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Committee on Jobs, Economic Development, and the Economy

JEDE Weekly COVID-19 Update - February 2 Edition

MAJOR ANNOUNCEMENTS

  • Unprecedented Surge in COVID-19 Cases Continues:   Below is the most current CalOES status update.  www.covid19.ca.gov

  • Initial Review of the Small Business Proposals:  The Assembly Budget Committee begins its review of the small business proposals in the Governor’s proposed 2021-22 budget.

  • Presidential Executive Orders and Other Actions:  Since being sworn in on Janaury 20, 2021, President Biden issued a number of Executive Orders (F-EOs) and taken other presidential actions related to economic, business, and workforce development.  The Whitehouse website can be accessed at:  https://www.whitehouse.gov/briefing-room/presidential-actions/ The National Conference of State Legislature prepared this webpage:  https://www.ncsl.org/ncsl-in-dc/publications-and-resources/biden-presidential-executive-orders-and-other-actions.aspx  For those wanting a more in-depth look, below is a selection of these F-EOs and other actions prepared by JEDE.

  • President Biden’s American Rescue Plan:  President Biden’s $1.9 trillion American Rescue Plan is a set of strategic actions designed to combat COVID-19 and the related economic downturn.  Key elements of the plan, based on Biden’s speech, announcements (https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/) and current news reports, includes the following:

    • $400 billion to combat COVID-19, including:

      • $160 billion to execute a national vaccination program ($20 billion), expand testing ($50 billion), mobilize a public health jobs program, and take other necessary steps to build capacity to fight the virus.  The plan envisions funding 100,000 public health workers to engage in vaccine outreach and contact tracing.  Expanding the Federal Medicaid Assistance Percentage (FMAP) to 100% for the administration of vaccines.

      • $170 billion for K-12 through higher education, including $130 billion to help K-12 reopen within 100 days and $35 billion for public colleges and universities and private historically Black Colleges and Universities and other Minority Serving Institutions.

      • $10 billion for expanding domestic manufacturing for pandemic supplies, including authority to use the Defense Production Act.

      • $30 billion appropriated to the Disaster Relief Fund to finance ensure sufficient supplies and protective gear, and to provide 100% federal reimbursement for critical emergency response resources to states, local governments, and Tribes, including deployment of the National Guard.

      • $11 billion to support to the international health and humanitarian response and build the capacity of the international community to fight COVID-19, its variants, and emerging biological threats.

      • $5 billion in funds for states to use to support educational programs and the learning needs of students significantly impacted by COVID-19, including K-12, higher education, or early childhood education programs.

      • Expanded paid sick and family leave:

        • Expansion of the Families First Coronavirus Response Act to include healthcare workers, first responders employers, businesses with over 500 employees, and under 50 employers

        • Expansion of paid sick and family and medical leave to provide over 14 weeks of paid sick and family and medical leave to help parents with additional caregiving responsibilities

        • Provide a maximum paid leave benefit of $1,400 per-week for eligible workers, which will provide full wage replacement to workers earning up to $73,000 annually

        • Enhance the refundable tax credit to 100% of the cost for employers with less than 500 employees to cover the cost of the expanded leave requirements

        • Reimburse state and local government for the cost of this leave

        • Extend emergency paid leave measures until September 30, 2021

    • $1 trillion for actions to address economic impacts of the pandemic.

      • $465 billion to make $1,400 in direct payments to individuals and households, calibrated by income.  The American Rescue Plan calls for a second round in stimulus of $2,000, which includes the initial $600 authorized in December 2020 and a supplemental payment amount included in subsequent legislation.

      • Increase the UI benefit by $400 a week and extended all forms of unemployment and pandemic assistance insurance through September 2021.

      • Fully fund states’ short-time compensation programs (includes workshare) and additional weeks of benefits. 

      • Extend nationwide restrictions on evictions and foreclosures moratoriums and continue applications for forbearance on federally-guaranteed mortgages until September 30, 2021.  Also calling for funds for legal assistance for households facing eviction or foreclosure.

      • $30 billion in rental ($25 billion) and utility payment ($5 billion) assistance for eligible individuals and families.  $25 billion was previously approved in rental assistance.

