The state legislature says the budget surplus is large enough for payments of $ 1,100
The state legislature says the budget surplus is large enough for payments of $ 1,100

The state legislature says the budget surplus is large enough for payments of $ 1,100

While California is considering whether to send another round of stimulus checks to deal with a massive expected budget surplus, a state legislature said Wednesday made the case for more tax rebates.

In a video released onlineused Republican State Senator Brian Jones rice grain to break down the expected budget surplus, which in January was estimated at $ 45.7 billion.

“If each grain of rice is $ 100,000, that means California’s $ 45 billion profit is taxes that have been levied so much,” Jones explained as he moved the large pile of rice around by hand.

So what to do with all that money?

According to the state senator, the amount is enough to send every Californian a tax rebate of $ 1,125 or $ 4,500 for a family of four.

More stimulus checks is an option because the surplus is likely to exceed California’s constitutional limit as set forth in the voter – approved Proposition 4, or what is more commonly known as “Gann border“. It essentially limits the amount of tax revenue the state can spend, while giving lawmakers options for what to do with the remaining funds – including giving them back to taxpayers in the form of a rebate.

The state has only hit the Gann border twice since the passage of Prop 4 back in 1979, including last year.

In the revelation of his sweeping $ 286 billion budget proposal for fiscal year 2022 last month, Gov. Newsom noted that his office expected a profit of about $ 2.6 billion above the constitutional limit.

Jones, for example, supports sending discounts, or as they became known last year, Golden State Stimulus payments.

“If it’s 2,500, if it’s 1,500, any amount that we can convince the state, the governor, the Democrats in the Legislature to send back, I think it’s a benefit to every Californian and every California family,” he said. Jones, whose 38th district encompasses much of inner San Diego County.

Although Newsom’s original proposal did not actually include such payments, he subsequently indicated that the checks would “likely” be added in the final audit.

“In the May review, when I update the budget, we expect that we will probably have an extra rebate for taxpayers,” he said.

It is still unclear how much taxpayers could receive if the Golden State Stimulus program is revived by 2022. In the second, expanded GSS program, qualified Californians received $ 600, plus an additional $ 500 if they had one or more qualifying addicts.

However, state legislative analyst Gabe Patek believes legislators should not wait that long to decide what to do with the budget surplus.

“Our office thinks it’s a very good idea for the legislature to develop a plan before that,” Patek said.

Waiting another three months to decide how the extra funds will be spent would give Newsom and the California Legislature only weeks to negotiate ahead of the June 15 budget deadline, he explained. The state’s financial year begins on 1 July.

It is also likely that the budget surplus may be even higher than the current estimate, according to Patek.

“Since the time of the governor’s budget proposal, we know that the revenue has exceeded the governor’s estimate and they have exceeded last year’s budget law. All signs point to higher revenue than the governor estimates,” he said.

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