California Democratic Governor Gavin Newsom has again refused to support reparations payments to black Californians proposed by his own task force, which has also called for raising the state’s minimum wage.
The state’s minimum wage is already the second highest in the nation at $15.50, but the task force is calling on lawmakers to raise it to a “living wage.”
This recommendation is part of a larger set of proposals aimed at addressing the “stolen work” and “impeded opportunities” that have contributed to the alleged systemic racism of the state.
Newsom has come under fire for allegedly waiving his plans to pay reparations to black residents, as reported Wednesday by FoxNews.
But Newsom’s chief communications adviser, Anthony York, said The Sacramento Bee in a statement that he is not backing down from cash payments, but rather wants to wait for the full report before making a decision.
California Governor Gavin Newsom (pictured earlier this month) refused to approve a proposal to pay black residents up to $1.2million in reparations
California’s Reparations Task Force has approved a plan that could give black residents up to $1.2 million each in compensation for slavery and discrimination
Newsom’s office later clarified his comments in a statement to The Sacramento Bee.
The governor established a task force to study the economic effects of slavery and discrimination in the state in September 2020, making California the first state to embark on exploring the possibility of reparations for Black Americans – even though slavery was outlawed in California even before. joins the union.
He approved his final recommendations last week for reparations payments of a minimum of $360,000 for black Californians, though payments could reach $1.2 million.
On Tuesday, Newsom declined to endorse the specific recommendations made by the task force, as he argued that tackling the effects of slavery and discrimination is “much more than cash payments”.
Newsom’s office later clarified his comments in a statement to The Sacramento Bee.
“The sensationalized framing of stories published by outlets like Fox News and others is inaccurate. The Governor looks forward to reviewing the final report – and any recommendations – when completed.
The issue “will be resolved” after Newsom meets with legislative leaders in the coming months, the spokesperson added.
The governor established the task force to study the economic effects of slavery and discrimination in the state in September 2020
About 1.8 million people in California identify as black or African American
The same task force also proposed raising California’s wage, which they say is “closer to a poverty wage than a living wage” due to the rising cost of living.
The California Living Wage Act, which would have raised the minimum wage to $18 an hour by January 2025, has been cited as a potential model to follow.
“The task force recommends that the Legislature hold hearings on what would be an appropriate amount for a living wage in California and raise the minimum wage accordingly,” the report said.
“The minimum wage should also be automatically adjusted on a regular basis to accommodate increases in the cost of living (including inflation).”
Last week, the nine-member group voted last week to recommend that the state send checks of up to $1.2 million to black Californians, depending on what was lost to specific types of discrimination. racial.
The final report is due to be sent to lawmakers by July 1 where it will provide compensation estimates calculated by several economists the group works with.
This includes $2,352 lost per person per year for over-policing and mass incarceration of black communities and $3,366 per person per year of residence between 1933 and 1977 for “discriminatory lending and zoning.”
It also amounts to $13,619 per person per year for California residents for “health injustices and discrimination” and $77,000 per person for losses and devaluations of black-owned businesses.
That means a black California resident who is at least 71 years old could receive more than $1.2 million in compensation.
In a statement to FOX News, Newsom said, “This has been an important process, and we must continue to work as a nation to reconcile our original sin of slavery and understand how that history has shaped our country.”
“Managing this legacy is about more than cash payments,” he added, as he pledged to continue “advancing systemic changes that secure an inclusive and equitable future for all Californians”.
“Many of the recommendations put forward by the task force are essential measures that we have already worked hard on: removing barriers to voting, strengthening resources to fight hate, adopting sweeping reforms in law enforcement and justice to build trust and security, enhance economic mobility – while investing billions to eliminate disparities and improve equity in housing, education, healthcare and beyond.
“This work must continue,” he said.
But the governor never explicitly approved the reparations payments suggested by the task force, which are expected to be sent to the California state legislature in July.
Instead, he said, “Following the task force’s submission of its final report this summer, I look forward to continued partnership with the legislature to advance systemic changes that secure an inclusive and equitable future. for all Californians.”
Bishop Henry C. Williams of Oakland testifies at reparations task force meeting, says he hopes to build a Black Wall Street in Oakland with all black-owned businesses
Supporters listen as speakers share their views on reparations and other issues at the Black Power Network press conference at the State Capitol in early May
The Reparations Task Force has also called for those eligible to receive cash “down payments” as soon as recommendations are enshrined in law pending compensation being calculated.
Those eligible for payments include any descendant of enslaved African Americans or a “free black person living in the United States before the end of the 19th century.”
He wrote in his report: “The initial installment is the beginning of a process of resolving historic injustices, not the end.”
If legislation is passed for payments, the committee suggested that a state agency be created to handle claims and make payments, with older black residents being the priority.
About 1.8 million people in California identify as black or African American.
The total cost of the program is estimated at $640 billion, more than double the state’s $300 billion budget.
It comes as the state faces its first deficit in years.
The projected $31.5 billion shortfall would mark California’s first budget shortfall since Newsom took office in 2019, and follows several years of booming surpluses as tax revenues rose.
The projected $31.5 billion shortfall would mark California’s first budget shortfall since Newsom took office in 2019, and follows several years of booming surpluses as tax revenues rose.
California has a progressive tax system that relies heavily on the wealthy and taxes investment gains as regular income, meaning it derives about half of its income from just 1% of the population.
When the economy is good and the stock market is booming, the wealthy pay more taxes and incomes can skyrocket quickly. When the economy is bad, they pay less and income can drop just as quickly.
The economic reality means that payments of hundreds of thousands of dollars in repairs were exceptionally unlikely.
