Los Angeles, CA – Below is a statement from Peter Manzo, President and CEO, on behalf of United Ways of California (UWCA), regarding the proposed State Budget agreement: 

California is the fifth largest economy in the world and is experiencing an almost $9 billion surplus, so while United Ways of California is pleased that the budget agreement between Governor Brown and the Legislature includes more workers in the state earned income tax credit and funding to address the growing housing and homelessness crisis, we also see missed opportunities for smart and much needed investments in healthcare and expanded early child care. 

The economic well-being of hundreds of thousands of working Californians hangs in the balance as California’s Budget Conference Committee meets to work out their disagreements for the 2017-2018 budget before final negotiations with Governor Brown. This legislative budget will get us one step closer to determining whether California’s Earned Income Tax Credit (CalEITC) will support self-employed, “gig-economy” workers. Both houses have luckily already agreed that outreach dollars again are needed to build awareness of the CalEITC among the very low-income workers living in poverty and just trying every day to make ends meet.

The CalEITC is a refundable state tax credit that increases the economic security of working families, who can receive as much as $2,706 from the program, depending on their income, in addition to the income boost they receive from the federal EITC.

California’s finances are more solid than they have been for several years, thanks in no small part to Governor Brown’s leadership. While the Governor’s proposed budget increases investment in K-12 education, similar investments in health programs and initiatives that help families achieve financial self-sufficiency are needed to strengthen opportunities for low-income families, which are essential to California’s overall competitiveness and well being. Click here to read our full press release.