      • $5 billion for homeless assistance through states and local governments

      • Enhance and expand food and nutrition programs, including, but not limited to:

      • $3 billion for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

      • 15% benefit increase under the Supplemental Nutrition Assistance Program (SNAP) 

      • Continue funding for the FEMA Empowering Essential Deliveries (FEED), which cover’s California’s Senior Plates Program, as partnership between local governments, restaurants, and senior citizen who are not otherwise eligible for low-income food programs like Meals on Wheels

      • Remove the state match for receiving SNAP funds

      • $1 billion for nutrition programs in the US territories

      • Increase the federal minimum wage to $15 an hour and end the tipped minimum wage and sub-minimum wage for people with disabilities

      • Call on employers to provide hazard pay to frontline essential workers

      • Expand and enhance funding for child care:

        • $25 billion emergency stabilization fund to support child care providers, including family child care homes, cover their costs and operate safely

        • $15 billion for the Child Care and Development Block Grant to support the cost to families for child care.  In December 2020, $10 billion was approved.

        • Expand the child care tax credit to provide for the expensing of 50% of health care costs per year up to $8,000.  Currently the limit is $4,000.

      • Modify the Child Tax Credit by making the credit refundable for the 2021 tax year, increasing the value of the credit to $3,600 for children 6 and under, making 17 year old children eligible for one year, and increasing the value of the credit to $3,000 for children 7 to 17.

      • Modify the Earned Income Tax Credit by increasing the credit for childless adults from $530 to $1,500, raising the eligibility income limit from about $16,000 to about $21,000, eliminating the age cap for older workers, and expanding eligibility for younger workers.

      • $1 billion for states to cover the additional cash assistance under Temporary Assistance to Needy Families (TANF)

      • Subsidize the continuation health coverage (COBRA) through the end of September 2021

      • $4 billion to expand mental health services

      • $20 billion for the Veterans’ Health Administration

      • $800 million in supplemental funding in various federal programs that serve victims of gender-based violence, including domestic violence and sexual assault

    • $440 billion to support small businesses; protect educators, public transit workers, and first responders from lay-offs; and keep critical services running at full strength.

      • $15 billion in flexible, equitably distributed grants will help small businesses

      • $35 billion investment in successful state, local, tribal, and non-profit small business financing programs, which is expected to leverage $175 billion in capital.

      • Support from the Community Credit Corporation at the US Department of Agriculture to restaurants, bars, and other businesses that have suffered disproportionately.

      • $350 billion would help state and local governments bridge budget shortfalls, including funding to retain essential public workers, including police officers, firefighters, nurses, and educators.  This is double the amount in the CARES Act.

      • $3 billion to the Economic Development Administration to make grants to state and local governments to support bottom’s up economic development.

      • $20 billion for COVID-19 impacted public transit agencies

      • $20 billion in Indian Country to support Tribal governments’ response to the pandemic

    • IT and Cybersecurity Enhancements:

      • $9 billion to launch a major new IT and cybersecurity initiative through the Technology Modernization Fund for the purpose of completing modernization projects at federal agencies

      • $200 million to hire experts to support the federal Chief Information Security Officer and US Digital Service

      • $300 million for Technology Transformation Services in the General Services Administration to drive secure IT projects forward without the need of reimbursement from agencies

      • $690 million for CISA will bolster cybersecurity across federal civilian networks

    • Paying for these new initiatives will be achieved by “closing tax loopholes for companies that ship American jobs overseas or that allow American companies to pay zero in federal income taxes.”

    • According to President Biden, the plan is intended to “lift 12 million Americans out of poverty and cut child poverty in half. That’s 5 million children lifted out of poverty.  Our plan would reduce poverty in the Black community by one-third. It would reduce poverty in the Hispanic community by almost forty percent.” 

    • According to news reports, the Institute on Taxation and Economic Policy found that the American Rescue Plan would amount to a 29% increase in the annual income of the poorest 20% of Americans.

  • Senate Rep Counter Proposal:  Ten US Senators (USS-10) issued a $618 counter proposal to the $1.9 trillion Biden American Rescue Plan.  President Biden has met with the 10 Senators to discuss the proposal.  Here is what we currently know about the counter proposal.

    • Amount of Direct Payments:  $1,000 stimulus checks as compared to $1,400 in the American Rescue Plan. Difference of $400

    • Income Limits on Direct Payments:  Lower income thresholds for receiving stimulus checks ($50,000 for individuals and $100,000 for couples).  One estimate is that the Senate Rep proposal would cover 80 million fewer people.  The cost difference is $220 billion verses $465 billion.

