FISCAL REVIEW.
SUBCOMMITTEE NUMBER FOR HEARING.
A TODAY'S HEARING WE WILL REVIEW
BUDGET PROPOSALS FOR THE
DEPARTMENT OF TAX AND FEE
ADMINISTRATION AND THE FRANCHISE
TAX BOARD -- HOWEVER FIRST ON
THE AGENDA -- WE HAVE A
LEGISLATIVE PROPOSAL THAT
TARGETED CHILD TAX CREDIT.
OF WHICH A SENATOR CABALLERO IS
HERE TO PRESENT CENTER CABALLERO
PLEASE [inaudible]
ON WELCOME.
THANK YOU MADAM CHAIR AND
MEMBERS -- THANK YOU FOR THE
OPPORTUNITY PERCENT THAT
TARGETED CHILD TAX CREDIT.
ALMOST TWO MILLION CHILDREN IN
CALIFORNIA LIVE IN POVERTY AND
ABOUT TWO HUNDRED AND TWENTY
THOUSAND CALIFORNIA FAMILIES AND
FOUR HUNDRED AND FIFTY THOUSAND
CHILDREN ARE IN DEEP POVERTY.
AND WOULD BE ELIGIBLE FOR OUR
TARGETED CHILDCARE TAX CREDIT T.
CTC.
WHERE ARE THESE CHILDREN AND
FAMILIES IN THE POVERTY THERE
THROUGHOUT CALIFORNIA IN MY
DISTRICT FORTY SIX THOUSAND
CHILDREN LIVE IN POVERTY POVERTY?
SIXTY FIVE HUNDRED OF THEM LIVE
IN ABJECT POVERTY IN THIS
SUBCOMMITTEE'S THREE SENATE
DISTRICTS ALONE THIRTY EIGHT
THOUSAND EIGHT HUNDRED CHILDREN
LEAVE LIVE IN DEEP POVERTY
[inaudible]
I'M.
WHO ARE THE FAMILIES IN DEEP
POVERTY MANY FACE OBSTACLES TO
WORK INCLUDING UNSTABLE HOUSING
AND RELIABLE CHILDCARE LACK OF
EDUCATION CRIMINAL RECORDS
MENTAL AND PHYSICAL HEALTH
PROBLEMS PROBLEMS THAT AREN'T
SEVERE ENOUGH TO QUALIFY? FOR
DISABILITY BENEFITS BUT THEY CAN
LIMIT LIMIT STEADY WORK.
MANY ARE FACED WITH A PARENT OR
CHILD DISABILITY THAT MEAN MAKES
A STATE OF A WORK DIFFICULT.
A THIRD INCLUDE UNDOCUMENTED
CALIFORNIANS AND THEY ARE LIVING
AT OR BELOW 50% OF THE FEDERAL
POVERTY LINE.
WHAT THAT MEANS IS THAT THEY'RE
LIVING BELOW TWELVE THOUSAND
EIGHT HUNDRED AND SEVENTY FIVE
DOLLARS FOR A FAMILY OF FOUR
THAT'S DEEP POVERTY?
AB IMAGINE TRYING TO SURVIVE ON
LITTLE BIT MORE BUT LITTLE BIT
UNDER THIRTEEN THOUSAND DOLLARS
A YEAR.
THE TARGETED TAX CREDIT IS
FUNDAMENTAL TO ENDING THE
POVERTY FOR THESE CHILDREN IT
ADDRESSES A CORE OBJECTIVE OF
THE LIFTING CHILDREN AND
FAMILIES OUT OF POVERTY TASK
FORCE. TO END DEEP CHILDHOOD
POVERTY AS QUICKLY AS FEASIBLE
AND WHEN FULLY IMPLEMENTED WILL
DO SO IN FOUR YEARS.
ABOUT ONE HALF OF THE TOTAL A
HUNDRED AND TEN THOUSAND FAMILY
RECEIVE NO BENEFITS THROUGH THE
CAL WORKS OUR EITC PROGRAMS.
THE REMAINING -- EL ELEVEN HAD
AT AT ONE HUNDRED AND TEN
THOUSAND FAMILIES RECEIVE SOME
BENEFITS BUT NOT ENOUGH TO PUT
THEM ABOVE THE POVERTY THRESHOLD.
LET ME BE CLEAR THAT PROPOSED
EXPANSION OF CAL WORKS YEAH I.
T. C. AND THE GOVERNOR'S
PROPOSED FIVE HUNDRED DOLLARS
CHILD TAX CREDIT PER FAMILY.
ARE IMPORTANT INVESTMENTS AND I
HOPE OR IMPLEMENTED BUT REACH
RESEARCH SHOWS THAT THESE
INVESTMENTS SUBSTANTIALLY
ADDRESSED SHALLOWER POVERTY NOT
DEEP POVERTY.
THE TARGETED TAX CREDIT IS
COMPLEMENTARY TO CAL WORKS IN
THE IDC -- AND IT PROVIDES BASIC
STABILITY THAT ALLOWS PARENTS TO
TAKE FULL ADVANTAGE OF THOSE
OTHER PROGRAMS IF THEY ARE IF
THEY'E ELIGIBLE.
THE CREDIT WILL HELP PREVENT A
NEW GENERATION OF CHILDREN FROM
GROWING UP IN POVERTY AND WILL
ALLEVIATE THE EXPOSURE TO THE
TOXIC STRESS THAT IS EXPERIENCE
WHEN FAMILIES DEEPLY LEVIN DE UM.
IN DEEP POVERTY.
THE CREDIT WILL HELP TO
STABILIZE HOUSING FOR THESE
FAMILIES THE MAIN REASON WHY SO
MANY OF THE CHILDREN ARE ON THE
STREET IS THAT THEIR PARENTS
CAN'T AFFORD THE RENT -- AND
THAT T. C. T. C. WILL GET THAT
WILL HELP THEM TO PAY THE RENT
GET INTO STABLE HOUSING AND
ALLOW THE PARENTS TO RETURN TO
THE WORKFORCE.
FINALLY THIS WILL BOOST THE
ECONOMIES OF OUR LOCAL
COMMUNITIES 80% OF THE FUNDS
SUPPORTING THESE BASIC NEEDS ARE
SPENT IN THE FAMILIES LOCAL
COMMUNITIES.
SO WE CAN.
ELIMINATE DEEP POVERTY FOR FOUR
HUNDRED AND FIFTY THOUSAND
CHILDREN BY FINDING THE TARGETED.
CHILD TAX CREDIT SO IT'S UP TO
US -- WITH ME HERE TODAY IS CON
WE CALL AS CULTURE -- CO CHAIR
OF THE LIFTING CHILDREN AND
FAMILIES OUT OF POVERTY TASK
FORCE.
THANK YOU SENATOR.
MORNING.
THANK YOU.
A WORD ABOUT THE HOW THIS WOULD
BE -- ADMINISTERED TO THE
MINISTER BY FRANCHISE TAX BOARD
OF THE CLAIMED ON A PERSONAL
INCOME TAX RETURN.
CLAIMING THE CREDIT WOULD
INVOLVE TWO SIMPLE STEPS.
THE NET RESOURCES OF THE FAMILY
BOTH OF PUBLIC AND PRIVATE
RESOURCES WOULD BE POUT
CALCULATED.
A BASED ON THE AGAIN THEY'RE
BOTH PROBABLY PUBLIC AND PRIVATE
BENEFITS.
AND THEN THOSE NET RESOURCES
WOULD BE COMPARED 250% OF THE
CALIFORNIA POVERTY LINE.
IN THE COUNTY IN WHICH THEY
RESIDE THE CAT CALIFORNIA
POVERTY LINE IS A STEP FURTHER
THAN WHAT THE CENSUS BUREAU
PROVIDES BECAUSE IT TAKES INTO
ACCOUNT -- THE THE SPECIFIC COST
OF HOUSING IN CHILDCARE ANOTHER
COSTS IN THE SPECIFIC.
COUNTY IN THE CREDIT IS SIMPLY
THAN EQUAL TO THE DIFFERENCE
BETWEEN THE TWO I'D LIKE TO JUST
EMPHASIZE THE TWO MOST CRITICAL
POINTS.
ABOUT THE TARGET A CHILD TAX
CREDIT.
THE TARGET A CHILD TAX CREDIT IS
NOT IN PLACE OF CAL WORKS IN
CALLOUS EXPANSION E. I. T. C. IN
THE E. I. T. C. EXPANSION.
BOTH OF THOSE VERY STRONGLY
RECOMMENDED AS PRIORITIES -- BY
THE TASK FORCE. TO THE TARGET A
CHILD TAX CREDIT IS NOT IN PLACE
OF THOSE BUT NOR ARE THEY IN
PLACE.
OF THE TARGETED TODD THE CHILD
TAX CREDIT THESE SERVE DIFFERENT
POPULATIONS.
THOSE THOSE BENEFITS VENN EITC
AND CAL WORKS ARE CRUCIAL.
BUT THEY GENERALLY DON'T A DRESS
THE PEOPLE THAT ARE IN DEEP
POVERTY IN THE STATE AND THE
SENATOR IS INDICATED -- THE
NUMBERS JUST REPRESENTED ED IN
EACH OF YOUR DISTRICTS WHICH IS
ABOUT SIXTY SIX THOUSAND
CHILDREN -- FOUR HUNDRED AND
FIFTY THOUSAND CHILDREN IN
CALIFORNIA ABOUT TWO HUNDRED
TWENTY THOUSAND FAMILIES ARE IN
DEEP POVERTY.
THOSE ARE THE PEOPLE THAT WHOSE
NEEDS WOULD BE ADDRESSED BY THE
TARGETED CHILD TAX CREDIT AND
REALLY ONLY BY THE TARGET THE
CHILD TAX CREDIT.
SO THESE ARE THE FOLKS THAT ARE
FACING.
SONIC INSTABILITY IN TERMS OF
ACTIONS -- HOUSING AND SECURITY --
IN AND OUT OF HOMELESSNESS --
BROKEN CARS EXPIRING TELEPHONE
CONTRACTS -- I ON UNRELIABLE
CHILD CARE.
AND SO THE PROBLEM IS UNLESS WE
ADDRESS THOSE ISSUES OF BASIC
STABILITY.
THESE ARE FOLKS THAT CAN'T BEGIN
TO CLIMB THE ECONOMIC LADDER AND
TAKE ADVANTAGE OF CAL WORKS IN
THE I. T. C..
WE'VE GOT AT LEAST A PROVIDE
THAT STABILITY SO THAT THEY'RE
ABLE TO TO USE THAT AS A
FOUNDATION. TO THEN TAKE
ADVANTAGE OF CAL WORKS AND AND
THE I. T. C. [inaudible]
THE ALONG THAT SAME LINE THE
PROPOSAL TO PROVIDE A FIVE
HUNDRED DOLLAR.
TAX CREDIT. TO FAMILIES IS AN
EXCELLENT PROPOSAL AND AND AND
WE STRONGLY RECOMMENDED TO MOVE
FORWARD.
BUT WE HAVE TO BE CLEAR.
DAD ADDRESSES SHALLOW POVERTY.
AND THAT ADDRESSES THE FOLKS
THAT ARE NEAR POVERTY SO IT'S
VERY IMPORTANT.
IT DOES NOT ADDRESS THE ISSUES
PEOPLE.
WHO PEOPLE OVER IN DEEP POVERTY
THAT AVERAGE BENEFIT JUST TO
MOVE PEOPLE FROM WHERE THEY ARE?
TO ABOVE THE DEEP POVERTY LINE
WILL BE ABOUT FORTY EIGHT
HUNDRED DOLLARS A YEAR.
AND SO WE HAVE TO BE VERY
COGNIZANT WHEN WE TALK ABOUT
THESE OTHER BENEFITS THAT
THEY'RE NOT ADDRESSING THE
PROBLEM OF DEEP.
POVERTY IN THE STATE.
THE THE FINAL POINT I'D LIKE TO
MAKE IS THAT THIS IS THE THIS
OBVIOUSLY ACOSTA ISSUE.
LONG TERM THIS PAYS FOR ITSELF
MANY TIMES OVER.
SHORT TERM THERE ARE THERE ARE
THERE ARE SOME COSTS.
BUT IT'S IT'S REALLY I THINK
VERY SIMILAR TO IF IF YOU'RE
GONNA MAKE A OF BRIDGE.
EARTHQUAKE SAFE -- IF.
AND KNOCKS A HOLE IN THE ROOF.
BOTH ISSUES OF DEFECTS THOSE
THINGS.
AND THE THE ISSUE IS YOU
PROBABLY DO BECAUSE IT'S A
PRIORITY FOR YOU.
AND SO I THINK ONE THING THAT'S
CRUCIAL IS THIS IS LOOKED AT IS
OUR FOUR HUNDRED AND FIFTY
THOUSAND CHILDREN IN THE STATE.
A SUFFICIENT PRIORITY TO SAY WE
NEED TO DO IT TO TO SPEND THE
MONEY SHORT TERM.
IN ORDER TO HAVE THE LONG TERM
BENEFITS OF THOSE PARENTS BEING
ABLE TO WORK BECAUSE THEY'VE GOT
STABILITY AND THE CHILDREN BEING
ABLE TO TAKE ADVANTAGE OF EARLY
CHILDHOOD EDUCATION IN SCHOOL
BECAUSE OF THEIR ENTER NOT A
HOMELESSNESS THE REALITY IS.
THEY'RE NOT ABLE.
TO ADJUST THE JUST THE MARTELLO
FROM WESTERN CENTER WAS THE
CHAIR OF THE SOCIAL SAFETY NET
SUBCOMMITTEE OF THE LIFTING
CHILDREN AND FAMILIES OUT OF
POVERTY TASK FORCE.
CHECK A MORNING MEMBERS OF THE
COMMITTEE JUST GIVE OUR FLOW
WITH THE WESTERN CENTER ON LAW
AND POVERTY AND ALSO ON THAT THE
TEAM CHILDREN OUT OF A PARTY
TASK FORCE.
MY JOB TODAY IS JUST TO BRIEFLY
REMIND YOU WHY IT IS IMPORTANT
TO ADDRESS THE POVERTY AMONG
CHILDREN -- AS YOU KNOW DE
POVERTY HAS AN IMMEDIATE IMPACT
ON CHILDREN A NEGATIVE IMPACT --
PREVENTING THEM FROM
PARTICIPATING IN THEIR COMMUNITY
AND IN THEIR SCHOOLS FOR
COMMUNITIES THAT HAVE HIGH
NUMBERS OF KIDS ANTI POVERTY.
THE ENTIRE SCHOOL ENVIRONMENT IS
COMPROMISED THE INVESTMENTS THAT
OUR STATE AKES AN EDUCATION ARE
COMPROMISED.
AT THE INVESTMENTS THAT OUR
STATE MAKES IN HEALTH FOR THESE
CHILDREN ARE ALSO COMPROMISE
BECAUSE IT NOT ONLY IMPACTS
CHILDREN'S PARTICIPATION IN
SCHOOL.
BUT ALSO -- INC S..
INCREASES THE LIKELIHOOD THAT
THESE CHILDREN WILL SUFFER FROM
THE TOXIC STRESS CAUSED BY DEEP
POVERTY TOXIC STRESS HAS BOTH
LONG TERM AND SHORT TERM
CONSEQUENCES -- INCLUDING
DEPRESSION.
THEY'VE IDENTIFIED DEPRESSION
AMONG INFANTS.
AS YOUNG AS FOUR MONTHS OLD.
AND THEY EXPERIENCE BASICALLY
DESPERATION. FOUR MONTHS OLD --
THE LACK OF BASIC NEEDS
CONTRIBUTE SIGNIFICANTLY -- TO
MATERNAL MENTAL HEALTH -- CRISIS.
AND AS YOU'VE PROBABLY READ --
MATERNAL MENTAL HEALTH AT
PROBLEMS AND AND MATERNAL --
DEPRESSION IS ONE OF THE
CONTRIBUTING FACTORS -- TO
CHILDREN NOT BEING READY FOR
SCHOOL BECAUSE THEIR PARENTS
DON'T INTERACT WITH THEM AND YOU
CAN ONLY IMAGINE IF YOU HAVE
CHILDREN.
ARE YOU KNOW PEOPLE WHO DO HAVE
CHILDREN NOTHING ABLE TO MEET
THE BASIC NEEDS OF YOUR CHILDREN --
AND AND WHAT KIND OF MENTAL
HEALTH CRISIS THAT WOULD CREATE
AND SO DISTANCE CRATES BETWEEN
THE CHILDREN AND THE MOTHER THEY
DON'T READ TO THEM THEY DON'T
SING TO THEM NO CODDLED EARLY
HOLD THEM AS AS MUCH -- AND THE
DATA IS THERE TO SHOW THAT -- I
DO HAVE ALSO A DOCUMENT THAT I
WILL EMAIL THE COMMITTEE WITH
CITATIONS FOR EACH OF THE POINTS
I MAKING.
DEEP POVERTY IS SO DANGEROUS TO
CHILDREN AT THAT ONE STUDY
SHOWED THAT -- GROWING UP ANTI
POVERTY MORE NEGATIVELY IMPACTED
A CHILD AND THEIR LIFE CHANCES
THE NEONATAL.
EXPOSURE TO COCAINE.
THE POVERTY IS A PUBLIC HEALTH
CRISIS IT'S THE PUBLIC HEALTH
CRISIS AND AND THE MOST AMAZING
THING AS BEFORE TODAY WE'VE HAD
PLANS FOR HOW TO ADDRESS THE
POVERTY WITHIN POCKETS.
OF THE COMMUNITY THERE WAS
BIPARTISAN SUPPORT ON THE FLOOR
LAST YEAR IN SUPPORT OF ENDING
THE POVERTY FOR THE COUCH
PROGRAM -- IN SB NINE EIGHTY TWO
AND WE APPRECIATED THAT BILL --
AND THERE HAS BEEN MOVEMENT AND
REDUCING AT THE POVERTY WITHIN
CAL WORKS THIS IS THE FIRST TIME
THAT A PROPOSAL HAS COME FORWARD
AND SAID WE WILL ANDY POVERTY
FOR ALL CHILDREN.
IT'S A PRIORITY OF OUR STATE TO
DO SO -- AS AS A BODY ELECTRIC
ELECTED BODY BUT ALSO AS AS A
COMMUNITY OF PEOPLE IN
CALIFORNIA.
WE CAN CONTINUE TO POINT OUR
FINGERS AT THE PARENTS TO SAY
YOU OUGHT TO BE DOING MORE TO
TAKE CARE OF YOUR KIDS BUT EACH
TIME WE DO THAT UNTIL THE KIDS
ARE OUT OF THE POVERTY. FOUR
FINGERS ARE POINTING BACK AT US.
SO THIS IS OUR OPPORTUNITY TO
SAY TO THE CHILDREN IN
CALIFORNIA WE BELIEVE IN YOU NO
MATTER WHAT CIRCUMSTANCES YOU
GROW UP IN -- WE BELIEVE YOU
HAVE A FUTURE HERE IN CALIFORNIA
AND WE'RE GONNA MAKE SURE THAT
YOU DO [inaudible]
IN CLOSING.
AND I LIKE TO SAY THAT SOME OF
THESE KIDS HOPEFULLY. ONE DAY
WE'LL COMES TO TO BE HERE TO BE
WHERE I'M SIT SITTING OR WHERE
YOU'RE SITTING.
AND A LOOK BACK AT TODAY AND IF
WE WERE ABLE TO MAKE THESE
CHANGES THE LOOK BACK AND LOOK
AT THE VOTES FROM TODAY -- AND
FROM THE DECISIONS OF THIS BODY
AND KNOW THAT THOSE DECISIONS
HELP THEM GET TO WHERE THEY ARE.
IF WE DIDN'T MAKE THIS CHOICE
AND THEY SUFFERED GREATLY IF
THEIR SIBLINGS WERE STUCK IN
POVERTY IF THEIR LIFE CHANCES --
ARE TRUNCATED OR THEY EXPERIENCE
DEBILITATING AND PAINFUL
LIFELONG DISEASES BECAUSE OF THE
TALKS EXPRESS EXPERIENCE IN DEEP
POVERTY.
THE LHASA REMEMBER WHO'S.
WHO'S VOTE I WASN'T CATH I'M FOR
THAT TO BE PREVENTED.
I KNOW AS AS SOMEBODY WHO'S A
MYSELF EXPERIENCE CHILDHOOD
DEPRIVATION OF OF BASIC NEEDS.
I HAVE GONE BACK TO SEE WHO
VOTED AGAINST MY INTERESTS AS A
CHILD.
AND I WOULD EXPECT THE SAME OF
THE CHILDREN COMING UP TODAY TO
DO THAT TO DO THAT AS WELL.
SO I JUST ENCOURAGE YOU -- I
KNOW THIS IS SOMETHING THAT
EVERYBODY BELIEVES -- WE CAN DO
AND AND IF WE CAN DO IT AND WE
SHOULD DO IT AND I URGE YOUR
SUPPORT FOR THIS PROPOSAL THANK
YOU.
THANK YOU -- WE HAVE PUBLIC
[inaudible]
THE QUESTION.
COMMA SIR SENATOR [inaudible]
THE APPORTIONMENT.
OF THE CREDIT FOR THE FIVE
HUNDRED DOLLARS.
WILL THAT BE TO A CUSTODIAL
PARENT OR THE FAMILY STRUCTURES
ARE VERY.
ILL DEFINED NOW.
STILL HOW HOW IS IT GOING TO BE
DECIDED WHO GETS THE FIVE
HUNDRED DOLLARS AND THEN HOW DO
WE ASSURETHAT THAT FIVE HUNDRED
DOLLARS IS USED FOR THE BENEFIT
OF THE CHILD'S.
FUTURE.
NOT JUST THE THE PARENT THE
WHATEVER CUSTODIAN.
THANKS FOR THE QUESTION SENATOR
THAT THE FIVE HUNDRED DOLLARS IS
ANOTHER IS ANOTHER BILL.
THIS ONE IS IS A TAX CREDIT.
THAT IS THAT GOES TO THE
CUSTODIAL PARENT.
IF THE INDIVIDUAL IS FILING THE
TAX RETURN OKAY AND SO THAT'S
THE ANSWER.
AND YOU JUST HOPE THEY WILL USE
IT FOR THE PURPOSE INTENDED THEM
WELL YOU KNOW WHAT -- I I THINK
PART OF THE CHALLENGE WITH THESE
FAMILIES IS THERE'S A LOT OF
CHAOS -- AND THE CHAOS IS
CREATED BY THE FACT THAT THERE
IS THERE ISN'T THERE IS NOT
ENOUGH MONEY COMING IN TO HELP
THEM -- STABILIZE THEIR THEIR
THEIR SITUATION AND SO -- WHAT
THIS DOES IS IT CREATES AN
OPPORTUNITY BECAUSE IT IT IS A
SIZEABLE CHECK FOR THEM TO BE
ABLE TO PAY THE RENT -- YOU KNOW
GET INTO HOUSING IF THEY DON'T
HAVE IT.
MANY OF THESE FAMILIES -- OUR
OUR ARE ARE HOMELESS -- OR
THEY'RE STAYING IN SOMEBODY'S
GARAGE -- THEY'RE NOT IN A
SITUATION WHERE THEY'RE ABLE TO
PAY ALL THE BILLS AND STILL MEET
THE MEET THE NEEDS OF THEIR OF
THEIR CHILDREN AND SO.
BY PROVIDING AN OPPORTUNITY FOR
THEM TO BE ABLE.
TO GET A CHECK THAT WILL PROVIDE
SOME STABILITY FOR THEM WE
BELIEVE THOUGH IF THEY'RE GOING
TO BE ABLE TO ACCESS THE OTHER
SERVICES THAT ARE OUT THERE IT'S
SO IT IS GOING TO BE IMPORTANT
FOR US TO MAKE SURE THAT THOSE
OTHER SERVICES ARE PREPARED. TO
WELCOME THE MEN AND TO HAVE THEM
BE A PART OF THEIR PROGRAMS SO
AND SO WE CAN WE CAN WORK AT AT
LINING UP THE SERVICES SO THAT
WE MAKE SURE THAT -- WANTS
PEOPLE TO HAVE A STABLE HOUSING
AND THEY DO HAVE THE ABILITY TO
MEET SOME OF THEIR BASIC NEEDS
THAT THEY THEN CAN GET INTO
THESE PROGRAMS.
CAN I ADD ONE ONE THING SO
PLEASE -- YOU KNOW WHAT THE TASK
FORCE YOU CAN IMAGINE GOD
VOLUMINOUS STUDIES AND DATA AND
MOST OF IT ARE THINGS THAT YOU
KIND OF KNOW ALREADY.
THERE'S A LOT OF DATA.
THE THE DATA THAT SURPRISED ME
THE MOST.
WAS HOW CLEAR THE EVIDENCE IS.
THAT WHEN PARENTS HAVE
ADDITIONAL MONEY.
THEY SPEND IT ON THEIR KIDS.
AND IT'S IT IS.
ANY PERCEPTION THAT THE PEOPLE
IN DEEP POVERTY -- DON'T SPEND
IT THAT WAY IS INCORRECT BECAUSE
THE DATA SHOWS VERY CLEARLY.
THAT THEY THEY SPEND IT ON THEIR
KIDS PEOPLE CARE ABOUT THEIR
KIDS AND BY THE WAY THEY ALSO
SPEND IT IN THEIR LOCAL
COMMUNITIES.
WITH NOT BEEN DEFINED YET WHAT
THE PROPOSAL OF THE FIVE HUNDRED
IS NOW THAT.
WE HAVEN'T HEARD THAT YET AND I
DON'T THINK WE'VE EVEN GOT THE
SPECIFICS ARE PRESENTED TO US
YEAH [inaudible]
THANK YOU.
FIRST OF ALL THANK.
THE THREE OF YOU FOR BRINGING
THIS IMPORTANT ISSUE TO OUR
ATTENTION MR CALLS I'VE KNOWN
YOU FOR MANY YEARS AND YOU --
ARE TO BE CONGRATULATED AND
ADMIRED FOR THE TIME EFFORT AND
PASSION YOU PUT INTO
CALIFORNIA'S NEEDIEST TICKET AGE
CHILDREN.
