Why California Has So Much Money
That brings us to today. Millions of Californians have lost work during the pandemic the states unemployment rate is tied for highest in the nation and a third of households here do not earn enough to meet the true cost of living in this pricey state.
But our state government has been raking in the cash. California has a record $76 billion budget surplus for the current fiscal year, and is projecting $31 billion in excess revenues for the fiscal year that begins in July.
Nationwide, lower-income adults have been hit especially hard by the Covid-19 economic crunch, while wealthier Americans have been left largely unscathed. That trend holds in California, where we also tax our wealthy at very high rates.
What makes the situation unique in California is that we have this inordinate wealth and income inequality, said Chris Hoene, executive director of the California Budget and Policy Center. And then we have a tax structure designed to actually produce revenue from that.
In late 2020, Gov. Gavin Newsom was planning for the fiscal year that would begin in July 2021. Projections showed that the state could soar past the Gann limit by billions of dollars.
Under state law, the governor wasnt required to act on the limit for another two years. But Newsom was facing the prospect of a recall election in the fall.
Americans Largely Support A Fourth Stimulus Check
The U.S. economy was rocked by the coronavirus pandemic, and while stimulus checks have helped the economy recover, economists worry that some of the hardest-hit cities may still feel the pain of the last year for the next decade.
A poll performed in January by Data for Progress, a progressive polling group, found that 65 percent of Americans support the idea of $2,000 monthly direct payments until the pandemic is over 41 percent strongly support the idea and 24 percent somewhat support it. The proposal also has widespread support among economic experts, with 156 top economists penning an open letter in July 2020 urging policymakers to make recurring direct payments until the economy recovers.
Meanwhile, a Change.org petition calling for Congress to disburse regular checks through the duration of the coronavirus crisis has received more than 2 million signatures. Specifically, the petition calls for a $2,000 payment for adults and a $1,000 payment for children.
Newsoms California Stimulus Checks: Who Gets $600 $1100
Gov. Gavin Newsom proposed a second round of $600 state stimulus checks on Monday to hasten Californias recovery from the COVID-19 pandemic, hoping to expand the payments from low-income residents to also include middle-class families, saying that doing so would benefit two out of three state residents.
The proposal to deliver $8 billion in new cash payments to millions of Californians is part of a $100-billion economic stimulus plan made possible in part by a budget that has swelled with a significant windfall of tax revenues, a surplus the governor put at $75.7 billion. Newsom also proposed $5 billion to double rental assistance to get 100% of back rent paid for those who have fallen behind, along with as much as $2 billion in direct payments to pay down utility bills that are overdue.
Direct stimulus checks going into peoples pockets and direct relief thats meaningful, Newsom said during a visit to the Unity Council, a nonprofit social equity development corporation in the Fruitvale neighborhood of Oakland.
Under the governors proposal, which still requires approval from the Legislature, households earning up to $75,000 in adjusted gross income will be able to receive the second round of stimulus payments. The expanded program would provide financial assistance to two-thirds of Californians.
In addition to the $600 stimulus checks for eligible Californians, the governor proposed that families with children would get an additional $500.
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How We Got Here
To begin, a brief history: Californians revolted against taxes in the late 1970s.
Voters passed Proposition 13, a landmark measure that limited property tax increases, in 1978. The next year, Paul Gann, one of the propositions co-sponsors, suggested another tax break.
Gann proposed implementing a cap on state spending: If Californias expenditures neared a certain threshold , the state would have to return funds to taxpayers in the form of a rebate.
Voters in 1979 overwhelmingly approved the measure, known as the Gann limit, and later amended the law to allow some of the excess revenue to also go toward funding education.
California Stimulus Checks: Why More Payments Could Be Possible Again Next Year
For this budget year, which begins July 1, the states Legislative Analyst Office is once more projecting a budget surplus, this time to the tune of at least $31 billion.
As of the January budget, California expects to exceed the Gann limit by $2.6 billion, according to the governor. Approximately half of the money will go toward education, and the rest back to taxpayers.
But whether they will be distributed in the form of stimulus checks: theres no yes or no answer just yet.
Thats an open-ended question, Newsom responded when asked about the prospects of such payments.
