau Small Business Pulse released a state-level summary on June 10, 2021 for how small businesses are faring based on a survey during the May 31 through June 11 time period.   https://www.edd.ca.gov/About_EDD/pdf/CUIC-337-legislative-report-061121.pdf  The Small Business Pulse survey found that in California:

    • 28.5% of small business respondents reported that the Pandemic had a large negative effect on them. This is 2.4% higher than the national average of 26.1%. 

    • 42.7% of small business respondents reported that the Pandemic had a moderate negative effect on them, which was  0.2% higher than the national average of 42.5%.

    • 28.8% of small business respondents requested a PPP loan in Round 1.  This is 1.3% higher than the national average of 27.5%.

    • 40% of small business respondents requested a PPP loan in Round 2.  This is 2.8% higher than the national average of 37.2%.

    • 43.9% of small business respondents received a PPP loan.  This is 1.7% above the national average of 42.2%.

    • 31.5% of small business respondents requested PPP loan forgiveness. This is 2.4% higher than the national average of 29.1%.

    • 32.4% of small business respondents received PPP loan forgiveness.  This is 1.4% higher than the national average of 31.0%.

    • 36.4% of small business respondents said they did not request assistance during the pandemic.  This is 4.9% below the national average of 41.3%.

    • 41.3% of small business respondents said they had not received assistance during the pandemic, and this is 3.4% below the national average of 44.7%.

    • 17.5% of small business respondents said they will need to receive assistance in the next 6 months, and this is 3.1% higher than the national average, 14.4%.

  • June the Federal Reserve- the Beige Book: The US Federal Reserve issues a regular economic report 2 out of every 3 months commonly referred to as the Beige Book.  Published 8 times a year, the Beige Book aggregates economic data and analysis for each of the 12 Federal Reserve districts.  https://www.federalreserve.gov/monetarypolicy/beigebook202104.htm  This data is from June 2, 2021 and covers the San Francisco Federal Reserve Region. 

    • Between April to mid-May economic activity expanded significantly.  While employment levels increased, it was constrained by the tightening of labor markets in some areas of the region.  Most of the job growth was concentrated in the hospitality, retail, tourism, and food services sectors spurred by businesses reopening. 

    • Wages increased moderately for selected jobs.  Employers in the construction, manufacturing, technology, retail, healthcare, restaurant, and hospitality sectors reported having to increase wages due to reopening businesses. 

    • Prices increased considerably over the reporting period. 

    • Retail sales experienced the greatest increase in revenues.  Manufacturing deals continued to increase moderately.  Conditions in the agriculture and resource segments also measurable increased.

    • Residential construction activity increased at a rapid pace, while the commercial real estate market did not change. 

    • Lending activity increased somewhat, driven by an increase in loan origination for commercial and multifamily real estate.  Residential mortgage and refinancing activity also increased, while demand for auto loans and credit cards increased steadily.  Lenders across the San Francisco Federal Reserve Region noted increased competition among financial institutions for new loans and deals, which led a few to raise concerns over deteriorating loan quality.

  • Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA granted another 30-day extension to allow the program to continue to June 7, 2021.  Interested restaurants and food providers are encouraged to fill out this form: https://state-of-california-agency.forms.fm/great-plates-delivered-food-provider-interest-form/forms/7917   

Great Plates Delivered
Meals served as of 07/08*
35,292,213
Individuals Served This Week
32,121
Food Providers Contracted
585
Data received from Great Plates Data Portal updated on Sundays.

 

 

 

 

 

 

GRANTS AND INCENTIVE AWARDS

  • Dislocated Youth Worker Innovation Challenge:  The California Employment Development Department (EDD) announced today it has awarded $750,000 to fund the Dislocated Youth Worker Innovation Challenge (DYWIC) pilot program. https://www.edd.ca.gov/About_EDD/pdf/news-21-35.pdf   Three organizations will use the funding to help 200 dislocated out-of-school youth workers, ages 18-24, prepare for and find good paying jobs in Contra Costa, San Diego, and Ventura counties.

    • Richmond Workforce Development Board Contra Costa ($250,000) 

    • San Diego Workforce Partnership ($250,000) 

    • Workforce Development Board of Ventura County ($250,000) 

  • FY 2021 Education Innovation and Research (EIR) Competitions:  The California Department of Education announced the FY 2021 Education Innovation and Research (EIR) Competitions grant.  https://oese.ed.gov/offices/office-of-discretionary-grants-support-services/innovation-early-learning/education-innovation-and-research-eir/fy-2021-competition/  This grant has an award amount of up to $8,000,000.  The EIR program is designed to generate and validate solutions to persistent education challenges and to support the expansion of those solutions to serve substantially larger numbers of students; moreover, this provides funding to create, develop, implement, replicate, or take to scale entrepreneurial, evidence-based, field-initiated innovations to improve student achievement and attainment for high-need students, and rigorously evaluate such innovations.  Eligible applicants are small businesses, for profit organizations other than small businesses, and all nonprofits other than schools.  The various deadline are as follows: Deadline for Notice of Intent to Apply: June 28, 2021.  Deadline for Transmittal of Applications: July 7, 2021.  Deadline for Intergovernmental Review: September 7, 2021.

