ALL RIGHT. GOOD MORNING,
EVERYBODY AND IT'S GREAT TO SEE
THIS TURNOUT AT TODAY'S
OVERSIGHT HEARING ON THE
CALIFORNIA EARNED INCOME TAX
CREDIT OR THE CAL E I T C. I
WANT TO OH, THERE'S THE SENATOR
. I'VE ONLY SAID FOUR WORDS. I
WANT TO REMIND EVERYBODY THAT
FOR THIS HEARING TESTIMONY AND
PUBLIC COMMENT MUST BE IN PERSON
AND WE ARE NO LONGER USING A
MODERATED TELEPHONE SERVICE
BEFORE WE BEGIN. I WOULD LIKE TO
THANK MY SENATE COUNTERPART,
SENATOR CABALLERO, CHAIR OF THE
SENATE COMMITTEE ON GOVERNANCE
AND FINANCE FOR AUTHORING SP 14.
OH, NINE. AND FOR YOUR CONTINUED
SUPPORT OF THIS IMPORTANT
PROGRAM. I WOULD ALSO LIKE TO
THANK THE MEMBERS. SENATORS AND
PANELISTS IN ATTENDANCE TODAY AS
WE DISCUSSED HOW TO BOLSTER OF
VITAL COMPONENT OF OUR STATE'S
EFFORTS TO LIFT PEOPLE OUT OF
POVERTY. CALLIE I T C IS A
CRITICAL TOOL TO HELP COMBAT
POVERTY IN OUR STATE, KEEPING AN
ESTIMATED 1.2 MILLION
CALIFORNIANS OUT OF POVERTY,
MORE THAN HALF OF WHOM ARE
CHILDREN, BABA KELLY EITC HAS
BEEN EXPANDED A NUMBER OF TIMES
SINCE THEN. EXCEPT SINCE ITS
EXCEPTION. INCEPTION IN 2015,
THERE IS STILL A LARGE NUMBER
OF, UM ELIGIBLE INDIVIDUALS WHO
DO NOT CLAIM THE CREDIT,
ACCORDING TO ESTIMATES BY THE
CALIFORNIA POLICY LAB BETWEEN
700,000. 800,000 HOUSEHOLDS IN
THE STATE MAY BE ELIGIBLE FOR
THE CREDIT BUT ARE NOT CLAIMING
IT. TO BETTER UNDERSTAND THIS
DISCREPANCY, AN INCREASE THE
NUMBER OF CALI EITC CLAIMS
SENATOR CABALLERO AUTHORED. SB
14 OH NINE AND 2020 DIRECTING
THAT THE F T B EXPLORER BOTH
BARRIERS FOR ELIGIBLE RECIPIENTS
SEEKING TO CLAIM THE CREDIT AND
VARIOUS PROPOSALS FOR INCREASING
THE USE OF CALI EITC IN ORDER TO
DEVELOP A PLAN TO INCREASE THE
NUMBER OF CLAIMANTS WHILE WE
APPRECIATE THE DETAILED ANALYSIS
OF THESE PROPOSALS, I WAS
DISCOURAGED TO SEE THE REPORT
OVEREMPHASIZING IMPEDIMENTS TO
INCREASE IN CLAIMS RATHER THAN
PROVIDING SOLUTIONS. I KNOW THE
STATE CAN DO BETTER TO HELP
REACH MORE CALIFORNIANS. IF WE
ARE CREATIVE AND BREAK DOWN
BARRIERS RATHE THAN RAISE THEM.
I BEGAN MY TIME IN THE ASSEMBLY
WHEN E I T C WAS FIRST ENACTED
IN 2015, AND I'VE BEEN A STAUNCH
PROPONENT OF THE PROGRAM
THROUGHOUT MY LEGISLATIVE TENURE
. THIS PAST LEGISLATIVE SESSION
, I AUTHORED AND GAVIN NEWSOM
SIGNED A B 18 63, WHICH WILL
REQUIRE THAT THE F T B SEND
PERSONALIZED NOTIFICATIONS TO
POTENTIALLY ELIGIBLE CALLIE EITC
RECIPIENTS RECIPIENTS. DIRECTING
THEM TO CLAIM THE CREDIT THROUGH
TAX FREE FILING OPTIONS OFFERED
THROUGH THE F T B AND THE VITAL
PROGRAM. KELLY I T. C S ROLE IN
SUPPORTING WORKING CALIFORNIANS
IS VITAL TO THE CONTINUED
SUCCESS OF OUR STATE AND THESE
PERSONALIZED NOTIFICATIONS WILL
AID IN DIRECTING MORE OF WORKING
CALIFORNIANS TO CLAIM THE
CREDIT. FINALLY WHILE OUTREACH
AND AWARENESS OF THE CREDIT IS
NEEDED. RECENT STUDIES HAVE
FOUND THAT THE AWARENESS OF THIS
CREDIT ALONE WILL NOT INCREASE
UPTAKE. INSTEAD WORK HAS TO BE
DONE TO LIMIT FILING BARRIERS
CURRENTLY PRESENT FOR ELIGIBLE
RECIPIENTS. THIS IS WHY, AS THE
CHAIR OF THE ASSEMBLY RAVEN TAX
COMMITTEE, I INTEND TO USE
TODAY'S HEARING TO EXPLORE HOW
WE CAN IMPROVE ACCESS TO CREDIT.
AND INCREASE UTILIZATION BY
EXAMINING THE STRUCTURE OF THE
CREDIT. I LOOK FORWARD TO THE
DISCUSSION WITH THAT BEING SAID
, UM, I WOULD LIKE TO OFFER
SENATOR CABALLERO SOMETIME FOR
REMARKS. THANK YOU VERY MUCH,
MADAM CHAIR FOR THE INVITATION
TO JOIN YOU HERE TODAY. IT'S
ALWAYS A PLEASURE TO BE ABLE TO,
UM WORK SIDE BY SIDE ON ISSUES
THAT ARE CRITICALLY IMPORTANT.
UM. TODAY'S HEARING IS BOTH
VITAL AND TIMELY TO REDUCING
POVERTY IN CALIFORNIA. UM I
THINK YOU SAID IT ALL IN TERMS
OF THE CALI EITC, WHICH IS BASED
ON A FEDERAL PROGRAM. UM AND, UM
, IT THAT COMBINED WTH THE
YOUNG CHILD TAX CREDIT ARE
TREMENDOUSLY IMPORTANT TO LIFT
FAMILIES OUT OF POVERTY EVEN AS
OUR STRAIGHT STATE STRUGGLES
WITH THE INEQUALITY OF INCOME,
UM, THAT THAT SEEMS TO BE, UM,
INTRACTABLE AT TIMES, I CAN'T
THINK OF A MORE IMPORTANT ISSUE
THAT CREATES AN OPPORTUNITY FOR
OUR FAMILIES TO BE ABLE TO
RECEIVE SOME MONEY BACK. AND
MAKE THOSE CRITICAL DECISIONS
ABOUT WHERE THEY'RE GOING TO
SPEND THEIR MONEY EITHER ON RENT
OR IN FOOD AND SO REALLY WANT TO
THANK YOU SO MUCH FOR HOLDING
THIS HEARING, AND HOPEFULLY WE
CAN FOCUS ON WHAT WHAT SOME OF
THE SOLUTIONS ARE, UM T
ACTUALLY HAVING FAMILIES RECEIVE
MONEY THAT THEY'RE ENTITLED TO.
