California faces financial challenges after borrowing billions to cover unemployment benefits during the COVID-19 pandemic. Governor Gavin Newsom's decision not to use ARPA funds has led to a situation where the state must repay the borrowed money, triggering tax increases on Californians and employers.
"Around the nation, roughly $215 billion of the $900 billion unemployment benefits paid was lost to fraud and other 'overpayments.' It now appears that California was responsible for about 30% of that figure." Next: (1) California businesses will pay it back to Washington…
With a massive deficit and the nation's highest unemployment, both caused by Governor Gavin Newsom, the state borrowed $21 billion from the federal government. Now the Governor is threatening to levy companies to pay it off. https://t.co/DLNUdEvXx6
Beyond embarrassing. Newsom borrowed $20 billion from the federal government then neglected to pay it back. This triggers an automatic tax increase on Californians to repay it. https://t.co/2r89z7Nwop
Short version: after COVID, CA borrowed tens of billions of dollars despite having record revenues, deciding not to use ARPA funds to pay it back like other states did. Now state is broke and has to pay back that money and it will do so by tripling taxes on employers. https://t.co/w7cEFLouTq
California in a jam after borrowing billions to pay unemployment benefits https://t.co/Sg2Hv5im1s