THAT'S NUMBER ONE NUMBER TWO
ADJUSTED ADMINISTRATIVE QUESTION
DEPARTMENT OF FINANCE SCENARIOS
NOT HERE IN TERMS OF LEGISLATIVE
PROPOSALS HOW DOES THAT WORK.
OF THIS SHE MAY MAYBE.
IT WILL THEY REALLY RICH COME
COMMENT RESPOND [inaudible]
TYPICALLY THE ALL RIGHT DO YOU
HAVE ANY COMMENT THAT'S GOOD --
I DON'T SEE THEM HERE -- ALL
RIGHT IN IN THE NEXT IS -- IT'LL
BE PHASED IN IS IT TO OUR NINETY
MILLION IS HIS FIRST YEAR COSTS
WHAT WHAT DO YOU TO SPEED THE
OUT YOUR COSTS TO BE.
I'M YEAH THAT THAT THE TASK
FORCE FOR ALL THE PROPOSAL'S
WRAPPED IT UP OVER.
WRAPPED UP THE CUSTOMER TEN
YEARS IN THE FIRST TWO WERE.
DESIGNED TO FIRST OF ALL BE WITH.
DURABLE IN IN TERMS OF THE
BUDGET -- THE WITH THE WITH THE
IDEA THAT DID THAT AFTER TWENTY
TWENTY THERE'S GOING TO BE A LOT
OF TAX REFORM ISSUES OTHER
THINGS.
SO THE FIRST YEAR COST IS TWO
HUNDRED NINETY MILLION PLUS.
THEY'LL BE ADMINISTERED CLASSES
FOR FRANCHISE TAX BOARD IN ORDER
FOR THEM.
TO RAMP UP THERE'S A PLACE
HOLDER IN TERMS OF THE COST OF I
BELIEVE THREE MILLION ALTHOUGH
OBVIOUSLY THERE COST MAY BE.
AND IT MAY BE BEYOND THAT TO
RAMP UP THE FIRST YEAR AND THEN
THE OUT REACH IS GOING TO BE
CRUCIAL TO GET PEOPLE TO SIGN UP
FOR NEWS TWENTY MILLION IN. TO
DO THE SAME WAY I TO SEE
REQUIRED.
THE REACHING OUT TO PEOPLE AND
GETTING THEM TO SIGN UP THIS IS.
THIS IS THE SAME THING SO THE
THE THE SECOND YEAR COST AND SO
THAT'S THE ONLY COVERS FOR THE
FIRST YEAR.
I CHILDREN ZERO TO THREE IN
ORDER TO KEEP THE OVERALL COST
OUT AND RICH IN INITIALLY.
WHEN FULLY UTILIZE TEN YEARS OUT --
WHEN AT THAT POINT YOU'D HAVE?
A NORM IS COST SAVINGS FROM IT
WOULD BE TWO POINT FOUR BILLION.
BUT AT THAT POINT THE RETURNS
FROM IT IN TERMS OF REDUCED
OTHER KINDS OF SOCIAL SERVICES --
TAX RECEIPTS FROM THE PEOPLE
THAT HAVE RECEIVED SERVICES IN
THE PAST WOULD FAR OUTWEIGH THE
THE DIRECT BUDGETARY COST.
IF I MIGHT ALSO JUST THAT I KNOW
IT'S NOT THE CUSTOM TO CONSIDER
THAT SAVINGS PRESSURES OF THESE
KINDS OF INVESTMENTS BUT WE
WOULD EXPECT THAT YOU HAVE
PRODUCED TRANSCEIVER SO INCREASE
SCHOOL PARTICIPATION AND FUNDING
COMING FROM THAT.
YOU HAVE -- REDUCE
HOSPITALIZATION AND HEALTH CARE
COSTS OF CHILDREN -- BOTH SHORT
TERM AND LONG TERM AS A GROWING
TO ADULTS AND AND NOT HAVING
LONG TERM IMPACT OF THAT -- DE
POVERTY AS WELL -- FEWER PEOPLE
ACTUALLY THE THE FEWER YEARS YOU
SPEND IN THE PROPERTIES A CHILD
THE LESS LIKELY YOU ARE TO IT TO
BE ANTI POVERTY AS AN ADULT AND
TO RELY ON PUBLIC BENEFITS AS AN
ADULT.
SO I RECOGNIZE THESE ARE MANY
FOUR YEARS OUT OF BUT I LIKE TO
CALL THEM SAVINGS PRESSURES --
THAT WE WOULD EXPECT SAVINGS AND
OTHER PLACES.
MADAM CHAIR OF MR SEVEN JOB IF
IF I COULD ASK IF WE HAVE SOME.
LA -- DEPARTMENT FINANCE NOT NOT
TODAY OBVIOUSLY THEY'RE NOT HERE.
BUT OF COMMON FOR US THAT WOULD
BE HELPFUL.
OKAY THANK YOU WILL GO.
JUST ONE MORE UP QUESTION.
WHAT'S YOUR SENSE OF HOW YOU
WILL OR HOW THIS PROGRAM.
WILL HELP THOSE FAMILIES GET THE
ADDITIONAL SERVICES THAT THEY
NEED BECAUSE YOU TALK ABOUT.
BRINGING SOME STABILITY TO THE
FAMILY CLEARLY.
JUST THIS IN THEIR LIVES IS NOT
GOING TO TAKE THEM.
OUT OF THE ALL THE ISSUES THAT
THEY'VE BEEN FACING OBVIOUSLY
FOR AT LEAST SOME NUMBER OF
YEARS.
SO THEY'VE BEEN A VERY CRITICAL
CRITICAL.
SITUATION.
IT'S NOT JUST A MATTER OF HERE
SOME.
FUNDING TO HELP YOU.
HOW DO YOU MAKE SURE THEY REALLY
GET THE FULL SERVICES?
THAT'S REALLY IT A CRITICAL IN
GREAT QUESTION -- AND IT WHAT IT
GOES TO IT IS THAT.
THE SERVICES AND SUPPORT THAT
PEOPLE NEED HAS TO BE
COMPREHENSIVE AND COORDINATED.
AND ONE OF THE PROBLEMS IN THE
PAST.
IS THAT WHAT THAT ISN'T THE WAY
WE'VE WE'VE GENERALLY OPERATED.
AND IT ACTUALLY IT IT ALSO GOES
BACK TO THE POINT I WAS MAKING
WITH REGARD TO CAL WORKS IN THE
I. T. C..
AND THE TARGET A CHILD TAX
CREDIT THESE THINGS WORK
TOGETHER WE CAN'T JUST DO ONE
THING.
IT'S A TOP RATED COMPREHENSIVE
COORDINATED APPROACH SELF THIS
IS PART OF THE CONTINUUM THAT
THAT STARTS WITH WITH HEALTH
CARE AND PRENATAL CARE.
HOME VISITING PROGRAMS CHILDCARE
EARLY CHILDHOOD EDUCATION ALL
THESE THINGS HAVE TO WORK
TOGETHER INCLUDING THE
COORDINATION OF THESE PROGRAMS
THROUGH THINGS LIKE PROMISE
NEIGHBORHOODS.
WHERE PEOPLE ARE?
WITH AN ABLE TO TAKE A GIVEN
ACCESS TO THE RANGE OF SERVICES
THAT THEY NEED.
WHAT'S SO IMPORTANT ABOUT THIS
IS THAT THEY CAN TAKE ADVANTAGE
OF THE OTHER SERVICES.
WHILE THEY'RE BOUNCING IN AND
OUT OF HOMELESSNESS. FOR EXAMPLE.
SO BUT BUT AS PART OF THAT WHEN
WHEN WHEN THEY'RE REACHED OUT TO
TO GET INTO SIGNED UP SIGN UP.
THE WAY THIS YEAR.
WOULD BE WORKING AND SHOULD BE
WORKING.
IS THAT THEY WOULD ALSO BE MADE
AWARE OF THE OTHER SERVICES THAT
ARE AVAILABLE.
IN TERMS OF CHILDCARE AND CHAU%
AND AND AND EARLY CHILDHOOD
EDUCATION SO THAT'S ALSO THIS
PART OF THE THE OUTRAGE WHEN
YOU'RE GETTING PEOPLE TO SIGN UP.
SO IF I COULD AS WELL ON THE THE
GROUP THE GREAT THING ABOUT THE
LISTING CHILDREN AND FAMILIES
OUT OF POVERTY TASK FORCE IS
THAT -- IS THAT THE THE TASK
FORCE WORKED VERY DILIGENTLY TO
PUT TOGETHER -- THE STRATEGIES
FOR REDUCING POVERTY AND THEY
THEY THEY ALSO -- HIGHLIGHTED.
WHICH ONES WOULD HAVE THE MOST
IMPACT ON THE DIFFERENT ASPECTS
OF POVERTY AND I ON ANOTHER BILL
THAT I'M WORKING ON A WILL START
TO SET SOME -- GOALS.
SO THAT WE CAN REDUCE DEEP
POVERTY WITHIN A CERTAIN PERIOD
OF TIME AND POVERTY WITHIN
ANOTHER PERIOD OF TIME JUST LIKE
WE DO OUR CLIMATE GOALS.
AND AND A REPORT THAT WOULD COME
BACK BACK BY ANY BY IN A LITTLE
BY IN LIEU OF THE BY AND BY.
I ANNUALLY THAT'S RIGHT IT IS BI
ANNUALLY THAT THAT -- THAT TELLS
US HOW WE'RE DOING.
AND THEY CAN GIVE US
RECOMMENDATIONS ON HOW TO MAYBE
MAKE SOME OF THE LINKAGES AND
WHAT'S WORKING IN SME
COMMUNITIES AND YOU KNOW THAT
THAT KIND OF THING SO WE'RE THIS
IS.
THIS IS REALLY AN ATTEMPT TO BE
MUCH MORE ORGANIZED AND
DISCIPLINED ABOUT HOW WE ADDRESS
THIS ISSUE AND TO DO IT -- OFF
THE BILL THAT OFF THE WORK THAT
THAT'S BEEN DONE OVER THE PAST --
EIGHTEEN MONTHS THERE ARE SO
THAT THAT THAT THIS IS A GROUP
HAS BEEN MEETING AND SO -- OUR
YOUR POINT IS REALLY WELL TAKEN
IN THE END TO JUST -- THROW
MONEY AT SOMETHING DOESN'T SOLVE
THE PROBLEM YOU HAVE TO LINK AND
MAKE IT MUCH MORE COMPREHENSIVE.
AND I KNOW YOU SAID I THINK THIS
IS A GREAT KIND OF ADDITION TO
MY THINKING I HADN'T REALLY
THOUGHT ABOUT.
THE PLATFORM FOR SAY THAT WE
MIGHT HAVE SOMEBODY GO THROUGH
AND ALL THE WORK WE'VE DONE TO
MAKE SURE WHEN YOU'RE APPLYING
ONLINE FOR SCHOOL MEALS YOU GET
TO LEARN ABOUT MEDI CAL AND SNAP.
OR YOU'RE BUYING ONLINE FOR
THESE OTHER PLACES WE'VE DONE
THE WORK TO CONNECT THOSE AT
LEAST LIKE WITHIN AN ONLINE
PORTAL.
SO WE'L BE THOUGHTFUL ABOUT
ABOUT THAT WE WORK ON THE
TRAILER BILL FOR THIS TO MAKE
SURE THAT -- THAT INCLUDES THAT
VISION OF YOU KNOW NO WRONG DOOR.
AND SO I I JUST WANTED TO SAY
THAT I THINK THAT THAT --
QUESTION IS A CONTRIBUTION TO
THE CONVERSATION THANK YOU.
UP AND NOTHING ELSE IS IT THANK
YOU VERY MUCH FOR THE
OPPORTUNITY HERE TODAY REALLY
APPRECIATE [inaudible]
THANK YOU.
I'M SORRY THERE MAY BE SOME
OTHER FOLKS PUBLIC COMMENT
ANYBODY.
THE TWO BEFORE [inaudible]
THANK YOU.
IF YOU COULD DO.
GOOD MORNING.
THANK YOU FOR BEING HERE -- SHE
GAS INTO GET EXECUTIVE DIRECTOR
OF THE CHILDREN'S DEFENSE IN
CALIFORNIA I ALSO SERVED ON THE
TASK FORCE AND I'M JUST HERE TO
JUST.
EL URGE YOU AS MY COLLEAGUE FROM
WITHIN START CENTER I'M SO
ELOQUENTLY PUT THE EFFECTS OF
LIVING IN DEEP POVERTY ARE LONG
LASTING ON CHILDREN'S PHYSICAL
MENTAL HEALTH.
AND IT REALLY IS A MORAL CRISIS
THAT WE HAVE CHILDREN LIVING IN
DEEP POVERTY IN CALIFORNIA AND%
WE HAVE THE SOLUTION HERE TODAY
WE CAN DO THE RIGHT THING AND SO
DOES URGING -- FOR US TO MAKE
THE HISTORIC CHANGE THANK YOU
THANK YOU.
GOOD MORNING JACKIE ALONG WITH
THE AND HELP OUR IN CALIFORNIA
CAMPAIGNING GRACE -- I WANNA
LIKE IN MY ALIGN MY COMMENTS
WITH MISS JAMAICA AS WELL AS
WESTERN CENTER ON LAMPARD THIS
IS ACTUALLY VERY MUCH A PUBLIC
HEALTH CRISIS.
SOMETHING THAT WE CAN DO WE MAKE
INVESTMENTS AND HEALTH AND
CLIMATE ALL THE TIME THIS IS
SOMETHING WE SHOULD DO FOR
CHILDREN FOUR OF EIGHTY THOUSAND
ALMOST HALF A MILLION CHILDREN
LIVING IN POVERTY.
THANK YOU.
HELLO I'M KEVIN INS CO
REPRESENTING THE CALIFORNIA
INTERFAITH COALITION WHICH IS
THE CALIFORNIA CATHOLIC
CONFERENCE THE NATIONAL COUNCIL
OF JEWISH WOMEN CALIFORNIA THE
FRIENDS COMMITTEE ON LEGISLATION
OF CALIFORNIA.
THE COUNCIL ON AMERICAN ISLAMIC
RELATIONS THE LUTHERAN OFFICE OF
PUBLIC POLICY THE JEWISH PUBLIC
AFFAIRS COMMITTEE OF CALIFORNIA
GRACE AND CALIFORNIA CHURCH
IMPACT.
AS FAITH BASED ORGANIZATIONS WE
ARE VERY CONCERNED ABOUT CHILD
POVERTY IN CALIFORNIA.
AND WE SUPPORT THE TARGETED
CHILD TAX CREDIT THANK YOU.
NOW YOU LEASE ON THE ONE WITH
THE NIGHT AWAY SO CALIFORNIA --
SO -- WOULD LIKE TO LINE MY
COMMENTS WITH OUR PARTNERS OF
WHICH IS SPOKE BEFORE ME --
ENDING CHILD POVERTY IS
DEFINITELY AN IMPORTANT ISSUE TO
TRY TO GET FAMILY SPORTS
FINANCIAL STABILITY THANK YOU.
THANK YOU.
CALIFORNIA ASSOCIATION OF FOOD
BANKS ALSO IN STRONG SUPPORT OF
THIS PROPOSAL AND WE SEE EVERY
DAY THERE REALLY A HARSH TOLL
THAT POVERTY TAKES ON ESPECIALLY
CHILDREN THROUGH THE FORM OF
HUNGER.
I'M IN ALL THE MERRY OUT
CONSEQUENCES THAT HOUSE
THROUGHOUT THEIR LIVES AS THEY
GROW UP.
I'M SO AND WE'RE AND I'M REALLY
STRONG AGREEMENT WITH THIS
PROPOSAL TO MAKE SURE THAT -- WE
ADDRESS THIS REALLY A CRITICAL
ISSUE THANK YOU THANK YOU.
GOOD MORNING MY NAME IS JOSH
FRIDAY PRESIDENT GOLDEN STATE
OPPORTUNITY AND WE WANT TO STAND
WITH OUR PARTNERS IN THEIR
MESSAGE THAT THIS IS A NECESSARY
PROGRAM IN ADDITION TO THE
EIGHTY SEEING OUR MANSION. TO
SUPPORT ALL OF OUR FAMILY STRUCK
CALIFORNIA THANK YOU.
THANK YOU FOR YOUR WORK ALSO
[inaudible]
OKAY.
OKAY THANK YOU VERY MUCH.
THANK YOU.
NOW WE'RE GOING TO TAKE UP THE
VOTE ONLY ITEMS.
THE ISSUES ARE.
TO THROUGH.
ISSUE -- EIGHT DOES ANY MEMBER
OF THE SUBCOMMITTEE -- WISH TO
REMOVE ANY ITEMS FROM THE VOTE
ONLY.
A MOTION TO MOVE -- HEARING NONE
ANYBODY IN THE PUBLIC.
COMMENT.
ON THESE ISSUES.
NO.
OKAY THE MOTION TO MOVE THESE
ITEMS.
PLEASE CALL THE ROLL.
THIRD RAZA HI THERE NIELSEN I
CENTER ON BURKE.
OKAY NOW WE ON TO MOVE ON TO OUR
A DISCUSSION HERE WE WE ARE
GOING TO DO -- ISSUE NINE SO
WOULD LIKE TO HAVE THE
DEPARTMENT OF TAX AND FEE
ADMINISTRATION COME UP PLEASE.
SHOULD NINE AND
TEN FIFTY GOOD
MORNING MORNING MORNING OKAY.
TAKE IT AWAY.
THANK YOU -- KATIE HEY CAN CHIEF
DEPUTY DIRECTOR CALIFORNIA
DEPARTMENT OF TAX AND FEE
ADMINISTRATION.
I LOST MY COLLEAGUES -- FROM THE
DEPARTMENT OUR CHIEF COUNSEL AND
ARE A PROJECT MANAGER OF THE
CROSS PROGRAM TO ATTEND WITH ME
TODAY -- I'LL GIVE A HIGH LEVEL.
SUMMARY OF OUR TWO REQUESTS AND
THEN I'LL TURN IT OVER TO SCOTT
HAVE LONG OUR PROJECT MANAGER
FOR CROSS.
FOR A LITTLE BIT OF THAT.
OVER THE LAST.
NAMES AND SYSTEM.
I'M OUR FIRST ABBY C. P. IS THAT
CENTRALIZE REVENUE OPPORTUNITY
SYSTEM PROJECT OTHERWISE KNOWN
AS CROSS -- IT'S OUR REVENUE
INFORMATION TECHNOLOGY SYSTEM
THAT WAS APPROVED BACK IN TWO
THOUSAND ELEVEN DESIGNED TO
IMPROVE THE EFFICIENCY AND
EFFECTIVENESS OF CD TFA IS OFF.
EXPAND TAX AND FEE PAYER
SERVICES AND ENHANCE ITS ABILITY
TO GENERATE INCREASED REVENUES --
IN MAY OF TWO THOUSAND EIGHTEEN
WE WENT LIVE FOR OUR SALES AND
USE TAX WHICH REPRESENTS
APPROXIMATELY 85%.
OF THE DEPARTMENT'S REVENUE.
THE CITY TFA REQUEST TWENTY FOUR
POINT FIVE MILLION TO CONTINUE
IMPLEMENTATION OF ACROSS PROJECT
INTO FISCAL YEAR -- NINETEEN
TWENTY AND YOU'LL SEE WE HAVE --
WE'RE RETURNING -- SEVEN
POSITIONS -- THAT WE NO LONGER
NEED AS PART OF OUR NEXT PHASE --
AND REQUESTING TWENTY FOUR POINT.
FIVE I'M.
MOVING ON TO THE SECONDS A B. C.
P. -- AS OUR TAX AND FEE PROGRAM
BUREAUS OFFICE OF TAX APPEALS
WORKLOAD.
I'M IN JANUARY -- TWO THOUSAND
EIGHT THE OFFICE ATTACKS
APPEALED IMPLEMENTED AND YOU
HAVE A MINISTRY OF HEARING
PROCESS. FOR APPEALS WHICH
INCREASE THE CALIFORNIA
DEPARTMENT OF TAX AND FEE
ADMINISTRATION AS WORK LOAD.
FROM APPROXIMATELY TWENTY FORTY
EIGHTY HOURS -- TWO HUNDRED
FIFTY HOURS UP FOR EACH TAX
APPEAL INVOLVING LEGAL ISSUES
AND FROM THREE HOURS TO TWENTY
HOURS FOR EACH TAX.
APPEAL INVOLVING AUDIT ISSUES.
THE CD TFA REQUEST THE FOLLOWING
RESOURCES ONE POINT FOUR MILLION
FOR SIX PERMANENT POSITIONS
ALTHOUGH FIVE WE'VE RE DIRECTED
FROM INTERNAL -- USE AND AND WE
ARE REQUESTING ONE NEW POSITION
IN FISCAL YEAR.
NINETEEN TWENTY AND EIGHT
HUNDRED AND SEVENTY SIX THOUSAND
IN TWENTY TWENTY ONE AND I'M
GOING -- THIS AUGMENTATION WILL
ENSURE THAT OUR LEGAL DIVISION
STAXYN PEEPER GRAMS BUREAU HAS
THE RESOURCES NEEDED FOR OTA
HEARINGS.
AND IF IT'S ALRIGHT WITH ME I'LL
TURN IT OVER TO SCOTT SAID TALK
A LITTLE BIT MORE OF GOOD
MORNING MADAM CHAIR AND
COMMITTEE MEMBERS MY NAME SCOTT
CAP LONG ON THE CROSS PROJECT
DIRECTOR FOR CD TFA -- BEFOREA
GOING TO BRIEF PROJECT STATUS
UPDATE JUST WANT TO COVER SOME
HIGH LEVEL -- PROJECT TO PROJECT
OBJECTIVES IN OUR SOLUTION --
SOME OF THE PROJECT OBJECTIVES
FOR THE CROSS PROJECT WAS TO
REPLACE ARE OUTDATED LEGACY
SYSTEMS -- THOSE WERE DEVELOPED
IN THE NINETEEN NINETIES AND OF
SERVICE WELL BUT IT'S TIME FOR
US TO MOVE TO A MORE MODERN
TECHNOLOGY -- ALSO TO CREATE A
MORE CUSTOMER CENTRIC SOLUTION
FOR OUR TAX AND FEE PAYERS -- AS
WELL AS DECREASE THE TAX GAP.
ARE PROJECTS SOLUTION --
INCLUDES AWARDING A FIXED PRICE
CONTRACT TO FAST ENTERPRISES --
IN AUGUST OF TWENTY SIXTEEN FOR
EIGHTY FIVE MILLION DOLLARS --
THEY'VE.
INCLUDED A COMMERCIAL OFF THE
SHELF SOFTWARE CALLED CHEN TAX --
THAT SOFTWARE SOLUTION IS IN USE
AT TWENTY FIVE DIFFERENT
DEPARTMENT OF REVENUE IN THE
UNITED STATES -- IN INCLUDES
DATA WAREHOUSE AND A DATA
ANALYTICS CAPABILITIES --
GREATER ACCESS TO OUR DATA -- AS
WELL AS OPPORTUNITIES FOR
REVENUE GENERATION AND IN THIS.
PARTICULAR PROPOSAL THE VENDOR --
PROJECTS THAT REVENUE WILL
INCREASE OF APPROXIMATELY THREE
HUNDRED THIRTY FIVE MILLION
DOLLARS OVER THE NEXT SIX YEARS.
FOR OUR STATUS WE HAVE
SUCCESSFULLY IMPLEMENTED OUR
FIRST PRODUCTION ROLLOUT IN MAY
OF TWENTY EIGHTEEN AS HE DID
MENTION -- THAT INCLUDES OUR
SALES AND USE TAX PROGRAM AS
WELL AS RELATED -- FEE PROGRAMS
TO THE SALES TAX PROGRAM -- THAT
REPRESENTED THE BIGGEST PHASE OF
THE PROJECT OUR LARGEST TAXPAYER
BASE AND THE LARGEST NUMBER OF
STAFF UTILIZING THE SYSTEM.
WHICH IS APPROXIMATELY THIRTY
FIVE HUNDRED STAFF AT CD TFA --
WE ARE RIGHT NOW CONTINUE OUR
STABILIZATION ACTIVITIES FOR
THAT FIRST ROLLOUT WHICH
INCLUDES USABILITY IMPROVEMENTS.
FOR BOTH TAXPAYERS AND OUR STAFF --
WE'VE CONDUCTED FOCUS GROUP
SESSIONS -- IMPLEMENTED
IMPROVEMENTS STREAMLINED
PROCESSES -- AND INCREASED OR
IMPROVED THE TIME TO FILE A TAX
RETURN.
WE'VE ALSO BEEN ACTIVELY WORKING
WITH THE TAX PREPARER COMMUNITY --
TO STREAMLINE THE FILING
PROCESSES FOR THOSE FOR THOSE
TAXPAYERS -- WE ALSO CONTINUE TO
WORK ON OUR ORGANIZATIONAL
CHANGE MANAGEMENT AND TRAINING
FOR STAFF -- THAT INCLUDES
CONDUCTING WEBINARS WORK GROUP
SESSIONS -- WORKSHOPS AND DOING
MULTIPLE TRAINING SURVEYS TO GET
FEEDBACK ON OUR TRAINING IS
DOING -- RIGHT NOW WE'RE ALSO --
IN THE IMPLEMENTATION PHASE FOR-ROLL OUT -- THREE WHICH IS
SCHEDULED TO IMPLEMENT IN AUGUST
OF TWENTY NINETEEN THAT INCLUDES
TWELVE ADDITIONAL TAX AND FEE
PROGRAMS.
OUR CURRENT ACTIVITIES FOR THAT
PHASE OF THE PROJECT IS USER
ACCEPTANCE TESTING PREPARING FOR
TRAINING THE STAFF LITTLE
UTILIZE THE SYSTEM --
ORGANIZATIONAL CHANGE MANAGEMENT
ACTIVITIES AS WELL AS OUT REACH
TO OUR COST.
AND THEN OUR FINAL ACTIVITIES
FOR THAT PHASE WILL BE TO
CONDUCT OUR FINAL TESTING
TRAINING AND AGAIN LIKE I
MENTIONED THE GO LIVE DATE IS
AUGUST OF TWENTY NINETEEN OUR
FINAL ROLLOUT FOR THE PROJECT --
WILL BILL BE IMPLEMENTED IN
TWENTY TWENTY AND THAT WILL
INCLUDE THE REMAINING SPECIAL
TAX AND FEE PROGRAMS -- SO IS
CAN YOU IMAGINE THE SPECIES.
