California Gov. Gavin Newsom has issued the broadest loosening of his stay-at-home order so far, allowing some retailers to reopen but not have customers in stores.

The announcement Thursday was the result of improvement in battling the coronavirus, and it moves California into the second phase of a methodical four-step process to full reopening.

It covers only a sliver of retail businesses as well as manufacturers' warehouses considered low risk for the virus.

Retailers should increase pick-up and delivery and encourage physical distancing during pick-up and install hands-free devices. 

Manufacturers should close breakrooms and create outdoor break areas with physically distanced seating.

Warehouses should carry sanitation materials during deliveries and use personal protective equipment for each stop.

Stores that will be allowed to open with curbside service if they meet other safety requirements include bookstores, clothing stores, florists and sporting goods stores.

Higher-risk businesses like hair salons and gyms, offices and dining in restaurants will come later.

Newsom says the guidelines won't cover dine-in restaurants or hair salons.

Outdoor museums, shopping malls will also reopen later. 

However, three Northern California counties defied Newsom's stay-at-home order by allowing many businesses to reopen this week.

On Wednesday, the Yuba Sutter Mall became the first mall in the state to reopen.

 

Meanwhile, new estimates from Governor Newsom's administration are predicting a staggering budget shortfall of $54.3 billion because of the coronavirus.

The projections released Thursday estimate a deficit nearly three-and-a-half times more than what the state had saved for an economic downturn.

California has been under a mandatory stay-at-home order since March 19.

The order closed nonessential businesses and prompted more than 4 million people to file for unemployment benefits. A year ago, as the economy hummed, California had a $21 billion surplus.

Now, there will be dramatically less money to spend on education, social programs and other programs.

Newsom plans to reveal a new budget proposal next week.

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