AND UM, I WANT TO AGREE WITH YOU
. THE REPORT FOCUSED A LOT ON
SOME OF THE OBSTACLES AND THE
BARRIERS AT THE STATE LEVEL IN
PARTICULAR. UM I'M REALLY
LOOKING FOR A SOLUTION AND SO
LOOK FORWARD TO THE DISCUSSION
WE'RE GOING TO HAVE TODAY AND
THANK YOU VERY MUCH AGAIN. THANK
YOU, SENATOR CAVALLERO
ASSEMBLYMEMBER'S PETRIE-NORRIS.
WELL THANK YOU. CHAIR IRWIN, HER
CONVENING US ON THIS REALLY
IMPORTANT TOPIC AS OUR CHAIR,
IRWIN AND SENATOR CABALLERO
NOTED KELLY AT A I. T C IS ONE
OF THE STATE'S MOST IMPORTANT
PROGRAMS, UM, WHEN IT COMES IN
MOST EFFECTIVE PROGRAMS IN
LIFTING CALIFORNIANS OUT OF
POVERTY, PARTICULARLY CHILDREN,
AND WE'VE SEEN THAT THE BENEFITS
OF THIS PROGRAM ARE EVIDENT
THROUGHOUT EVERY STAGE OF
RECIPIENTS LIFE SO RECOGNIZING
THAT IN RECENT YEARS, THE
LEGISLATURE HAS MADE INVESTMENTS
TO EXPAND AWARENESS AND
EDUCATION AND TO INCREASE THE
NUMBER OF QUALIFIED CLAIMANTS
WHO ARE TAKING ADVANTAGE OF THE
EARNED INCOME TAX CREDIT. I
THINK THIS HEARING IS A REALLY
IMPORTANT OPPORTUNITY FOR US TO
TAKE A LOOK BACK AND UNDERSTAND
WHAT IF ANY OF THOSE INVESTMENTS
HAVE PROVEN TO BE EFFECTIVE.
WHAT DO WE NEED TO DO MORE OF,
AND WHAT DO WE NEED TO DO
DIFFERENTLY TO ENSURE THAT WE
CONTINUE TO EXPAND THE EFFICACY
OF THIS PROGRAM ACROSS THE STATE
? SO THANK YOU IN ADVANCE TO ALL
OF OUR PANELISTS WHO ARE JOINING
US TODAY TO SHARE THEIR
INSIGHTS? AND RECOMMENDATIONS AS
WE DIVE INTO THIS TOPIC. THANK
YOU, CHAIR. ASSEMBLYMEMBER'S
ASSEMBLYMEMBER'S REVIS. THANK
YOU, MADAM CHAIR, UM, AND FOR
HOSTING THIS INFORMATIONAL
HEARING ON SUCH AN IMPORTANT
TOPIC THAT AFFECTS MANY OF MY
CONSTITUENTS AND LOTS OF
FAMILIES HERE IN IN OUR STATE.
UM YOU KNOW, IT'S HARD FOR ME TO
READ AND TO TALK ABOUT THAT, NOT
EVERYONE THAT QUALIFIES FOR THIS
TAX CREDIT. IS GETTING IT HERE.
WE ARE WORKING HARD TO MAKE SURE
IT'S OUT THERE THAT IT'S
AVAILABLE. UM AND NOW WITH THE
NEXT STEPS ARE TO KNOW TO LEARN
MORE ABOUT WHY THEY'RE NOT DOING
IT AND MADE A LOT. YOU KNOW.
WHAT DO WE NEED? WHAT TYPE OF
OUTREACH DO WE NEED TO DO? UM TO
FAMILIES AND NEED, YOU KNOW,
THESE ARE FAMILIES THAT ARE
STRUGGLING EVERY DAY TO FEED
THEIR FAMILIES TO PAY THE RENT
ALREADY STRESSED OUT, UH AND SO
IT'S ON US. I BELIEVE TO MAKE
SURE TO MAKE IT EASIER TO MAKE
SURE THAT THEY KNOW AND WHERE
ARE THE BEST PLACES FOR THEM TO
FIND OUT THIS INFORMATION, SO
THANK YOU TO EVERYONE THAT'S
PARTICIPATING IN THIS HEARING,
AND I LOOK FORWARD TO ALL OF THE
PANELS. THANKS. THANK YOU.
ASSEMBLYMEMBER'S REVIS. SO UM,
LET'S CALL UP OUR FIRST PANEL,
PLEASE. AND THIS IS A
PRESENTATION ON THE CALI EITC
PROGRAM AND PAST EFFORTS TO
INCREASE L E I T C AWARENESS AND
CLAIMS AND WE HAVE CHASE ALAMO,
JEAN HARRIMAN AND SUSAN MAPLES.
THANK YOU ALL FOR AGAIN. JOINING
US THIS MORNING. AND OUR FIRST
WITNESSES, CHASE PRINCIPAL
FISCAL AND POLICY ANALYSTS AT
THE LOWS OFFICE. WE'VE ASKED THE
LAO TO PROVIDE A BRIEF INTERVIEW
OVERVIEW AND HISTORY OF CALI
EITC, AUSTRALIA MODE. THANK YOU
VERY MUCH, MADAM CHAIR MEMBERS
OF THE COMMITTEE, SENATOR
CAFIERO. UM MY NAME IS CHAZ
ALAMO. I'M WITH THE LEGISLATIVE
ANALYST'S OFFICE. THE COMMITTEE
ASKED US TO PRESENT IT. THE
CHAIR NOTED A VERY BRIEF
OVERVIEW OF THE CALI EITC AND A
BIT OF A 2022 UPDATE. UM AS PART
OF THAT WE'VE PREPARED A SHORT
HANDOUT THAT I HOPE IT'S
AVAILABLE IN YOUR PACKETS. IT'S
ALSO AVAILABLE ON OUR WEBSITE. I
THINK WITH THE PRESENTATION
GOING ALONG UM, SO TURNING TO
THE FIRST PAGE OF THE HANDOUT,
AS SENATOR CALOGERO MENTIONED
THE STATE'S EARNED INCOME TAX
CREDIT IS BUILT OFF OR PREMISED
OFF THE FEDERAL EARNED INCOME
TAX CREDIT. UM THE FEDERALLY
EITC IS A FULLY REFUNDABLE TAX
CREDIT. UM THE REDUCES TAX
LIABILITY FOR TAX FILERS WITH
EARNINGS. AND THE KID IMPETUS
HERE BEING FULLY REFUNDABLE AND
SO FAR AS IF THE CREDIT AMOUNT
FOR A TAX FILER IS GREATER THAN
THEIR TAX LIABILITY. THE TAX
FIRE ORDER CAN RECEIVE THAT
DIFFERENCE IN A PAYMENT BACK TO
THE TAX FILER. MANY OTHER INCOME
TAX CREDITS ARE THEY'RE NOT
REFUNDABLE IN THE SAME WAY. UM
THE AMOUNT OF THE FEDERAL CREDIT
INITIALLY RISES WITH EARNINGS AS
SHOWN IN THIS FIGURE. THERE'S A
BRIEF PLATEAU PERIOD BEFORE IT
MORE SLOWLY DECLINES AS EARNINGS
CONTINUE TO INCREASE. UM, NEXT
SLIDE, PLEASE. UM THAT
CALIFORNIA EARNED INCOME TAX
CREDIT WAS ENACTED IN 2015.