B. B. C. B. REQUEST FOR NINETEEN
TWENTY IS -- FOR TWENTY FOUR
POINT FIVE MILLION DOLLARS IT
ALSO INCLUDES -- THE VENDOR
COMPENSATION PAYMENT OF FOURTEEN
POINT FIVE MILLION DOLLARS
[inaudible]
OKAY -- COLLEAGUES -- I'M SORRY
YES.
WE HAVE NO CONCERNS WITH THE
PROPOSAL [inaudible]
FINANCE.
THE ADMINISTRATION SUPPORTS THE
GOVERNOR'S PROPOSAL THESE ARE
CRITICAL RESOURCES. FOR A
PROJECT THAT'S THAT'S ON TRACK
[inaudible]
OKAY.
THE AND I'VE STILL GOT LOTS TO
LEARN HOW DOES THIS INTERACT
WITH THIS GIRL -- WE PROVIDE
SOME DATA DIRECTLY -- TO FISCALE
IN TERMS OF WHAT CASH RECEIPTS
ARE COMING IN BUT OTHER THAN
THAT IT'S NOT AT A DIRECT.
INTEGRATION WITH THAT SYSTEM
[inaudible]
OKAY.
MAYBE I DON'T UNDERSTAND I
THOUGHT FISCAL ALWAYS GOING TO
BE SORT OF THE OVERALL.
BOOKKEEPING SYSTEM FOR THE STATE
IS THAT IS THAT WRONG.
SO THIS SYSTEM IS JUST FOR THE
TAX ADMINISTRATION FOR THE
DEPARTMENT IT DOESN'T INCLUDE
LIKE THE THE BUDGETING PROCESS
AND COST FOR THE DEPARTMENT AS A
WHOLE.
WITH THIS SYSTEM.
BASICALLY BRINGS IN REVENUE
RIGHT THAT'S OKAY SO REVENUE
COMES IN.
AND THEN SOMEBODY SOMETHING
ACCOUNTS FOR THAT REVENUE RIGHT
CORRECT AND BALANCES THE BOOKS
YES RIGHT.
AND SO.
IN IN YOU HELP ME OUT HERE IS IT
FISCAL THE DOES THAT.
SO WE'RE TRACKING AT THE
INDIVIDUAL TAXPAYER LEVEL RIGHT
ALL OF THE INDIVIDUAL
TRANSACTIONS THAT ARE HAPPENING
WITH OUR TAX AND FEE PAYERS.
AND THE INFORMATION IS THEN
PROVIDED AT HIGHER LEVEL TO OUR
FISCALE -- TO OUR STATE
COMPTROLLER'S OFFICE IN THE
TREASURER'S OFFICE.
AND THROUGH THE FISCAL SYSTEM SO
THE LEVEL OF DETAIL THAT'S
PROVIDED -- IS A HIGHER LEVEL
RIGHT IT'S A GOOD THE GROSS
AMOUNT WE'VE GOT XML THAT LEAVE.
RECEIVED FROM WHATEVER IT MAY BE
ONE TAX SOURCE.
OF AN IN HOUSE THAT INTEGRATION
AND AND HOUSE OF PROGRESSING
SURE IT'S IT'S GOING -- MY NAME
IS JAY SMALL AND THE CFO CDT
EFFECT SO THE WAY I THINK ABOUT
IT IS CROSSES OUR COLLECTION AND
DISTRIBUTION SYSTEM SO WE
COLLECT APPROXIMATELY SEVENTY
BILLION DOLLARS A YEAR.
AND WE ALSO DIRECTLY DISTRIBUTE
AROUND FIFTEEN BILLION DOLLARS
TO A THOUSAND PLACES
JURISDICTIONS.
SO THAT IS OUR COLLECTION
DISTRIBUTION SYSTEM FISCAL OWL
IS OUR BOOKKEEPING AND EXPENSE
SYSTEM SO THE MONEY COMES IN
THAT SEVENTY BILLION DOLLARS.
RIGHT NOW IT'S OVER FIFTY FIVE
BILLINGS OF A COUPLE ROLL OUT
FOR CROSS THAT GETS RECORDED
INTO FISTS GAL.
AND OF RECORD SO THEY THEY DO
INTEGRATE WE ARE THAT WE DO HAVE
A PROJECT TO LINK THE TWO
SYSTEMS TOGETHER WHICH IS VERY
IMPORTANT GIVEN THE THE NUMBER
REVENUES WE HAVE.
AND HOW'S IT GOING.
I'M IT'S GOING WELL IT'S GOING
WELL I MEAN.
WE STILL WE'VE CLOSED A MONTH IN
FISCALE -- THERE STILL IS
TEETHING GOING ON TO BE HONEST --
BUT WE WERE WORKING CLOSELY WITH
BOTH CROSS SANTA SCALE TEAMS TO
MAKE SURE THAT THAT LINK -- DOES
HAPPEN -- AND HAPPEN SMOOTHLY.
THAT LINK WILL -- SHOULD
COMPLETE IN AUGUST OF THIS YEAR.
BUT THIS DOESN'T INCLUDE
PERSONAL INCOME TAX IS THAT
RIGHT [inaudible]
OKAY.
AND THEN THERE'S A REASON THAT
WE HAVE DIFFERENT SYSTEMS TO
COLLECT DIFFERENT KINDS OF TAXES --
SO THE FRANCHISE TAX BOARD
WANTED.
PRINTER SEX BOARD IS THE ONE
ADMINISTERS THE TAX SO THEIR
SYSTEM.
THE SEPARATE THAN CVT IT PAYS
FOR ADMINISTERING -- THE OTHER
PROGRAMS [inaudible]
SO.
AGAIN YOU HAVE TO INDULGE MY
NEWNESS OF IGNORANCE.
IT WOULD BE SMARTER IF WE WERE
STARTING OVER AGAIN THEY HAVE
THEM COMBINED.
NOT SURE I'M IN A POSITION TO
OPINE ON BUT I CAN TELL YOU --
JUST HAVING BEEN AT THE
DEPARTMENT TAX AND FEE FOR
EIGHTEEN MONTHS MYSELF -- IT'S
INCREDIBLY COMPLEX -- THE NUMBER
OF TAX PROGRAMS THAT WE
IMPLEMENT -- I CAN ONLY IMAGINE
OUR COUNTERPARTS THAT FRANCHISE
TAX BOARD HAVE THE SAME I THINK.
LIKE MANY THINGS CALIFORNIA IS
JUST SO BIG AND COMPLEX AND SO
MUCH REVENUE COMING IN -- BUT IT
MAKES A LOT OF SENSE ACTUALLY TO
HAVE -- SEPARATE ROB REPORTING
ENTITIES BUT SURF CHRISTINE LA
L. -- SENATOR -- THE NOTION OF
TAX AGENCY CONSOLIDATION HAS
BEEN DISCUSSED OF RADIUM POINTS
OVER THE YEARS AND WE'D BE HAPPY
TO PROVIDE YOU SOME OF THE SORT
OF MATERIALS WE PUT TOGETHER IN
THE PAST ON THAT.
OKAY GREAT THANK YOU --
DIMENSION ONE IT IS ONE OF THE
GOALS -- IS -- TO IMPROVE THE
USER EXPERIENCE CORRECT -- OR
FOR A FROM A TAXPAYERS POINT OF
VIEW MAKE IT MORE EFFICIENT
CORRECT CAN YOU TELL ME.
WIRE HOW THAT IS GOING TO HAPPEN.
SO A NUMBER OF THE SERVICES THAT
THE CDT IF THEY HAD PROVIDED IN
THE PAST WERE DONE.
EITHER BY PAPER OR VISITING AT A
FIELD OFFICE -- A HELLO MUCH OF
THE CAPABILITIES OF THE SYSTEM
ALLOWS FOR THE TAX AND FEE PAIR
TO GO ON TO OUR TAXPAYER PORTAL.
AND CONDUCT A LOT OF THEIR THEIR
BUSINESS ACTIVITIES ONLINE -- IN
SOME CASES GETTING APPROVAL
AUTOMATED -- IN ROUTE
IMMEDIATELY SO -- THAT ALSO WITH
OUR RETURN FILING CAPABILITY --
MUCH OF THE RETURNS THAT ARE
PROCESSED FOR THE DEPARTMENT ARE
STILL BEING HANDLED BY PAPER --
THE OBJECTIVE OF THIS PROJECT
WAS TO ALLOW ALL TAX AND
PREPARES TO FILE ONLINE -- AND
MAKE PAYMENTS ONLINE.
THAT BY ITSELF DOESN'T MEAN IT'S
USER FRIENDLY.
THE FACT THAT IT'S GOING ONLINE
CORRECT I MEAN.
YEAH SOMETIMES I FEEL LIKE.
THE PAPER TRAIL IS EASIER --
DEPENDING ON WHAT THE SYSTEM IS
THAT YOU USING SO SURE HOW ARE
YOU INCORPORATING.
AND MAKING SURE IT'S REALLY
GOING TO BE USER FRIENDLY NOT
ONLY.
MAKING IT ONLINE SURE SO WE DID --
SEVERAL USABILITY STUDIES AND
FOCUS GROUPS ONCE WE HAD A
SYSTEM IN PLACE TO ALLOW -- THE
PUBLIC TO START USING OUR SYSTEM
AND THEN FROM THOSE USABILITY
FOCUS GROUPS -- WE IDENTIFIED A
NUMBER OF RECOMMENDATIONS TO
IMPROVE THE USABILITY OF THE
SYSTEM AND WHAT WE NOTED WAS --
AFTER WE MADE THOSE USABILITY
IMPROVEMENTS -- THE ONLINE
EXPERIENCE PARTICULARLY FOR E.
FILING -- WAS EASIER IN THE
SENSE THAT THE AMOUNT OF TIME IT
WAS TAKING OUR TAXPAYERS TO FILE
THE RETURN.
I DECREASED FROM A WAS IN OUR
PRIOR SYSTEM.
AND WE DID IF I COULD ADD TO
THAT OUR USABILITY GROUPS WERE.
AT DIFFERENT TYPES OF TAXPAYERS
TO SO SMALL LEARNS TAX PREPARERS --
WE REALLY TRY TO GET AS MUCH
FEEDBACK -- FROM THAT THOSE
DIFFERENT CATEGORIES OF
TAXPAYERS THAT WEEK.
HE EXPLAINED A LITTLE BIT MORE
ABOUT THE VENDOR -- WHAT THE
VENDORS GETTING OF PAID?
THE COMPANY YEAH SURE SO IT'S A
FIXED PRICE CONTRACT.
FOR EIGHTY FIVE POINT ONE
MILLION DOLLARS.
AND THE WAY THE COMPENSATION FOR
THE VENDOR WORKS.
IS THE VENDOR DOES NOT GET PAID
UNTIL THEY'VE SUCCESSFULLY
IMPLEMENTED THE SYSTEM.
AS WELL AS REALIZE SOME BENEFIT
OR REVENUE INCREASE FOR THE
DEPARTMENT AND STATE.
AND SO -- THE STATE DOES TO A
COMPONENTS IN PLACE ALLOW US FOR
US TO TO MAKE COMPENSATION TO
THE VENDOR BUT IT BUT IT'S
CAPPED AT THE EIGHTY FIVE
MILLION DOLLARS THAT WAS AWARDED
BACK IN AUGUST OF SIXTY WILL GET
SOMETHING BETWEEN NOW AND YES
YEAH FOR EACH.
BABIES ARE RELEASE -- THEY WOULD
BE ENTITLED TO COMPENSATION FOR
THAT PARTICULAR IMPLEMENTATION.
WHICH WILL REALLY KNOW HOW
SUCCESSFUL YOUR UNTIL.
WHEN YOU START SAYING?
THE REVENUE WILL WORD STARTING
TO TRACK REVENUE INCREASE --
IMMEDIATELY AFTER THAT FIRST
RELEASE.
SO YOU HAVE A IDEAS YOU GO YES
[inaudible] FOR THAT'S IT FOR
ME.
MORE NO MORE QUESTIONS OKAY I
WOULD GO TO PUBLIC.
OKAY PUBLIC COMMENT PLEASE.
I DON'T KNOW WHY IT'S NOT
INTERESTING.
OKAY WELL -- YOU MOVE OKAY.
WE HAVE A ROLL CALL PLEASE.
SIR DORADO FIVE CENTER NIELSEN.
CENTER I'M BIRTH.
THANK YOU THANK YOU VERY MUCH --
BUT WITH BOTH [inaudible]
NINETEEN JUST.
OKAY THAT WAS JUST.
FOR NINE YEAH YEAH YEAH I'M
SORRY -- WE JUST VOTED ON NUMBER
NINE I'M SORRY I WANT TO MAKE
CLEAR ON ON THE VOTE.
OF TO ME.
NUMBER. TEN TO THE MOVIE.
ARE THERE ANY OTHER QUESTIONS
FOR ISSUE NUMBER.
TEN SENATORS NO.
NO ISSUES UP ABOUT PUBLIC
COMMENT ON ISSUE NUMBER TEN
THAT'S A TAX AND FEE.
PROGRAMS OFFICE OF TAX APPEALS
WORKLOAD.
ARE YOU ALREADY COVERED IT SO.
ANYTHING MORE THE LA OVER THE
DEPARTURE FINANCE [inaudible]
NO THE OKAY NOW I NEED A MOTION
SO MOVED.
WELCOME SENATOR RUSSELL I CENTER
NIELSEN CENTER I'M BURKE.
THANK YOU OKAY I'M DONE.
RIGHT NOW WILL HAVE THE
FRANCHISE TAX BOARD [inaudible]
TWO GOOD MORNING WELCOME
[inaudible]
ISSUE.
ELEVEN THIS IS THE LAN
INFRASTRUCTURE REFRESH PROJECT.
GOOD MORNING MY NAME IS GINNY
HERMAN CHIEF FINANCIAL OFFICER
FRANCHISE TAX BOARD.
GOOD MORNING AND TIFFANY WE SEND
THE DIRECTOR THE FINANCIAL
MANAGEMENT FRANCHISE TAX BOARD.
IN THIS MORNING I WILL BE
SHARING OUR TO PROPOSALS WITH
YOU ISSUE ELEVEN IS OUR LOCAL
AREA NETWORK INFRASTRUCTURE
FRESH OR HER LAN REFRESH PROJECT.
THIS PROPOSAL REQUESTS FIVE
POINT NINE MILLION DOLLARS IN
THE TWO THOUSAND NINETEEN TWENTY
FISCAL YEAR AND TWELVE THOUSAND
DOLLARS I'M GOING TO ADDRESS
THREE FRESH OF AGING COMPONENTS
WITHIN OUR LAND INFRASTRUCTURE.
THAT ARE REACHING END OF LIFE
AND END OF SUPPORT.
THE LAN INFRASTRUCTURE IS THE
HEART OF OUR ENTERPRISE NETWORK
SUPPORTING OUR MISSION CRITICAL
SYSTEMS.
AND MANY OF THE COMPONENTS
WITHIN OUR INFRASTRUCTURE
REACHING INTO MARKET AND END OF
SUPPORT.
WHEN HARDWARE REACHES INTO
SUPPORT?
HOUSE SUPPORT SERVICES ARE
UNAVAILABLE AND THEN THE PROJECT
THE PROJECT BECOMES OBSOLETE.
THIS INCLUDES A SOFTWARE FIXES
AND ALSO PATCHES FOR FIXING BUGS
IN SECURITY VULNERABILITIES.
ANY HARDWARE SOFTWARE THIS
REACHED END OF SERVICE LEAVES
FTP AT RISK OF NETWORK OUTAGES
AS WELL AS TO THE SECURITY
VULNERABILITIES THE OVERALL
RESULTS OF THIS REFRESH.
WILL ALLOW FTP TO REDUCE THE
RISKS OF THE ANY COMPONENTS
WITHIN OUR LAND INFRASTRUCTURE
WILL EITHER FAIL OR BE
COMPROMISED.
WE'D BE HAPPY TO ANSWER ANY
QUESTIONS ON THIS PROPOSAL -- LA
YOUR BRAIN WHETHER FOR THE ALLEY --
WE HAVE NO CONCERNS WITH THIS
PROPOSAL.
BRENT RELIGIOUS DEPARTMENT OF
FINANCE IS A CRITICAL RESOURCES
HAVE TO BE IS A DATA HEAVY
DEPARTMENT NEEDS A VEIL ABILITY
PROCESSING POWER.
IS A CRITICAL [inaudible]
SANTORUM BUT FROM -- SO THANKS
SO I'M A BIG FAN OF CISCO NEXUS
SEVEN SEVEN ZERO SIX VERSUS NO
NEXUS -- NINE FOUR ZERO ZERO
NEVER MIND.
OUR NO NO THAT WAS.
IT JUST WOULD QUESTION OR WAS
THAT LAST TIME THE DEPARTMENT BE
PLACER UPGRADED -- THE EQUIPMENT
THESE COMPONENTS FOR IN TWO
THOUSAND AND TWELVE BUT FOR
CLEARLY THAT WAS A DILEMMA
RECORDING THIS THAT WAS A JOKE.
SO YEAH OKAY GOT IT WAS A JOKE.
MY WAS JOE OKAY.
MY QUESTION WAS NOT IF YOU'RE
RIGHT NOW YOU'RE.
BUT THIS IS THIS WILL BE
REPLAYED SOMEPLACE AND CISCO
WILL USE IT SO THAT WE SO IT'S
ONLY BEEN SIX YEARS.
I'M ABOUT SIX YEARS WE PLAN TO
EMORY FRESHMAN IF APPROVED WHEN
WE REFRESH WILL BE ABOUT THE AND
THE SEVENTY EIGHT YEAR MARK.
THE LIFE EXPECTANCY IS ABOUT
SEVEN TO TEN YEARS OKAY.
OKAY PUBLIC COMMENT.
HEARING NONE.
OF WITH THE MOTION'S BEEN MADE.
VOEPEL PLEASE.
CENTER DORADO HI THERE NIELSEN
CENTER UMBERG [inaudible]
OKAY.
GO ON TO ISSUE.
TWELVE THANK YOU ISSUE TWELVE IS
OUR MAINFRAME ENTERPRISE TAPE
LIBRARY REFRESH AND THIS REQUEST --
IS FOR SEVEN POINT TWO MILLION
DOLLARS IN THE TWO THOUSAND
NINETEEN TWENTY FISCAL YEAR TO
ADDRESS THE REPLACEMENT F. F.
TIBI'S MAINFRAME ENTERPRISE TAPE
LIBRARY IN DIRECT ACCESS STORAGE
DEVICE.
THERE'S TWO COMPONENTS TO THIS
REQUEST THE FIRST IS THE MAIN
FRAME ENTERPRISE TAPE LIBRARY
AND DIRECT ACCESS STORAGE DEVICE
FOR OUR CENTRAL OFFICE CAMPUS.
AND THE SECOND IS A MAIN FRAME
BUSINESS CLASS SERVER ENTERPRISE
TAPE LIBRARY IN DIRECT ACCESS
STORAGE DEVICE FOR SECONDARY
LOCATION.
THE MAINFRAME ENTERPRISE TAPE
LIBRARY IN DIRECT ACCESS STORAGE
DEVICE PROVIDES THE STORAGE
INFRASTRUCTURE THAT TO CENTRAL
TO F. T. B.'S MULTIPLE MISSION
CRITICAL TAX IN ON TAX
APPLICATIONS.
THE MANUFACTURERS HAVE ALSO
ENTERED.
ANNOUNCED AT THE END OF MARKET
AND END OF SUPPORT DATES FOR
THESE COMPONENTS OF OUR MAIN
FRAME INFRASTRUCTURE STORAGE.
PURCHASING THESE COMPONENTS WILL
ALLOW US TO MEET CURRENT AND
FUTURE STORAGE BACKUP AND
RECOVERY NEEDS AS WELL AS
IMPROVE OUR BUSINESS CONTINUITY
TIME FRAMES AND AVOID RISKS
ASSOCIATED WITH RUNNING PASSED
IN A MARKET IN END OF SUPPORT.
I'D BE HAPPY TO ANSWER QUESTIONS
ON THIS PROPOSAL.
HELLO SO COMMON.
I KNOW CONCERNS [inaudible]
FINANCE.
AGAIN THESE ARE NECESSARY BIG TV
IS A DAY TO HAVE A DEPARTMENT
THIS PROTECTS.
TAXPAYER DEBT.
IS A BACK UP.
IT'S BOTH IT SAYS STORY.
ACTIVE STORAGE AND BACKUP
[inaudible]
AND RECOVERY.
GOT IT OKAY PUBLIC COMMENT.
MOTION MADE ROLL CALL PLEASE.
SENATOR RAZA HI SIR NIELSEN.
THEY'RE A MEMBER [inaudible]
OKAY.
NOW WE GO ON TO ISSUE
[inaudible]
THIRTEEN SEVERAL BILLS.
WITH RESPECT TO THE NEW
TESTAMENT YEAH [inaudible]
OKAY.
THIS IS ABOUT THE CALIFORNIA
EARNED INCOME TAX CREDIT.
EXPANSION [inaudible]
GOOD MORNING -- OKAY.
SORRY.
YOU GO FIRST.
OKAY.
YOU ASKED US TO PREPARE SOME
BACKGROUND ON THE STATE'S IN
EARNED INCOME TAX CREDIT AND SO
WE PREPARE THIS HAND OUT TO
EXPLAIN.
SOME OF IT.
THE CREDITS HISTORY IN WHAT.
THE GOVERNOR'S PROPOSAL AND ARE
A EVALUATION OF THE OKAY.
PAGE ONE OF THE HANDOUT SHOWS
THE GRAPH OF WHAT WE LIKE TO
CALL THE VOLCANO CHART WHICH
SHOWS OF HOW THE CURRENT FEDERAL.
EARNED INCOME TAX CREDIT IS
STRUCTURED.
SO ON THIS GRAPH THE HORIZONTAL
AXIS SHOWS THAT THE THE TAX
FILERS INCOME BEFORE CALCULATING
YOUR AND INCOME TAX CREDIT.
IN THE VERTICAL AXIS SHOWS THE
AMOUNT OF THE E. I. T. C. THAT
THEY WOULD BE ELIGIBLE.
FOR SO AS YOU CAN SEE ARM.
AT VERY LOW LEVELS OF INCOME.
WE'RE UP FOR IN WHAT WE CALL THE
PHASE IN RANGE WHERE THE CREDIT
AMOUNT IS INCREASING AS THE
FILERS EARNED INCOME INCREASES.
AND EARNED INCOME ISN'T THEIR
TOTAL INCOME IS JUST TO FIND AS
THEIR WAGES AND SALARIES ARE IN
THERE'S PLUS THEIR SELF
EMPLOYMENT INCOME SO ITS INCOME
THAT COMES FROM WORK.
AS OPPOSED TO COMING FROM OTHER
SOURCES.
SO.
UP THROUGH IN INCOME LEVEL OF
ABOUT.
FOURTEEN THOUSAND THE AMOUNT OF
THE A. T. C. INCREASES AS THE
FILINGS INCOME INCREASES AT A
RATE OF ABOUT 40%.
SO THAT AT THE THE P. E. I. T.
C. LEVEL WHICH YOU REACH AN
INCOME OF ABOUT FOR A LITTLE
OVER.
FOURTEEN THOUSAND THE EITC
AMOUNT IS A LITTLE BIT BELOW.
SIX THOUSAND OKAY SO THEN
THERE'S OF WHAT WE CALL A FLAT
RANGE OF THE A. T. C..
ARM BACK UP.
THIS GRAPH SHOWS WHAT A FILER.
A SINGLE PARENT WITH TWO
ELIGIBLE DEPENDENT CHILDREN WILL
GET. FOR FILERS WITH ONE
DEPENDENT CHILD -- ELIGIBLE
DEPENDENT THESE AMOUNTS ARE
SOMEWHAT LOWER FOR THREE EITHER
SOMEWHAT HIGHER.
IF THE FILE HAS NO DEPENDENCE NO
ELIGIBLE DEPENDENTS IT'S A LOT
LOWER.
BUT FOR SIMPLICITY AND TO AVOID
CLUTTERING UP THE GRAPH WE ONLY
SHOWED IT.
FOR TWO PEOPLE WITH TWO KIDS TO
SHOW HOW THE BUT BASICALLY HOW
THE FEDERAL EITC WAS BECAUSE A
QUESTION SO I DON'T GET.
FURTHER LOST -- I'M LOOKING AT
THE CHART.
AND I THINK YOU SAID THAT --
RIGHT THERE YES -- OKAY BECAUSE
ARE REVEALED THAT IS THE
QUESTION THERE WE GO.
OKAY.
PERFECT NO I'M NOT AS OKAY.
OKAY SO AFTER YOU HIT THE PEAK
THERE'S WHAT'S CALLED A FLAT
RANGE OF THE A. T. C. GOES UP TO
ABOUT NINETEEN THOUSAND DOLLARS.
OF INCOME AT WHICH YOU KNOW.
SO IN THAT WHOLE RANGE BETWEEN
ABOUT FOURTEEN THOUSAND AND
NINETEEN THOUSAND OF THE FILES
FEDERAL EITC AMOUNT IS THE SAME.
THEN THE CREDIT STARTS TO PHASE
OUT AS THE FILERS INCOME
INCREASES AND SO.
AS THE GRAPH SHOWS IT
PROPORTIONALLY GOES YOU KNOW
GETS LOWER AND LOWER AND LOWER
UNTIL YOU HIT IN INCOME OF ABOUT
FORTY SIX THOUSAND DOLLARS A
YEAR AT WHICH POINT YOUR
INELIGIBLE FOR THE CREDIT.
SO THAT'S AGAINST.
HER ON TO WHICH THE STATE HIS.
YOU KNOW CRAFTED IT.
TEEN LOOKS LIKE [inaudible]
AND SO THIS CHART HAS THE SAME.
SAME SCALE AS THE CHART ON PAGE.
