Policymakers Must Reduce Poverty and Build Equity by Expanding Tax Credits for Families with Low Incomes in CA Budget

Sacramento, CA — The California Earned Income Tax Credit (CalEITC) Coalition, which includes policy advocates, low-income service providers, labor representatives, and community and faith-based organizations, expressed deep disappointment in the Assembly Appropriations Committee’s decision to hold two priority bills that would deliver relief to families facing relentless financial pressure due to low incomes and soaring cost of living. AB 1128 (Santiago) to expand the $1,083 Young Child Tax Credit to all CalEITC-eligible households and AB 1498 (Gipson) to provide a $300 CalEITC minimum were held in committee, creating more urgency for policymakers to act through the state budget to prevent struggling families from falling into poverty.

The CalEITC Coalition remains steadfast in its commitment to reduce child and family poverty this year, pointing to the strong Assembly champions who authored the legislation as well as the California State Senate’s Protect Our Progress budget plan for FY 23-24 in ongoing budget negotiations as opportunities to build upon recent progress to strengthen the CalEITC and the Young Child Tax Credit. 

“Targeted tax credits are one of the best tools the state has to uplift families that are struggling to get by. It is critical that we protect and bolster investments in our most vulnerable communities,” said Anna Hasselblad, Director of Public Policy of United Ways of California. It is unfortunate that AB 1128 by Assemblymember Santiago and AB 1498 by Assemblymember Gipson were held in Appropriations; however, we are heartened by the inclusion of a CalEITC Minimum in the Senate Budget Plan released recently. This shows that there is commitment and leadership in both houses of the legislature to expanding tax credits. We have the tools to reduce poverty, improve lifelong results for children, and boost local economies. We as advocates and community members are committed to making these investments real for families.” 

“We’re disappointed, but not deterred, by the outcome today. We urge budget leaders to continue to fight to increase state tax credits because it’s the right thing to do,” said Amy Everitt, President of Golden State Opportunity. “We will not stop fighting to get more money for communities in need. Low-income Californians must be our top priority in a good economy and a bad economy.”

“We were disappointed to see AB 1128 and AB 1498 held in suspense today. At the same time, we have been humbled by the continued support these incredible tax credit programs have received from administrative, Senate and Assembly leaders,” said Shimica Gaskins, President & CEO of GRACE/End Child Poverty in CA. “We are excited to continue advocating to raise the CalEITC minimum to $300 and expand the YCTC to all CalEITC-eligible families alongside our state’s budget leaders. We know these programs effectively lift families out of poverty and it’s an investment the state can and should make.” 

CalEITC Coalition members thank Assemblymembers Santiago and Gipson for their leadership and championing financial relief for families and children, and look forward to working with them and their colleagues in the Assembly and Senate to uplift families who are struggling to make ends meet by strengthening the successful CalEITC and YCTC as part of final budget negotiations.

#  #  #

The California Earned Income Tax Credit (CalEITC) Coalition is a broad group of 35+ advocacy and community-based organizations, including policy advocates, low-income service providers, and labor representatives, committed to expanding access to the CalEITC, YCTC and other cash-back tax credits.

Anti-Poverty Advocates Disappointed After Assembly Appropriations Committee Holds Legislation Expanding Tax Credits for Families & Children

Policymakers Must Reduce Poverty and Build Equity by Expanding Tax Credits for Families with Low Incomes in CA Budget

SACRAMENTO, CA — The California Earned Income Tax Credit (CalEITC) Coalition, which includes policy advocates, low-income service providers, labor representatives, and community and faith-based organizations, expressed deep disappointment in the Assembly Appropriations Committee’s decision to hold two priority bills that would deliver relief to families facing relentless financial pressure due to low incomes and soaring cost of living. AB 1128 (Santiago) to expand the $1,083 Young Child Tax Credit to all CalEITC-eligible households and AB 1498 (Gipson) to provide a $300 CalEITC minimum were held in committee, creating more urgency for policymakers to act through the state budget to prevent struggling families from falling into poverty.

The CalEITC Coalition remains steadfast in its commitment to reduce child and family poverty this year, pointing to the strong Assembly champions who authored the legislation as well as the California State Senate’s Protect Our Progress budget plan for FY 23-24 in ongoing budget negotiations as opportunities to build upon recent progress to strengthen the CalEITC and the Young Child Tax Credit. 

“Targeted tax credits are one of the best tools the state has to uplift families that are struggling to get by. It is critical that we protect and bolster investments in our most vulnerable communities,” said Anna Hasselblad, Director of Public Policy of United Ways of California. It is unfortunate that AB 1128 by Assemblymember Santiago and AB 1498 by Assemblymember Gipson were held in Appropriations; however, we are heartened by the inclusion of a CalEITC Minimum in the Senate Budget Plan released recently. This shows that there is commitment and leadership in both houses of the legislature to expanding tax credits. We have the tools to reduce poverty, improve lifelong results for children, and boost local economies. We as advocates and community members are committed to making these investments real for families.” 

“We’re disappointed, but not deterred, by the outcome today. We urge budget leaders to continue to fight to increase state tax credits because it’s the right thing to do,” said Amy Everitt, President of Golden State Opportunity. “We will not stop fighting to get more money for communities in need. Low-income Californians must be our top priority in a good economy and a bad economy.”

“We were disappointed to see AB 1128 and AB 1498 held in suspense today. At the same time, we have been humbled by the continued support these incredible tax credit programs have received from administrative, Senate and Assembly leaders,” said Shimica Gaskins, President & CEO of GRACE/End Child Poverty in CA. “We are excited to continue advocating to raise the CalEITC minimum to $300 and expand the YCTC to all CalEITC-eligible families alongside our state’s budget leaders. We know these programs effectively lift families out of poverty and it’s an investment the state can and should make.” 

CalEITC Coalition members thank Assemblymembers Santiago and Gipson for their leadership and championing financial relief for families and children, and look forward to working with them and their colleagues in the Assembly and Senate to uplift families who are struggling to make ends meet by strengthening the successful CalEITC and YCTC as part of final budget negotiations.

#  #  #

The California Earned Income Tax Credit (CalEITC) Coalition is a broad group of 35+ advocacy and community-based organizations, including policy advocates, low-income service providers, and labor representatives, committed to expanding access to the CalEITC, YCTC and other cash-back tax credits.