California wants to give taxpayers some of the huge surplus
Millions of Californians would receive tax rebates of up to $ 1,100 under a proposal unveiled Monday by Democratic Governor Gavin Newsom, as part of a broader plan to recover from the pandemic made possible by a budget surplus of $ 75 billion. (10th of May)
AP
Two-thirds of California taxpayers are still waiting for the COVID-19 stimulus controls announced by Governor Newsom about two months ago – and they will likely have to wait longer.
The checks are part of an expansion of the Golden State Stimulus Program, which originally distributed $ 3.8 billion in one-time payments of $ 600 to low-income residents, according to nonprofit Cal Matters. This second set of business stimulus checks would provide a one-time payment of $ 600 to middle-class residents with incomes up to $ 75,000 and a check for $ 500 to qualified residents with dependents.
The extension of the program comes from Newsom’s $ 100 billion comeback plan – the largest stimulus package in the state’s history, according to the governor’s official website. Newsom said the state’s $ 75.7 billion surplus would serve to hasten the recovery from the Golden State pandemic – and “get California back on its feet” – by addressing core issues such as economic relief, homelessness and housing affordability , Infrastructure and public education are addressed.
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“$ 600 checks go to 2/3 of the Californians. And if you have a child, you can benefit from an additional $ 500, ”Newsom said on Twitter on May 11th.
Newsom acknowledged at the time that the proposal would require state legislature approval to take effect. But it got that when California lawmakers approved a $ 262.6 billion state budget in late June that included the distribution of the Golden State Stimulus Checks.
However, this was the last major development in an effort to expand the Golden State stimulus. According to the state budget’s official website, Newsom has yet to sign the budget to prevent stimulus checks from going to residents.
Daniel Tahara, a public information officer for the California Franchise Tax Board, a state tax collection agency, said the governor’s approval of the budget was critical to further development.
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“FTB’s role is to manage tax laws,” Tahara wrote in an email to USA TODAY. “The second Golden State Stimulus Program will not become an official tax law until the governor signs the budget.”
Newsom didn’t say why he didn’t sign the budget. Grace Papish, a communications assistant for Newsom, said the governor’s office “does not normally comment on pending laws” and will provide more information “once the budget is in place”.
“The second set of Golden State Stimulus Checks is still a proposal and part of the budget that has yet to be signed,” Newsom’s press office wrote in an email to USA TODAY. “Once the budget is signed, the second round of stimulus checks can begin.”
Tahara said the agency continues to monitor the status of the budget and expects payments for economic checks to begin in September. Tahara said this estimated schedule is based on the time it took to process the first set of Golden State stimulus checks.
Daniel JB Mitchell, economist and professor at the University of California Los Angeles, said pandemic relief programs put a logistical burden on the state system, which can lead to delays in awarding other state benefits like the Golden State Stimulus Checks.
Mitchell said another factor influencing the delay could be a lack of effective management at the state government level. Mitchell said California policymakers don’t have the best track record of implementing policies, which can make certain policy elements difficult to implement.
“California is good at policy making, but sometimes not so good at administration [and/or] manage them, ”said Mitchell. “Policy makers often lack management experience and may not always understand the complexities of actually delivering services.”