ONE BUT AS YOU CAN SEE IT'S
GEARED -- MUCH MORE TOWARD
PEOPLE AT THE LOWEST AT THE
LOWEST END OF THE INCOME SCALE
THERE [inaudible]
SO.
UP THROUGH AN AGAIN WE'RE
SHOWING IT OUT FOR A FILE WITH
TWO DEPENDENTS.
UP THROUGH AN INCOME OF ABOUT
SEVEN THOUSAND DOLLARS WHICH IS
ABOUT HALF OF THE THE INCOME IN
THE FEDERAL PHASE IN RANGE.
IT INCREASES IT ALMOST THE SAME
RATE THE FEDERAL EITC DOES IT'S
AT A RATEOF 34% COMPARED 240%
FOR THE FEDERAL.
SO WHAT IN INCOME OF SEVEN
THOUSAND DOLLARS.
A STATE EITC FILE WOULD COLLECT
A LITTLE BIT LESS THAN.
TWENTY FIVE HUNDRED BUT AT THAT
POINT.
THE STATE CREDIT STARTS TO PHASE
OUT AT THE SAME RATE THAT IF
THEY USED IN.
SO BY THE TIME YOU'RE IN INCOME
AROUND FOURTEEN THOUSAND DOLLARS
WHICH IS THE THE END OF THE
FEDERAL PHASE IN RANGE THE STATE
CREDIT IS GOING.
TO ZERO AGAIN THIS CRAFT IS NOT
SHOW WOULD A FILING WITH ONE
DEPENDENT OR A FILE WITH THREE
OR MORE DEPENDENTS GETS.
ITS SLIGHTLY MORE GENEROUS THAN
THIS FOR FILING WITH THREE OR
MORE DEPENDENTS IT'S
CONSIDERABLY LESS GENEROUS FOR
FILER WITH ONE DEPENDENT.
A WE DO SHOW WAIT A FILE WITH NO
DEPENDENTS GETS IN AS YOU CAN
SEE IT'S A AT THAT POINT IT WAS
NOT VERY MUCH -- THIS IS SIMILAR
TO WHAT THE FEDERAL CREDIT DOES
THE AMOUNTS FOR FILERS WITH NO
DEPENDENTS ARE MUCH SMALLER THAN
THE FILE THE AMOUNTS FOR FILERS
WHO HAVE DEPENDENTS.
ALSO THE WHEN THE STATE CREDIT
WAS IMPLEMENTED IN -- TWO
THOUSAND FIFTEEN SELF EMPLOYMENT
INCOME WAS NOT COUNTED TOWARDS --
DO.
PAGE THREE SHOWS HOW THE STATE
CREDIT WAS EXPANDED IN TWO
THOUSAND SEVENTEEN IN TWO
THOUSAND EIGHTEEN OF SITES THAT.
FREQUENT.
ON THEM WHEN THEY CREATED IT DO
YOU KNOW HOW MANY PEOPLE.
YES ISN'T.
IN TWO THOUSAND FIFTEEN A LITTLE
LESS THAN UNDER FOUR HUNDRED
THOUSAND FILERS TOOK THE CREDIT.
IN THE TOTAL AMOUNT OF THE
CREDIT WAS ABOUT TWO HUNDRED
MILLION DOLLARS.
AT THE STATE LEVEL.
THANK YOU OKAY.
SO PAGE THREE SHOWS THE STATE
CREDIT WAS EXPANDED IN
200-017-2000.
EIGHTEEN IN TWO THOUSAND
SEVENTEEN THE STATE RAISE THE
INCOME LIMITS CONSIDERABLY.
AND ALSO THE THEY DECIDED TO
ALLOW SELF EMPLOYMENT INCOME TO
COUNT WHICH YOU KNOW BRINGS THE
STATE CREDIT IN MORE IN LINE
WITH THE FEDERAL CREDIT ON THAT --
IN THAT WAY.
IN TWO THOUSAND EIGHTEEN THE
INCOME LIMITS WERE RAISED AGAIN.
BOB AND SO NOW UNDER CURRENT LAW
THE INCOME LIMIT IS ABOUT
SEVENTEEN THOUSAND DOLLARS A
LITTLE LESS AND SEVENTEEN
THOUSAND FOR FILERS WITH NO
DEPENDENTS.
IN JUST UNDER TWENTY FIVE
THOUSAND PER FILERS WHO HAVE
DEPENDENTS.
THE OTHER CHANGE WAS MADE IN TWO
THOUSAND EIGHTEEN IS IT.
FILERS WHO HAVE NO DEPENDENTS
AND ARE EITHER YOUNGER THAN AGE
TWENTY FIVE OR OLDER THAN AGE
SIXTY FIVE WERE MADE ELIGIBLE
FOR THE A..
OF THESE FILERS ARE NOT ELIGIBLE
FOR THE FEDERAL EITC SO THAT'S
SORT OF THE ONE OF ONE RESPECT
IN WHICH THE STATE EITC IS MORE
GENEROUS THAN THE FEDERAL EITC
IT COVERS SOME OF THESE PEOPLE
WHO ARE ELIGIBLE FOR FEDERAL
CREDIT.
NOW THE CHART SHOWS HOW.
THE I. E. A. T. STRUCTURE LOOKS
NOW.
IN AS YOU CAN SEE THERE IS A YOU
KNOW PRETTY STEEP ASCENT TO THE
PEAK IN THAT IS STEEP BUT
DESCENT ONCE YOU GET ONCE YOU
HIT THE PEAK.
NOW YOU CAN SEE THERE'S SORT OF
A LONG TAIL AT THE END THAT --
WHEN THE INCOME LIMITS FOR
EXTENDED THE AMOUNTS THAT WENT
TO PEOPLE WHO MAY WHO WERE
ELIGIBLE FOR THE CREDIT BEFORE
WORK KEPT FAIRLY LOW I MEAN THIS
IS SORT OF BY DESIGN IS A?
THERE IS A LIMITED AMOUNT OF
MONEY THAT WAS AVAILABLE TO
EXPAND THE ATC.
THE UP.
THE LEGISLATURE MADE THE
DECISION TO OFFERS NO CUT IN
EXPANSION THAT WAS FAIRLY BROAD
ALTHOUGH NOT ESPECIALLY GENEROUS
FOR ANY OF THE NEW FILERS.
SO.
YEAH WELL MORE PEOPLE CAN CLAIM
THE EITC THE FOR PEOPLE WHO
WEREN'T ELIGIBLE FOR THE
ORIGINAL VERSION THE AMOUNTS
THAT THEY GET ARE NOT ALL THAT
HIGH IN.
THE SORT THE TAIL EXHORTED EVEN
MORE EXAGGERATED FOR FILERS WITH
NO DEPENDENTS BECAUSE YOU'RE
GOING FROM A LIMIT OF ABOUT
SEVEN THOUSAND DOLLARS TO LIMIT --
TO SEVEN IN THEIR THE RECEIVE
FAIRLY MODEST AMOUNTS.
PAGE FOR TWO HUNDRED DOLLARS.
YEAH.
AROUND THAT.
THE NUMBER OF PEOPLE IN THE
AMOUNTS CLAIMING IT HAVE CHANGED
OVER TIME.
IN FIFTEEN AND SIXTEEN UNDER THE
ORIGINAL VERSION.
ABOUT A LITTLE LESS THAN FOUR
HUNDRED THOUSAND DOLLAR FILERS
TOOK THE CREDIT EVERY YEAR IN
THE AMOUNT WAS AROUND TWO
HUNDRED THE AGGREGATE AMOUNT
THAT THEY WERE ELIGIBLE FOR WAS
AROUND TWO HUNDRED MILLION.
NOW IN SEVENTEEN AFTER THE
EXPANSION.
THE NUMBER OF FILERS WHO TOOK IT
NO ROSE BY NEARLY IN NEARLY
QUADRUPLED SO IN NEARLY A
MILLION AND A HALF PEOPLE.
OR NOT PEOPLE NEARLY MIL MILLION
AND A HALF RETURNS HAD THE ATC
ON IT ACTUALLY IT REPRESENTS A
LOT MORE THAN A MILLION AND A
HALF PEOPLE BECAUSE MOST RETURNS
ESPECIALLY FOR THE IDC.
ARE GOING TO HAVE SOME
DEPENDENCE ON THEM -- THE TOTAL
AMOUNT OF THE A. T. C. WENT UP
TO THREE HUNDRED FORTY EIGHT
MILLION SO THE AVERAGE CREDIT
AMOUNT AS YOU CAN SEE GOT A LOT
LOWER.
AND THIS IS MOSTLY BECAUSE THE
MOST OF THE NEW FILERS RING THAT
LONG TAIL AND WERE ELIGIBLE FOR
RELATIVELY SMALL E. I. T. C.
AMOUNTS.
SO WITH IT REALLY GROW THE
NUMBER OF THOSE ON THE LOWER
INCOME.
SIGN NO WITH THE EXPANSIONS IN
TWO THOUSAND SEVENTEEN AND
EIGHTEEN HAD RELATIVELY LITTLE
AFFECT ON PEOPLE AT THE LOWEST
END OF THE INCOME DISTRIBUTION
AND LESLIE AT SELF EMPLOYMENT
INCOME.
OR IN LESS THE WERE -- SINGLE
FILERS WHO WERE UNDER TWENTY
FIVE ARE OVER.
SIXTY FIVE DO YOU KNOW HOW MUCH
WE'RE REALLY REACHING IN TERMS
OF THE ELIGIBLE -- TAXPAYERS
IT'S HARD TO GET A HANDLE ON
THAT BUT IT 40% OR TWENTY YEAR
PROBABLY CLOSE PROBABLY CLICK
MORE LIKE SEVENTY BUT IT'S HARD
TO GET A HANDLE ON THAT BECAUSE
TO DO THAT WE HAVE TO USE THE
DATA FROM THE CENSUS BUREAU.
AND THE INCOME DEFINITIONS --
FOR FOR TAX PURPOSES DON'T
REALLY MATCH UP ALL THAT WELL
THE INCOME DEFINITIONS IT THE
CENSUS USES SO IT'S IT'S KIND
IT'S KIND OF UNCLEAR HOW MANY
PEOPLE WERE.
ILL WITH THE POPULATION IS THAT
YOU KNOW IS ELIGIBLE FOR THIS
BUT ISN'T TAKING ADVANTAGE OF IT.
OKAY AND WE DO HAVE SO AT THIS
POINT SOME PRELIMINARY DATA FOR
A TAX YEAR TWO THOUSAND EIGHTEEN
FOR WHICH PEOPLE HAVE BEEN
FILING THEIR RETURNS YOU KNOW.
SINCE JANUARY.
SO FAR OVER ONE POINT THREE
MILLION FILE FILERS HAVE ALREADY
CLAIMED THE E. A. T. C.. FOR
THIS YEAR WHICH IS I BELIEVE --
AHEAD OF THE SCHEDULE FROM LAST
YEAR DO YOU. ONE MOMENT PLEASE.
WE CAN FOLLOW UP WITH.
OKAY WE'LL GET YOU -- WE CAN GET
THAT FOR YOU IF YOU LIKE --
WOULD JUST KEEP GOING WITH THIS
FOR NOW.
WE HAVE YET [inaudible]
OKAY [inaudible]
PLEASE.
ACTUALLY THIS IS ABOUT ON PACE
WITH.
LAST YEAR FOR THE TOTAL NUMBER
OF OF FILERS AND THIS TIME
[inaudible]
OKAY -- NO WE'RE LOOKING THE
WRONG THINGS.
A MISTAKE YES IT'S ABOUT A
MILLION AND US ONE POINT.
THREE OKAY SO IT'S THAT'S SO FOR
ABOUT THREE HUNDRED THOUSAND
MORE FILERS THE LAST YEAR
[inaudible]
SO [inaudible]
OKAY.
PAGE FIVE SHOWS THE GOVERNOR'S
PROPOSED THE ATC EXPANSION
[inaudible]
SO.
ON THIS GRAPH.
THE SOLID LINES SHOW THE CURRENT
EA T. C..
AND THE DOTTED LINES SHOW THE
PROPOSED -- EXPANDED THE ATC.
AND SO IT IS YOU CAN SEE THE THE
PROPOSED EXPANSION DOES NOT
ALTER THE BENEFITS THAT FILE IS
WOULD GET UP YOU KNOW WHO WERE.
BASICALLY UP TO THE CURRENT KING
POINT WHERE THE AMOUNT.
OF THE A. T. C. STARS DECLINE
MORE SLOWLY.
HE USES THE TERMINOLOGY I WAS
USING EARLIER THE TALE OF THE
ATC IS NOW GETTING HIGHER AND
LONGER. FOR FILE IS WITH WITH
TWO DEPENDENTS.
AND SHOWN HERE.
IF YOUR INCOME IS ABOUT YOU SAY
THIRTEEN THOUSAND DOLLARS OR
MORE YOU GET A YOU START TO GET
A OF IN THE INCREASE THE ATC
AMOUNT.
AND AROUND THE CURRENT KING
POINT IS ACTUALLY WHERE THE THE
BIGGEST INCREASE COMES WHICH IS
A LITTLE BIT BELOW [inaudible]
FIFTEEN THOUSAND NO.
THE INCOME LIMITSFOR ALL FILERS
ARE BEING EXTENDED TO THIRTY
THOUSAND DOLLARS WHETHER YOU
HAVE KIDS OR NOT SO THAT'S IT.
THAT IN AND OF ITSELF IS A
BIGGER INCREASE FOR PEOPLE WHO
DON'T HAVE KIDS DEPENDENCE.
BUT AS YOU CAN SEE THE AMOUNTS
FOR PEOPLE WHO DON'T HAVE
DEPENDENTS ARE NOT ESPECIALLY
LARGE COMPARED TO THE AMOUNTS
FOR PEOPLE WHO HAVE DEPENDENTS.
SO THE PEOPLE IN THE THE FILE IS
NEW CLOSER TO THE UPPER END OF
THE CURRENT INCOME DISTRIBUTION
WILL GET A BIT MORE OF AN
INCREASE.
THEN THE THE FILERS WHO WERE AT
THE LOWER END WHO WON'T SEE AN
INCREASE.
FROM THIS PARTICULAR FROM THIS A
COMPONENT OF IT. FOR FILERS WHO
ARE WHO DO NOT HAVE ANY
DEPENDENCE THE KING DISAPPEARS
AND SO YOU INSTEAD YOU JUST GET
A GRADUAL DECLINE.
ONCE YOU HIT THE OF ONCE YOUR
INCOME PASSES THE THE AMOUNT FOR
WHICH YOU GET THE P. D. A. T. C.
YOU GET A GRADUAL DECLINE ALL
THE WAY TO THE NEW INCOME LIMIT
OF THIRTY THOUSAND DOLLARS A
YEAR.
AND THE OTHER THING THAT THE A
GOVERNOR'S PROPOSAL DOES THAT IS
NOT SHOWN.
IS IT FILERS WHO HAVE SILLY SOME
INCOME SOME ELIGIBLE INCOME.
AND AT LEAST ONE DEPENDENT UNDER
THE AGE OF SIX WILL GET FIVE
HUNDRED DOLLARS IN ADDITIONAL
FIVE HUNDRED DOLLARS NOW WILL BE
THE SAME AS IF THAT BE THE SAME
FIVE HUNDRED DOLLARS IF YOU HAVE
ONE KID UNDER THE AGE OF SIX IS
IF YOU HAVE.
SIX IT'S JUST IS IF YOU HAVE ANY
ELIGIBLE DEPENDENTS UNDER THE
AGE OF SIXTY GET A FLAT FIVE
HUNDRED DOLLARS THE ONLY
EXCEPTION TO THAT IS IF YOUR
INCOME.
IS ABOVE TWENTY EIGHT THOUSAND
DOLLARS THE AMOUNT PHASES OUT
PROPORTIONATELY AS YOU GET TO
THIRTY THOUSAND DOLLARS.
SO YOU COULDN'T GET THAT IF
YOU'RE A 300-003-0000 DOLLARS IT
WOULD BE ZERO OR NOT YEAH.
THIRTY THOUSAND IS THE MAX
INCOME.
YES FOR ANY OF THIS YES
[inaudible]
OKAY.
PAGE SIX SOME.
SHOWS THE LA OWES ASSESSMENT OF
THE GOVERNOR'S PROPOSAL.
AND SO THIS PROPOSAL WOULD REACH
A LOT OF PEOPLE WE ESTIMATE THAT
IT WOULD NO MORE THAN TWO
MILLION CALIFORNIA FILERS WOULD
BENEFIT FROM THIS.
SPENT IN MOST OF THESE PEOPLE
WOULD BE BELOW THE POVERTY LINE
OR NOT TOO FAR ABOVE IT.
NOW THAT SAID BECAUSE YOU KNOW.
THIS PROPOSAL REALLY KIND OF
GOES BROAD INSTEAD A DEEP IT
PROVIDES A MODEST BENEFIT TO A
VERY LARGE NUMBER OF PEOPLE --
THEY WOULDN'T MOVE ALL THAT MANY
PEOPLE ABOVE THE POVERTY LINE
WHO WERE PREVIOUSLY BELOW WHAT
WE ESTIMATE THAT IT WOULD MOVE
ROUGHLY. FIFTY THOUSAND FILERS
FROM BELOW THE POVERTY LINE TO
ABOVE IT IN MAYBE TWELVE
THOUSAND FILERS OUT OF DEEP
POVERTY WHICH IS DEFINED AS HALF
THE POVERTY LEVEL.
SO IT'S IT'S KIND OF SIMILAR TO
THE THE SEVENTEEN AND EIGHTEEN
EXPANSIONS AND IN IN THAT IT'S
SOME.
IT GIVES A MODEST BENEFIT TO A
LARGE NUMBER OF PEOPLE AS
OPPOSED TO A MORE SUBSTANTIAL
BENEFIT TO A SMALLER NUMBER
[inaudible]
OKAY -- WE DON'T EXPECT IT THIS
PROPOSAL WOULD HAVE A HUGE
IMPACT ON THE NUMBER OF HOURS
THAT PEOPLE WORK.
THE EVIDENCE SUGGESTS THAT.
THE MAIN EFFECTIVE THE EITC ON
LABOR MARKETS IS.
TO IN ARMED PEOPLE WHO MIGHT
OTHERWISE YOU KNOW NOT HAVE
WORKED IN THE FORMAL LABOR
MARKET AT ALL.
SO WITH.
ON THE OTHER HAND IT -- TENDS
NOT TO HAVE A HUGE IMPACT ON
PEOPLE WHO ARE ALREADY WORKING
IT DOESN'T.
IT DOESN'T MUCH AFFECT THE
NUMBER OF HOURS THEY WORK YOU
KNOW CONDITIONAL ON ALREADY ON
ON THEM ALREADY BEING IN THE
FORMAL WORKFORCE.
AND SO AS A IN VIEW IS THIS WE
DON'T EXPECT A HUGE IMPACT FROM --
THIS PROPOSAL ON LABOR HOURS
BECAUSE THE THE MAIN INCREASE IN
BENEFIT GOES TO PEOPLE WHO WERE.
YOU KNOW.
AT THE MAIL TOWARD THE UPPER END
OF THE EITC ELIGIBLE
DISTRIBUTION WHICH IS -- WHICH
IS IT WE EXPECT THIS TO MOSTLY
THE PEOPLE WHO ARE ALREADY IN
THE WORK FORCE I MEAN THE PRICE
WILL PROBABLY HAVE SOME IMPACT
IN TERMS OF DRAWING NEW PEOPLE
IN THAT BECAUSE THE BENEFITS ARE.
SORT OF TILTED TOWARD THE UPPER
END OF THIS -- THIS ELIGIBLE
RANGE WE THINK IT WOULD BE --
PROBABLY SMALLER THAN IF THE
BENEFITS WERE TILTED MORE FOR
THE LOWER AND OKAY -- THE LAST
THING WE WOULD ADD IS THAT THERE
ARE A NUMBER OF WAYS IN WHICH
THE LEGISLATURE COULD -- TRY --
TO GIVE WORKING PARENTS IN
INCOME BOOST ONE OTHER THING WE
WOULD.
WHAT SUGGEST AS A POSSIBLE
ALTERNATIVE FOR ADDITION TO WITH
THIS IS A?
THIS PROPOSAL WOULD BE -- TO
TAKE THE CURRENT CHILDCARE
CREDIT THAT'S ON THE BOOKS RIGHT
NOW.
THE AND MAKE IT REFUNDABLE AGAIN
[inaudible]
AND SO.
WE THINK THAT -- YOU KNOW THIS
COULD BE.
IT CAN BE MADE REFUNDABLE AGAIN
AS IT WAS BEFORE TWO THOUSAND
TEN AND POSSIBLY EXPANDED EVEN.
FOR COST OF YOU KNOW AROUND A
HUNDRED MILLION OR SO.
ANNUALLY.
NOW WE WOULD NOTE THAT THIS
WOULD IT.
POSE A LIKE THAT WOULD HELP
PEOPLE IN A SOMEWHAT.
WOULD HELP A SOMEWHAT HIGHER
INCOME POPULATION IN THE
GOVERNOR'S PROPOSAL WOULD
BECAUSE KERR.
MAKING THE CHILD CARE CREDIT
REFUNDABLE WOULD PROBABLY HELP
PEOPLE UP TO AN INCOME OF
ROUGHLY SIXTY THOUSAND DOLLARS
COMPARED TO THIRTY THOUSAND
DOLLARS IN THIS CREDIT.
ON THE OTHER HAND THE THE CHILD
CARE CREDIT THAT'S ON THE BOOKS
RIGHT NOW.
SEEMS A LITTLE BIT --
INCONGRUOUS IS THE IS A SORT OF
ANTI POVERTY POLICY BECAUSE IT'S
NOT REFUNDABLE IN THERE FOR IT.
PROVIDES NO BENEFIT TO THE
LOWEST INCOME FILERS WHO DON'T
HAVE ANY -- THAT LIABILITY AFTER
A THEIR CREDITS ARE CALCULATED.
AND SO WOULD.
TAKE QUESTIONS NOW YEAH.
ALL OF THESE [inaudible]
SOLD.
IF.
YOU KNOW.
WHICH ALREADY HAS WHAT.
DO WITH THE OTHER.
SO HERE'S THE YOU CAN DO THAT
EASIER THAN I CAN THERE'S THOSE
THAT WE ALREADY HAVE.
RIGHT THE EITC AND THEN YOU HAVE
SEVERAL PROPOSALS.
WELL WE HAVE THE GOVERNOR.
IS THAT THE ONLY WOMEN'S
CONSIDERED.
A REAL.
SO THERE'S THE THERE IS.
A LINK TO EXISTING CREDITS ARE
THOSE ARE THE STATE EITC AS IT'S
CURRENTLY CONSTRUCTED.
ALL VOLCANO PLUS A LITTLE TALE --
AND THEN THERE IS THE CHILD CARE
TAX CREDIT WHICH THE STATE
CURRENTLY HAS ON THE BOOKS BUT
IT IS NON REFUNDABLE SO IF YOU.
DON'T HAVE ANY TAX LIABILITY YOU
DON'T GET ANYTHING BACK I IN THE
PAST THAT WAS A REFUNDABLE
CREDIT.
AND THEN THERE IS THE GOVERNOR'S
PROPOSAL TO EXPAND -- THE EITC
CREATE MAKE THE TALE MUCH LONGER
ON IN ADDITION TO THE CHILD
CREDIT.
ON AND THEN THERE WAS THE
PROPOSAL YOU I HEARD THIS
MORNING FROM THE SENATOR.
AS WELL WHICH IS A LEGISLATIVE
PROPOSAL AND THAT'S THE DEEPER
THAT'S REALLY TARGETED.
AT THE AYE DEEPER PROPERTY
CORRECT YES.
NOT.
EXTENDING OR INCREASE IN THE THE
EXISTING CREDITS IT WOULD BE A
NEW AND DIFFERENT CRIED A SALARY
THAT'S CORRECT YEAH IN.
A MONTH RIGHT THAT'S RIGHT
[inaudible]
OKAY -- YES YOU [inaudible]
YES SIR.
GOOD MORNING -- THANK YOU FOR A
MONEY WAS TEACHING WITH A
REFINED THANK YOU FOR THIS
OPPORTUNITY PERCENT.
OF THE GOVERNOR'S ATTACKS
PROPOSAL I'M IN A MINUTE I'LL BE
GOING.
ON OVER THE THE EIGHTY PROPOSED
BY FIRST ONE START OFF BY
TALKING ABOUT THE THE COMBINED
EARNED INCOME TAX CREDIT AND
CONFORMITY.
OF PACKAGE -- THE VERY HIGH
LEVEL THIS INCLUDES AN EXPANSION
OF THE EARNED INCOME TAX CREDIT --
WHICH WE'RE CALLING ON THE
CALIFORNIA ENERGY EARNED INCOME
TAX CREDIT A COST OF LIVING
REFUND.
AND CONFORMITY PACKAGE WILL
RAISE ENOUGH REVENUE BILLION
DOLLARS. TO PAY FOR THE CURRENT
EARNED INCOME TAX CREDIT AND THE
GOVERNOR'S PROPOSED EXPANSION.
WE'RE COMBINING THESE TWO
PROVISIONS BECAUSE WITHOUT THE
CONFORMITY PACKAGE THERE'S NO
WAY TO PAY FOR THE EXPANSION.
OF THE EARNED INCOME TAX CREDIT
AND THE AND THE EXISTING
ERNESTINE TAX CREDIT.
THIS COMBINED PACKAGE IS AN
INTEGRAL PART OF THE BALLOTS AND
RESILIENT BUDGET THAT THE
GOVERNOR PROPOSED.
IN JANUARY.
SO -- WITHOUT GOING TO TOO MUCH
DETAIL BECAUSE OF MR CHRISTIE
FROM THE LA -- DID OF TO FIND.
DESCRIBING IT WE SENT YOU HAVE
WE HAVE THREE COMPANIES TO OR
ARE EXPANSION PROPOSAL -- THE
FIRST ONE IS HE SAID WOULD MOVE.
THE CALL FINE INCOME UP TO
THIRTY THOUSAND DOLLARS FOR ALL
TAXPAYERS WITH THE INDEPENDENT
OR NOT -- AND THAT THIRTY
THOUSAND DOLLARS IS PAID AT FULL
TIME. FOR THE S. PERSON EARNING
FIFTEEN DOLLARS PER HOUR.