THAT'S PART OF THE 15 16 BUDGET
AGREEMENT. AND THE STATE CREDIT,
THOUGH BASED ON THE FEDERAL
CREDIT, AS I MENTIONED EMPHASIZE
THE SORT OF EARNING PORTION OF
THE PHASE IN PERIOD FOR THE
FEDERAL TAX CREDIT AND IN DOING
SO, THE STATES E I. T. C FOCUSES
ON TARGETING THE LOWEST INCOME
TAX FILERS WHO ARE ELIGIBLE FOR
THE FEDERALLY EITC. AND YOU CAN
SEE THAT IN FIGURE AT THE
BOTTOM OF THIS PAGE, WHICH SHOWS
THE COW E I T C AMOUNT FOR
ATTACKS FIRE WITH TWO DEPENDENTS
OR 22 CHILDREN. UM, AND ALSO THE
COUNTY I T IS THAT THE EITC
AMOUNT FOR A TAXPAYER WITH NO
DEPENDENTS. UM SINCE THE KELLY
EITC WAS ENACTED, THE STATE HAS
TAKEN SEVERAL STEPS TO EXPAND
THE PROGRAM, AND I'LL JUST GO
BRIEFLY THROUGH A FEW OF THOSE
STEPS AS YOU ALL ARE FAMILIAR
WITH THEM. IN 2017, THE INCOME
LIMIT WAS INCREASED. AND
IMPORTANTLY, THE STATE BEGAN TO
ALLOW SELF EMPLOYMENT INCOME TO
COUNT AS EARNINGS FOR THE COW E
I T C, MAKING A NUMBER OF
ADDITIONAL TAX FILERS ELIGIBLE
FOR THE CREDIT IN 2018, THE
INCOME LIMIT WAS AGAIN INCREASED
AND IMPORTANTLY, FILERS UNDER
25/65 WERE FOLDED INTO THE CALI
EITC. MORE RECENTLY IN 2019, THE
INCOME LIMIT WAS AGAIN INCREASED
TO $30,000 FOR ALL TAX FILERS.
ITS CURRENT LEVEL. UM. AND THE
STATE ALSO ADDED THE YOUNG CHILD
TAX CREDIT, WHICH IS $1000
CREDIT FOR ELIGIBLE E I. T C
FILERS WITH DEPENDENTS UNDER SIX
YEARS OLD IN 2020. SO MOST
RECENTLY, NIKOLAY EITC WAS
EXPANDED TO TAX FILERS WITHOUT
SOCIAL SECURITY NUMBERS WHO
FILED THEIR TAXES USING
INDIVIDUAL TAXPAYER
IDENTIFICATION NUMBERS. UM
TURNING TO PAGE THREE. WE HAVE A
COUPLE OF FIGURES HERE JUST ON
RECENT USE OF THE CALI EITC.
THIS FIGURE SHOWS THE TOTAL
AMOUNTS STATEWIDE THAT IT WERE
CLAIMED EACH YEAR SINCE
ENACTMENT AND DUE LARGELY TO THE
EXPANSION THAT I VARIOUS
EXPANSIONS THAT I JUST WENT
THROUGH. THE TOTAL CREDIT AMOUNT
CLAIMED HAS INCREASED OBVIOUSLY,
OVER THIS TIME, BEGINNING AT
ABOUT $200 MILLION IN THE FIRST
COUPLE OF YEARS, THE PROGRAM AND
GROWING TO OVER $800 MILLION AS
OF TAX YEAR. 2020 THIS THESE
BARS SPECIFICALLY DO NOT INCLUDE
AMOUNTS CREDITED UNDER THE YOUNG
CHILD TAX CREDIT SO SOMETIMES
YOU'LL SEE SORT OF TWO DIFFERENT
AMOUNTS. THIS IS EXCLUSIVE TO
THE EARNED INCOME TAX CREDIT. UM
THE YOUNG CHILD TAX CREDIT WOULD
BE IN ADDITION TO THIS BAR IN
2020. UM TURNING TO PAGE FOR
JUST A QUICK LOOK AT SOME OF THE
DYNAMICS FROM THIS MOST RECENT
TAX YEAR FOR WHICH WE HAVE DATA
ABOUT 4.3 MILLION CALIFORNIA
TAXPAYERS CLAIMED THE CALI EITC
FOR A TOTAL OF $850 MILLION MORE
OR LESS IN CREDITS. UM THIS
EQUATES TO AN AVERAGE CREDIT
AMOUNT PER FILER OF ABOUT $200.
