California Governor Gavin Newsom has decided not to allocate funding in the proposed budget for a popular vote measure that passed last November. This has raised concerns among small business owners and lawmakers who have expressed dissatisfaction, feeling that the governor is disregarding voters’ wishes.
In November 2024, approximately 68.4% of Californians approved Proposal 36, a measure aimed at addressing issues like retail theft and drug offenses, essentially reversing certain aspects of Proposition 47, which had lessened penalties for such crimes. However, when Newsom unveiled his updated $322 billion budget in May, critics pointed out that it overlooked the funding needed to support the initiative, despite its broad backing.
Fraser Ross, who operates multiple small businesses in Los Angeles County, spoke to DCNF about the rising theft in the city. He noted that businesses have suffered losses due to Proposition 47’s changes, which reclassified certain thefts as misdemeanors and lowered penalties for drug possession.
When asked about Newsom’s budget choices, small business owners didn’t hold back. Ross commented, “He’s just a puppet and doesn’t take care of California.” He acknowledged the state’s economic strength but criticized the governor for not adequately supporting local businesses.
Interestingly, Ross mentioned his visit to Newsom’s Napa Valley Winery, where he observed that all the merchandise was made overseas. “It just shows he doesn’t support local businesses,” Ross added, lamenting that local options weren’t utilized.
As crime rates, such as a 3.8% rise in robberies and nearly 40% spike in shoplifting, have become pressing issues, voters are increasingly concerned about safety as the 2024 elections approach. Proposal 36 was meant to tackle some of the issues stemming from Proposition 47.
In a recent budget presentation, Newsom remarked on shared responsibilities between the state and county but didn’t commit to specific funding sources.
Another small business owner, Alvaro Bello, recounted experiences of theft that left his shop in the fashion district significantly impacted. He said, “For us, losing $15,000 is huge, especially when it affects our savings.” Despite filing a police report, he has yet to receive any updates.
Bello observed, “This shows a lack of support for small businesses in Los Angeles. It speaks to a broader issue of neglect for the very people who contribute to the community.” He emphasized that the passage of Proposition 36 was a direct response to public frustration with crime rates and inadequate government support.
Republican State Senator Tony Strickland urged Newsom to allocate $400 million toward Proposition 36, emphasizing the need to respect voter intent.
In response to mounting criticism, the governor’s office suggested funding existing programs through the Proposition 47 Grant Program instead, although critics noted this approach was misguided.
Strickland rebutted this idea, insisting voters were very clear in their mandate regarding the need for changes in law. He raised concerns over Newsom’s funding priorities, accusing him of focusing on projects that didn’t align with public safety needs.
Newsom has voiced opposition to the proposition, sharing concerns about increasing penalties leading to a larger prison population, which he believes could compromise public safety.
An observer commented that working with numerous governors throughout his career, Newsom stands out as particularly disengaged from pressing issues, seemingly more interested in future political ambitions.
With California lawmakers aiming to finalize the state budget by June 15, Newsom is expected to sign it by June 30, though the omission of support for Proposition 36 has left many feeling disillusioned.
