Newsom gets tiny clue on revenue sharing.

Cal Matters:

The federal stimulus package that lawmakers in Washington have agreed to is “very encouraging news” for California, Gov. Gavin Newsom said Monday as he outlined how much of the $900 billion federal package is likely to flow to the Golden State.

“While it’s a lower number than we had hoped for, it is nonetheless significant,” the governor said.

The package did not include aid for state and local governments that Newsom spent months lobbying for. He said Congress “will need to do more in the future.”

Boldface mine. 

The breakthrough was Krugman mentioning shocks to local and state governments because of value chain effects.  That was a vague enough reference for other economists to try a little explaining to Newsom and Cuomo. That plus the governors  having private conversations.

We will see another attempt at revenue sharing in Q1, be sure that the concept is plain English for Pelosi, she was a bit confused last time.