FIFTEEN DOLLARS PER HOUR WILL BE
THE STATE MINIMUM WAGE.
DALY CITY WITH SCHEDULED RIGHT
NOW IN TWENTY TWENTY TWO SO
WE'VE PAID AT THE THEN --
MINIMUM WAGE.
AND OUR FORCES TO KEEP IT AT
THAT THIRTY THOUSAND UNTIL.
THE FIFTEEN DOLLAR MINIMUM WAGE
KICK SAND AND THEN FROM THERE ON
INCREASE WITH CONFLICT -- SO THE
SECOND PART IS -- THE SECOND
PART IS TO THAT A FIVE HUNDRED
DOLLAR CREDIT PER FAMILY WITH
WITH A CHILD UNDER THE AGE OF
SIX AND AS MR CHRISTIE POINTED
OUT IT WOULD BE PHASED OUT.
OF BETWEEN -- INCOMES
200-003-0000 DOLLARS.
AND FINALLY -- WITHOUT GOING
INTO DETAILS OF THE THE
STRUCTURE IS BEING CHANGED TO
THE TAXPAYERS [inaudible]
EARNING -- WELL LET ME JUST GO
BACK.
THE THE WE'VE READ IN THE LAST
COUPLE YEARS THE BUDGET IS
EXPANDED THE EARNED TOUCH WITH
THE OLD ABILITY. TO THAT --
SIGNIFICANT MORE AMOUNT OF OF
PEOPLE WILL QUALIFY
FOR BUT THE NON CREDIT SEE GOT
WERE VERY LIMITED AVERAGING
BETWEEN A HUNDRED AND FIFTY
DOLLARS PER PERSON. FOR THOSE
THOSE TAXPAYERS -- SO WE'RE
PROPOSING IS TO GIVE A THOSE
TAXPAYERS SUBSTANTIALLY MORE. TO
OUR FOCUS HERE HAS BEEN -- THIS
ORDER THE ORIGINAL FOCUS OF THE
EARNED INCOME TAX CREDIT WAS
REALLY FOCUS ON PEOPLE AT THE
LOWEST IN.
THE WAY WE STRUCTURE IT WAS
REALLY JUST ON THE ON THE VERY.
EARLY PART OF THE FEDERAL.
EARNED INCOME TAX ON THOSE
TAXPAYERS SO WHAT ARE WELL HERE
IS TO TRY TO BEEF UP THE CREDIT
THAT WE'RE GIVING. TO PEOPLE AT
THE AT THE UPPER END IS IT
REALLY.
IF IF RESOURCES WERE NOT A
CONSTRAINT WE'VE BUILT WE WOULD
LIKE FEEL THE MAT AND ROLLS --
TEXT TO WHAT WE'RE DOING IS
TRYING -- TO SINCE WE DO HAVE
SOME RESOURCES OR WE WILL GET
THOSE RESOURCES WITH THE
CONFORMITY PACKAGE -- TO EXPAND
IT SO THAT WE'RE WE'RE PROVIDING
A MORE MEANINGFUL CREDIT -- TO
TO THOSE TAXPAYERS ON THE UPPER
END.
OF THE OF STILL BLOW POVERTY BUT
ABOUT THE UPPER END OF THE ON
THE UPPER END.
OF THE END OF POVERTY YEAH RIGHT.
THE SO ARE IN TOTAL ARE PACKED --
PACKAGES IS EXPECTED TO COST
ANOTHER THE CURRENT -- INCOME
TAX RETURN [inaudible]
DOLLARS.
HOW ARE PROPOSAL SHOULD COST
ABOUT ANOTHER SIX HUNDRED
MILLION DOLLARS -- AND WE EXPECT
THAT HE WILL EXPAND THE NUMBER
OF TAXPAYERS BENEFITING.
FROM THEIR INCOME TAX RATE FROM
ABOUT -- TWO MILLION TAXPAYERS
TO THREE MILLION.
HOME I'M HAPPY TO ANSWER ANY.
QUESTION YOU JUST SAID IT WOULD
EXPAND THE NUMBER ELIGIBLE
NUMBER ELIGIBLE. TWO MILLION
THREE MILLION.
THAT'S WHAT WE'RE YEAH I THINK
WHAT MISTER GROSS SAID WAS IT
TWO MILLION TAXPAYERS WOULD
BENEFIT.
SO INCLUDING THE MILLION WHO ARE
NEWLY GETTING ANY IDC AND THEN
MIL AND ANOTHER MILLION WHO
WOULD BE GETTING A SOMEWHAT
HIGHER.
BEFORE.
SO THE GOVERNOR'S IT'S TO TO
MILL TWO HUNDRED MILLION.
THESE TO ME TWO MILLION IT'S
GOOD WE'RE GOING FROM TWO
MILLION TO THREE MILLION.
SO SO THEY'LL BE THREE MILLION
WIN THIS.
IF THIS IS ADOPTED WE WOULD WE
WOULD EXPECT TO SEE THREE
MILLION HOUSEHOLDS BENEFIT.
FROM THE DISTRICT.
CAN I ASK YOU WHAT WHAT.
WHAT WAS THE THINKING BEHIND?
NOT GIVING.
MORE TO YOU WERE THAT WERE IN.
YEAH AND YOU CAN POVERTY RIGHT
THIS IS THE GOVERNOR'S.
COACH SO TO GO BACK TO WIN WIN
THIS ORIGINALLY STARTED IT WAS
REALLY FOCUS ON ON FOLKS IN IN
THE DEEPEST POVERTY.
AND SO WE ARE.
WE ARE TRYING TO TRYING TO
EXPAND THE ATC TO HELP.
PEOPLE SIMILAR TO THE FEDERAL
CREDIT NOW WE'RE NOT WE DON'T.
OUR INCOME GOOD JUST GO NEARLY
SIZE A FEDERAL CREDIT GOES BUT
WE WANT TO GIVE.
PEOPLE EARNING A LITTLE BIT MORE.
ADDITIONAL SO THAT ARE EARNED
INCOME TAX CREDIT IS A IS MORE --
HOLISTIC IS IS HELPING PEOPLE
WERE STILL IN PRETTY DIRE
ECONOMIC CIRCUMSTANCES -- BUT
IT'S IT'S SPREADING THAT MONEY
MORE EVENLY AGAIN IT'S IT'S A
IT'S A QUESTION OF RESOURCES
HAVE ENOUGH RESOURCES TO PAY --
FOR GREATER EXPANSION IT'S NOT
YOU DON'T SEE THAT IT WOULD
LESSEN THE NUMBER OR IN --
DEEPER POVERTY IT WOULD LESSEN
THE NUMBER NO NO NO ONE WOULD BE
HURT BY THIS IS TOTALLY
DISABILITY BENEFITS TO ANY
TAXPAYER [inaudible]
THE OKAY.
OKAY NOW WE CAN GO TO YOU.
WERE WITH THE BUDGET POLICY
CENTER THAT'S RIGHT M. HAS TO
GET RUNNING MADAM CHAIR AND
MEMBERS OF THE COMMITTEE AT MY
NAME IS SARAH CAM RELIN AND I'M
A SENIOR POLICY ANALYST.
WITH THE CALIFORNIA BUDGET
POLICY CENTER.
AM I AM HERE TODAY BECAUSE I WAS
ASKED TO SPEAK ABOUT THE
PROPOSAL AT THE LEGISLATIVE
PROPOSAL TO EXTEND THE CALLIE
ITC. TWO AT TWO TAX FILERS WHO
USE AN INDIVIDUAL TAXPAYER
IDENTIFICATION NUMBER -- AND AS
I WENT TO I WILL START TODAY BY
DESCRIBING WHAT THAT PROPOSAL
INCLUDES -- THEN I'LL HIGHLIGHT
A FEW REASONS THAT THIS COULD BE
CONSIDERED A WORTHWHILE
INVESTMENT AND THEN I'LL FINISH
BY DESCRIBING THE
CHARACTERISTICS OF THE
INDIVIDUALS LIKELY BENEFIT FROM
THE PROPOSAL.
AND SO I WANT TO START BY JUST
EMPHASIZING THAT THE CALLIE ITC
IS A VITALLY IMPORTANT
INVESTMENT THAT CALIFORNIA HAS
MADE TO IMPROVE ECONOMIC
SECURITY IN OUR STATE -- IT
HELPS WORKING FAMILIES MAKE ENDS
MEET -- IN OUR HIGH COST STATE
AND THERE IS A WEALTH OF
RESEARCH SHOWING THAT EARNED
INCOME TAX CREDITS AND POLICIES
MY GENERALLY THE INCREASE THE
INCOMES OF FAMILIES WHO ARE
STRUGGLING WITH ECONOMIC AND
SECURITY.
ARE LINKED TO IMPROVED OUTCOMES
AND OF WRITER DO MEANS INCLUDING
EDUCATION AND HEALTH EMPLOYMENT --
AND EVEN TO IMPROVE LONG TERM
ADULT OUTCOMES FOR THE CHILDREN
WHO ARE GROWING UP IN POVERTY.
SO -- FROM THAT PERSPECTIVE
EXTENDING THE CALLIE IDC IN
ORDER TO REACH EVEN MORE
INDIVIDUALS AND FAMILIES WITH
LOW INCOMES IS A SMART SHORT
TERM AND LONG TERM STATE
INVESTMENT.
AT THE PROPOSAL I'M SPEAKING
ABOUT TODAY SPECIFICALLY WITH
EXTEND ELIGIBILITY FOR THAT
CALLIE ITC TO TAX FILERS WHO USE
INDIVIDUAL TAXPAYER
IDENTIFICATION NUMBERS ARE I
TENS IS THAT CALLED.
AND SO CURRENTLY.
THE KELLY IDC PARALLELS THE
ELIGIBILITY FOR THE FEDERAL EITC
AND REQUIRING THAT ALL FILERS
INDEPENDENCE -- WHO ARE CLAIM
FOR PURPOSES OF THE KELLY ATC
MUST HAVE A SOCIAL SECURITY
NUMBER THAT IS VALID FOR WORK --
THIS EXCLUDES MANY IMMIGRANT --
FAMILIES AND INDIVIDUALS WHO ARE
LIVING IN OUR STATE -- AND
FILING TAXES FROM BENEFITING
FROM THE KELLY AT YOU SEE EVEN
IF THEY ARE WORKING AND THEY
HAVE VERY LOW INCOME SO THEY
WOULD OTHERWISE BE ELIGIBLE FOR
THE CREDIT.
SO THE INDIVIDUALS WHO ARE
EXCLUDED FROM BENEFITING RIGHT
NOW INCLUDE IMMIGRANT WORKERS
WHO DO NOT HAVE SOCIAL SECURITY
NUMBERS AS WELL AS THEIR
CHILDREN WITH THE CHILDREN ARE
U. S. BORN ARE DREAMERS -- AND
ALSO INDIVIDUALS WHO HAVE A
SOCIAL SECURITY NUMBER THAT IS
VALID FOR WORK THROUGH FEDERAL
POLICIES LIKE DHAKA OR TEMPORARY
PROTECTED STATUS.
BUT WHO SUBSEQUENTLY LOSE THEIR
IMMIGRATION RELIEF DUE TO
CHANGES IN FEDERAL POLICY.
AND THEY WOULD THEN BECOME AN
ELIGIBLE FOR THE KELLY ATC -- SO
THE FEDERAL GOVERNMENT ALLOWS
INDIVIDUALS WITHOUT SOCIAL
SECURITY NUMBERS TO APPLY FOR A
FEDERALLY ISSUED I TEN IN ORDER
TO FILE INCOME TAXES OR IDENTIFY
CHILDREN AS DEPENDENTS ON TAX
FORMS AND MANY.
OF INDIVIDUALS TO TAKE ADVANTAGE
OF THAT -- AND SO THIS PROPOSAL
WOULD ALLOW TAX FILERS TO USE
THOSE FEDERALLY ISSUED I TENS OR
ANY FEDERALLY ISSUED SOCIAL
SECURITY NUMBER TO FILE FOR AND
CLAIM THE KELLY IDC.
PROVIDED THAT THE FILE THERE
MADE ME IT'S ALL OTHER KELLY IDC
ELIGIBILITY CRITERIA -- I WANNA
KNOW CALIFORNIA IS NOT REQUIRED
TO FOLLOW THE SAME ELIGIBILITY
CRITERIA AS THE FEDERAL EITC.
IN FACT -- AS AT THE LA -- NOTED
PREVIOUSLY WE'VE ALREADY CHOSEN
TO EXPAND ELIGIBILITY BEYOND TO
THE PILOTS WHO ARE CURRENTLY
ELIGIBLE FOR THE FEDERAL EIGHT
THE ATC.
IN EXTENDING THE CREDIT TO
WORKING YOUNG ADULTS ANTI
WORKING SENIORS ABOUT DEPENDENT
CHILDREN -- AND ALSO THE FTP
ALSO ALREADY ACCEPTS INCOME TAX
PAYMENTS FROM FILERS WHO USE I
TENS.
UM AND ALL FILERS ARE CURRENTLY
ALLOWED TO USE SELF EMPLOYMENT
INCOME TO QUALIFY FOR THE KELLY
SEE WHICH IS THE TYPE OF INCOME
THAT WOULD I TEN FATHERS WOULD
BE MOST LIKELY TO REPORT.
AND SO AT IMMIGRANTS OF FILING
TAXES WITH HIGH TENS AND THEIR
FAMILY MEMBERS ARE ESSENTIALLY
THE ONLY REMAINING MAJOR GROUP
OF WORKING CALIFORNIANS WITH LOW
INCOMES WHO ARE EXCLUDED FROM
ACCESSING THE BENEFITS OF THE
KELLY I. T. C. NOW -- AND I
WANTED TURN NEXT TO JUST
HIGHLIGHT THREE KEY POINTS --
FOR WHY INCLUDING INDIVIDUALS
THESE INDIVIDUALS IN THE ALLEY
TO SEE COULD BE WELL WORTHWHILE
INVESTMENT.
ANSWER TURNING TO THE TO THE
HAND OUT -- THAT I PROVIDED --
SO AS SHOWN ON THE SECOND PAGE
OF THE HANDOUT. ONE KEY
CONSIDERATION IS THAT IMMIGRANTS
ARE REALLY VITAL TO CALIFORNIA'S
LABOR FORCE.
SO -- WE ALL KNOW OUR STATE IS
AN ECONOMIC POWER HOUSE WE HAVE
THE FIFTH LARGEST ECONOMY IN THE
WORLD ROUGHLY ONE SEVENTH OF THE
NATIONAL ECONOMY.
AS A STATE WE CAN TRAP YOU ABOUT
ONE AND A HALF TIMES AS MUCH TO
NATIONAL GDP AS ANY OTHER STATE --
AND WE COULD NOT BE THE ECONOMIC
POWER HOUSE WITHOUT THE
CONTRIBUTIONS OF IMMIGRANT
WORKERS -- AS THIS -- CHART
SHOWS IMMIGRANTS -- MAKE UP ONE
AND THREE WORKERS IN THE STATE.
AND ALSO I THINK THE FACT THAT
NEARLY ONE IN FIVE WORKERS IN
THE STATE ARE YOU ES BORN BUT
GREW UP AS THE CHILDREN OF
IMMIGRANTS.
HOW IT'S THE FACT THAT INVESTING
IN THE ECONOMIC SECURITY OF
IMMIGRANT FAMILIES -- IS AN
INVESTMENT IN OUR STATE'S
ECONOMIC FUTURE AS WELL.
TURNING TO THE NEXT SLIDE OVER
THE NEXT -- CHARTS -- I WANT TO
MAKE THE POINT IMMIGRANTS
INCLUDING UNDOCUMENTED
IMMIGRANTS WHO DO NOT HAVE
SOCIAL SECURITY NUMBERS AND SO
ARE CURRENTLY EXCLUDED FROM THE
KELLY IDC.
ALSO MAKE MAJOR CONTRIBUTIONS TO
STATE AND LOCAL TAXES -- AS
SHOWN IN THIS CHART -- WITH THE
ESTIMATE IS THAT THREE POINT TWO
BILLION DOLLARS.
STATE AND LOCAL TAXES ARE MADE
BY -- UNDOCUMENTED IMMIGRANTS IN
CALIFORNIA -- I ALSO WANTED OF
THAT.
UNDOCUMENTED IMMIGRANTS ALSO
MAKE MAJOR CONTRIBUTIONS TO
FEDERAL TAXES AND RECENT TAX
POLICY CHANGES AT THE FEDERAL
LEVEL HAVE REDUCED THE
ELIGIBILITY OF IMMIGRANT
FAMILIES FOR FEDERAL TAX CREDITS.
SO SPECIFICALLY THE TAX CUTS AND
AT BACK AND JOBS ACT TO CHANGE
THE ELIGIBILITY FOR THE FEDERAL
CHILD TAX CREDIT. TO REQUIRE
THAT ALL CHILDREN CLAIM FOR THE
CREDIT MUST HAVE A SOCIAL
SECURITY NUMBER VALID FOR WORK --
SO ESSENTIALLY THIS TAKE AWAY
ELIGIBILITY FOR THE FEDERAL
CHILD TAX CREDIT FOR CHILDREN
WHO ARE DREAMERS -- AND MADE
THEIR FAMILIES ELIGIBLE INSTEAD
FOR A MUCH SMALLER CREDIT THAT
IS NOT REFUNDABLE SAID
PARTICULARLY DISADVANTAGES --
LOW INCOME IMMIGRANT FAMILIES
AND THEIR CHILDREN -- SO THAT
YOU COULD SAY THAT THE PROPOSAL
TO ALLOW AYE TENDS TO BE USED.
FOR THE CALIFORNIA -- CALLIE IDC --
COULD IS A IS AN APPROACH TO
HELPING TO COUNTERACT THE
EFFECTS OF THIS FEDERAL ACTION.
I'M TURNING NEXT -- TO THE NEXT
PAGE THE HAND OUT.
THE FINAL PLAN I WANNA MAKE IN
TERMS OF THE CONSIDERATIONS HERE
AS THAT EXTENDING THE KILEY TO
SEE TO MORE WORKING IMMIGRANT
FAMILIES ALSO MAKES SENSE
BECAUSE CHILDREN.
WHO GROW UP WITH AN IMMIGRANT
PARENT I'M MORE THAN TWICE AS
LIKELY TO BE GROWING UP IN
POVERTY IN CALIFORNIA AS
CHILDREN WHO DO NOT HAVE AN
IMMIGRANT PARENT -- AND WE KNOW
THAT CHILDREN HAVE BETTER SHORT
TERM OUTCOMES AND BETTER LONG
TERM OUTCOMES IF THEY GROW UP
WITH ECONOMIC SECURITY -- AND
AGAIN THIS IS ALSO IMPORTANT --
FOR THE WELL BEING OF THOSE
CHILDREN AND BECAUSE IMMIGRANTS
ALSO ARE SUCH AN IMPORTANT PART
OF CALIFORNIA'S WORK FIRST THIS
IS ALSO AN IMPORTANT.
CONSIDERATION IN TERMS OF
INVESTING IN OUR FUTURE WORK
FORCE AS WELL.
SO AND FINALLY I WANT TO TURN --
TO THE THE CHARACTERISTICS OF
THE INDIVIDUALS WHO IT LIKELY
BENEFIT FROM FROM THIS PROPOSAL.
AND SO AT THE BUDGET CENTER HAS
MODELED THIS PROPOSAL TO EXTEND
THE KELLY IDC TIGHTEN USERS
USING -- CENSUS DATA IN ORDER TO
PRODUCE SOME ESTIMATES THAT SHOW
THE DEMOGRAPHICS OF INDIVIDUALS
WHO WOULD LIKELY BENEFIT.
I'M SO THESE ESTIMATES SHOW --
THAT EXTENDING THE CURRENT KILEY
IDC TIGHTEN USERS COULD BENEFIT
YOU KNOW AS MANY AS HALF A
MILLION OR MORE INDIVIDUALS.
THE COUNTY FILED INDIVIDUALS AND
BENEFITING TAX UNITS INCLUDING
AS MANY AS TWO HUNDRED THOUSAND
CHILDREN ARE MORE -- IT'S BASED
ON A RELATIVELY CONSERVATIVE
ESTIMATE OF TAKE UP AT I TEN
USERS WERE ALSO INCORPORATED
INTO THE GOVERNOR'S PROPOSED
EXPANSION.
AND THAT EXPANSION WERE ADOPTED --
THAN THE NUMBER BENEFITING WOULD
BE LARGER.
I'M.
AND I'M AN ESTIMATED 97% OF THE
BENEFICIARIES WOULD BE PEOPLE OF
COLOR.
ON AN ESTIMATED 74% OF THE
BENEFITING TAX FILERS WOULD BE
LIVING IN HOUSEHOLDS THAT
INCLUDE CHILDREN BUT THEY'RE NOT
THAT THE CHILDREN WERE IN THE
TAX FILERS -- TAX UNIT -- SO IT
REALLY WOULD OVERWHELMINGLY
BENEFITS HAVE FAMILIES WITH
CHILDREN.
I'M IN SOME OF THE COMMON
OCCUPATIONS AMONG THE BENEFITING
WORKERS INCLUDE -- OCCUPATIONS
LIKE FARMWORKERS HOUSEKEEPERS
COOKS CONSTRUCTION LABORERS
JANITORS AND GROUNDS MAINTENANCE
WORKER SO PEOPLE WHO ARE DOING A
LOT OF THE CRITICAL WORK THAT
SUPPORTS SO MUCH OF THE TIME --
PERSONALIZE AND ECONOMIC
ACTIVITY OF OUR STATE.
I AM AND I WOULD ALSO ANOTHER
THE THE BENEFITS TO PEOPLE OF
COLOR INTO TEXT FILES WITH
CHILDREN ARE PARTICULARLY
NOTEWORTHY INTENSIVE POVERTY
BECAUSE ALREADY
DISPROPORTIONATELY AFFECTS
CHILDREN OF COLOR IN CALIFORNIA
SO -- SO I JUST WANNA CONCLUDE --
BUT NOTING THAT ALL THESE POINTS
TOGETHER SUGGEST THAT EXTENDING
THE KELY IDC TYSON USERS COULD
BE A STRATEGY TO STRENGTHEN.
THE KELLY IDC ANTICS AND THE
BENEFITS OF THE STATE INVESTMENT
TO THE LAST REMAINING GROUP THAT
HAS REMAINING MAJOR GROUP OF
WORKING.
FAMILIES AND INDIVIDUALS WHO ARE
CURRENTLY EXCLUDED -- AND
THEREBY INCREASING THE ECONOMIC
SECURITY OF THIS IMPORTANT GROUP
OF CALIFORNIA WORKERS AND THEIR
FAMILIES.
THANK YOU.
THANK YOU VERY MUCH -- SENATORS.
QUESTION.
NO COMMENTS -- PUBLIC COMMENT ON
THIS.
THESE.
GOOD AFTERNOON OF MEMBERS OF THE
COMMITTEE THANK YOU FOR THE
DISCUSSION AROUND -- THIS
IMPORTANT ISSUE NEARLY SOUND
ABOUT WHAT THE UNITED WAYS -- OF
CALIFORNIA WE FIGHT FOR THE
HEALTH EDUCATION AND FINANCIAL
STABILITY OF EVERY PERSON AND
EVERY [inaudible]
OF NOT ONLY OF STRENGTHENING THE
KELLY I TO SEE THROUGH THE
GOVERNOR'S PROPOSAL BUT ALSO
ENSURING THAT -- I TEN FILERS
ARE NOT EXCLUDED FROM THE KELLY
I TO SEE -- I WANTED TO KNOW
WHAT SPECIFICALLY THAT -- THIS
EXCLUSIONS PARTICULARLY HOW
HARMFUL FOR FAMILIES WERE EVEN
IF THERE'S A US CITIZEN CHILDREN
WITHIN THE FAMILY SIDE -- THEY
ARE EXCLUDED FROM THE CREDIT --
WE ALSO WORK WITH -- BY THE
SITES ARE FREE TAX PREPARATION
SITES AND WE SEE FIRSTHAND WHAT
THIS EXCLUSION DOES I WANTED TO
JUST.
SHARE REALLY QUICKLY A STORY
FROM A MOM OF THREE I REMAINED A
WHO WORKS HAVE HARVESTING GRAPES
THAN A BILLIARD SHE WENT TO A
FREE TAX BY THE SITE SHE'S THE
DOCTOR RECIPIENT.
AND SHE GOT ABOUT SIX THOUSAND
DOLLARS ON HER FEDERAL NY I TO
SEE RETURN -- IF SHE WERE TO
LOSE HER DOC I STATUS SHE WOULD
ESSENTIALLY LOSE HER.
KELLY I TO SEE ON HER FEDERAL
EITC -- THIS CONSTITUTED ABOUT A
37% INCREASE AND HER SALARY SHE
ONLY MADE ABOUT SEVENTEEN
THOUSAND EIGHT HUNDRED DOLLARS --
A YEAR SO -- YOU DON'T THIS
INCLUSION OF ITEM PILAR'S IS
DEFINITE DEFINITE LEE ESSENTIAL --
I ALSO WANTED TO SPEAK -- TO THE
INVESTMENT AROUND FREE TAX BUT
BUT NOT REACH A NOTE -- THAT WE
SHOULD CONTINUE AND INCREASE THE
THE BEST A MULTI YEAR FUNDING SO
THAT WE CAN CONTINUE. TO REACH
THE FAMILIES WHO NEED THOSE
CREDIT THE MOST -- SOIL IN ST WE
STRONGLY URGE -- TO TO SUPPORT
THIS PROPOSAL THAT REMOVES THE
EXCLUSION OF I TEN FILERS AND
ALSO -- TO HAVE CONTINUED AN
INCREASE FUNDING -- FOR WILL
TELL YOUR FREE TAX PREP AND OUT
REACH AS WELL THANK YOU.
THANK YOU GOOD AFTERNOON
CHAIRMAN MEMBERS MY NAME IS
STEVEN GUY CAN YOU SHOW WITH THE
CALIFORNIA IMMIGRANT POLICY
CENTER.