AND THERE ARE SOME IMPORTANT
DISTINCTIONS, THOUGH THIS
AVERAGE KIND OF SMOOTHES OVER
SOME DYNAMICS THAT WE THOUGHT
WERE WORTHWHILE TO POINT OUT TO
THE COMMITTEE AND THE FIRST
DYNAMIC IS SHOWN IN THIS FIRST
FIGURE, WHICH IS JUST THE
DISTRIBUTION OF CREDITS BY THE
AMOUNT OF THE CREDIT. UM AND AS
YOU CAN SEE, THE OVERWHELMING
MAJORITY OF CREDITS ARE AMOUNTED
TO LESS THAN $200. UM WHILE
THERE ARE OBVIOUSLY MANY TAX
FILERS WHO ARE ELIGIBLE FOR A
LARGER CREDIT, UM THEY ARE THE
MINORITY OF TAX FILERS IN THIS
IN THIS CASE, AS OF 2020. UM THE
SECOND FIGURE IS ANOTHER SORT OF
DIMENSION TO REVIEW THE CALI
ITIS THE EITC UNDER AND THAT HAS
TO DO WITH THE AVERAGE AMOUNT OF
CREDITS FOR TAX FILERS WITH NO
DEPENDENTS AND THOSE WITH
DEPENDENTS. SO AS YOU CAN SEE
THE AVERAGE CREDIT AMOUNT FOR
TAXPAYERS WITH NO DEPENDENCE IS
MUCH LOWER. IT'S ABOUT $100 ON
AVERAGE, WHEREAS FOR TAX FLOWERS
WITH DEPENDENCE, NOT
SURPRISINGLY, AND MUCH HIGHER
CREDIT AMOUNT. UM UM, ABOUT $330
ON AVERAGE. UM TURNING. TO THE
FIFTH PAGE OF OUR HAND OUT THE
FINAL PAGE. A RECENT WALKTHROUGH
OF STATE STEPS TO INCREASE
OUTREACH AND THE CRUX OF THE
ISSUE WITH THE KHALID E I. T C
AND THE TAKE UP RATE OF THE
PARTICIPATION RATE, AS THE CHAIR
MENTIONED IS THAT FOR MANY, IF
NOT MOST TAX FILERS WHO ARE
ELIGIBLE FOR THE KALI EITC DON'T
HAVE TO FILE STATE INCOME TAXES
UNDER UNDER STATE LAW. AND THIS
IS BECAUSE OF THE STATE INCOME
TAX FILING THRESHOLD IS
TYPICALLY HIGHER THAN THE COUNTY
EITC ELIGIBILITY THRESHOLD. SO,
FOR INSTANCE, UM, A TAX FILER
WITH TWO CHILDREN WOULD NOT HAVE
TO FILE STATE INCOME TAXES UNTIL
THEIR INCOME REACHES ABOUT
$43,000 BUT WOULD BE ELIGIBLE
FOR THE CALI E I. T C ONLY UP
UNTIL THEIR INCOME WAS $30,000.
SO YOU HAVE THIS DISTINCTION
WHERE MANY CALI EITC ELIGIBLE
FAMILIES COULD CLAIM THE CREDIT
BUT AREN'T REQUIRED TO FILE
STATE INCOME TAXES. AND THIS IS
THE FOCUS OF MANY RECENT STATE
EFFORTS TO INCREASE OUTREACH AND
PARTICIPATION OF THE CREDIT. UM,
SINCE THE CREDITS ENACTMENT THE
STATE HAS SPENT BETWEEN TWO AND
$10 MILLION A YEAR ON OUTREACH
OUTREACH EFFORTS. UM AND JUST
RECENTLY, THE. THE CHAIRIL
ALLUDED TO BOTH REPORTS THAT
WE'VE SUMMARIZED JUST BRIEFLY
HERE IN THIS ROOM IN THIS
HANDOUT, UM, REPORTS THAT
RECENTLY ATTEMPT TO SHED LIGHT
ON WHY CERTAIN TAX FILERS WHO
ARE ELIGIBLE FOR THE CREDIT
AREN'T CLAIMING IT. THAT FIRST
REPORT WAS A REPORT PREPARED BY
THE CALIFORNIA POLICY LAB IN
2020, IN COLLABORATION WITH
STATE ENTITIES. UM THE
CALIFORNIA POLICY LAB REPORT, IN
ESSENCE, STUDIED VARIOUS WAYS
THAT THE STATE COULD GO ABOUT
INCREASING TAKE UP FOR ELIGIBLE
FAMILIES, AND THE REPORT FOUND
THAT NONE OF THE TESTED MEANS OF
INCREASING TAKE UP OR
NECESSARILY EFFECTIVE. AND THAT
, UM, ONE OF THE KEY FINDINGS
THAT OUR OFFICE DOT WHERE IT'S
WORTHWHILE TO POINT OUT WAS THAT
BY AND LARGE. THIS WASN'T THE
RESULT OF A LACK OF AWARENESS OF
THE CREDIT, BUT RATHER THE
IMPEDIMENTS AS THE CHAIR
MENTIONED TO CLAIMING THE
CREDITS, ESPECIALLY FOR VERY LOW
INCOME FILERS, UM AND SO FAST
FORWARD TO SENATOR CABALLERO'S
BUREAU BILL, SB 14 OH NINE,
WHICH HAD DIRECTED THE F T B TO
REVIEW THESE IMPEDIMENTS,
COLLABORATE WITH OTHER STATE
ENTITIES AND DISCUSS MEANS TO
INCREASE TAKE UP OF THE CALI
EITC. UM HAPPY TO STAY ON THE
PANEL FOR ADDITIONAL QUESTIONS,
BUT I THINK THAT'S THE SEGWAY TO
THE DEPARTMENT. THANK YOU. GOOD
MORNING, EVERYONE. MY NAME IS
SUSAN MAPLES. AND I'M HERE WITH
JEANNIE HARRIMAN. WE BOTH
REPRESENT THE FRENCH. HE WAS
ASKED TO CONDUCT A STUDY ON THE
EITC TO INCREASE TAKE UP AND TO
UNDERSTAND FILING BARRIERS. UM,
TO GET MORE CALIFORNIANS TO BE
ABLE TO CLAIM THIS IMPORTANT
FINANCIAL RESOURCE. JEANNIE AND
I ARE NOW GOING TO GIVE A BRIEF
OVERVIEW OF THE REPORT. BEFORE
WE LET BEFORE WE BEGIN. I WOULD
LIKE TO ACKNOWLEDGE THE MANY
PARTNERS THAT HELPED US AND
UNDERSTANDING THE BARRIERS ARE
REPORT OULD NOT HAVE BEEN AS
COMPREHENSIVE OR COMPLETE
WITHOUT THEIR PARTNERSHIP, AND
WE ARE EXTREMELY GRATEFUL FOR
THAT. A FEW STATS BEFORE WE DIVE
INTO THE REPORT FOR TAX YEAR,
2020 ALMOST 4.3 MILLION
CALIFORNIANS CLAIMED EI TC
RECEIVING FUNDS OF APPROXIMATELY
1.2 BILLION THAT IS INCLUSIVE OF
THE YOUNG CHILD TAX CREDIT. IN
ADDITION, WE DID SEE A LARGE
NUMBER OF NEW FILERS IN 2020,
PRESUMABLY TO ACCESS THE STATE
AND FEDERAL STIMULUS IS OFFERED
THROUGH THE TAX SYSTEM AS WELL
AS NEWLY QUALIFIED CALLIE EITC
TAXPAYERS WHO MAY HAVE HAD
DECREASED WAGES DUE TO JOB
LOSSES IN 2020 BECAUSE OF COVID.
