In January, California was propelling the American economic resurgence—with 118 consecutive months of growth, stratospheric job creation, and its highest credit rating in nearly two decades. Because of prudent one-time investments which enabled the state to attain the largest rainy day fund in its history,  California in a far stronger fiscal position today than it has been during previous downturns. 

In this blog post, we will go over:

• California's economic outlook prior to the COVID-19 induced recession.
• The rationale for this year's May Revise and projected budget cuts.
• An in depth analysis of areas most important to our members, including: education & child care, financial stability, health, as well as housing & homelessness; and,
• The State's Economic Outlook for the Future.

California United Ways are here to help families access vital resources at a time of great need as the COVID-19 pandemic continues to disrupt life for people across the state. We mobilize statewide partners to help low-income Californians get support filing their taxes and claiming tax credits that make all the difference for our most vulnerable communities. We want to update our networks with the latest developments, and provide solutions on how we can band together to support those who need it the most. 

The deadline to file and pay both state and federal taxes has been pushed back by 90 days to July 15th 2020. This applies to 2019 tax returns, 2019 tax return payments, 2020 1st and 2nd quarter estimated payments, 2020 LLC taxes and fees, and 2020 non-wage withholding payments.  Tax payers will not need to file any paperwork to qualify for this extension, and there will be no interest or penalties for filing by the new date. If at all possible, taxpayers should file their taxes online by going to www.MyFreeTaxes.org, where chat support is available 24/7 in English and Spanish. Especially for those who are expecting a refund, filing now and claiming credits such as the CalEITC and the Young Child Tax Credit will be a quick way to get money in the pockets of those who may be struggling financially during this public health crisis. Our chatbot is an advanced AI specifically focused on assisting with a wide range of support issues such as mental health and financial stress. The Franchise Tax Board is continuing to process returns and issue refunds in a timely manner, and providing phone and live chat support to taxpayers. Additionally, texting “Taxes” to 211-211 will provide taxpayers with the latest updates. In-person volunteer income tax assistance (VITA) sites have been closed across the state indefinitely due to COVID-19. However, for those who have access to the internet and a phone, computer, or tablet; you can get support online from a trained VITA volunteer, without having to go to a physical location, by going to www.GetYourRefund.org.  

While families across the nation may be losing income, and are struggling to pay for food/rent, United Ways of California wants to make it as easy as possible to connect families to other resources that they may qualify for. Services such as Benefit Kitchen can easily determine eligibility for up to 18 other social benefits. We have also issued a State Wide Relief Fund to support those impacted by COVID-19. This fund will aid in the coordination of efforts among partners on the ground serving our most vulnerable Californians who may be experiencing hardship in quarantine or due to a loss of income. It’s our priority to ensure that our most at risk communities are staying safe, supported, connected, and informed during the COVID-19 crisis.   

Earlier this summer, United Ways of California released Struggling to Stay Afloat: The Real Cost Measure in California 2019, a new financial stability report that focuses on the financial challenges of working families. Unlike the official poverty measure, which primarily accounts for the cost of food adjusted for inflation, the Real Cost Measure incorporates the costs of housing, food, health care, child care, transportation and other basic needs for a more accurate measure of self-sufficiency. 

Today, we are glad to release new legislative profiles to accompany the release of the study. These profiles illustrate the percentage of households below the Real Cost Measure by neighborhood cluster. Neighborhood clusters, or public use microdata areas as defined by the U.S. Census Bureau, are contiguously consolidated neighborhoods with at least 100,000 people, and are more statistically accurate than other geographic boundaries such as zip codes or census tracts. 

United Ways of California improves the health, education and financial stability of low-income workers and families by enhancing and coordinating the advocacy and community impact work of 31 member United Ways throughout California.

Last year we wrote to Samantha Deshommes, Chief of the Regulatory Coordination Division, at the Office of Policy and Strategy, for U.S. Citizenship and Immigration Services at the Department of Homeland Security, opposing the White House’s proposed changes to the “public charge” rule. Click here to read that correspondence.

Today, we underscore our opposition. The final rule, despite its 837-page length, is vague in its explanation of how the expanded definition will be applied, and to what end. Fear and confusion over this new rule has already proven harmful—especially to kids.

Governor Gavin Newsom has a chance to supercharge upward mobility for all working families in California, by ensuring that low-income taxpayers who file with an Individual Taxpayer Identification Number (ITIN) are also included in his bold vision for California and the Earned Income Tax Credit (CalEITC).

One in three families in California struggle to meet basic living costs, about twice the official poverty rate, and these are overwhelmingly working families: 9 in 10 of them are led by a working adult, according to United Way’s Real Cost Measure research. Why then wouldn’t the state continue to do whatever it can to help raise more people out of poverty?