    • National Vaccination Plan:  $160 billion for a national vaccination program.  Same overall cost as the American Rescue Plan proposal

    • Supplemental UI Weekly Payments:  $150 for supplemental UI payments for $300 a week.  $350 billion in American Rescue Plan proposal for $400 a week. Difference of $100 a week

    • Small Business Loans:  $50 billion.  American Rescue Plan proposes $35 billion with an additional $15 billion in grants

    • Schools:  $20 billion for K-12. American Rescue Plan proposes $130 billion for K-12 – plus $35 billion to higher education

    • Child Care:  $20 billion block grants.  American Rescue Plan proposes $15 billion in grant – plus an expansion of the child care tax credit (see below) and $25 billion to child care providers

    • Food Assistance:  $12 billion.  Same overall cost as the American Rescue Plan proposal

    • Mental health and Substance Abuse: $4 billion. Same overall cost as the American Rescue Plan proposal

    • Big Ticket Items Not Covered in the USS-10 Counter Offer:  Aid to local government and states, $15 minimum wage, health insurance subsidies, block grants to tribes, veteran health services, public transit, cybersecurity, higher education, child care tax credits, and small business grants.

  • Residential Eviction Moratorium:  Governor Newsom signed legislation to extend the state’s eviction moratorium from January 31, through June 30, 2021, SB 91 (Senate Committee on Budget and Fiscal Review), Chapter 2, Statutes of 2021. California leads all states by enacting the strongest renter protections in the nation.  https://www.gov.ca.gov/2021/01/29/governor-newsom-signs-legislation-to-extend-eviction-moratorium-and-assist-tenants-and-small-property-owners-impacted-by-covid-19/  The bill additionally establishes the State Rental Assistance Program, which will allocate the $2.6 billion in federal rental assistance received by the state.  Rental is also “extended to property owners who agree to waive 20% of unpaid rent. By agreeing to this waiver, property owners will become eligible for 80% in rent reimbursements for amounts owed between April 1, 2020 and March 31, 2021.”

  • Stabilizing the Economy:  The Federal Open Market Committee, at its annual organizational meeting this week, unanimously reaffirmed its Statement of Longer-Run Goals and Monetary Policy Strategy.   https://www.federalreserve.gov/monetarypolicy/files/FOMC_LongerRunGoals.pdf   An excerpt from the policy:  “the Federal Open Market Committee (FOMC) is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates.”

  • Suspension of Past-Due Collections and Foreclosures:  US Department of Agriculture announced the temporary suspension of past-due debt collections and foreclosures for distressed borrowers under the Farm Storage Facility Loan and the Direct Farm Loan programs.  https://www.fsa.usda.gov/news-room/news-releases/2021/usda-temporarily-suspends-debt-collections-foreclosures-and-other-activities-on-farm-loans-for-several-thousand-distressed-borrowers-due-to-coronavirus 

  • New Federal Worker Guidance:  The Occupational Safety and Health Administration (OSHA) released new guidance on worker safety. https://www.dol.gov/newsroom/releases/osha/osha20210129  OSHA hosted a webpage with comprehensive information regarding the new guidance, including forms and FAQs. https://www.osha.gov/coronavirus/safework

GOOD NEWS ABOUT JEDE FRIENDS

  • Tracy Stanhoff Appointed to Hospital Diverse Supplier Commission:  Tracy Stanhoff, President of the American Indian Chamber of Commerce of California, has been appointed as a minority business enterprise representative to the newly established Hospital Diversity Commission.  The Commission is being established by Office of Statewide Health Planning and Development pursuant to Health and Safety Code Section 1339.88.   The purpose of the commission is to advise and provide recommendations to the department and the hospital industry on the best methods to increase procurement with diverse suppliers within the hospital industry, as well as promoting and providing outreach to hospitals that are actively engaged in supplier diversity issues . The commission will also promote and provide outreach to hospitals that are actively engaged in supplier diversity issues.  The Commission will start meeting quarterly during 2021.

LOOKING FOR A FEW GOOD PEOPLE

DATA, SURVEYS, AND ANALYSES

  • December US Employment Data:  US Bureau of Labor Statistics released national-level employment data for December 2020.  https://www.bls.gov/news.release/empsit.nr0.htm   According to the report, total US nonfarm payroll employment declined by 140,000 jobs in December, reflecting a 6.7% unemployment rate (down 8% since the high in April 2020).  In releasing the data, the BLS stated:  “The decline in payroll employment reflects the recent increase in coronavirus (COVID-19) cases and efforts to contain the pandemic. In December, job losses in leisure and hospitality and in private education were partially offset by gains in professional and business services, retail trade, and construction.”