AND WE CONTINUE TO ANALYZE
TRENDS IN THIS AREA, NOTING THAT
A LARGE NUMBER OF 2020 CALLIE
EITC CLAIMANTS HAVE NOT YET
FILED AT 2021 TAX RETURN. SOME
ADDITIONAL HISTORICAL STATS THAT
MAY HELP FRAMEWORK CONVERSATIONS
TODAY INCLUDE ALMOST 77% OF CALI
, EITC CREDITS CLAIMED WERE FOR
$200 OR LESS. ALMOST 75% OF
THOSE CLAIMING CALLIE EITC DID
SO WITH NO DEPENDENCE AND ABOUT
11% OF THOSE CLAIMING CALLIE
EITC ALSO CLAIMED THE YOUNG
CHILD TAX CREDIT. THE SENATE
BILL 14. OH NINE REPORT
IDENTIFIED THE MOST COMMON
BARRIERS TO FILING A RETURN AND
CLAIMING CALLIE I'D SEE OUR
REPORT IN CONSULTATION WITH
NEARLY 50 DIFFERENT NONPROFIT
STAKEHOLDERS, ADVOCATES
INTERESTED PARTIES AND KEY
GOVERNMENTAL ENTITIES ALSO
IDENTIFIED CONCEPTS TO ADDRESS
THOSE BARRIERS. FTV ALSO TOOK
THE APPROACH OF CREATING A
COMPREHENSIVE LISTS OF RISKS AND
LEGAL CONCERNS, AS WELL AS
NOTING ADMINISTRATIVE TYPE
ISSUES SUCH AS RESOURCE NEEDS
AND PROPOSED TIMING FOR
IMPLEMENTATION. THAT WOULD ALLOW
FOR A COMPREHENSIVE DISCUSSION
OF EACH CONCEPT THAT IF THERE
WAS A DESIRE TO PURSUE SO LET'S
TAKE A SHARP SHORT WALK THROUGH
EACH OF THE CONCEPTS. GENIE WILL
START US OFF WITH CONCEPTS A AND
B. THANK YOU, SUSAN. AND GOOD
MORNING, EVERYBODY. SO UM, FIRST
I WANT TO SAY THANK YOU FOR THE
PRIVILEGE OF BEING ABLE TO WORK
WITH MANY OF THE PARTNERS THAT
SUSAN JUST MENTIONED TO TALK
ABOUT MANY OF THE IDEAS THAT
HAVE BEEN AROUND FOR QUITE SOME
TIME IN REGARDS TO REMOVING
BARRIERS AND IMPEDIMENTS TO
GETTING THIS CUT IT OUT INTO THE
HANDS OF TAXPAYERS THAT DESERVE
THIS CREDIT. AS WE SAW WHEN WE
ENGAGED WITH THEM AND WITH YOU
AND MANY DIFFERENT SITUATIONS
AND LOOKED INTO THE IDEAS
SIMPLICITY WAS NOT EXACTLY
PRESENT AND WHETHER THIS IS
DEFINED AS LISTING THE BARRIERS
OF THE IMPEDIMENTS TO GET THERE.
IT WAS NOT FOUND TO BE
SIMPLICITY, BUT I DON'T TAKE
THAT AND NOBODY SHOULD TAKE THAT
AS MEANING THAT THEY CANNOT BE
DONE. IT'S IMPORTANT WHENEVER
YOU'RE ENGAGING IN A TASK THAT
YOU UNDERSTAND THE BENEFITS AND
RISK OF A TASK, AND THAT IS THE
MERIT THAT WE PUT FORWARD IN OR
THE METHODOLOGY THAT WE PUT
FORWARD IN THIS REPORT TO MAKE
SURE THAT IS. DISCUSSIONS
CONTINUED ON HOW TO EASE THESE
FILING BARRIERS. HOW WE WERE
ABLE TO DO THAT BOTH WITH THE
RISK AND THE BENEFITS TO PRESENT
SO THAT WE CAN MAKE SURE THAT WE
WERE ACTUALLY ADDRESSING AND
OVERCOMING FOR, SAY THOSE
BARRIERS IMPEDIMENTS TO NOT ONLY
PROTECT THE STATE BUT ALSO MOST
IMPORTANTLY, TO PROTECT THE
TAXPAYERS AND TO PROTECT THE TAX
FILING SYSTEM. ALL OF YOU, I
THINK ARE VERY MUCH AWARE THAT
THE TAXATION SYSTEM REALLY WAS
NEVER MEANT AND ARE GEARED OR
DESIGNED TO BE A PROGRAM THAT
DISSEMINATED PUBLIC SERVICE
BENEFITS. AND THEN ACROSS THE
NATION TALKS DEPARTMENTS ARE
STRUGGLING WITH HOW TO DO THIS.
WE'VE LEARNED A TREMENDOUS
AMOUNT IN THE LAST TWO YEARS ON
HOW TO BE BETTER AND HOW TO DO
IT, AND WE'RE STILL LEARNING AND
TALKING ABOUT HOW TO DO MORE, UM
, BUT WITH THE WAY THEIR TAX
CODE IS STRUCTURED IN THE WAY
TAX ADMINISTRATION HAS BEEN SET
UP FOR DECADES. SOME OF THOSE
IMPEDIMENTS THAT MAKE IT VERY
DIFFICULT TO GET TO THOSE FOLKS
THAT ARE ELIGIBLE. FOR EXAMPLE,
THE FILING REQUIREMENT THAT MR
ALAMO MENTIONED THAT EXISTED
BOTH THE FEDERAL AND STATE LEVEL
MANY INDIVIDUALS THAT ARE
ELIGIBLE FOR THESE CREDITS AT
THE STATE AND FEDERAL LEVEL, DO
NOT EVEN HAVE FILING
REQUIREMENTS AND HAVE NEVER
FILED. SO WE NEED TO OVERCOME
THAT BARRIER ON HOW TO DO IT.
