|CRA President Rachel Michelin Issues Statement onGovernor Newsom’s Revised State Budget|
Sacramento, CA – May 14, 2020 – California Retailers Association President Rachel Michelin issued the following statement in response to Governor Gavin Newsom’s proposed revisions to the State Budget:
“California’s retail industry is among the pandemic’s hardest hit sectors forcing store closures, job loss and an uncertain future. Prior to the statewide ‘Shelter in Place’ order retail represented 3,661,850 jobs in California, a quarter of the state’s employment, and produced hundreds of millions of dollars in annual taxable income and sales tax revenue, monies that support vital services for local governments across the state including police, fire, parks, schools, libraries and more.
“Despite constantly evolving challenges during this public health crisis, many of our members continue to provide essential services and support for their workforce and local communities including hiring more employees, providing increased benefits, bonuses and pay raises for current employees, establishing special store hours for seniors and first responders, donating medical supplies and much more.
“During budget negotiations over the next month, we encourage Governor Newsom and our state legislators to consider the crucial role retailers play in supporting the economy both statewide and locally. The tough realities COVID-19 has brought to our state will impact every industry. These impacts include:
– A $5.6 billion state budget surplus reduced to a $54 billion deficit
– 22.3% reduction in overall state revenue
– 27.2% reduction in sales tax income
– 25.5% reduction in income tax
– 22.7% reduction in corporate income tax
“CRA encourages our state policy leaders to support the business community, which will be key in reversing these alarming revenue reduction percentages and ensuring the economy rebounds quickly.”
The California Retailers Association is the only statewide trade association representing all segments of the retail industry including general merchandise, department stores, mass merchandisers, restaurants, convenience stores, supermarkets and grocery stores, chain drug, and specialty retail such as auto, vision, jewelry, hardware and home stores. CRA works on behalf of California’s retail industry, which currently operates over 400,000 retail establishments with a gross domestic product of $330 billion annually and employs over 3 million people—one fourth of California’s total employment.