Statement from Economic Security Project Action in Response to Governor Newsom’s Revised FY 22-23 State Budget Plan
05. 13. 2022
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Sacramento, CA – Today, California Governor Gavin Newsom announced his revised California Budget Proposal for 2022-2023. Economic Security Project Action appreciates Governor Newsom’s commitment to provide much needed economic relief to Californians struggling with rising prices, the housing crisis, and the continued impact of the pandemic. We are pleased to see major investments to help the hardest hit, including support for health care workers and over $4.1 billion to help low-income households afford rent, utilities and child care. California is moving in the right direction with leadership deeply committed to address poverty and improve equity.
Our record-breaking surplus presents a historic opportunity to make the California Dream a reality for millions of people in our state who have been left out of the economic recovery. While California’s affordability crisis has made life hard for many, it has ravaged the lowest-income households. To be able to recover and move forward, California’s lowest-income families need significant, direct, targeted cash relief that provides flexibility to respond to their own individual needs.
To close the gap, we see a need to add the following to the final budget:
- $3.8 billion to provide a one-time child tax credit payment that will help lift nearly 2 million children in California out of poverty;
- $400 million to create a $255 minimum CalEITC for all workers, that will support benefit providing a larger credit for 3.1 million low- income taxpayers – including 400,000 families;
- $85 million to create a guaranteed income pilot program for 15,000 graduating high school seniors experiencing homelessness;
- $20 million to expand access to free tax preparation and outreach, so that low-income filers do not have to pay hundreds of dollars to claim tax credits; and
- Ensuring that tax credits intended to reduce poverty are not intercepted by government agencies.
ESPA and coalition partners will continue to promote policies that leverage the state’s extraordinary wealth to ensure all Californians have the resources they need to thrive. For more information on the Economic Security Project Action visit: economicsecurity.us