  • December California Employment Data (most recent):  The Employment Development Department released state-level data for December 2020.  https://www.edd.ca.gov/newsroom/unemployment-december2-2020.htm   California’s unemployment rate was 9.0% in December. Nonfarm payrolls contracted by -52,200 jobs.  According to the announcement, California has regained more than 44% of the 2,615,800 nonfarm jobs that were lost due to the COVID-19 pandemic in March and April.  Unemployment among Blacks and Latinx were up from the 11% of the prior month, 12.2% and 11.7% respectively.  https://www.labormarketinfo.edd.ca.gov/Publications/Labor-Market-Analysis/calmr.pdf

  • Beacon’s Analysis of December Employment Data:  Beacon Economic has released its monthly employment report, which links econometric predictions to data released by the US Bureau of Labor Statistics and the California Employment Development Department.  https://beaconecon.com/publications/employment-report/  The Beacon Employment Report, released in partnership with the UC Riverside Business School Center for Forecasting, uses seasonally adjusted numbers to identify trends and insights within data.

  • Analysis of Place-Based Incentives:  Brookings Institute issued a report, How States Can Direct Economic Development to Places and People in Need, which “finds that the criteria that governments use to geographically target tax incentives and other place-based programs are often ill-conceived or out-of-date, with the result that initiatives end up serving wealthy locations instead of disadvantaged ones. And even when programs do reach the intended communities, they often are not well-suited to help residents.”  https://www.pewtrusts.org/en/research-and-analysis/reports/2021/02/how-states-can-direct-economic-development-to-places-and-people-in-need?utm_campaign=LM+-+GP+-+SFH+-+Missing+the+Target+report+and+webinar+2+2+21&utm_medium=email&utm_source=Pew  Report recommendations include:

    • Targeting programs using quantitative measures

    • Systematically assessing geographic targeting

    • Regularly updating the set of eligible locations

    • Tailoring economic development strategies to local needs

    • Creating job opportunities for low-income residents

  • Great Plates Delivered:  The Great Plates Delivered program provides three meals a day to qualifying seniors.  FEMA granted a 30-day extension to allow the program to continue to February 6, 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 (1/27)
Meals served as of 1/06
24,234,908
Individuals Served This Week
38,798
Food Providers Contracted
607
Data received from Great Plates Data Portal updated on Sundays.
 

 

 

 

 

 

GRANTS

  • Workforce Accelerator Grants:  The California Workforce Development Board and the Employment Development Department announced the availability of up to $7.4 million in grants under its Workforce Accelerator Fund 9.0.  This program awards Workforce Innovation and Opportunity Act funds to support the design, development, and implementation of projects that drive an “equitable recovery with quality jobs and accelerate employment and re-employment for California workers.”  https://etp.ca.gov/wp-content/uploads/sites/70/2021/02/ETP_PressRelease-February2021.pdf

    • Application Workshop:  February 9, 2021 1:00 PM-2:30 PM (Pacific Time) click button to register

    • Applications Due:   March 1, 2021 (by 3:00 PM Pacific Time)

    • Award Announcement:  April 2021

  • Cyberinfrastructure for Emerging Science and Engineering Research:  The National Science Foundation is soliciting proposals to the Cyberinfrastructure for Emerging Science and Engineering Research (CESER) program2 for pilot projects that “bring together researchers and CI experts to develop the means of combining existing community data resources and shared data-focused CI into new integrative and highly performing data-intensive discovery workflows that empower new scientific pathways.”  https://www.nsf.gov/pubs/2021/nsf21045/nsf21045.jsp?WT.mc_id=USNSF_25&WT.mc_ev=click

CURRENT GUIDANCE ON STATE COVID-19 AND RECOVERY ACTIONS

[This is a “quick-source” section that includes new and previously provided information.]

GUIDANCE ON PUA AND ECONOMIC IMPACT PAYMENTS

  • State Unemployment Benefit Data:  The Employment Development Department (EDD) released new unemployment insurance data for California during the week ending January 23, 2021.  https://www.edd.ca.gov/newsroom.htm   Among other information, EDD reports the following:

    • 50,577 initial Unemployment Insurance (UI) and Pandemic Unemployment Assistance (PAU) claims were filed during the report period.