AND TOGETHER WE'RE LOOKING TO
OVERCOME THIS BARRIER, BUT ALSO
AGAIN TO PROTECT THE EVER
IMPORTANT TAX FILING SYSTEM,
WHICH THE STATE RELIES ON
HEAVILY. WE COLLECT OVER 80%
TYPICALLY OF THE REVENUE THAT
THE STATE RELIES ON TO SUPPORT
ITS FUNCTIONS. BUT AGAIN, I
CAN'T UNDERSTATE MOST
IMPORTANTLY TO PREDICT
TAXPAYER'S IDENTITY THEFT IS
RAMPANT RIGHT NOW. UM BAD ACTORS
. THEY LOVE IT WHEN THINGS LIKE
THIS HAPPENED BECAUSE THEY SEE
IT AS FAIR CAME RIGHT, AND WE AT
FT BE PARTICULARLY LIKE TO STOP
THEM IN THEIR TRACKS FROM
THINKING LIKE THAT, SO THAT THEY
STAY AWAY FROM PROGRAMS AND THAT
WE ARE SAFELY IMPLEMENTING THEM
TO MAKE SURE THAT TAXPAYERS
COMING IN AND DESERVING OF THESE
CREDITS ARE TRULY THE ONES THAT
GET THAT CREDIT AND NOT SOME BAD
ACTOR. SO WITH THAT, LET ME JUMP
RIGHT INTO CONCEPT A CONCEPT A
DEALS WITH THE SUGGESTION TO
IMPLEMENT A SIMPLIFIED FILING
PORTAL. SO I THINK MANY OF YOU
OVER THE LAST YEAR AND CERTAINLY
IF YOU'VE READ THE REPORT
HAVEN'T SAW THAT, PERHAPS FOR
THE FIRST TIME THAT WE DO HAVE A
FILING PORTAL AT F T B. IT'S
CALLED CAL FILE. IT DOES ONLY
FILE THE CALIFORNIA RETURN. BUT
IT IS AVAILABLE FOR FREE AND
IT'S AVAILABLE ON OUR WEBSITE
AND SO ANNUALLY ABOUT 450,000
INDIVIDUALS TAKE ADVANTAGE OF
THIS FREE SERVICE. UM, WHICH IS
GOOD AND AGAIN. IT'S VERY SECURE
. AND THE GOOD NEWS IS IF AN
INDIVIDUAL WHO DESIRES TO USE
THIS SERVICE IF THEY REGISTER
THROUGH OUR ONLINE APPLICATION
CALLED MY F T B THEN WE WILL
ACTUALLY PRE POPULATE ALL THE
DATA THAT WE HAVE AVAILABLE FOR
THIS PERSON INTO THAT FILE
RETURN, SO THEY'RE PUT INTO A
ROLL OF VALIDATING VERSUS
PERHAPS POPULATING, SO IT DOES
SAVE THEM SOME TIME, BUT IT IS
REQUIRED THAT THEY DO REGISTER
AND AUTHENTICATE THROUGH OUR
PORTAL FIRST, SO AGAIN, THAT
WE'RE MAKING SURE THAT WE'RE
DEALING WITH THE RIGHT PERSON.
HAPPY TO REPORT THIS YEAR WITH
THE IMPLEMENT WITHIN ACT MEANT
OF THE ZERO INCOME YOUNG CHILD
TAX CREDIT PROPOSAL. WE ARE
WORKING ON TO MODIFY CAL FILE TO
ALLOW FOR INDIVIDUALS WITH ZERO
INCOME FOR THE FIRST TIME TO BE
ABLE TO FILE A RETURN TO CAL
FILE FOR FREE TO PULL DOWN THAT
CREDIT INTO THEIR HANDS, SO
HOPEFULLY THAT WILL BE HELPFUL
AS WELL. ALSO AS DISCUSSED, UM.
RELATING TO EXPANDING THE USE OF
CAL FILE. EXCUSE ME. IT'S
CRITICAL TO REMEMBER. EXCUSE ME
THAT, UM, THIS PORTAL DOES ALLOW
TAXPAYERS TO PILE UP. WE'RE
FREE, BUT ONE OF THE CONCERNS
THAT WE'RE AWARE OF IN REGARDS
TO THIS AND WORKING WITH
TAXPAYER CONSTITUENTS AS WELL.
IS THAT A LOT OF PEOPLE USE
ATTACKS PREPARE TO FILE THEIR
RETURN TO THAT THEY CAN GET IN
ADVANCE TO REFUND AND THAT
APPLIES AT BOTH THE FEDERAL AND
STATE LEVEL. SO WITH CAL FILE.
THERE IS NOT THE ABILITY TO GET
THAT ADVANCE PAYMENT OF THE
REFUND. SO IT GOES THROUGH OUR
NORMAL PROCESSING CHANNELS,
WHICH WE'RE TRYING TO GET IT OUT
AS FAST AS WE CAN, AND WE'RE
QUITE SUCCESSFUL OF THAT, BUT
ARE PUBLISHED TIMEFRAMES ARE 7
TO 21 DAYS FOR THE ISSUANCE OF A
REFUND FOR ANY TAXPAYER,
INCLUDING THOSE FILING AND CAL
FILE. WE ALSO WANT TO MAKE SURE
THAT IT'S VERY MUCH UNDERSTOOD
THAT IT DOES ONLY FILE THE
CALIFORNIA RETURN. WE DO NOT
HAVE THE AUTHORITY TO FINALLY
RETURN WITH THE I. R. S ON
BEHALF OF A TAXPAYER, UM AND CAL
FILE IS REALLY I'LL CALL IT IN
THE BOX SOLUTION. IT TAKES CARE
OF THE CALIFORNIA FILING
OBLIGATION, BUT IT DOESN'T AND
SO THAT IS A POINT. WE WANT TO
MAKE SURE AND AGAIN THAT WE DO
THAT EITHER A FEW MARKETING OR
OTHER MATERIALS THAT TAXPAYERS
ARE AWARE THAT THIS DOESN'T
FULFILL THEIR FEDERAL OBLIGATION
THAT ALSO NEED TO FILE THAT
FEDERAL RETURN TO PULL DOWN
THOSE CREDITS THAT ARE OFTEN
WORTH THOUSANDS OF DOLLARS AT
THE FEDERAL LEVEL. CONCEPT BE
ADDRESSED AS A CONCEPT OF PRE
POPULATING TAX RETURNS AND USING
DATA FROM PEER ORGANIZATIONS.
TWO HANDS OUR ABILITY TO
IDENTIFY CALLIE I TWO C ELIGIBLE
TAXPAYERS. THE REPORT HAS MANY
DATA POINTS, UM, INCLUDING
UNDERSTANDING AND EXCUSE ME DATA
POINTS TO HELP UNDERSTAND THE
BENEFITS AND THE RISKS TO DOING
THAT. I'M JUST GOING TO GO OVER
IN THE INTEREST OF TIME. THE TOP
CONSIDERATIONS THAT WE NEED TO
TALK ABOUT TO MAKE SURE THAT IF
THIS PROPOSAL IS PURSUED THAT WE
ARE ABLE TO TALK ABOUT THESE AND
OVERCOME THESE WITH ANY
SOLUTIONS AVAILABLE OR ACCEPT
THE RISK THAT WE'RE NOT GOING TO
BE ABLE TO COME IT, BUT IT'S
IMPORTANT ENOUGH THAT WE DO THIS
AND WE ACCEPT THE RISK. SO AGAIN
, UM, I TALKED EARLIER ABOUT
THERE IS NOT A FEDERAL RETURN
THAT CAN BE FILED THROUGH THE
CAL FILE SYSTEM OR THAT WE COULD
PRE POPULATE WITH DATA THAT THE
I R S WOULD ACCEPT, SO THAT'S AN
IMPORTANT FACTOR TO CALL. TIMING
IS VERY IMPORTANT. WE DO SEE
THAT A LOT OF THESE TAXPAYERS
THAT FILE THEIR RETURNS TO CLAIM
THE CALI EITC CREDITS MOST OF
THE FEDERAL AND STATE LEVEL FILE
VERY EARLY ON IN THE PROCESS IN
THE LATTER PART OF JANUARY IN
THE FIRST IN FEBRUARY AND EARLY
MARCH. TYPICALLY WITH THE
STRUCTURE OF THE TAX RETURNS AND
INFORMATION RETURNS, INFORMATION
RETURNS BEING W TWO S AND 10 99.