WE WANT TO THANK YOU FOR THE
CONVERSATION HAPPENED HERE TODAY
ON THE CAL YET TO SEE AN
SPECIFICALLY ON I TEN FILERS I
MEAN WE RECOGNIZE THAT YOU
EIGHTY C. HAS DONE MORE THAN ANY
OTHER PROGRAM TO LIVE FAMILIES
OUT OF POVERTY.
OUR RESEARCH AND EVALUATIONS
HAVE SHOWN THAT THE AGENCY
PROMOTES EDUCATIONAL SUCCESS
LOCAL ECONOMIC GROWTH BUT MOST
IMPORTANTLY.
I IMPROVES CHILD AND MATERNAL
HEALTH.
I IMMIGRANTS CONTRIBUTE MORE
THAN ONE THIRD TO THE STATE'S
GDP AS WAS MENTIONED AND ARE
VITAL TO CALIFORNIA'S ECONOMY.
THEY MAKE SIGNIFICANT
CONTRIBUTIONS TO STATE AND LOCAL
REVENUES INCLUDING UNDOCUMENTED
WORKERS AS WAS MENTIONED
CONTRIBUTE OVER THREE POINT TWO
BILLION DOLLARS EVERY YEAR IN
STATE AND LOCAL TAXES AND HAVE
BEEN DOING SO FOR MANY YEARS.
I AND YET THOUSANDS A WORKING
IMMIGRANT HOUSEHOLDS WITH THE
RANGE OF IMMIGRATION STATUS IS.
ARE CURRENTLY EXCLUDED FROM
ACCESSING THAT CAL YET YOU SEE
BECAUSE OF THEIR I TEND TO USE
TO FILE OTHER TAXES THIS
EXCLUSION ALSO HARMS THOSE WHO
HAVE A SOCIAL SECURITY NUMBER.
BUT LOSE OUR DOC OUR TPS
IMMIGRATION RELIEF WHICH WE
THINK IS ALSO CRITICAL.
THE EXCLUSION NEGATIVELY IMPACTS
TO ADULTS AND CHILDREN ALIKE AS
MANY IMMIGRANTS LIVING MAKE
STATUS HOUSEHOLDS WITH U. S.
CITIZEN CHILDREN WHO ARE NOT
ABLE TO BENEFIT FROM THE COUNTY
ATC.
BECAUSE OF THEIR PARENTS
IMMIGRATION STATUS AND WE THINK
THE INCLUDING I TEN FATHERS AND
CAL UTC MAKES ECONOMIC SENSE IS
BASED ON SOUND RESEARCH -- THAT
SUPPORTS ITS EFFICACY BUT MOST
IMPORTANTLY WOULD ENSURE THAT
OUR STATE'S INVESTMENTS IN
FIGHTING POVERTY -- IN FIGHTING
POVERTY WORK TO FIGHT POVERTY
FOR EVERY SINGLE CALIFORNIAN
THANK YOU SO MUCH.
HI THANK YOU SO MUCH MY NAME IS
THE BRAINY HAMMOND WITH THE
CALIFORNIA ASSET BUILDING
COALITION COM MUCH LIKE WITH THE
PREVIOUS PEOPLE HAVE SAID WE ARE
IN STRONG SUPPORT OF EXPANDING
CAL CAL YET THE ITC. TO I TEN
FILERS -- YET TO SEE EXPAND --
HAS SHOWN TO LIFT PEOPLE OUT OF
POVERTY WE DON'T WANT TO EXCLUDE
THE HARD WORKING CALIFORNIANS.
THAT ARE CONTRIBUTING TO THE
ECONOMY THEY DESERVE -- THE
RIGHT TO RECEIVE THE BENEFIT AS
WELL THANK YOU.
KEVIN IN SCOPE FRIENDS COMMITTEE
ON LEGISLATION CALIFORNIAN THE
CALIFORNIA INTERFAITH COALITION --
WE'RE IN STRONG SUPPORT OF THE
PROPOSED EXPANSION CALLIE ITC
AND WE HOPE THAT YOU WILL
INCLUDE TAXPAYERS WHO FILE BY
TEN THANK YOU.
THE MORNING'S ME GASKINS
EXECUTIVE DIRECTOR OF THE
CHILDREN'S DEFENSE FUND
CALIFORNIA WE ARE ALSO IN STRONG
SUPPORT OF THE GOVERNOR'S
PROPOSED BUDGET EXPANSION AS
WELL AS INCLUSION OF AYE TENS
AND I JUST WANTED TO SHARE
BRIEFLY.
A STORY FROM YOUR SUBPOENA A
GRANDMOTHER THAT WE WORK WITH IN
LA A WHOSE SADLY THAT SHE
COULDN'T BE HERE TODAY.
I'M A GRANDMOTHER AND GUARDIAN
OF THREE HIGH SCHOOL CHILDREN
AND ONE COLLEGE STUDENT BUT I
MIGRATED TO THIS COUNTRY I WAS A
SINGLE MOTHER AND WORKED ON
TAKING CARE OF ELDERLY ADULTS AT
THEIR HOMES.
AS SOON AS I WAS RELEASED FROM
WORK I ATTENDED CLASSES AT A
CONTINUATION SCHOOL TO LEARN
ENGLISH.
NOW I WORK ABOUT THIRTEEN HOURS
A DAY RUNNING MY OWN DOLLAR
STORE IN MY COMMUNITY.
I WOULD INVEST IN THE EARNED
INCOME TAX CREDIT BECAUSE IT'S
SOMETHING PRODUCTIVE THAT WOULD
PROVIDE MY FAMILY MORE LONG TERM
INCOME.
THE LITTLE I MAKE IS PAYING
BILLS FOR MY HOME AND AT THE END
THE EARNED INCOME TAX CREDIT
EXPANSION WOULD ASSIST ME IN
PAYING THOSE BILLS AS WELL AS
SAVING FOR THE REST OF THE
BENEFIT OF MY FAMILY.
THANK YOU FOR THE INFORMATION
THE LACK OF INFORMATION AND%
KNOWLEDGE PREVENTING ME FROM
BEING ABLE TO RECEIVE TAX
BENEFITS.
IS CRUCIAL THANK YOU FOR HEARING
MY STORY THANK YOU VERY MUCH.
GOOD AFTERNOON CATHERINE OCCUR
GONNA ON BEHALF OF FIRST FIVE WE
ARE A PUSH APPRECIATE IT
APPRECIATE OF AND ARE IN SUPPORT
OF THE GOVERNOR'S PROPOSAL TO
EXPAND THE CAL E. I. T. C..
THE CAL E. I. T. C. IS AN
IMPORTANT TOOL TO HELP WORKING
FAMILIES MAKE ENDS MEET.
AND MOVE TOWARD FINANCIAL
SECURITY.
THE GOVERNOR'S PROPOSED
EXPANSION WILL PROVIDE SUPPORTS
A MORE LOW INCOME FAMILIES IN
NEED WHICH WILL STRENGTHEN
FAMILIES AND PROMOTE THE WELL
BEING OF OUR STATE'S CHILDREN
THANK YOU THANK YOU.
REBEKAH GONZALEZ NATIONAL
ASSOCIATION OF SOCIAL WORKERS
CALIFORNIA CHAPTER LIKE THE
OTHERS SPEAKERS WE ARE VERY
APPRECIATIVE OF THE GOVERNOR'S
PROPOSAL WE WANT TO SEE THE
INCLUSION OF I TEN ALSO
SUPPORTIVE OF HAVING THE
OUTREACH DOLLARS -- TO HELP
COMMUNITIES FILE THEIR TAXES
THANK YOU SO MUCH THANK YOU.
RENEE BAYARDO SEIU CALIFORNIA WE
ALSO A SUPPORT THE PROPOSAL TO
INCLUDE THOSE HE'S AND I TEN
WE'RE SUPPORTIVE IN CONCEPT OF
GENERALLY EXPANDING THE ITC WE
DO HAVE SOME QUESTIONS.
A CONCERNS ARE ON THE DESIGN BUT
WE LOOK FORWARD TO WORKING WITH
THE GOVERNOR'S OFFICE AND
LEGISLATURE ON THAT.
Q..
HI BACK YOUR SON FROM THE
CALIFORNIA ASSOCIATION OF FOOD
BANKS ALSO IN STRONG SUPPORT OF
EXPANDING CALLIE ITC TIGHTEN
FILERS I'M WHICH WE BELIEVE
REALLY STRONGLY THAT IT'S
IMPORTANT TO LIFT UP ALL
COMMUNITIES TOGETHER.
I'M TO BE ABLE TO TAKE ADVANTAGE
OF THIS REALLY IMPORTANT PROGRAM
SO RENTS TRANSPORT THANK YOU.
HI THERE TERRY ONLY WITH
ECONOMIC SECURITY PROJECT ACTION
WE ALSO ARE IN STRONG SUPPORT OF
THE GOVERNOR'S PROPOSAL IN THE
PROPOSAL HER TODAY TO INCLUDE I
TENS IN THIS IMPORTANT PROGRAM.
I'D ALSO LIKE TO CALL ATTENTION
TO TO YOU OTHER THINGS ON THE
GOVERNOR'S PROPOSAL INITIALLY
CALLED -- FOR EXPANDING OR
CHANGING THE STRUCTURE OF THE
IDC SO THAT PAYMENTS COULD BE --
DISPERSED ON A MONTHLY OR
PERIODIC BASIS AND WE REALLY
WANT TO WORK WITH THE GOVERNOR
STAFF AND OTHERS ON THAT TO MAKE
THAT A REALITY WE THINK TAT
WOULD DO GO A LONG WAY TO
ADDRESSING INCOME VOLATILITY
THAT A LOT OF THESE HOUSEHOLDS.
WE KNOW THAT ABOUT HALF OF THE
POPULATION THIS COUNTRY CAN'T
WHETHER AN UNEXPECTED EXPENSE OF
A FEW HUNDRED DOLLARS AND HAVING
THE OPPORTUNITY TO RECEIVE THE
PAYMENTS -- MORE REGULARLY.
PART OF THEIR INCOME ON A
REGULAR BASIS WOULD -- WOULD
REALLY HELP ADDRESS THAT OF THAT
PROBLEM I KNOW IT COULD BE
COMPLICATED BUT I THINK THERE
ARE WAYS THAT WE COULD -- THAT
WE CAN MAKE THIS HAPPEN
ESPECIALLY.
SINCE THERE IS -- I THINK THE
REAL HOPE TO EXPAND THE THE THE
AMOUNTS OF PEOPLE ARE RECEIVING
GOING FORWARD SO THAT -- YOU BE
ABLE TO GET SOMETHING MORE REAL
AND ON A MONTHLY BASIS ARE MORE
SIGNIFICANT.
I'M AND FINALLY I ALSO REALLY
WANT TO CALL ATTENTION TO THE
GOVERNOR'S -- CHILD YOUNG CHILD
BOOST I THINK THAT IT GOES A
LONG WAY TO RECOGNIZING THAT THE
IMPORTANT WORK AT THAT
HOUSEHOLDS DO TO CARE FOR YOUNG
CHILDREN EVEN DOWN.
TO GET ONE DOLLAR WE WOULD URGE
ON THE GOVERNOR CONSIDER GOING
DOWN TO ZERO DOLLARS IN INCOME
TO REALLY LIFT UP THE FAMILIES
WHO ARE PROVIDING UNPAID BUT
EXTREMELY VALUABLE -- CARE --
FOR DEPENDED YOUNG YOUNG
DEPENDENTS THANK YOU THANK.
HI SHANTI PER SIDE WITH ALAMEDA
COUNTY COMMUNITY FOOD BANK WE
STRONGLY SUPPORT TO THE
GOVERNOR'S PROPOSAL AS WELL AS
THE PROPOSAL TO INCLUDE ITEN
FILERS THERE ARE A LOT OF
IMMIGRANTS IN ALAMEDA COUNTY AND
THIS WOULD UP WITH OUR COMMUNITY
AND THIS IS REALLY IMPORTANT TO
US -- ALSO JUST SPEAKING ON
BEHALF OF CALIFORNIA FOOD POLICY
ADVOCATES THEY'VE ASKED ME TO
ALSO US.
OF SAY THAT THEY ARE ALSO
SUPPORTIVE OF THE GOVERNOR'S
PROPOSAL AS WELL AS INCLUDING
AYE TEN FILERS THANK YOU THANK
YOU.
CARLY SINGLE AT THE FOOD BANK OF
CONTRA COSTA AND SOLANO.
ACCORDING TO OUR ORGANIZATIONS
TWENTY EIGHTEEN HUNGER STUDY
ABOUT CLOSE TO HALF OF ALL THE
HOUSEHOLDS THAT WE SERVE EARN
LESS THAN FIFTEEN THOUSAND
DOLLARS A YEAR AND CLOSE 210% OF
ALL THE HOUSEHOLDS WE SERVE.
OUR REPORTED HAVING A MEMBER OF
THEM DIDN'T HAVE A SOCIAL
SECURITY NUMBER SO WE THINK THAT.
ARE WE ARE IN SUPPORT OF THE
GOVERNOR'S EXPANSION OF EITC AND
AS WELL AS EXPANDING IT TIGHTEN
FILE AS WE THINK THAT WOULD
REALLY HELPTHE THE FOLKS THAT
WE SERVE AND WE'RE REALLY
CONCERNED ABOUT THE FACT THAT
30%.
OF HOUSEHOLDS THAT WE SERVE
REPORT THAT MORE THAN HALF OF
THEIR FOOD COMES FROM OUR
SERVICES A MORE REALLY MEANT TO
BE A A SUPPLEMENT -- AND SO
HELPING LIFT FAMILIES OUT OF
POVERTY ILL MEAN THAT THEY'LL
BE REQUIRED TO RELY LAST HEAVILY
ON OUR SERVICES THANK YOU.
THANK YOU.
GOOD AFTERNOON JACK ALONG WITH
GRACE AND SUFFERING CALIFORNIA
CAMPAIGN I JUST WANNA LINE MY
COMMENTS WITH NAY LA SOUND OF
ALL WITH THE ON THAT YEAH I TO
THE COALITION THANK YOU.
THANK YOU.
VERY GOOD AFTERNOON MY NAME IS
JOSH RIGHT AGAIN WITH CALLS IT
OPPORTUNITY WE RUN CAL YET YOU
SEE FOR ME ONE OF THE OUT REACH
PROGRAMS AROUND THIS -- AROUND
THE IDC IS REALLY FUN TO HEAR
THE HISTORY OF HOW THIS PROGRAM
HAS EXPANDED SO DRASTICALLY IN
THE LAST FEW YEARS AND SO WE'RE
SO EXCITED. TO SUPPORTTHE
GOVERNOR'S PROPOSAL -- TO
CONTINUE TO EXPAND IT AND REACH
MORE FAMILIES -- WANTED TO SHARE
ONE QUICK STORY FROM A WOMAN WHO
WE WORK WITH NAY MARLENE HOFFMAN
WHO WORKS AT THE EAST MIND
COMMUNITY CENTER IN EAST LOS
ANGELES.
WHO TALKED TO US AND TOLD US
ABOUT WHAT THE FIVE HUNDRED
DOLLAR PROPOSED INCREASE -- FOR
HAVING CHILDREN WOULD MEAN TO
HER AND SHE PAUSED AND SAID.
IT WOULD MEAN THAT MY CHILDREN
WOULD HAVE SHOES THAT WOULD FIT.
AND THAT'S WHAT THIS MEANS IS
ABOUT COVERING BASIC NEEDS FOR
WORKING FAMILIES THROUGHOUT THE
STATE OF CALIFORNIA SO WE'RE IN
STRONG SUPPORTER THAT WERE
AWESOME STRONG SUPPORT OF
INCREASING THIS TO INCLUDE I TEN
WORKERS AND THEN LASTLY JUST
WANT TO PUT A FINE POINT.
ON THE OUT REACH PORTION OF THIS
BECAUSE AS WITH MANY OF US KNOW
WHO WHO ARE WORKING IN THIS DAY
TO DAY.
MANY OF THE PEOPLE WERE TRYING
TO REACH ARE ACTUALLY NOT
REQUIRED TO FILE TAXES.
AND SO IN ORDER FOR THEM TO
ACTUALLY CLAIM THIS CREDIT IN
ORDER FOR THE GOVERNOR'S
PROPOSAL TO BE SUCCESSFUL PEOPLE
ACTUALLY NEED TO LEARN AND
UNDERSTAND THAT THIS MONEY IS
AVAILABLE WHICH IS WHY THE
AVERAGE AN EDUCATION COMPONENT
SO IMPORTANT.
AND THIS BODY HAS INVESTED A
SIGNIFICANTLY AND AND OVER THE
LAST COUPLE YEARS TO MAKE SURE
THAT THAT REACH AS POSSIBLE AND
THAT IS WHY THIS YEAR WERE
ACTUALLY NEARLY 40%.
AHEAD OF WHAT WE WERE IN PAST
YEARS -- IS ONE OF THE REASONS
IS BECAUSE WE ARE INCREASING AND
YOU GUYS HAVE INVESTED
INCREASING OUTREACH EFFORTS.
SO WE WOULD ACTUALLY ASK THAT
THE THAT THE SENATE.
CONSIDER INCREASING WITH THE
GOVERNOR'S PUT IN TO JUST BACK
TO THE BASIC LEVEL WHAT YOU
INVESTED LAST YEAR BECAUSE IT'S
ALREADY WORKING WE'RE SEEING IT
WORK AND WE WANT TO CONTINUE TO
MAKE SURE THAT FAMILIES.
HAVE THIS BENEFIT THANK YOU SO
MUCH [inaudible]
THANK YOU.
THANK YOU DOES THE BIRTH OF AND
WESTERN CENTER ON LAW AND
POVERTY WE'VE ALWAYS BELIEVE
THAT THESE WORKERS SHOULD BE
INCLUDED AND RATHER THAN.
AT CALLING FOR THE EXPANSION OF
THE I. T. C. WE WOULD LIKE TO
END THE EXCLUSION.
OF WORKING PEOPLE FROM THE
EARNED INCOME TAX CREDIT WE
BELIEVE THEY SHOULD I GET THE
SAME TAX CREDIT OTHER WORKING
PEOPLE GET THANK YOU.
THANK YOU VERY MUCH [inaudible]
ANYMORE.
COMMENT WELL I REALLY APPRECIATE
DONE -- WHAT EVERYBODY HAS
RAISED TODAY AND IN RESPONSE TO
THE?
GOVERNOR'S UP -- CERTAINLY MAKES
A LOT OF SENSE TO ME THAT WE ARE.
ONE WITH THE I. -- TEN THE FACT
THAT -- THEY'RE WORKING
POPULATION AND THEY'RE PAYING
TAXES.
AND THEY DON'T.
THEY CAN'T -- THEY'RE NOT
ELIGIBLE.
OF FOR THE EIGHTY SI JUST
DOESN'T MAKE ANY SENSE.
SO -- I APPRECIATE THE THE
COMMENTS -- IN SUPPORT OF
EXTENDING ELIGIBILITY -- TO
THOSE WITH AYE TEN I THINK IT'S
PART OF THE COMMUNITIES
ESPECIALLY THE IMMIGRANT
COMMUNITY AND COMMUNITY THAT
LIVES IN POVERTY.
IT'S IMPORTANT THAT OUR POLICIES
ARE STATE POLICIES ARE
CONSISTENT.
IN THERE'S A BIG MIX OF OF BOMB.
ON THE BIG MIX MESSAGE OUT THERE
TO OUR COMMUNITIES THAT SUMMER
ELIGIBLE FOR SOME SOMETIMES HERE
SOMETIMES THERE -- AND IT REALLY
DOESN'T SEND THE RIGHT MESSAGE
AS FAR AS OUR GOVERNMENT IS
CONCERNED AND THE TRUST OF OUR
GOVERNMENT.
THAT THERE ARE THESE MIXED
MESSAGES AS TO WHO IS ELIGIBLE
FOR WHAT SO I THINK THAT'S AN
IMPORTANT PART OF THIS AS WELL
IS TRUST IN GOVERNMENT.
NOT ONLY THE FINANCIAL -- AND
HOW IT'S GOING TO HELP FAMILIES
IT JUST OVERALL WHAT ARE WE
SAYING TO OUR COMMUNITIES WE
SHOULD BE SAYING THAT YOU'RE ALL
CALIFORNIANS.
WE'RE GONNA TREAT OF ALL
CALIFORNIANS IN THE SAME WAY I
THINK THAT'S ALSO PART OF THE
CONSIDERATION [inaudible]
NUMBER ANYMORE [inaudible]
NO.
PUBLIC COMMENT THANK YOU ALL
THANK YOU VERY MUCH.
ON A WE HAD -- OKAY THIS IS THE
QUINLAN.
OKAY ON TAX CONFORMITY.
YES -- RIGHT THANK YOU SO ARE TO
PAY FOR THE ENTIRE.
EARNED INCOME TAX FOR THE BOTH
THE FOR ALL THE THINGS THAT WE
WANT TO THE CURRENT LAW AND FOR
THE THE EXPANSION.
ADMINISTRATION IS PROPOSING A
TAX CONFORMITY PACKAGE.
THE LAW UP SEVERAL CHANGES THAT
WILL MAKE TAX COMPLIANCE
ADMINISTRATION EASIER FOR
TAXPAYERS TAX REPAIRS AND FOR
THE FRANCHISE TAX BOARD.
HAS WELLS ADOPT OTHER.
FEDERAL TAX LAW CHANGES THAT
MAKE GOOD POLICY SINCE. TWO TWO
THOUSAND SEVENTEEN THE FEDERAL
GOVERNMENT ADOPTED SIGNIFICANT
CHANGES TO THE TAX CODE.
KNOWN AS THE TAX CUTS AND JOBS
ACT.
THAT CHANGE THE WAY INDIVIDUALS
AND CORPORATIONS CALCULATOR TAX
LIABILITY.
OUR PROPOSAL IS AN
ACKNOWLEDGEMENT THAT THE
CALIFORNIA PERSONAL INCOME TAX
AND CORPORATE TAX SYSTEMS.
ARE INEVITABLY INEVITABLY LINKED
TO THE FEDERAL TAX SYSTEMS.
AND IN SOME CASES CONFORMITY TO
CERTAIN FEDERAL TAX PROVISIONS
IS NECESSARY FOR THE EFFICIENT
ADMINISTRATION OF OUR OWN TEXAS.
IN ADDITION THERE ARE SEVERAL
CHANGES ADOPTED BY THE FEDERAL
GOVERNMENT THAT MAKE GOOD POLICY
CENTS FOR THE STATE OF
CALIFORNIA.
SO I WANT TO GO THROUGH
DESCRIBED WE'VE GOT -- TWELVE OR
THIRTEEN THIRTEEN A DIFFERENT
ITEMS I'M GONNA GO THROUGH
FAIRLY QUICKLY SO I I WANT TO
KEEP YOUR TO ALL BUT I'VE.
TOGGLE FROM FAIRLY QUICKLY AND
THEN -- HAPPY TO ANSWER ANY
QUESTIONS YOU MORE DETAILS.
OKAY YOU MAKE A DISTINCTION AS
TO THOSE THAT HAVE LIKE THE MOST
IMPACT.
ARE YOU GONNA SURE I I MAY I
HAVE THAT RIGHT AND YOU KNOW HOW
MUCH PROBABLY THOSE THAT HAVE.
YEAH I LIVE NEXT TO HIM ON ON
PAGE THIRTY TWO I BELIEVE OF THE
OF THE AGENDA -- THERE IS A
TABLE.
OF THAT IT SHOWS.
THE SHOWS THE REVENUE -- BUT IN
FACT I CAN.
I WILL AFFECTED AS I GO THROUGH
MY WILL I WILL TELL YOU WHICH
HOW MUCH REVENUE.
AND JIM I THINK WHAT I WILL DO
IS TALK ABOUT THE THE SECOND
YEAR REVENUE AND THE REASON
BEING THAT FOR SURE REVENUE THIS
IS SOMEWHAT INFLATED.
BECAUSE YOU THE WAY THE WAY IT
WORKS YOU END UP GETTING TWO
YEARS COMBINED INTO ONE OF THE
FIRST YEAR BECAUSE IT'S GOING TO
BE ENACTED.
AT THE END OF THIS FISCAL YEAR
AND SO SOME TWO THOUSAND
NINETEEN IMPACT WILL.
MOVE SHOP LATER IN THE YEAR IN
THE END THAT TWENTY TWENTY SO --
SO WITH WITHOUT OF WHEN WE
STARTED -- I DO WANT TO ALSO SAY
THAT THE THE NUMBERS ARE ARE
LISTED.
I GET THE WRONG TABLE PAGE --
THIRTY TWO BUT OUR CONFORMITY
PACKAGE HAS CHANGED SINCE BEEN
KIND OF SMALL.
SMALL WAY SENSE THIS TABLE WAS
PUBLISHED AND SO THE NUMBERS ARE
GOING TO LINE UP PERFECTLY -- SO
PLEASE GIVE A REAL GOOD BALLPARK
OF OF WHAT WHAT THE REVENUE
SHOULD BE.
SO THE FIRST ITEM IS -- SMALL
BUSINESS ACCOUNTING REFORM IN
SIMPLE RULES.
UNDER CURRENT CALIFORNIA LAW WE
ALLOW CERTAIN SMALL BUSINESSES
MORE FLEXIBILITY IN HOW THEY DO
THEIR ACCOUNTING -- GENERALLY --
GENERALLY BUSINESSES HAVE TO
KEEP TRACK OF THEIR EXPENSES AND
THE RECEIPTS IN A WAY THAT THAT.
IS VERY PRECISE AND AND WANTED A
WITH THAT WITH YOUR THAT IT.
BELONGS IN WE GIVE MORE LEEWAY
TO SMALL BUSINESSES TO TO NOT
HAVE TO DO BE SO PRECISE IN
THEIR OWNING A MAKES IT SIMPLER
FOR THEM TO TO DO THAT -- AND
AND SO -- PRIOR TO THE THE OF
FEDERAL TAX LAW CHANGES IN TWO
THOUSAND SEVENTEEN WE HAVE THE
SAME DEFINITIONS BUSINESS
ESSENTIALLY IN THAT TAX SUCH
CHANGE.
FEDERAL GOVERNMENT CHANGED.
