Gov.-elect Xavier Becerra is stepping into a role with significant challenges awaiting him as he inherits the legacy of outgoing Governor Gavin Newsom. His first 100 days in office will be critical in addressing pressing issues that have ailed California.
The state faces a high cost of living, rising taxes, the nation's highest gas prices, and ongoing homelessness. Becerra has not yet outlined significant departures from Newsom's policies, with a notable exception being his defense of oil giant Chevron, a donor, and his stance on Newsom's plan to eliminate gas-powered cars. The article suggests a balanced approach, advocating for the development of electric vehicle infrastructure while allowing consumers the choice to use traditional fuels.
Key Issues for Becerra
Becerra must confront several critical issues that require immediate attention.
State Debt
A significant challenge is California's outstanding $20 billion debt to the federal government for unemployment insurance from the COVID-19 era. California is reportedly the only state that has not repaid this loan. The debt is passed on to employers through an additional tax per employee, impacting businesses and ultimately consumers through higher prices. Further penalties from the federal government could exacerbate the financial strain on California businesses.
High-Speed Rail Project
The state's high-speed rail project, which has incurred billions of dollars in costs, remains a contentious issue. Although Newsom initially aimed to cancel the program, a modified version focused on the Central Valley has continued, described as a costly endeavor with little tangible progress.
Gas Prices
High gasoline prices are another immediate concern. The article suggests Becerra should convene a special legislative session to consider reducing or suspending the state's gas tax.
Federal Relations
Becerra also faces the task of improving relations with the White House. The article posits that Newsom's confrontational approach hindered his ability to secure federal aid, particularly for fire relief. With a new Democratic Congress, Becerra may have an opportunity to forge a more collaborative relationship and achieve bipartisan wins.