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Brady Knox, Breaking News Reporter


NextImg:Gavin Newsom faces dilemma with bill to pay striking workers unemployment benefits
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Gov. Gavin Newsom (D-CA) is under pressure from both sides concerning a bill passed by the legislature that would give striking workers unemployment benefits.

The bill comes to his desk as he has tried to remain a neutral mediator in the joint Writers Guild of America and Screen Actors Guild strike, which has lasted more than 100 days. If he were to sign, it would jeopardize his position as a mediator. If he refuses to, he would come under intense fire from his progressive base.

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California Gov. Gavin Newsom during an interview with Politico in Sacramento, Calif., Tuesday, Sept.12, 2023.

When asked about the bill at a Politico event on Tuesday, Newsom remained ambiguous and didn't specify whether he would sign or veto the bill.

“I think one has to be cautious about that before you enter the conversation about expanding its utilization,” the California governor said.

The situation is especially precarious as the state faces financial difficulties concerning its unemployment benefits fund. The fund is currently $18 billion in debt after it had to borrow $20 billion from the federal government in 2020, the Los Angeles Times reported.

The California Chamber of Commerce said expanding unemployment benefits to striking workers would function as a tax increase for employers, who fund the benefits. Likewise, Republicans fought against the bill, arguing that it would unfairly tip the scales against employers.

“By doing this, we’re giving one side an advantage,” bill opponent Assemblymember Bill Essayli, a Republican, said. “You’re subsidizing, with tax dollars, the labor side.”

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Democrats argue that the move is necessary to help striking workers in dire financial straights.

“We want people to be able to pay their rent and want people to be able to put food on their table during a strike or not during the strike. It’s the right thing to do,” Democratic state Sen. Anthony Portantino, the author of the bill, said.