California United Ways applaud the Governor’s bold proposal to expand the California Earned Income Tax Credit by 200%, (an increase from $400 million up to $1.2 billion) and strengthen its impact in fighting poverty —in particular in families with children under 6, where the credit will double from $500 to $1,000 per child. We know that one in three families in California struggle to meet basic living costs, according to our Real Cost Measure study, Struggling to Stay Afloat. The CalEITC and the federal EITC are the most effective tools we have for fighting poverty and helping working families and individuals move up the economic ladder, and reward and promote work. We strongly support the Governor’s proposal to provide a $1000 credit to CalEITC eligible families with young children (aged 0-6) and increase the credit for more families. We are deeply disappointed, however, that the Governor’s proposal continues to exclude many immigrant tax filers and their families who contribute significantly to our economy and society, but file their taxes with a federally assigned Individual Tax Identification Number (ITINs). 

Greater Support for Low-Income Workers, Kids’ Early Education, Healthcare & Housing

More to Do to Realize the Promise of California for All

(Los Angeles, Calif.) – Statement from Peter Manzo, President and CEO of United Ways of California, (UWCA) regarding Governor Gavin Newsom’s revised 2019-2020 budget proposal:

California United Ways applaud the Governor’s bold proposal to expand the California Earned Income Tax Credit by 200%, (an increase from $400 million up to $1.2 billion) and strengthen its impact in fighting poverty —in particular in families with children under 6, where the credit will double from $500 to $1,000 per child. We know that one in three families in California struggle to meet basic living costs, according to our Real Cost Measure study, Struggling to Stay Afloat. The CalEITC and the federal EITC are the most effective tools we have for fighting poverty and helping working families and individuals move up the economic ladder, and reward and promote work. We strongly support the Governor’s proposal to provide a $1000 credit to CalEITC eligible families with young children, (aged 0-6) and increase the credit for more families.

We are deeply disappointed, however, that the Governor’s proposal continues to exclude many immigrant tax filers and their families who contribute significantly to our economy and society, but file their taxes with a federally assigned Individual Tax Identification Number (ITINs). This exclusion means that under the current CalEITC, around half a million working Californians, and their estimated 226,000 children, (many of whom are US citizens) are denied the powerful poverty-fighting effects of the CalEITC, despite the fact they pay taxes, file a return and play by the rules. Among working families, children of immigrants are far more likely to live in poverty. Removing this exclusion would ensure more Californians reach their full potential and provide a significant boost to local economies throughout the state.

We look forward to working with the Governor and legislature to provide access to this vital poverty-fighting tool to ITIN filers, and other opportunities to further strengthen the impact of the CalEITC by increasing funding for outreach and free tax preparation services. And we look forward to partnering closely with this administration and the legislature to take further steps to end poverty in California, especially among children.

We are delighted to see the Governor include over $200 million in additional funding for child care (including $80.5  million from the Prop. 64 Cannabis Fund), in continuation of his January commitment of $1.8 billion in one-time funding devoted to efforts to expand access to childcare services and kindergarten for low-income families, as well as efforts to train childcare workers and expand local childcare facilities—especially in areas with relatively low access to childcare. United Ways of California enthusiastically applauds this emphasis on our kids during their earliest years of development. Investments in childcare, early childhood education, nutrition, healthcare services, and preventive support systems are proven to have critical impacts on the wellbeing of children, paying lifelong dividends, and strengthen families, communities and our economy as well. We look forward to working with this administration and legislature to ensure all children have access to early childhood development and education.

We strongly support the expansion of Medi-Cal to include all undocumented young adults, up to age 26, as well as the introduction of additional affordability measures—such as greater subsidies through Covered California and a large-scale single-purchaser system for prescription drugs. California has been a national leader in expanding affordable health care coverage and access to quality care, and the Governor’s budget proposal takes vital steps to further ensure the wellbeing of our diverse population. We look forward to working with the Governor and the legislature to continue to meet the “Health for All” goal of coverage for all Californians.

To improve affordability and access to health care, the Governor's revised budget also includes subsidies to help low and middle income Californian's afford health coverage through our state exchange, Covered California. Financial assistance will be extended and made available to qualified individuals between 200 and 600 percent of the Federal Poverty. This will make California the first in the nation to offer such assistance for health coverage, and we applaud this effort. However, we believe the budget missed the opportunity to provide expanded financial support for people between 138% (above Medi-Cal) and 199% FPL as well. Overall, these subsidies will not only expand access to health coverage, it will help stabilize the market place by reducing future annual premium increases. In addition to the subsidies, the May revision also includes a proposal for a statewide individual mandate which will help stabilize the market and fund future subsidy assistance. The budget proposals for healthcare will help provide an immediate relief to families, and result in greater access to affordable, comprehensive care.

United Ways in communities throughout the state also are fighting to eliminate homelessness, and to prevent rising housing costs from forcing more families into homelessness. We applaud the Governor’s continued commitment to fighting homelessness and increasing production of affordable housing, and are pleased to see his revised budget includes over $1 billion in funding to address homelessness, including an additional $150 million, for a total of $650 million, for local jurisdictions to build and expand emergency shelters and Navigation Centers, and $750 million for local governments to develop housing plans and infill infrastructure development to support higher-density affordable and mixed-income housing.

UWCA is committed to passing a budget that protects and empowers our children, our families, our communities, and our future.

###