At least part of the reason is that the projected figure will most likely substantially change between now and May, which is when the revised budget for the upcoming fiscal year is due. So we are awaiting more contemporary information and data, more reflected of what is currently happening before we had to put this budget to bed to ultimately make that determination.
And ultimately, he believes that yes, taxpayers will receive some form of contribution.
What form and to what degree in terms of total amounts of dollars will be determined more closely in May, Newsom said.
In 2021, the governors initial budget proposal included what became known as Golden State Stimulus I. An expanded version of the program that brought checks to millions of more residents was unveiled in June and ultimately included in the 2021-2022 budget signed by Newsom in July.
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When Is California Stimulus Check Coming: The Question Lingers
The petition by Stephanie Bonin has gained significant momentum. The bill proposes a recurring payment of $2000 per month. But the federal government does not seem to entertain the claims.
Fortunately enough, the states have announced stimulus checks to aid their citizens. California has been one of the first states to do so. California has come up with its relief measures.
Gavin Newsom has designed a $600 monetary assistance. This money will be provided to all the residents of California. One needs to earn between $30000-75000 to avail the checks. This payment is limited only to the inmates of California.
The program has been termed as Golden State Stimulus II. Several rounds have been dispatched under the scheme. Almost 4.5 million citizens have benefitted from the plan.
Gavin Newsom is the governor of California. He has designed the Golden State Stimulus II. This initiative was taken up by Newsom to help the household to cope with the adversities. After the news surfaced, the citizens became curious about when is California stimulus check coming. The first round of checks has already been given out in August.
Residents can expect more sets within this month. The check provides $600 to all the residents earning below $75000. Kids staying in California will be entitled to a payment of $500 for each child.
In case of joint filing, families must earn below $150,000 to qualify for the checks. The California Government has dispatched several sets of checks before.
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When To Expect Payment
Distribution of both phases has depended on when youve filed your 2020 taxes.
For those who filed their tax returns between Jan. 1 and March 1, distribution of stimulus payments began after April 15. And for those who filed between March 2 and April 23, distribution began after May 1.
Those who have waited to file until after April 23 have had to wait up to 45 days after filing for a direct deposit or 60 days for a mailed check.
To make sure you dont miss out on your stimulus, make sure you file before Oct. 15.
Do I Qualify For Golden State Stimulus Ii
Our calculator works on the assumptions that you meet the basic criteria listed by The State of California’s Franchise Tax Board.
To qualify for the Golden State Stimulus II, you must:
- File your 2020 taxes by October 15, 2021
- Have a CA AGI between $1 and $75,000 for the 2020 tax year
- Have wages between $0 and $75,000 for the 2020 tax year
- Be a resident of California on the date the payment is issued and
- Cannot be claimed as a dependent by another taxpayer.
Please note that if you don’t qualify for Golden State Stimulus II, you might still be eligible for GSS I. Please refer to the FTB website for more information.
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The Checks Keep Coming
All of this is happening, by the way, at the same time that more stimulus checks are on their way from the federal government soon.
The fourth of six child tax credit stimulus checks is going out in a little less than two weeks. October 15 is the date for that one, and like the previous three monthly child tax credit checks, it will add several hundred dollars to recipient bank accounts. And there will be just two more checks in this series to follow. One on November 15, while the sixth and final check is coming on December 15.
As our California stimulus check update shows, meanwhile, these kinds of payments are also happening outside of the federal government. Check out our earlier post here for a rundown of these similar efforts.
They include Michigan, for example, having sent out payments of up to $3,000 to teachers who worked in-school during the year. Other teachers and support staff got $500. And in Tennessee and Georgia, full-time teachers and administrators have gotten $1,000, with $500 going to part-time teachers.
When Will California Stimulus Checks Arrive $600 Payments Coming Soon
Most Californians have been eagerly awaiting new $600 stimulus payments promised by Governor Gavin Newsom, a Democrat, back in May, now those checks are about to be sent out.
Newsom’s office issued a press release on Thursday touting the importance of the new stimulus checks, saying that Californians would begin receiving the payments as soon as Friday. Under the program, California taxpayers earning $75,000 per year or less will receive a $600 payment. Those with dependents will receive an extra $500.