WHAT IS MEANT BY A SMALL
BUSINESS SO ESSENTIALLY IT IT
MOVED -- THE DEFINITION SMALL
BUSINESS. TO ANY ANY BUSINESS
WITH GROSS RECEIPTS OF TWENTY%
FIVE MILLION OUR LAPS -- AND SO
DID AND TYPICALLY RIGHT NOW WITH
OUR THRESHOLD IS AT ONE MILLION
OR FIVE MILLION SO.
IF WE DON'T CONFORM TO THIS
REALLY A LOT OF SMALL BUSINESSES
BUSINESSES HAVING TO CHOOSE
BETWEEN TAKING ADVANTAGE OF THE
MORE GENEROUS ACCOUNTING
PROVISIONS FRIDAY BY THE FEDERAL
GOVERNMENT.
OR DOING TWO SETS OF BOOKS ONE
FOR FEDERAL GOVERNMENT ONE FOR
CALIFORNIA SO WE'RE CONFORMING
WERE WERE PROPOSING WE CONFORM
TO THOSE CHANGES.
AND NOT NOT ACTUALLY THAT IS IS
EXPECTED TO BE A REVENUE LOSS --
THAT IS I THINK THE FIFTH ITEM
ON THE LIST -- TO TO IN TWO
THOUSAND TWENTY TWENTY ONE SO
LOSS OF HUNDRED MILLION DOLLARS.
OKAY SO THE SECOND ITEM ON OUR
LIST IS A REPEAL OF TECHNICAL
TERMINATION OF PARTNERSHIPS.
UNDER PRIOR FEDERAL LONG KERR A
STATE LAW FOR PARTNERSHIP HAS A
TRANSFER OF MORE THAN 50%.
OF TOTAL INTEREST IN THE
PARTNERSHIP -- WITHIN A TWELVE
MONTH PERIOD THE PARTNERSHIP IS
CONSIDERED TO BE TECHNICALLY
TERMINATED BY WHICH ONE IS THAT
ON HERE.
THIS CAN BE TOWARDS THE BOTTOM --
FOUR THREE ONE OKAY. FIVE
MILLION DOLLARS IN.
TWENTY TWENTY ONE OKAY SO -- SO
WHAT THIS DOES IS -- IT IT
CHANGES THE THE VALUATION OF
ASSETS THE WAY THE SENSHI
CHANGES THE ACCOUNTING FOR THAT --
FOR THAT FIRM SO AGAIN IF WE
DON'T CONFORM -- WE WILL LEAVE A
LOT F PARTNERSHIPS WITH HAVING
TO DO TO SET TO BOOK ONE PER
CALIFORNIA ONE FOR THE FEDERAL
GOVERNMENT.
HI AND RALPH FOR BOTH THESE
FIRST TWO WERE WERE PROPOSING
NOXIOUS CONFORMITY -- IN
STARTING IN TWO THOUSAND
NINETEEN BUT WE ARE WHO WE ARE
PROPOSING AND ELECTION. FOR
THOSE TAXPAYERS WHO WANT TO TO
CONFORM ALL THE WAY BACK TO TWO
THOUSAND EIGHTEEN SO THAT THE
BOOKS ARE.
CONSIST WITH FEDERAL FEDERAL LAW
SINCE THE TAX OR CHANGE.
THIS IS THE THIRD ITEM OF IS TO
LIMIT LIKE CAN EXCHANGES.
AND OF THAT WOULD BE THE THIRD
ITEM ON THE LIST RACES TWO
HUNDRED MILLION IN.
TWENTY TWENTY ONE AND UNDER FOR
PRIOR FEDERAL IN CURRENT STATE
LAW.
IF CERTAIN TYPES OF REAL OR
PERSONAL PROPERTY OR DISPOSED OF
THE GAIN ON THE SALE OF THAT
ASSET.
IS TO IS DEFERRED FOR TAX
PURPOSES.
IF THE IF IT IS EXCHANGE FOR
LIKE KIND HOUSES.
SO THE FEDERAL GOVERNMENT --
WHAT THEY DID IN THE IN THEIR
LAW CHANGE WAS A RESTRICTED THE
USE OF LIKE KIND EXCHANGE
DEFERRALS TO JUST APPLY TO REAL
PROPERTY WE ARE PROPOSING WE
CONFIRM CONFORM TO THAT?
THAT SAME LIMITATION.
THE FOURTH ITEM PERTAINS TO
EMPLOYEE FRINGE BENEFITS OF THAT
ARE PROVIDED BY BUSINESSES BY
EMPLOYERS THAT ARE NOT TAX TO
THE EMPLOYEE.
AND THAT IS -- THAT'S THE FOURTH
ITEM.
ON THE ON THE LIST AND IT RAISES
A HUNDRED SIXTY MILLION DOLLARS.
TWENTY TWENTY ONE AND SO WHAT
THE FEDERAL LAW DID WAS IT
LIMITED THE ABILITY OF
BUSINESSES. TO DEDUCT THESE TYPE
OF EXPENSES -- THIS PARTICULAR
PERTAINING TO A CERTAIN MEALS
AND ENTERTAINMENT AND TO
TRANSPORTATION BENEFITS AND
AGAIN WE PROPOSE CONFORM TO
THOSE LIMITATIONS.
SO WITH THAT.
MAKE IT MORE DIFFICULT FOR THE
BUSINESS TO USE.
IT WOULD IT WOULD MEAN THAT YOU
WOULD -- IS THE BEST YOU'VE
YOU'VE SO YOU'VE SO FOR INSTANCE --
ENTERTAINMENT EXPENSES.
THAT OF WERE PROVIDED TO A TO A
EMPLOYEE.
IN THE PASSWORD DEDUCT 50% OF
THOSE WOULD BE DEDUCTIBLE NOW
WORSE NOW THE FEDERAL GOVERNMENT
SAID NUMBER TODAY AND WE'RE
SAYING.
THAT WE WOULD ALSO.
I'VE ALREADY HAD TO REACH OUT
THINGS AND AND RE VALUE.
PROVIDING THESE BENEFITS THAT
ARE NOT. TO GET OF CLOSING THAT
WE CONFORM TO THAT.
QUICK QUESTION SO IT.
WITH THESE CONFORMITY MEASURES
PARTICULAR LAST ONE ARE WE
CONFORMING -- TO EXACTLY MODEL
FEDERAL FEDERAL LAW.
SO FOR EXAMPLE IF A IF A
BUSINESS HAD A WORKING LUNCHEON
AND PURCHASE LUNCH FOR ITS
EMPLOYEES.
OF WITH WITH THAT INCLUDES
INCOME TO THE EMPLOYEE.
NO -- IN WOULD BE DEDUCTIBLES
THAT QUESTION YEAH I WOULD NOT
BE IT WOULD NOT BE INCLUDED AS
AS COMPENSATION TO THE EMPLOYEE
AND AND NEITHER BEDS NOR ARE
PROPOSAL DO THAT -- BUT WE WOULD
IT WOULD NO LONGER BE TODAY.
IN ITS NOT DEDUCTIBLE UNDER
FEDERAL INCOME TAX LAURIE NOTES
RIGHT.
OKAY.
LET CHANGE ON THE FEDERAL LEVEL
WAS MADE DO YOU KNOW WHEN AND
HOW WITH THOSE IN THE TWO
THOUSAND SEVENTEEN TAX SEVEN
JOBS ACT YEAH.
HOW MANY SENSE OF WHAT IMPACT?
THAT HAS HAD -- ON THE
BUSINESSES IN THOSE --
PRESUMABLY IT IS GOING TO MAKE.
MY THIS IS JUST MY I GUESS I
HAVE I HAVEN'T SEEN THE DATA MY
GUESS IS THAT.
IF YOU'RE ALREADY PROVIDING
THOSE BENEFITS TO EMPLOYEES IS
GOING TO BE DIFFICULT TO TAKE
THOSE AWAY.
BUT IF YOU'RE A NEW BUSINESS ARE
YOU MAY THINK TWICE BEFORE
PROVIDING THOSE THOSE BENEFITS.
YEAH I'M JUST HAVING COME OUT OF
THE HOT TELEVISION THE STREET.
IT'S A OF VERY LARGE SOME
PERCENTAGE.
OF OF THE BUSINESS IS FROM THE
ABILITY TO TAKE THOSE BUSINESS
PROTECTIONS.
SO I'M JUST CURIOUS AS TO IF
THERE'S ANY.
YEAH I I HAVE NOT SEEN ANY DATA.
ON ON THE MARGIN THERE WILL BE
SOME MOVEMENT AWAY FROM THAT I
HOW BIG THAT IMPACT.
AND THE AMOUNT THAT YOU'RE --
POINTING TO THAT IT WOULD. TO
THE EXTENT OF I THINK IS A
HUNDRED SIXTY HUNDRED SIXTY
MILLION UHHUH UHHUH.
THAT'S BASED ON WHAT THAT IS
BASED OF THESE OF THESE
RESTAURANTS TAN BY THE
FRANCHISE TAX BOARD AND THIS ONE
I AND I ON LOOKING AT WHAT THE
FEDERAL GOVERNMENT ESTIMATED
THAT THEY WOULD GET AND THEN
TAKING CAL YOUNG PRO RATED
CALIFORNIA BASED ON OUR SHARE OF
THE POPULATION.
AND OUR TAX RATES [inaudible]
OKAY [inaudible]
OKAY -- SO THE FIFTH ITEM IS A
CHANGE IN THE DEDUCTIBILITY OF
EXCESSIVE COMPENSATION -- TO TOP
EMPLOYEES OF BY PUBLIC
CORPORATIONS.
CAN FOR PRIOR IN FEDERAL FOR
PRIOR FEDERAL ENCOURAGE STATE
LAW -- WE WE AT EMPLOYERS PUBLIC
CORPORATIONS WERE NOT ALLOWED TO
DEDUCT -- COMPENSATION OVER A
MILLION DOLLARS ME TOO A THIRD
CERTAIN TOP EMPLOYEES -- THERE
WAS AN EXCEPTION FOR PERFORMANCE
SPACE -- PAYMENTS SENSHI STOCK
OPTIONS.
THE FEDERAL TAX BILL ELIMINATED
THIS EXCEPTION FOR PERFORMANCE
BASED PAY AND THEN EXPAND THE
NUMBER OF EMPLOYEES OF TOP
EMPLOYEES FROM.
FOUR TO FIVE AND IT ALSO EXPENSE
TYPE OF COMPANIES THAT ARE
SUBJECT TO THIS LIMITATION.
I'M AND WE'RE PROPOSING
CONFORMING -- OF TO THAT
PROVISION OF AND THAT IS
EXPECTED.
OF THAT'S ABOUT SIX UP I THINK
IT'S IT'S IT'S THIRTY SEVEN
MILLION DOLLARS IN [inaudible]
TWENTY TWENTY ONE REYES
[inaudible]
OKAY OKAY.
SIXTH AND SEVENTH ITEMS OF
FLIGHT ABLE ACCOUNTS ABLE COUNTS
OR OR ACHIEVING A BETTER LIFE
EXPERIENCE COUNTS FOR PERMITTED.
BY FEDERAL LAW IN TWO THOUSAND
FOURTEEN AS A TAX ADVANTAGED
SAVINGS ACCOUNT FOR INDIVIDUALS
WITH DISABILITIES.
A CALIFORNIA CONFRM TO THE TO
THE ASSEMBLY FROM TO BE ABLE TO
COUNT.
THE TAX CUTS AND JOBS ACT
EXPANDED THOSE ACCOUNTS BY
ALLOWING BENEFICIARIES OF THE
COUNTS TO CONTRIBUTE UP TO THE
POVERTY LEVEL. TO ENABLE ACCOUNT
IN ADDITION THE FEDERAL LAW
ALLOWED FIVE TWENTY NINE COLLEGE
SAVINGS ACCOUNTS BE ROLLED OVER
INTO ABLE INTO THE ABLE COUNTS --
WE PROPOSING CONFORMING IS
PARTICULARLY IMPORTANT AND I
SHOULD JUST IF YOU'RE LOOKING
FOR THE REVENUE DID. FOR IT THE
REVENUE IS IS LESS THAN A
MILLION DOLLARS -- AT THE BOTTOM
OF THE LIST THERE.
I AND IT'S VERY IMPORTANT TO
KEEP THESE OF RULES ON ON TAX
DEFERRED SAVINGS ACCOUNTS
COMPARABLE BETWEEN FEDERAL STATE
SO THAT SOMEONE DOESN'T FALL THE
TRAP OF WITH THE STATE OF NON
QUALIFIED PLAN.
EVEN THOUGH THEY'RE FOLLOWING
THE FEDERAL SO -- PLATFORM
POSING CONFORMITY ON THAT.
THE EIGHTH ITEM THAT'S THAT'S
REALLY WON THE RACE MOST REVENUE --
THAT'S EIGHT HUNDRED FIFTY
MILLION DOLLARS -- ALL -- IN.
TWENTY TWENTY ONE IT WOULD LIMIT
THE ABILITY OF INDIVIDUAL
TAXPAYERS TO USE BUSINESS LOSSES
TO OFFSET NON BUSINESS INCOME.
THE TAX CAN JOBS ACT ONLY ALLOWS.
TWO HUNDRED FIFTY THOUSAND
DOLLARS A BUSINESS LOSSES FOR
FIVE HUNDRED THOUSAND FOR JOINT
RETURN. TO BE USED AS AN OFFSET
AGAINST NON BUSINESS INCOME.
SUCH AS WAGES INTEREST DIVIDENDS
AND CAPITAL GAINS SO IF YOU'VE
GOT BUSINESS LOSSES YOU CAN
OFFSET AS MUCH BUSINESS INCOME
AS YOU WANT.
BUT IF YOU'VE MET YOUR BUSINESS
INCOME LOSSES TOGETHER AND YOU
END UP WITH FIVE HUNDRED BUT
WITH WITH.
LET'S SAY A MILLION DOLLARS.
OF NET BUSINESS LOSSES YOU CAN
ONLY USE.
UP.
TO FIVE JOINT RETURN UP TO FIVE
HUNDRED THOUSAND DOLLARS OF THAT
TO OFFSET YOUR OTHER INCOME. TO
WE PROPOSE CONFORMING AND ON
THIS CASE THE CONFORMITY ISN'T
ISN'T PRECISE OF PRECISELY THE
SAME AS THE FEDERAL GOVERNMENT
BECAUSE WE WE WE PROPOSED DOING.
IS LIMITING ONCE YOU ONCE YOU
HAVE AN IN THAT EXAMPLE YOU'D
HAVE YOU'D USE FIVE HUNDRED
THOUSAND DOLLARS AND KERN YOU'RE
YOU AND YOU HAVE A FIVE HUNDRED
THOUSAND DOLLAR ACCESS.
OF BUSINESS LOST JERRY FORD
WE'RE PROPOSING THAT THE USE OF
THAT CARRY FORWARD IS ALSO
LIMITED BY THAT SAME FIVE
HUNDRED THOUSAND DOLLARS.
THAT'S DIFFERENT FROM THE
FEDERAL RULE BECAUSE THEY WHAT
THEY DID IS THEY CHANGE THEIR
NET OPERATING LOSS RULES SO THAT
YOU CAN YOU CAN CARRIED OVER
WITH ALL YOUR WITH ANY OTHER NET
OPERATING LOSSES YOU HAVE.
BUT IN THAT IN FOR THE FEDERAL
GOVERNMENT FOR FOR THEIR THEIR
LAW.
YOU'RE LIMITED TO ONLY OFFSET IN
SEVEN YEARS 80% SO WE'RE BOTH.
WHAT WE'RE DOING SIMILAR TO WHAT
THE FEDERAL GOVERNMENT IS DOING
IN TERMS OF LIMITING YOUR USE
AND SUCH FOR YEARS?
IT'S JUST THEY THEY TOTALLY
REVAMPED THEIR NET OPERATING
LOSS RULES AND WE ARE -- WE'RE
SIMPLY.
LIMITING THE USE OF RATHER
RATHER CHANGING ALL OR AND AND
WILL RULES FOR SIMPLY SAYING
THIS PARTICULAR LOS.
SUBJECT -- TO TO LIMITATIONS
[inaudible]
THE CENTER MAY I ASK WOULD WITH
THIS RESULT IN A VERY
SIGNIFICANT BOOST REVENUES THE
CALIFORNIA THOUGH.
YES.
HERE'S ONE OF MY POINTS THEN I
WOULD SUGGEST ADMINISTRATION IN
ARTICULATING THIS IDEA.
STOP CALLING IT CONFORMITY.
BECAUSE IT'S REALLY NOT
CONFORMITY OKAY.
AND AND THAT'S DECEPTIVE JUST
CALL IT THE NEW PLAN FOR
CALIFORNIA AND I WOULD PREFER
THAT THAT'S JUST MY TWO BITS
WERE.
I'VE I'VE BY APPRECIATE THAT BUT
I I WOULD I WOULD SAY THAT IS
THAT WE ARE CONFORMED AND AND IF.
YOU IF YOU LOOK AT THE LANGUAGE
WE ARE IN FACT CONFORMING. TO TO
A SECTION OF FEDERAL CODE.
WITH A WITH EXCEPT WITH TO HAS A
COMMON.
NOT.
THAT'S JUST MY PROOF THAT YOU
DID DON'T.
YOU KNOW TAKE THAT AS A
CRITICISM YOU SORT ALL I KNOW I
UNDERSTAND THE DISTINCTION --
MORE GENERALLY SPEAKING TO THE
WORLD OUT THERE.
WHO DOESN'T UNDERSTAND THIS IN A
NICE IN PLACE THAT WE DEAL WITH
HERE BUT VERBIAGE AND WORDS DO
MEAN THINGS?
THAT I'M FUSSING ABOUT THAT ALL
THE TIME CHOOSE ME.
IT JUST ALONG THE LINES OF
SENATOR.
THIS I UNDERSTAND THAT THIS IS
AN EXERCISE THAT YOU DO WE GO
THROUGH THIS EVERY TIME THERE'S
A CHANGE IN THE FEDERAL ON LAW
RIGHT RIGHT.
AND WE WE LOOK AT IT TO SEE ARE
WE GOING TO CONFORM THE SAME OR
NOT OR SOME PUT RIGHT HYBRID OR
WHATEVER RIGHT ENDS AND SOME
ISSUES.
THAT SOME THINGS THE FEDERAL
GOVERNMENT DOES.
CONFORMITY MAY NOT MAY OR MAY
NOT MAY NOT MATTER MAY NOT
REALLY TRIED ANY SIMPLICITY AND
OTHER CASES IN THE YOU KNOW
PARTICULAR IN THE IN THE
ACCOUNTING RULES IN THE THE
PARTNERSHIP TERMINATION THERE I
THINK IT IT'S PRETTY IMPORTANT --
FOR FISHER TAX ADMINISTRATION
THAT WE DO IT -- SO IT IT REALLY
IS.
REALLY IT IT'S GOOD THAT THE
STATE HAS SOME FLEXIBILITY IN
DECIDING WHAT TO CONFORM TO BUT
YS GENERALLY.
WHEN THE FEDERAL GOVERNMENT DOES
A A MAJOR TAX OVERHAUL -- OR
EVEN EVEN MORE FOR MINOR CHANGES
IT'S IMPORTANT TO LOOK AT THAT
AND AND SEE WHAT SORT OF THINGS
WE NEED TO CONFORM.
TO OKAY SO THE NINTH ITEM ON THE
LIST.
IS A LIMITATION ON THE DEDUCTION
FOR FTA SEE PREMIUMS AND THAT OF
THAT.
IS LIKE IN THE MIDDLE OF THE
PAGE IF THE RACE IS ABOUT FIFTY
FIVE MILLION IN -- TWENTY TWENTY
ONE SO.
ESSENTIALLY WHAT WHAT WHAT THIS
DOES IS UNDER PRIOR FEDERAL LONG
CURRENT STATE LAW.
ALL FTA SEE PREMIUMS WHICH ARE
PREMIUMS PAID BY BANKS TO INSURE
DEPOSITS ARE DEDUCTIBLE.
THE FEDERAL LAW CHANGE TO MAKE
THE PREMIUMS NOT THE DUCTAL FOR
LARGE BANKS THOSE FACETS OVER
FIFTY BILLION.
AND AND TO REDUCE PRODUCTION
ALLOWED FOR BANKS WITH ASSETS
BETWEEN TEN BILLION FIFTY
BILLION WE PROPOSE CONFORMING TO
THE FISH.
THE THE TENTH ITEM -- THAT WE'RE
WE'RE PROPOSING IS ELIMINATION
OF A SEPARATE SECTION THREE
THIRTY EIGHT ELECTION.
SECTION THREE THIRTY EIGHT WAS
ENACTED IN NINETEEN EIGHTY TWO
TO ALLOW TAXPAYER.
WHO PURCHASES CORPORATION TO
THINK OF ONE CORPORATION
PURCHASING ANOTHER CORPORATION?
TO TREAT A PURCHASE OF OF THE
CORPORATION STOCK HAS A PURCHASE
INSTEAD.
OF THE ASSETS OF THE CORPORATION.
SO WHAT MAKES TO MAKE THAT.
THE TO THE RELEASE OF SHOULD
MAKE A DIFFERENCE THERE ACTUAR
SOME TAX CONSEQUENCES AS TO
WHERE THE WERE THAT THE SALE OF
OF WHERE THAT INCOME IS CITED
WHICH STATED CITED.
TO SO -- BY ALLOWING A SEPARATE
ELECTION WHICH WE DO WHICH
CALIFORNIA CURRENTLY DOES RIGHT
NOW. FOR STATE PURPOSES THAT
DIFFERS FOM THE ELECTION THE
TAXPAYER MAY MAKE FOR FEDERAL
PURPOSES HE CREATES HOSPITALS
POSSIBILITY UNDER CERTAIN
CIRCUMSTANCES. FOR INCOME TO
AVOID BEING TAX BY ANY STATE SO
WE'RE PROPOSED REQUIRED JUST
REQUIRE THE TEXTURES WHATEVER
ELECTION MAKE THE FEDERAL LEVEL
THEY MAKE THE SAME.
ELECTION AT STATE LEVEL.
AND I THINK.
OKAY NO THE SAP.
THAT IS EXPECTED -- THANKS AGAIN
AND HAVE BEEN THE MIDDLE OF THE
PAGE -- DISAFFECTED RING SIXTY
FIVE MILLION AND TWENTY TWENTY
ONE OF THE TWELVE ITEM AGAIN IS
FAIRLY SMALL -- IT'S IT'S
TOWARDS BOTTOM LIST -- LOSS OF
EXPECTED TO E A LOSS OF ONE
MILLION.
AND THAT RELATES THE TREATMENT
OF STUDENT LOANS JUST CHARGE ON
ACCOUNT OF DISABILITY OR DEATH --
GENERALLY -- FORGIVENESS OF
ALONE IN TAX LAW IS TREATED AS
INCOME TO THE PERSON WHO'S DEBT
IS FORGIVEN -- UNDER THE NEW
FEDERAL LAW.
ANY STUDENT DEBT.
THAT IS FOR GIVEN.
UP ON ACCOUNT OF DISABILITY OR
DEATH IS NOT CONSIDERED INCOME
AND WE PROPOSED CONFORMING TO
THAT THE TREATMENT.
THE FINAL ITEM I WANT TO TALK
VOTERS OPPORTUNITIES OWNS OF TAX
CUTS AND JOBS ACT CREATED
OPPORTUNITIES OWNS UP FOR A
LITTLE BACKGROUND.
ON ON THE ALL STATE WERE ALLOWED
TO DESIGNATE OPPORTUNITIES OWNED
IN CERTAIN ECONOMICALLY
DISADVANTAGED AREAS WITHIN THE
STATE.
CALIFORNIA PARTICIPATED IN THAT
PROCESS.
AND LAST SPRING DESIGNATED EIGHT
HUNDRED SEVENTY NINE
OPPORTUNITIES OWNS THROUGHOUT
CALIFORNIA.
INVESTMENT IN OPPORTUNITIES OWNS
IS ENCOURAGED BY SEVERAL FEDERAL
TAX INCENTIVES.
THE FIRST INCENTIVE IS A
TEMPORARY DEFERRAL OF ANY GAINS
IF A TAXPAYER REINVEST THOSE
GAINS.
IN A QUALIFIED OPPORTUNITIES AND
FUND WITHIN A HUNDRED EIGHTY
DAYS OF REALIZING THE GAME.
IF THOSE GAMES ARE HELD IN THE
FUND FOR FIVE YEARS THE TAXPAYER
RECEIVES A 10% EXEMPTION WHEN
THE GAME IS REALIZED.
IF THE GAMES ARE HELD FOR SEVEN
YEARS THE TAXPAYER RECEIVES A
15% EXEMPTION WHEN THE GAME IS
REALIZED.
ALL THE DEFERRED GAINS MUST
REALIZE ALONG WITH ANY EXEMPTION
BY THE END OF TWENTY TWENTY SIX
IN ADDITION ANY GAINS ACHIEVED
WITHIN OPPORTUNITIES OWN FUN ARE
TAX FREE IF HELD FOR TEN YEARS
OR MORE.
WE ARE PROPOSING TO CONFORM TO
THESE TAX INCENTIVES.
FORT BUT ONLY FOR CERTAIN
INVESTMENTS SO WE ARE PROPOSING
THAT WE PROVIDE SIMILAR TAX
INCENTIVES.
HOME FOR INVESTMENTS IN
OPPORTUNITIES AND FUND -- WHERE
THE OPPORTUNITIES ON FOOT WERE
TO CALIFORNIA OPPORTUNITIES OWN
AND ONLY FOR CERTAIN QUALIFY
TYPES OF INVESTMENTS?
THE TIME TO INVESTMENTS THAT
WOULD QUALIFY WOULD BE A LOW
INCOME WOULD BE INVESTMENTS IN
LOW INCOME HOUSING CLEAN
TECHNOLOGY OR GREEN JOBS.
BECAUSE OF THE FEDERAL GENERAL
THE GENEROUS FEDERAL TAX BREAK
THAT SEEMS.
VERY LIKELY THAT THAT MANY
INVESTMENT DOLLARS WILL BE
FLOWING INTO OPPORTUNITY ZONES
ACROSS THE UNITED STATES.
