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Democratic California Gov. Gavin Newsom has again refused to back reparation payments to black Californians proposed by his own task force, which has also now called for raising the state’s minimum wage.
The state’s minimum wage is already the nation’s second highest at $15.50, but the task force is calling on lawmakers to raise it to a ‘living wage.’
This recommendation is part of a broader set of proposals meant to address ‘stolen labor’ and ‘hindered opportunity’ that contributed to the state’s alleged systemic racism.
Newsom came under fire for allegedly backing away from his plans for reparations payments to black residents, as reported on Wednesday by Fox News.
But Newsom’s chief communication advisor, Anthony York, told The Sacramento Bee in a statement that he is not backing away from cash payments, but instead wants to wait for the full report before making a decision.
California Gov. Gavin Newsom (pictured earlier this month) has refused to endorse a proposal to pay black residents up to $1.2million in reparations
California’s reparations task force has approved a plan which could give black residents up to $1.2million each as compensation for slavery and discrimination
Newsom’s office later clarified his comments in a statement to The Sacramento Bee
The governor created a task force to study the economic effects of slavery and discrimination in the state back in September 2020, making California the first state to embark on studying the possibility of reparations for black Americans — even though slavery was banned from California even before it joined the union.
It approved its final recommendations last week for reparations payments of a minimum of $360,000 for black Californians, though the payments may go up to $1.2million.
On Tuesday, Newsom declined to endorse any specific recommendations made by the task force, as he argued that dealing with the effects of slavery and discrimination is ‘about much more than cash payments.’
Newsom’s office later clarified his comments in a statement to The Sacramento Bee.
‘The sensationalized framing in pieces published by outlets like Fox News and others is inaccurate. The Governor looks forward to reviewing the final report — and all recommendations — when complete.’
The matter ‘will be resolved’ after Newsom meets with Legislative leaders in the coming months, the spokesperson added.
The governor created the task force to study the economic effects of slavery and discrimination in the state back in September 2020
Around 1.8 million people in California identify as black or African American
The same task force also proposed raising California’s wage which they argue is ‘closer to a poverty wage than a living wage’ due to the increased cost of living.
The California Living Wage Act, which would have raised the minimum wage to $18 an hour by January 2025, was cited as a potential model to follow.
‘The task force recommends that the legislature conduct hearings on what an appropriate amount would be for a living wage in California, and raise the minimum wage accordingly,’ the report states.
‘The minimum wage should also be automatically adjusted on a regular basis to adjust for increases to the cost of living (including inflation).’
Last week, the nine-member group vote last week to recommend that the state send checks of up to $1.2million to black Californians, based on what has been lost to specific types of racial discrimination.
The final report is to be sent to lawmakers before July 1 where it will forecast compensation estimates calculated by several economists the group is working with
That includes $2,352 lost per person per year for the 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 figures $13,619 per person per year for residents in California for ‘injustices and discrimination in health’ and $77,000 per person for black-owned business losses and devaluations.
This means a lifelong black California resident aged at least 71 could receive more than $1.2million in compensation.
In a statement to FOX News Newsom said: ‘This has been an important process, and we should continue to work as a nation to reconcile our original sin of slavery and understand how that history has shaped our country.
‘Dealing with that legacy is about much more than cash payments,’ he added, as he pledged to continue to ‘advance systemic changes that ensure an inclusive and equitable future for all Californians.
‘Many of the recommendations put forward by the task force are critical action items we’ve already been hard at work addressing: breaking down barriers to vote, bolstering resources to address hate, enacting sweeping law enforcement and justice reforms to build trust and safety, strengthening economic mobility — all while investing billions to root out disparities and improve equity in housing, education, healthcare, and well beyond.
‘This work must continue,’ he said.
But the governor never explicitly endorsed the reparations payments the task force suggested, which are set 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 a continued partnership with the Legislature to advance systemic changes that ensure an inclusive and equitable future for all Californians.’
Bishop Henry C. Williams, of Oakland, testifies during the Reparations Task Force meeting, said 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 during the Black Power Network news conference at the state Capitol in early May
The reparations task force has also asked for those eligible to receive cash ‘down payments’ as soon as any recommendations are forged into law while they wait for the compensation to be calculated.
Those eligible for the payments include any descendant of enslaved African Americans or of a ‘free black person living in the United States prior to the end of the 19th century.’
It wrote in its report: ‘The initial down payment is the beginning of a process of addressing historical injustices not the end of it.’
If legislation is passed for the payments, the committee suggested that a state agency be created to process claims and make payments with elderly black residents being the priority.
Around 1.8 million people in California identify as black or African American.
The total cost of the program is estimated at $640billion, more than double the state’s $300billion budget.
It comes as the state is facing its first deficit in years.
The projected $31.5 billion shortfall would mark California’s first budget deficit since Newsom took office in 2019, and follows several years of booming surpluses as tax revenues surged
The projected $31.5 billion shortfall would mark California’s first budget deficit since Newsom took office in 2019, and follows several years of booming surpluses as tax revenues surged.
California has a progressive tax system that relies heavily on rich people and taxes investment gains as regular income, meaning it gets about half its revenues from just 1 percent of the population.
When the economy is good and the stock market surges, the wealthy pay more in taxes and revenues can soar quickly. When the economy is bad, they pay less and revenues can plunge just as fast.
The economic reality means that payments of hundreds of thousands in reparations were exceptionally unlikely.