“The Golden State Stimulus is key to lifting up those hit hardest by the pandemic and supporting California’s economic recovery, putting money directly in the hands of folks who will spend it on basic needs and within their local communities,” Newsom said.
Although some Californians will start receiving the checks on Friday, the state’s Franchise Tax Board said it anticipates most residents will receive the payments between the beginning of September and October 15, KTLA 5 reported.
The stimulus checks are funded by an approximately $75 billion budget surplus California saw in 2020. In total, about $12 billion of that surplus has been set aside to fund the California stimulus program, giving some of the money back to local taxpayers. The governor’s office estimates that two out of every three of Californians will be eligible for the payments.
Newsweek reached out to Newsom’s office for further comment but did not immediately receive a response.
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The State Of California Has Plenty Of Extra Money In The Budget To Earmark For Stimulus Checks
The direct payments that were issued to California residents in 2021 were possible because of a massive budget surplus that was in excess of the state constitutional limit. This required the state of California to issue the money from the budget surplus back to taxpayers in some form — and the state chose to do so via stimulus checks that were issued to low- to moderate-income earners in the state.
This type of budget surplus doesn’t happen often. In fact, it’s only occurred twice in the last four decades, but it’s expected to happen again during the 2022 fiscal year, which starts in July. It appears that there’s going to be a lot of money left over, too, as California is expected to have a $31 billion surplus in the budget for 2022.
What that means is that the state will likely be required to issue the money from the budget surplus back to California residents in some form or fashion — and it’s likely to do so, at least in part, by issuing another stimulus payment. What exactly that stimulus payment will look like, though, is anyone’s guess.
When Will My Stimulus Payment Be Sent
California’s stimulus payments are going out twice a month, or about every two weeks, though some may go out earlier or later. Those who qualify and have already set up direct deposit when filing their 2020 tax return can expect an electronic payment.
Most direct deposit stimulus payments will be issued before Oct. 31. If you filed a state tax return after Sept. 1, you might have to wait at least 45 days for the return to be processed and have a check issued.
As for paper checks, those will start going out Oct. 6, and will continue through January of next year. Paper checks will be sent in batches based on the last three digits of the ZIP code on your 2020 tax return. If your tax return is processed during or after the date of your scheduled ZIP code payment, the Franchise Tax Board says, you should allow up to 60 days after your return has been processed.
For a list of timeframes based on ZIP codes, check here. Note that you should allow up to three weeks for a check to arrive by mail once it’s been sent.
Stimulus Update: California Has Issued Its Last Round Of Stimulus Money But More Checks May Be Coming In 2022
by Angelica Leicht | Published on Jan. 14, 2022
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Hoping that the state stimulus checks will keep rolling in during 2022? If you’re a resident of California, you may be in luck. Here’s why.
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Gov. Gavin Newsom said in his January budget proposal his office projects the state would be over the Gann Limit by $2.6 billion. Jones supports sending rebates, or what last year was considered the Golden State stimulus.
If its 2,500, if its 1,500, any amount that we can convince the state, the governor, the Democrats in the Legislature to send back, I think is a benefit to every Californian and every California family, Jones said.
Newsom did not include this kind of spending when he presented his state budget proposal last month, but he did answer questions about a potential round of Golden State stimulus checks.
Yes, there likely will be substantial contributions back to the taxpayers. What form they come in, well work with the Legislature, and to what degree will be determined more closely in May, Newsom said.
Our office thinks its a very good idea for the Legislature to develop a plan before that, said Gabe Patek, a State Legislative Analyst.
Patek said waiting until May to decide how to spend the money could put lawmakers and the governor in a tough position, giving them only weeks to negotiate with a budget deadline June 15.
He said it is likely the budget surplus will be even bigger than Newsoms $45.7 billion projection last month.
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How Do I Sign Up For Gss Ii
Golden State Stimulus II does not require you to file any additional forms. To apply for the check, all you need to do is file a 2020 tax return by October 15, 2021.
As long as you fill the requirements listed in the paragraph above, you should expect to get your payment without taking any extra action. At this point, the payments are expected to start in September 2021.