Another batch of Golden State stimulus checks could go to California next year as a result of a 1970s law.
In recent weeks, checks ranging from $600 to $1,100 have landed in the mailboxes and bank accounts of about two-thirds of California residents.
The payments are part of the state’s Golden State Stimulus II program.
In July, California Governor Gavin Newsom’s signed the $100 billion state budget.
As part of the plan, the state expects to provide about $12 billion in coronavirus relief to 15.2 million California households — or about two-thirds of the state’s taxpayers.
Payments are expected to stop at the end of the year; however, in 2022 the same law is expected to come into force again.
Californians rebelled against taxes in the late 1970s, with voters in 1978 approving Proposition 13, a landmark measure limiting the increase in property taxes.
The following year, Paul Gann, one of the proposal’s co-sponsors, proposed another tax break.
Gann suggested introducing a cap on government spending: As California spending approaches a certain threshold (calculated by adjusting 1979 levels for population growth and inflation), the state would have to pay back money to taxpayers in in the form of a discount.
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 go toward financing education as well.
Read our stimulus checks live blog for the latest updates on Covid-19 aid…
According to the New York Times, California has a record budget surplus of $76 billion for the current fiscal year and expects $31 billion in additional revenue for the fiscal year beginning in July.
In January, Newsom announced the Golden State Stimulus, and a few months later, the state began distributing about $12 billion to Californians earning $75,000 or less a year.
Now, the state’s Legislative Analyst’s Office predicts California will have a $31 billion surplus for the fiscal year beginning July 1, 2022.
Exactly how Newsom will avoid going over the Gann cap this time around will not become clear until he releases his budget proposal in January.
“I’m very proud of the historic tax cut,” Newsom said at a news conference last month.
“And I look forward to making the decision that I believe is in the best interest of 40 million Californians.”
GOLD CASH FLOW
The latest round of California’s Golden State Stimulus II payments began rolling out this week, with some 800,000 checks mailed out Monday.
Those who qualify for the stimulus check usually get it using the refund option selected on their tax return.
Eligible households will receive a stimulus check worth $600 and $1,100 each.
Direct deposits typically appear in bank accounts within a few business days, while paper checks can take up to three weeks to arrive.
To qualify for the Golden State Stimulus checks, Californians must meet the following criteria:
- You must have filed your taxes for 2020 before October 15, 2021
- Have California Adjusted Gross Income (CA AGI) of $1 to $75,000 for the 2020 tax year
- Have wages from $0 to $75,000 for the 2020 tax year
- Be a California resident for more than half of the 2020 tax year
- Be a California resident on the date the payment is issued
The state says some $563 million in aid checks will be sent by December 17.
Payments are made using the last three digits of the zip code on your 2020 tax return.
The state has released the following terms for eligible recipients to expect their payments by mail based on the last three digits of their zip code:
- 376-584 15/11/2021 to 12/03/2021
- 585-719 11/29/2021 to 12/17/2021
- 720-927 13/12/2021 to 31/12/2021
The GSII checks are paid approximately every two weeks until every eligible Californian has received one.
We pay for your stories!
Do you have a story for the US Sun team?