Muristek
By MADISON HIRNEISEN
THE CENTER SQUARE
(The Center Square) – California lawmakers want to send $10 billion in relief to California taxpayers and business owners using a portion of the state’s record budget, legislative leaders announced as part of their budget agreement Wednesday.
The State Assembly and Senate leaders unveiled their proposed 2022-2023 state budget framework, coming just a few weeks after Gov. Gavin Newsom announced his revised budget in May. The governor and lawmakers have until June 15 to agree on a budget framework, which would ultimately take effect on July 1.
As Californians grapple with record-high gas prices and other cost increases tied to inflation, both Newsom and lawmakers have presented options to return money to taxpayers. The way they want to do it, however, differs significantly.
Legislative leaders want to use $8 billion for a “Better for Families Relief Package,” which will provide $200 per taxpayer and dependent for joint filers making up to $250,000 and single filers making up to $125,000. Under the proposal, a family of five could receive a $1,000 rebate.
Meanwhile, Gov. Newsom’s proposal wants to use $11.5 billion to send $400 to every registered vehicle owner in the state, with a cap of two vehicles per person. He also wants to use $750 million to provide free public transportation for three months.
Leading lawmakers have expressed concern about the impact of Newsom’s rebate proposal, particularly for individuals who do not own a car and wouldn’t benefit from a rebate. Last month, Senate President Pro Tempore Toni Atkins said Senate Democrats “do not believe a rebate tied to car ownership does the job.”
Lawmakers said Wednesday they would continue conversations with the governor to reach an agreement.
The fiscal relief package penned by lawmakers also includes $1.3 billion in relief for small businesses and $400 million for expanded tax credits, which includes increasing the minimum California Earned Income Tax Credit (CalEITC) to $255.
“With this budget, we are spreading our state’s wealth to hard-working Californians and small businesses like never before,” Sen. Atkins said in a statement. “We look forward to continuing the conversation with Governor Newsom and his office. We all are working toward the same goal, and I have every confidence we will find a united path to get there.”
Lawmakers did include several elements of Gov. Newsom’s budget proposal in their framework as well, including the governor’s push to expand Medi-Cal to all eligible Californians regardless of their immigration status. Legislators also adopted Gov. Newsom’s proposal to spend $200 million on additional child care facilities.
The legislative budget agreement also includes a $21 billion climate package to address drought resilience, sea level rise and extreme heat, though details are “subject to ongoing negotiations.”
Some Republican lawmakers, whose party represents a super-minority in both chambers, expressed frustration that they aren’t included in budget negotiations.
“California’s Democrat lawmakers have gone off the cliff. They have absolutely corrupted the budget process,” said Senate Budget Vice Chair Jim Nielsen, R-Red Bluff. “They have silenced the voices of the nine million citizens who Republican senators represent by arrogantly refusing to involve us in crafting a budget. It’s despicable.”
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