California reparations: $800 billion plan could come unstuck by massive budget shortfall

California’s reparations task force voted to approve a plan to give eligible black residents payments for past discrimination — but it is still far from a sure thing.

The task force’s plan will now need to be formulated into a report for the Golden State’s legislature, which will compile the committee’s years of work and recommendations for lawmakers to consider.

CALIFORNIA REPARATIONS TASK FORCE VOTES TO APPROVE RESTITUTION PLAN

The report is due to the state legislature by July 1, at which time it will be up to them and Gov. Gavin Newsom (D-CA) to either create a law codifying the recommendations or decline to act.

The largest hurdle the plan will have to overcome is in the state legislature, where the California government is currently dealing with a $22.5 billion budget deficit for fiscal 2024. The budget deficit likely means programs will see cuts, and the implementation of a reparations program would be a new expenditure for the state.

The estimated cost of the reparations is $800 billion, according to some reports. Newsom signed the bill to create the task force in 2020 but has largely remained silent on whether he would support the current proposals. Ultimately, he is likely to have the final say in whether the reparations proposals are made law.

The current proposal calls for payments based on various alleged harms caused by the state of California to black Americans who were descendants of slaves. Calculations of the approved draft proposal show that black residents who have lived in California their whole life and are 71 or older could receive up to $1.2 million in payments.

“Reparations are not a luxury for our people, but a human right long overdue for millions of Americans,” Rep. Barbara Lee (D-CA) said during a meeting with California’s Reparations Task Force on Saturday.

“The atrocities committed against black Americans are undeniable, and reparations are a tangible route to acknowledging and making amends to the glaring economic and social impacts of slavery and systemic racism. We must repair this damage.”

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The state’s 2023 legislative session is scheduled to go until Sept. 14, with Newsom having until Oct. 14 to sign or veto bills passed by the legislature.

Democrats hold supermajorities in both the California Assembly and Senate, which could override a veto from Newsom.