    • Over 10.6 million initial unemployment benefit claims have been filed with EDD between March 14 and the close of the report period.

    • $116 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. https://www.edd.ca.gov/About_EDD/pdf/news-21-06.pdf On January 22, 2021, EDD released this report on the status of addressing the backlog:  https://www.edd.ca.gov/About_EDD/pdf/CUIC_337_Legislative_Report_012221.pdf   Progress in eliminating the backlog are also tracked through these two data dashboards:

    • Unemployment Initial Claims Backlog Dashboard:  As of January 27, 2020, 946, 806 individuals have been waiting more than 21 days for an initial payment or to be notified that they do not qualify for benefits.

    • Unemployment Continued Claims Backlog Dashboard:  As of January 27, 2020, 25, 363 individuals received at least one payment and are now waiting more than 21 days for further processing of payment or disqualification in this week-by-week eligibility-based program.

  • Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation:  The US Department of Labor’s Employment and Training Administration issued new and updated guidance to states on the implementation of the unemployment insurance programs included contained in the Continued Assistance for Unemployed Workers Act of 2020, which is part of the Consolidated Appropriations Act, 2021:

    • Initial overarching guidance is issued to states regarding a range of unemployment insurance programs, including the Pandemic Unemployment Assistance (PUA) program, which provides UI benefits to individuals who are not generally eligible for traditional unemployment benefits, including gig workers.    https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=3831

    • Updated guidance is released for the Federal Pandemic Unemployment Compensation (FPUC) and Mixed Earner Unemployment Compensation (MEUC) programs.  https://www.dol.gov/newsroom/releases/eta/eta20210105 The initial FPUC program provided $600 a week in supplemental compensation and expired July 31, 2020. The FPUC reauthorization provides $300 per week beginning after December 26, 2020, and ending on or before March 14, 2021. According to the announcement, the FPUC is not payable during the gap in authorization, that is, weeks of unemployment ending after July 31, 2020, through weeks of unemployment ending on or before Dec. 26, 2020.   Guidance:  https://wdr.doleta.gov/directives/corr_doc.cfm?docn=6122

    • California’s Implementation of these New Federal Guidelines:  https://www.edd.ca.gov/About_EDD/pdf/news-20-70.pdf

  • Look for Economic Impact Payments in the Mail:  The IRS began issuing the second round of EIPs through direct deposit on December 29, followed by the mailing of paper checks. According to the January 7 announcement, individuals who do not receive a direct deposit should watch their mail for either a paper check or a prepaid debit card.  https://www.irs.gov/newsroom/treasury-issues-millions-of-second-economic-impact-payments-by-debit-card

STATUS REPORTS ON SMALL BUSINESS ACCESS TO CAPITAL 

[This is a “quick-source” section that includes new and previously provided information.]
(4558-DR-CA) Wildfire - SBA Disaster Assistance (1/26)
CA Loans (EIDL) Approved
54
Dollar Amount of CA Loans (EIDL) Approved      
$4,740,100
CA Home Loans Approved
450
Dollar Amount of CA Home Loans Approved
$54,065,100
Total Dollars Approved
$58,805,200

 

(4569-DR-CA) Wildfire - SBA Disaster Assistance (1/26)
CA Loans (EIDL) Approved
8
Dollar Amount of CA Loans (EIDL) Approved      
$532,300
CA Home Loans Approved
135
Dollar Amount of CA Home Loans Approved
$16,134,800
Total Dollars Approved

$16,667,100

  • Small Business Disaster Loan Guarantee Program:  The Small Business Finance Center at the California Infrastructure and Economic Development Bank administers a credit enhancement (loan guarantee) as a way to encourage traditional and mission-driven lenders to loan money to small businesses who have been impacted by a disaster.  https://cdn.ibank.ca.gov/wp-content/uploads/2021/01/JLBC-12.30.2020.pdf   Below is the most recent program activity.

 

State Small Business Disaster Loan Guarantee Program (December 31, 2020)
 
Conditionally Approved
Loan Amount
Guarantee Amount
Amount Encumbered
Employees
Total
939
$35,653,203
$33,710,725
$16,855,362
4,689
The IBank provides the Joint Legislative Budget Committee an update monthly.

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