THOSE ARE FIRST DUETO THE
PUBLIC JANUARY 31ST AND THE DATE
FOR SUBMISSION TO THE TAX
DEPARTMENT IS ON THAT DATE, IF
NOT LATER. SO A LOT OF TIMES THE
DATA THAT WE WOULD GET THAT WE
WOULD NEED TO PRE POPULATE AND
BE OF MOST BENEFIT TO THE
TAXPAYER. WE DON'T EVEN HAVE
ACCESS TO THAT CAN BE CONSUMED
AND USED TO ASSIST TAXPAYERS
UNTIL LATE EVERYWHERE. YOU'RE
EARLY MARCH. AND THIS IS WHEN A
LOT OF TAXPAYERS ALREADY FOUND
MOST HAVE IT OR NOT, I WOULDN'T
SAY MOST MANY HAVEN'T BUT MOST
HAVE PROBABLY ALREADY FILED OR
STARTED THAT PROCESS. AND SO
TIMING IS CERTAINLY SOMETHING
WORTH DISCUSSING. AND HOW WE CAN
EVER COME THAT TIMING. ACCURACY
OF THE PRE POPULATED TAX RETURN
IS ANOTHER ELEMENT THAT WE WANT
TO MAKE SURE THAT WE ARE FOCUSED
ON, UM IN GENERAL, THE
CALIFORNIA'S AS WELL AS THE
NATION'S TAX SYSTEM IS NOT SET
UP TO PROVIDE AN OPTIC OF ANYONE
INDIVIDUALS, INCOME AND EXPENSE
ITEMS THAT CAN BE CLAIMED ON A
TAX RETURN. INCOME DOES HAVE
REPORTING REQUIREMENTS AS YOU
KNOW WHETHER IT'S A W TWO OR A
10 99. OTHER THAN LIKE A 10 98
FOR MORTGAGE INTEREST. THERE'S
NOT A LOT OF OTHER INFORMATION
RETURNS THAT COME TO FRANCHISE
TAX BOARD OR THE I. R S OR
ACROSS THE NATION TO ALLOW FOR
TAX DEPARTMENTS TO UNDERSTAND
DEDUCTIBLE EXPENSES THAT THE
TAXPAYER COULD OCCUR THAT WOULD
REDUCE THEIR TAX LIABILITY AND
WE RELY ON THE TAXPAYER TO DO
THIS. SO CINDY, NOT A PRE
POPULATED RETURNS, CERTAINLY AN
AVENUE TO DO, BUT WE WOULD
ABSOLUTELY NEED THE TAXPAYERS TO
COOPERATE AND LOOK THROUGH THAT
RETURN WITH A FINE TOOTH. COME
AT IT. ANYTHING THAT IS
INCORRECT, CORRECT IN THE
EMISSIONS THAT ARE ON THERE AND
VALIDATE AGAIN THAT IT IS
CORRECT. SO ONE OF THE THINGS
THAT WE'VE HEARD A LOT ABOUT IS
CAN'T YOU RELY ON THE PRAIRIE
RETURNS? YES, WE CAN CERTAINLY
DO THAT. RIGHT AND CDSS DATA
WITH SUSAN. WE'LL TALK ABOUT IN
THE NEAR TERM. WE CAN ALSO DO
THAT, BUT AT THE SAME POINT,
THERE'S TREMENDOUS AMOUNT OF
CHANGE THAT CAN HAPPEN IN A
FAMILY UNIT. OVER A COURSE OF A
YEAR. YOU CAN HAVE MARRIAGES.
YOU CAN HAVE DIVORCES. YOU CAN
HAVE DEATHS. YOU CAN HAVE
BIRTHS, RIGHT? A LOT OF THINGS
CAN CHANGE RIGHT AND TAXPAYERS,
FINANCIAL SITUATIONS CHANGE OR
MARITAL RELATIONSHIPS CHANGED.
PEOPLE MIGHT WANT TO BE MARRIED.