THE PURPOSE OF OUR PROPOSED
CONFORMITY IS TO PROVIDE AN
INCENTIVE FOR VETS IN INVESTORS.
MORNING OPPORTUNITIES OWNS AND
PROVIDE ECONOMIC DEVELOPMENT
BENEFITS. TO CALIFORNIANS AND
ALSO WE WANT TO DO IT WE WANT TO
MAKE SURE THAT IT'S DONE IN A
WAY -- WERE WERE ENCOURAGING THE
RIGHT TYPE OF INVESTMENT IN
THESE COMMUNITIES -- RIGHT NOW
THAT THAT OF THAT SCORE HERE AS
AS A AS AN EIGHTY MILLION DOLLAR
REVENUE LOSS AND TWENTY TWENTY
ONE ON THE REVENUE LOSS WOULD
WOULD -- A. B..
IT ACTUALLY PROBABLY LESS THAN
THAT BECAUSE THAT WAS THE SCORE
THAT HAVE TO BE HAVE TO BE GAVE
TO IT.
WITH BEFORE WE HAD -- BEFORE
LIMóN NEEDED TO TO TO A CERTAIN
TYPE TO INVESTMENT TO THE
PRIVATE ACTUALLY LESS INVESTMENT --
YEAH I GET AND AND AND AND SO
THERE'D BE THERE'D BE REVENUE
LOSSES FOR SEVERAL YEARS AND
THEN IN TWENTY TWENTY SIX TO BE
READ BIG REVENUE GAIN.
AND THEN THERE BE MORE REVENUE
LOSSES IN THE OUT YEARS AFTER.
OF THESE INVESTMENTS HAVE BEEN
HELD FOR TEN YEARS OR MORE
[inaudible]
SO -- MY LIMITED EXPERIENCE WITH
THIS IS THAT.
UNLESS THERE'S MORE SPECIFIC.
YOU KNOW WE CAN REALLY GUARANTEE
COMPLIANCE WITH THIS.
AND THE ENFORCEMENT OF THIS TO
BE MEANINGFUL -- IT DOESN'T WORK
AND BASICALLY WE JUST.
YOU KNOW GIVING A TAX
[inaudible]
OF YOU KNOW TAX CREDIT HERE SURE
I'M USING THAT TERM LOOSELY I'M
NOT THE PROFESSIONAL HERE.
BUT OF I'VE JUST SEEN SO MANY
PROGRAMS WHERE THE TERMINOLOGY
IS SO BROAD.
SO MY QUESTION TO YOU IS HOW DO
WE MAKE SURE IT'S TRULY AN
INVESTMENT.
THAT'S WORTHY OF US USING THAT
REVENUE.
WHAT I CAN SAY THAT WE'RE
WORKING VERY HARD ON THAT RIGHT
NOW WE'RE AND WE'RE VERY VERY
COGNIZANT OF THE NEED TO MAKE
DEFINITIONS VERY CLEAR AND AND
PRECISELY WE GET?
SO WE WE GET THE TYPES
INVESTMENTS THAT WE WANT -- NOT.
JUST ON AND ON A SLIGHTLY
DIFFERENT WE WE HAVE PUBLISHED.
LANGUAGE FOR EVERYTHING ALL THE
PROVISIONS RIGHT NOW THE EARNED
INCOME TAX CREDIT AS WELL AS THE
AS WELL AS ALL THE CONFORM YOUR
PRISONS WITH THE EXCEPTION OF
THE OPTIMISM BECAUSE WE ARE.
WORKING WHAT WE'RE LOOKING AT
VERY CLOSELY TO MAKE SURE THAT
WE HAVE A VERY TIGHT LANGUAGE.
AND UNDER WHICH DEPARTMENT WITH
BILLS ALL.
WOULD THE OPPORTUNITIES ON HOW
WOULD WHO WOULD BE ON THE RENTAL
VEHICLE THE FRANCHISE TAX BOARD
WOULD ADMINISTER THE THE TAX
BREAKS A HAN [inaudible]
OF I I DON'T I DON'T KNOW THAT I
CAN ANSWER YOUR QUESTION I KNOW
THAT THAT'S A GOOD QUESTION I I
THINK -- HOW?
I THINK IT WOULD PROBABLY BE A
TO F. T..
I YOU KNOW I I THAT'S GOOD I
I'VE BEEN THINKING OF TO BE WITH
WOULD BE -- AUDITING -- BUT BUT
I WILL -- I'LL GET BACK OKAY.
I MEAN YOU KNOW THE AFFORDABLE
HOUSING THE SUCH A BIG ISSUE ALL
THESE ALL THESE.
ARE BIG ISSUES BUT ARE WE REALLY
GOING TO GET SOMETHING OUT OF IT
SO I ALWAYS FIND IF YOU DON'T
HAVE.
THE COMPLIANCE AND YOU HAVEN'T.
BEEN AGENCY THAT'S REALLY GOING
TO FOLLOW THROUGH AND MAKE SURE
THAT IT'S NOT JUST BEING USED AS
A WAY.
UPDATE TAX YES.
OKAY GOOD POINT [inaudible]
OF WE HAVE OKAY CAN I JUST I
JUST WHAT I JUST WANNA TALK FOR
A MOMENT ABOUT THE REVENUE SO --
SO YOU NOTICE THAT THE IF YOU
LOOK AT THE TABLE ON PAGE THIRTY
TWO CHOSE ONE POINT SEVEN
BILLION IN.
THE NINETEEN TWENTY AND ONE
POINT FOUR BILLION IN -- TWENTY
TWENTY ONE MORE WORKING WITH
HAVE TO BE TO GET OUT LONGER
RANGE REVENUE AUSTIN SO WE KNOW
WITHOUT LONG TERM AND ALSO TO
GET.
REVENUES MORE CLOSELY TIED WITH
WITH THE SOME OF THE LANGUAGE WE
HAVE.
ALSO THESE NUMBERS MAY CHANGE
BUT BUT I DO WANT TO POINT OUT
THAT AS AS AS THE IT WAS
MENTIONED.
IN IN SOME OF THEIR AND THEIR
ANALYSIS OF OF OUR CONFORMITY
PACKAGE -- OF IT'S VERY
DIFFICULT TO DO THESE REVENUE
ESTIMATES THERE'S A LOT OF
UNCERTAINTY AROUND THEM AND AND
PARTICULARLY AROUND --
PROVISIONS THAT WE HAVEN'T SEEN
BEFORE SUCH AS THE TO TO THE
OPPORTUNITIES OWN SUCH AS THE
LIMITATION ON THIS IS LOSS --
OFFSET -- AND SO WE WANT TO BE
CERTAIN THAT THE RVENUE THAT WE
THAT WE GET.
IS SUFFICIENT TO TO PAY.
FOR IS SUFFICIENT TO PAY FOR THE
EIGHTY SI NOW AND IN THE FUTURE.
SO -- THAT I JUST WANT TO POINT
OUT THAT THESE NUMBERS -- WE WE
ARE TREATING THEM WITH A LITTLE
BIT OF OF WITH THE KNOWLEDGE
WITH THE THAT THEY MAY NOT.
EXACTLY COME TO FRUITION
[inaudible]
THANK YOU.
YES PLEASE.
BRAIN WHETHER FOR THE
LEGISLATIVE ANALYST'S OFFICE AND
WE'LL TRY TO KEEP YOUR COMMENTS
BRIEF AND LOT OF THE TIME BUT
THERE ARE A FEW POINTS THAT WE
FEEL LIKE WE NEED.
TO SO FOR FIRST ON IN REGARDS TO
THE LAST POINT THAT THE
DEPARTMENT OF FINANCE MAKE.
WE WE DO RECOMMEND CONSIDERING
THE PROPOSED EA T. C. EXPANSION
SEPARATELY FROM THE ON THE
PROPOSED INCOME TAX CHANGES --
THERE ARE VARIOUS WAYS TO FUND --
THE EXPANSION OF THE EARNED
INCOME TAX CREDIT AND BOTH OF
THESE ARE IT'S IMPORTANT POLICY
CHANGES DESERVING OF YOUR
CONSIDERATION AND CONSIDERATION --
IN LINE WITH WITH ALL OF THE
OTHERS LEGISLATURE'S PRIORITIES --
MOREOVER AS AS THE DEPARTMENT
JUST MENTION THE FISCAL
ESTIMATES OF THE PROPOSED TAX
CHANGES ARE INDEED -- HIGHLY
ENDS.
AND OVER TIME AND NOT ONLY WILL
THE ON THE COST OF THE EARNED
INCOME TAX CREDIT CHANGE BUT BUT
THESE ME CHANGE TO AS AS TAX
FILERS BECOME ACCUSTOMED TO THE
CHANGES IN THE RULES BOTH THE
FEDERAL THE STATE LEVEL.
THESE WILL CHANGE OVER TIME AS
WELL AS ON CHANGES IN THE
MACROECONOMIC SITUATION -- THE
YOU KNOW WAIT IS AND AND AND AND
BUSINESS INCOME WILL.
CHANGING PORTRAIT OF TIME AND SO
TYING THE PROGRAMS TOGETHER
BECAUSE PROBLEM.
SO YOU HAD ON REGARDING THE
PROPOSED TAX CHANGES YOU HAD
ASKED A QUESTION ABOUT TAX
CONFORMITY -- VERY BROADLY AND I
THINK THAT'S A VERY GOOD
QUESTION SO.
GENERALLY I'M STATES FROM
LINCOLN THEIR INCOME TAX LAWS OF
MOST STATES DUE TO THE FEDERAL
TAX LAWS AND THERE'S VARIOUS
REASONS FOR THIS WEEK.
THE STATE TAX AGENCIES CAN AND
FILERS CAN RELY ON REGULATIONS
FEDERAL REGULATIONS AND TAX --
TAX RULINGS TO GUIDE THE
INTERPRETATION OF THE TAX LAWS
BOTH AT NOT ONLY THE FEDERAL
LEVEL BUT ALSO STATE LEVEL AND
SO.
FOLLOWING ANY MAJOR FEDERAL TAX
CHANGES STATES OFTEN DO -- IT
MAKE CHANGES TO THE STATE TAX
LOSS TO CONFORM SO -- FOR
EXAMPLE FOLLOWING THE LAST MAJOR
OVERHAUL OF THIS THE FEDERAL
LAWS IN NINETEEN EIGHTY SIX
CALIFORNIA PASSED A
COMPREHENSIVE TAX REFORM.
BILL IN -- NINETEEN EIGHTY SEVEN
AT THIS POINT -- IT'S OUR
UNDERSTANDING OF THIS MAY HAVE
CHANGED BUT ONLY ARIZONA
CALIFORNIA MINNESOTA HAVE NOT
YET ACTED IN RESPONSE THE
FEDERAL TAX CHANGES AND SO --
EARLIER IN THE YEAR WE DID
PREPARE -- AN ANALYSIS OF TAX
CONFORMITY GENERALLY AND SO ON
THE TABLE IN YOUR AGENDA --
PROVIDES SORT OF OUR ASSESSMENT
OF THE GOVERNOR'S TAX GOOD FOR
YOU PROPOSALS WE UNDERSTOOD IT
IN MARCH ON MARCH FIRST -- AND
UNTIL RECENTLY THE DETAILS OF
THESE THIS PROPOSAL WERE UNCLEAR --
AND AS THE DEPARTMENT OF FINANCE
MENTION SOME OF THE DETAILS OF
STILL NOT BEEN BEEN PROVIDED TO
US SO WE'RE STILL REVIEWING THE
TRAILER BILL LANGUAGE THAT WAS
POSTED YESTERDAY -- BUT WE DID
WANT TO MAKE.
JUST A FEW.
COMMENTS ABOUT -- SOME THE
LARGER -- OR MORE -- PROMINENT
PROVISIONS -- WE UNDERSTAND THE
PROPOSED CHANGES TO NON
CORPORATE BUSINESS LOSSES MAY
DIFFER FROM THE THE CHANGES THAT
THE FEDERAL GOVERNMENT MADE AND
I THINK THE DEPARTMENT OF
FINANCE ADDRESS THAT PRETTY WELL --
HOWEVER WE DO NOT YET FULLY
UNDERSTAND WHAT THE POLICY
IMPLICATIONS OF THOSE
DIFFERENCES.
OUR AND SO -- WE'RE STILL TRYING
TO UNDERSTAND THAT.
WE ALSO KNOW THAT THEIR GOOD --
ARGUMENTS FOR AND AGAINST TO THE
PROPOSED CHANGES TO LIKE KIND
EXCHANGE RULES BUT GENERALLY --
WE DO FIND -- ON THE ON THE MORE
STRICT ITEMS THAT ARE ARE
STRICTLY CONFORMING TO FEDERAL
CHANGES -- GENERALLY FAVOR.
WE FIND THIS PAPER -- LASTLY
THERE HAVE -- WE DO HAVE SOME
CONCERNS VERY GENERALLY ABOUT
ADOPTING THE NEW FEDERAL
OPPORTUNITY ZONE TAX BENEFITS
BUT WE DO NOT YET HAVE THE
DETAILS OF THE GOVERNOR'S
PROPOSED SO DON'T HAVE -- MUCH
MUCH OF AN OPINION ABOUT AT THIS
POINT [inaudible]
THANK YOU.
ENTER I ONCE I I'D NEGLECTED TO
MENTION ONE OF OUR ONE OF OUR
CONFORMANCE THAT IS NOT
OPERATING LOSSES.
SO -- GENERALLY IF YOU HAVE A
LOSS AND THAT IS -- THAT IS.
AND THE SECOND ITEM ON THE LIST
RAISES TWO HUNDRED TEN MILLION
DOLLARS.
INTO THE IN TWENTY TWENTY ONE
GENERALLY IF YOU HAVE A LOSS
WHEN YOU'RE YOU CAN USE THAT
OFFSET INCOME IN ANOTHER YEAR.
IT'S A WAY OF EVENING OUT TAX
PAYMENTS FOR TAXPAYERS WHO ARE
MORE.
OF IS INCOMES FOR CYCLICAL.
ARM.
AND AND WHAT UP.
UNDER PRIOR FEDERAL LAW CURRENT
STATE LAW -- YOU'RE ALLOWED TO
CARRY BACK THOSE LOSSES TO THE
PRIOR TWO YEARS AND AND ALSO
TAXES TO GET TAX REFUND FOR TAXI.
FORTY EIGHT OR ALTERNATELY TO
CARRY IT FORWARD AND ALSO TAXES
IN FUTURE YEARS WITH THE FEDERAL
GOOD GOVERNMENT DID.
IS THEY SAID WE'RE GOING TO
ELIMINATE KERRY BACKS.
AND WE'RE GOING TO LIMIT WHEN
YOU WHEN ON KERRY FORGERY LIMIT
YOU TO ONLY OFFSET 80% OF THAT
YEAR'S INCOME.
SO WHAT WE'RE PROPOSING IS THAT
WE CONFORM TO THE ELIMINATION OF
KERRY BACKS BUT THAT WE DO NOT
CONFORM TO THE 80% LIMITATION
GOING FORWARD.
AND THEN AND THEN ONE OTHER
THING I JUST WANTED TO RESPOND
ON ON WHY WE THINK IT'S
IMPORTANT THAT THESE THESE -- BE
TREATED THE SAME ARE THAT THAT
THE EIGHTY SI AND CONFORM TO BE
TREATED AS ONE PACKAGE THAT IS
THAT.
WHAT WE OWE IT IT'S IMPORTANT TO
KEEP AND BUDGET THAT BALANCE AND
RESILIENT?
AND WE REALLY NEED A WAY. TO PAY
FOR THE EITC BOTH THE EXPANSION.
AND THE THE CURRENT AHC WITH
UNDER.
UNDER -- AS IT IS RIGHT NOW THE
THE THE THE WAY TO DO THE ONLY
WAY TO PAY FOR THAT WOULD BE
WITH A CONFORMITY.
JUST JUST REMIND ME IN TERMS OF
THE THE CONFORMITY -- THE TOTAL.
FOR THE CHANGE IN IN REVENUE THE
CARD RIGHT RIGHT NOW WE HAVE.
SOMEWHERE BETWEEN ONE SEVEN AND
ONE FOR YEAH I DID I I I DON'T
KNOW WHAT THE ON GOING IT'S IT'S
IT'S IT'S PROBABLY GOING TO BE
IN THE IN THE ONE POINT.
FOUR BILLION DOLLAR RANGE.
BUT AGAIN AS AS YOU'LL USE POINT
OF THOSE OF THOSE ARE VERY
UNCERTAIN REVENUES AND SO WE
WANT TO MAKE SURE THAT WE HAVE
SUFFICIENT REVENUE. TO A POINT
THAT OF DISCONNECTING IT -- I
COULD I COULD SEE THAT IF WE
IMPLEMENT THE EXPANSION OF THE
I. T. C. THEN SOMETHING.
WHAT THE REVENUE EXPECTED HERE
THAT WHAT DOES THAT MEAN WE GO
BACK AND AND AND WE AND WE SAY
THEIR LINK THE V. THE?
THE ADOPTION WOULD BE LIKE IT'S
WE WOULD NOT BE TRACKING IN FACT
FOR SOME THESE ARE NOT IT WOULD
NOT BE POSSIBLE TO REALLY TRACK
IN REAL TIME.
THE REVENUE RAISING THESE
PROVISIONS SO IT WOULD JUST BE.
ONE WORD WOULD BE DOING A A
FORECAST OF OF HOW MUCH REVENUES
CAN COME IN AND OUT OF WITH THE
CONFORMING ITEMS.
HOW MUCH REVENUE IS GOING TO BE
GOING OUT WITH YOUR EXPAND
EXPANDED IN CURRENT ARNED TAX
CREDIT?
AND WE WANT TO MAKE SURE THAT
THAT -- THAT THEIR CUT THAT IT'S
BEING COVERED.
YOU KNOW IN IN SUCH ONE
DEPENDENT ON THE OTHER PROGRAM
DISAPPEARS OR THE EXPANSION YEAH
YES.
THERE'S A LOT YEAH YEAH THAT
WOULD BE TIED IN AND YOU KNOW.
IN IN REALITY.
THE WHEN THE NEXT RECESSION
COMES.
THAT THAT'S GONNA HURT RECENT
REVENUES GOING TO GO DOWN
REGARDLESS OF WHAT WE DO IS
CONFORM AND WE'RE GONNA HAVE TO
EVALUATE A PRIORITIES.
HOPEFULLY WE'VE GOT ENOUGH YOU
KNOW IN IN RAINY DAY FUND. TO TO
COVER THAT BUT BUT THE THE THE
FLUCTUATIONS WE HAVE HERE.
MOVE WOULD REALLY BE DWARFED BY
WHAT WE WOULD EXPECT TO SEE.
ANY OF THE THE FLUCTUATION
BETWEEN WHAT WE ACTUALLY GET
FROM THESE PROVISIONS AND WHAT
WE EXPECTED WITH BE TOWARD.
BUT WHAT WE WOULD SEE AN A
ECONOMIC DOWNTURN.
THAT I'M SURE IF IT IF IT HELPS --
THE THE GOVERNOR'S BUDGET IS IS
PREDICATED ON BOTH OF THESE THE
EXPANSION AND AND IS HAPPENING
SO THEY THEY'VE LINK THEM.
AND SO THAT'S I I BELIEVE HOW I
UNDERSTAND THE DEPARTMENT OF
FINANCE MEETING.
THAT THAT IT'S NECESSARY TO DO
BOTH IN ORDER TO PAY FOR THE FOR
THE I. T. C. BECAUSE A THIS
ASSUME THAT IN THE REVENUE
PROJECTIONS BOTH OF BOTH OF
THESE THINGS HAPPENING.
IN OUR POINT IS ONLY THAT.
THAT.
THAT YOU YOU YOU IT AS THE
LEGISLATURE THE LEGISLATURE CAN
CONSIDER THESE OPTIONS -- IN AN
HOLE KEEPING IN MIND THE TOTAL
AMOUNT OF REVENUES WILL BE
AFFECTED BY BOTH OF THESE
OPTIONS [inaudible]
OKAY [inaudible]
OKAY.
I THINK WE'RE READY FOR PUBLIC
COMMENT.
OKAY SINCE I DON'T HAVE ANY MORE
SENATORS.
MADAM CHAIR AND MEMBERS OF THE
COMMITTEE -- L. WESTERN CENTER
ON LAW PARTY DESK OF OUR HELLO --
WE ARE INCOME AND SUPPORT OF THE
CONFORMITY MENTIONED TO US WANNA
A STATE THAT PUBLICLY -- AND
ALSO APPRECIATE THAT THE
GOVERNOR'S OFFICE HAS BEEN
LISTENING TO OUR COMMENTS WITH
REGARDS TO THE OPPORTUNITIES
OWNS WE SHARE CONCERNS OF VOICE
BY THE CHAIRWOMAN AND LOOK FOR
TO CONTINUE WORKING.
WITH YOU ON THAT LANGUAGE OUT
SINCE YOU MENTIONED IT -- WANTED
TO MAKE SURE THAT IT AS WE THINK
ABOUT THE NEXT RECESSION --
REMEMBER THAT THE POOREST WILL
GET HURT THE MOST.
AND ALSO THAT CALIFORNIA'S GREAT
AUSTERITY THE FACT THAT WE WERE
MORE OBSCURE THAN MOST OTHER
STATES IN THIS -- IN THE
CIRCUMSTANCES OF THE LAST
RECESSION -- RESULTED IN OUR
PROLONGED UNEMPLOYMENT RATE.
YOU A TOOK US LONGER TO RESTORE
THE JOBS BECAUSE THEY WERE
MUNICIPAL JOBS THAT WERE LARGELY
LOST IN THOSE MUNICIPAL JOBS
WERE HARD TO COME BACK THIS IS
NOT MY ANALYSIS THIS IS THE
ANALYSIS OF OF MOODY'S
ECONOMISTS.
THE CONSERVATIVE ECONOMIST WHO
IF YOU YOU CAN GO BACK AND SEE
WHAT THEY SAY ABOUT.
HOW LONG IT TOOK CALIFORNIA I
MEAN NOW WE ACTUALLY REPRESENT
THE MOST OF THE GROWTH IN?
IN JOBS IN THE ECONOMY -- AND AT
AND EVERY QUARTER EVERY MONTH WE
HAVE MORE JOBS GROW SENATE THAN
THAN OTHER STATES AND THEN THE
REST OF THE COUNTRY AND SO WE'RE
REALLY PROUD OF OURSELVES.
BUT AS WE THINK ABOUT THE NEXT
RECESSION.
ENSURE THAT THE MONEY CONTINUES
TO FLOW OUT INTO THE COMMUNITY
THROUGH EITC INTERTEXTUAL IT'S
IS GONNA BE ONE OF THE WAYS WE
KEEP OUR ECONOMY GOING.
THANK YOU THANK YOU.
GOOD AFTERNOON JENNIFER BAKER
WITH THE CALIFORNIA TEACHERS
ASSOCIATION THEM WE APPRECIATE
THE COMPLEX TASK THAT YOU IN
THT DEPARTMENT OF FINANCE AT IS
GRAPPLING WITH IN TRYING TO FIND
THAT BALANCE AND WE DO SUPPORT
MOST OF THE FEDERAL CONFORMITY
ITEMS.
LIKE YOU WERE WAITING AND
LOOKING FORWARD TO RECEIVING
ADDITIONAL INFORMATION ON ON
OPPORTUNITIES OWNS AND WHAT TO
BETTER UNDERSTAND -- HOW THE
DEPARTMENT OF FINANCE IS WORKING
TO TRY TO FRAME THIS IN A WAY?
THAT WOULD BE AT NO COST BENEFIT
FOR CALIFORNIA AND THE WAY IT
WAS INTENDED -- WE DO ASK THAT
AS YOUR EXPLORING -- SOMETHING
THAT'S NOT BEING CONSIDERED
TODAY BUT YOU LOOK FOR AN
INCREASE EFFICIENCIES WHEN IT
COMES THAT THE UTILIZATION OF
TAX CREDITS.
WHEN IT COMES TO ACCOUNTABILITY
AND TRANSPARENCY WE THINK THAT'S
GOING TO ENSURE THAT WE CAN HAVE
OVERALL EFFECTIVENESS IN
ENSURING THAT GOOD TAX CREDITS
LIKE E. I. T. C.?
CAN BE UTILIZED AN EXPANDED UP
BECAUSE WE'RE MAKING SURE THAT
ALL OF THE OTHERS THAT WE HAVE
IN THE STATE OF CALIFORNIA THAT
DO NOT HAVE SUNSET THAT DO NOT
HAVE METRICS.
FOR EFFICIENT -- FOR EVALUATING
WHETHER OR NOT THEY'RE EFFECTIVE --
THAT WE MADE SURE THAT THEY'RE
ALL IN LINE WITH THE VALUES OF
THE STATE WE LOOK FORWARD TO
CONTINUING CONVERSATIONS WITH
YOU ON THAT [inaudible]
THANK YOU.
THANK YOU TERRY ONLY WITH
ECONOMIC SECURITY PROJECT ACTION
I'M WE ARE IN -- STRONG SUPPORT
OF MEASURES THAT CREATE MORE TAX
FAIRNESS AND MORE FAIRNESS IN
OUR TAX CODE SO I REALLY
APPRECIATE THE COMMENTS IN THE A
PART WHERE IT CAN AND CREATES A
TAX CODE THAT -- DOESN'T
CONTINUE TO FAVOR THOSE WHO
ALREADY HAVE BENEFITED SO MUCH
AND OF COURSE WE ARE IN VERY
STRONG SUPPORT OF THE ATC
MEASURES -- I THINK IT'S
CHALLENGING TO THINK ABOUT --
CONNECTING THEM AND I'LL LEAVE
THAT TO YOU ALL TO TALK ABOUT
BUT I THINK THAT FROM A FROM A
CONFORMITY PERSPECTIVE --
MEASURES TO CREATE FAIRNESS ARE
ARE SOMETHING WE REALLY FEEL
STRONGLY ABOUT SO THANK YOU FOR
YOUR KIND.
GOOD THAT'S A GOOD WAY TO IN THE
MEDIA -- ANYBODY ELSE.
NO.
THANK YOU EVERYBODY FOR YOUR
PATIENCE AND BAM