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8.A. - Page 35 of 42 <br />businesses, including an array of social assistance changes (augmented unemployment insurance, for <br />example) and policy choices (loan deferment on mortgages and eviction moratoria, for example), that <br />continue to provide some economic stability in 2021 versus uncertainty as to COVID-19 caseloads and <br />potential social policy choices that affect local businesses and jobs. <br />Currently, there is a third Federal stimulus package being proposed. As part of President Biden's $1.9 <br />trillion emergency spending package, state and local governments have been allocated $350 billion in <br />COVID-19 relief funds. The spending package is expected to be voted on during the week of February 22, <br />after the House Budget Committee compiles the bills into one piece of legislation the week of February <br />15. If the package passes as it is currently written, the City of Redwood City could receive up to $18.0 <br />million in relief funds. These funds have not been included in the City's Preliminary Ten -Year General <br />Fund Forecast. <br />In summary, the national economy has experienced a strong economic rebound, however, final impacts <br />from the second surge of COVID-19 remain unknown. Most likely, the impacts will be inconsistent across <br />various industries. <br />State <br />When the California Legislative Analyst's Office (LAO) released their Snapshot of the California Economy: <br />December 2020 on February 4, 2021, the message was consistent with the national picture: the state is <br />also experiencing uneven economic recovery. Measures tied to higher -income Californians reached <br />record highs, yet unemployment remains widespread and many households continue to cut back <br />spending. <br />According to the LAO, the COVID-19 pandemic has reshaped the California economy. Over the last several <br />months, the state has experienced abrupt and dramatic swings in economic activity. While a variety of <br />data is available to track developments in the state economy, drawing clear conclusions from these <br />disparate data points can be difficult. <br />As can be seen on the charts below, the December data tells a very mixed story about the state's economy. <br />One the one hand, payrolls (as measured by state income tax withholding, which is disproportionately <br />tied to earnings of higher -income individuals) and stock prices reached new highs in December. On the <br />other hand, total employment in the state dropped slightly in December, unemployment remained <br />widespread, and spending on restaurants and entertainment remains severely depressed. <br />is <br />566 <br />