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California to Spend Additional $1.8 Billion on Pandemic Response

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California Gov. Gavin Newsom took an extra $1.8 billion from the state’s dwindling coffers to pay for more protective gear and extra hospital beds to aid the state’s response to the coronavirus.

Newsom said Thursday he expects the federal government will reimburse the state for 75% of that spending, which comes as state lawmakers debate what government services will be cut to cover an estimated $54.3 billion budget deficit caused by the pandemic-induced economic downturn.

The Newsom administration says it has authority to spend the money because he has declared an emergency under the state’s Emergency Services Act.

The new spending will bring the state’s total to $5.7 billion since March, when the governor issued the nation’s first statewide stay-at-home order to slow the spread of the disease.

In a letter to state lawmakers, Department of Finance Director Keely Martin Bosler said most of the new spending — $1.3 billion — will pay for personal protective equipment including masks, gloves and gowns.

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More than $445 million of that amount will go to Chinese electric vehicle manufacturer BYD, which last month secured a $1 billion contract with the state to deliver 200 million masks a month.

But BYD has had trouble fulfilling that contract. Earlier this month, it refunded the state $247 million after it missed a deadline to certify that the masks it delivered comply with federal standards.

Read the full Associated Press story here.

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