  • Veteran Federal Procurement Entrepreneur Training Program (VFPETP):  The US Small Business Administration has announced the Veteran Federal Procurement Entrepreneur Training Program (VFPETP). https://www.sba.gov/business-guide/grow-your-business/veteran-owned-businesses  Grant awards of up to $500,000 will be made to support the scaling of existing entrepreneurship training program(s) that target veteran-owned and service-disabled-owned small businesses who intend to pursue, or are already engaged in, federal procurement.  Eligible applicants include non-profit organizations and small businesses.  Applications are submitted through www.grants.gov with the funding opportunity number of SB-OVVT-21-001.  The application deadline is July 12, 2021.

  • The Site Cleanup Subaccount Program (SCAP): The State Water Resources Control Board (State Water Board) announced a new funding round under their Site Cleanup Subaccount Program (SCAP). https://www.waterboards.ca.gov/water_issues/programs/grants_loans/scap/  Grant awards of up to $3,400,000 can be made to eligible nonprofits, small businesses, and other for-profit organizations.  Grants will be awarded to projects that remediate the harm, or threat of harm, to human health, safety, or the environment caused by existing or threatened surface water or groundwater contamination.  Applications are accepted on a rolling deadline basis.

UNEMPLOYMENT INSUANANCE, PANDEMIC UNEMPLOYMENT ASSISTANCE

  • State Unemployment Benefit Data:  The Employment Development Department (EDD) released new unemployment insurance data for California during the week ending June 5, 2021.  https://www.edd.ca.gov/Newsroom/facts-and-stats/dashboard.htm#CandSBreakoutData  Among other information, EDD reports the following:

    • 87,650 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims, plus extensions, were filed during the report period.

    • Over 24,689 (26.6%) of initial claims filed during the report week were filed by individuals aged 25-35.  (not all claims included information on age)

    • Over 28,669 (44.5%) of initial claims were filed by individuals with a high school diploma or GED or less education. (not all claims included information on education)

    • Over 31, 791 (38%) of initial claims were filed by individuals who self-identified as Hispanic.  (not all claims included information on race)

    • Over 22.6 million initial unemployment benefit claims, including extensions, have been filed with EDD between March 1, 2020 and the close of the report period.

    • $149.7 billion has been paid to out-of-work Californians since the start of the pandemic. 

  • Tracking UI Benefits:  The California Employment Development Department (EDD) launched identity verification technology to help address the backlog of unprocessed unemployment benefit applications, including the Pandemic Unemployment Assistance.  On June 11, 2021, EDD released its bi-weekly report to the Legislature addressing the backlog (https://www.edd.ca.gov/About_EDD/pdf/CUIC-337-legislative-report-061121.pdf )  covering the time period of March 1, 2020 through June 5, 2021.

UPDATES AND STATUS REPORTS ON SMALL BUSINESS ACCESS TO CAPITAL

State Small Business Disaster Loan Guarantee Program (May 28, 2021)
 
Conditionally Approved
Loan Amount
Guarantee Amount
Amount Encumbered
Employees
Total
1698
$73,784,261
$69,820,282
$34,910,141
8483
The IBank provides the Joint Legislative Budget Committee an update monthly.

CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS

  • Beyond the Blueprint:  The California Department of Public Health released a memo on “Beyond the Blueprint.”  https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/Beyond-Blueprint-Framework.aspx  They have also developed a webpage with answers to commonly asked questions about Beyond the Blueprint.  https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/COVID-19/Beyond-Blueprint-QA.aspx 

  • Free masks and PPE to Small Businesses:  CalOES and GO-Biz are working with partners to distribute personal protective supplies to small businesses, hospitals, schools, and others who need PPE to safely reopen. Our colleague, Chelsea Irvine is helping to coordinate chelseakirvine@icloud.com  Current inventory:

    • Disposable surgical masks (pallet of 60,000)

    • Hand sanitizer in 2 ounce (10k/pallet), 4 ounce (5k/pallet) and 16 ounce bottles (1k/pallet)

    • Face Shields (216 per case)

    • Anti-bacterial hand soap in 8 ounce bottles (has to be ordered by the trailer-full - 70,000 bottles)

    • Boxes of large or extra small gloves (2,500 per box)

  • Updated Industry Guidancehttps://covid19.ca.gov/industry-guidance/ 

  • Employer Vaccination Toolkit:  Governor Newsom announced the availability of a new Employer Vaccination Toolkit, which is intended to assist employers make a request to have a workplace clinic or local provider partner for an onsite COVID-19 vaccination event.  www.saferatwork.ca.gov

  • Shop Safe Shop Local:  GO-Biz is leading a campaign to remind Californians to shop local and help small businesses prepare for the business realities of COVID-19.  The #ShopSafeShopLocal website highlights free / discounted resources to help small businesses get digital, find e-commerce tools, learn more about industry guidance, locate small business centers, and access PPE.  https://business.ca.gov/shopsafeshoplocal/

  • Safely Making Web Platform:  California manufacturers who produce PPE, including face masks and gloves, can advertise their wares on https://www.safelymakingca.org/.  The website is a joint effort by the California Manufacturers and Technology Association (CMTA) and the State of California.  A manufacturer does not have to be a member of CMTA to participate.  To apply, manufacturers should complete this form.  At his September 9, 2020, press conference, Governor Newsom announced that the web platform currently included 450 California manufacturers.  

FREE WEBINARS

JEDE maintains a list of upcoming and on-demand webinars on our website.  Upcoming webinars are listed here (https://ajed.assembly.ca.gov/content/free-webinars) and on-demand webinars can be found at https://ajed.assembly.ca.gov/content/demand-webinars-available-24-7.  These webinars cover a range of topics, including federal disaster programs, marketing during the COVID-19 pandemic, and accessing international markets.

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