FINALLY JOINT ONE YEAR FOR
WHATEVER REASON, THEY WANT TO BE
MARRIED FILING SEPARATE THE NEXT
YEAR. WHETHER HAD A HOUSEHOLD
NEXT YEAR BECAUSE THEY HAVE IN
FACT, HAD A DIVORCE OR SOME SORT
OF A SEPARATION. RIGHT. ALL
THESE ARE CHOICES THAT THE
TACTILE REALLY NEEDS TO MAKE. UM
THAT IS VERY CHALLENGING TO JUST
LOOK AND SEE WHAT THEY DID LAST
YEAR. LAST YEAR THEY WERE SINGLE
. THIS YEAR. THEY'RE MARRIED
LAST YEAR. THEY WERE MARRIED
THIS YEAR. THEY'RE SINGLE. IT
CAN BE VERY CHALLENGING, AND
SAME THING WITH DEPENDENCE TO
UNDERSTAND. UM WHAT THAT
DEPENDENT FOOTPRINT LOOKS LIKE
ON THE RETURN. PRIVACY LAWS ARE
ALSO CRITICAL IN THIS
CALIFORNIA'S AND THE NATION'S
PRIVACY LAWS ALSO PROHIBIT THE
SHARING OF INFORMATION WITH
ANYONE OTHER THAN THE OWNER OF
THAT INFORMATION, SO IT'S A
SPOUSE. UM I COULD HAVE MY
INFORMATION, BUT I CANNOT HAVE
MY SPOUSE'S INFORMATION WITHOUT
MY SPOUSE'S APPROVING THAT I CAN
HAVE THAT UNDER CALIFORNIA
NATIONAL LAW. AND SO THOSE ARE
ALSO FACTORS THAT WE NEED TO
MAKE SURE THAT WE'RE WALKING
THROUGH DISCUSSING OVERCOMING IF
NEEDED WITHIN THE STATUTORY
CHANGE OR ACCEPTING THE RISK
AGAIN, BECAUSE AT THE END OF THE
DAY WE WANT TO SEND OUT A TAX
RETURN PRE POPULATED IF THAT IS
THE GOAL THAT IS CORRECT AS
POSSIBLE, SO THAT THE TAXPAYERS
NOT CONFUSED AND HAS VERY LITTLE
EFFORT THAT THEY NEED TO DO TO
PUSH THE BUTTON SIGN ON THE
DOTTED LINE AND SUBMIT THAT
RETURN. AT THIS POINT ALTERNATE
OVER TO SUSAN TO TALK ABOUT THE
NEXT SEVERAL CONCEPTS. THANK YOU
. OKAY I'M GOING TO JUMP INTO
CONCEPT C CONCEPT C IS THE
CONCEPT WE STUDIED AT THAT
DISCUSSES THE FEASIBILITY OF
ALLOWING STATE STAFF TO PREPARE
TAX RETURNS OR ASSISTING
TAXPAYERS TO MAKE A VITAL
APPOINTMENT OR DIRECT THEM TO
AVOID A SITE IN CALIFORNIA. WE
HAVE VERY STRICT LAWS AS TO AS
TO WHO CAN BE A PAID TAX
PREPARE. GENERALLY, YOU HAVE TO
BE EITHER LICENSE AS AN ATTORNEY
AND ACCOUNTANT AND ENROLLED
AGENT OR REGISTERED WITH CEATEC
, WHICH IS THE CALIFORNIA TAX
EDUCATION COUNCIL. AND THERE ARE
ALSO UM, UH, REQUIREMENTS FOR
EDUCATION THAT GO ALONG WITH
THAT. SO ONE OF THE THINGS THAT
WE NOTED IN THE REPORT WAS THAT
THERE COULD BE SOME LEGAL
CONCERNS AS TO HAVING STATE
EMPLOYEES BE PAID TAX PREPARERS
, CONSIDERING WHETHER OR NOT
THAT, UM THE DOING IT AS PART OF
THEIR EMPLOYMENT WOULD BE MAKE
THEM A PAID PREPARE UNDER THE
LAW BECAUSE THERE ARE ALSO SOME
RESPONSIBILITIES AND LIABILITIES
THAT GO ALONG WITH BEING REPAID.
PREPARE FOR EXAMPLE, A LOT OF
FOLKS THAT ARE CEATEC
REGISTERED. TAX PREPARERS MUST
RETAIN A $5000 BOND. IN THE
EVENT THAT SOMETHING ON THAT
RETURN CAUSES THE TAXPAYER TO BE
SUBJECT TO A PENALTY. UM, WE
ALSO LOOKED AT THE VOLUNTEER
INCOME TAX ASSISTANCE PROGRAM.
ONE OF THE ISSUES WITH THAT
PROGRAM IS THE VOLUNTEER PIECE
OF IT. IT'S BEEN VERY DIFFICULT,
AND I THINK, AS YOU KNOW WE'VE
SEEN WITH COVID OVER THE LAST
TWO YEARS. THERE'S BEEN A
DECLINE IN VOLUNTEERS. SO THAT
WAS ONE OF THE BARRIERS THAT WAS
NOTED FOR THAT PARTICULAR
CONCEPT. UM, CONCEPT D IS THE
NEXT CONCEPT AND IT HAS TO DO
WITH OUTREACH OPPORTUNITIES. SO
OUR STUDY FOCUSED ON THE DIRECT
OUTREACH OPPORTUNITIES OF NOT
ONLY F T B BETTER APPEAR. STATE
AGENCIES, ONE OF THE CRITICAL
THINGS TO UNDERSTAND ABOUT
OUTREACH IS THAT MANY OF THE
SUBSETS OF THOSE OF THE
POPULATION. SO FOR EXAMPLE, UH,
THE COW FRESH ENROLLEES MIGHT
ALSO BE THE SAME AS THE THAT
WAGE INCOME EARNERS THAT WE
MIGHT IDENTIFY AT F T B SO THERE
WOULD BE SOME OVERLAP IN TERMS
OF OUTREACH. SO ONE OF THE
THINGS THAT WE ARE DOING IS
WORKING WITH CDSS. WE'VE SHARED
SOME OUR OUTREACH PLANS FOR NEXT
FALL THAT WE CAN SORT OF
COORDINATED TO REACH OUT TO NON
FILERS AS WELL AS FILERS WHO
MAYBE HAVE CLAIMED THE CREDIT
ABOUT HAVE NOT HAVE FILED A
RETURN BUT NOT CLAIMED THE
CREDIT. SO WE'RE CURRENTLY
COORDINATING WITH THEM, AND
WE'RE HOPING TO GET SOME LESSONS
LEARNED AFTER THIS FILING SEASON
TO SEE HOW THAT WENT. UM JEANNIE
IS NOW GOING TO DISCUSS THE NEXT
COUPLE OF CONCEPTS. ALRIGHT SO I
HAVE CONCEPT E IN THE PAPER,
WHICH IS THE CONCEPT OF ISSUE IN
A UNIQUE CALIFORNIA ID NUMBER
FOR TAXPAYERS OR FOR CALIFORNIA
RESIDENTS. SO UM, AS I MENTIONED
EARLIER, AND AS YOU ALL KNOW,
IDENTITY THEFT IS CERTAINLY A
COIN. UM THAT IS ON THE SEVERE
UPTICK AND HAS BEEN FOR QUITE
SOME TIME. SOME INDIVIDUALS WILL
TELL YOU THAT THERE REALLY ISN'T
ANY INDIVIDUAL WHO HAS HAD NOT
SOME SORT OF DATA COMPROMISED
AND IS PERHAPS OR LIKELY FOR
SELL ON THE BLACK MARKET. WE DO
SEE THIS QUITE FREQUENTLY IN OUR
PROCESSES AS WELL FOR TAX
RETURNS. I WILL STATE THIS YEAR
WITHIN OUR FRAUD PROGRAM. WITH
THE INTRODUCTION IN THE
CONTINUED EMPHASIS ON FRAUDSTERS
AND TRYING TO BAD ACTORS OVER A
BILLION DOLLARS HAS BEEN STOPPED
BY OUR FRAUD PROGRAM THIS YEAR.
THAT IS OVER DOUBLE WHAT IT WAS
THE YEAR BEFORE. THEY'RE VERY
ACTIVE IDENTIFICATION NUMBERS
ARE KEY TO UNDERSTANDING. UM,
WHO PEOPLE ARE UM AND HOW WE CAN
ENSURE THAT THE I D NUMBER THAT
IS BEING PRESENTED IS IN FACT,
THE INDIVIDUAL THAT WE ARE
WANTING TO BE DEALING WITH SO
AGAIN THAT WE CAN GET THE HANDS
THE PAYMENTS IN THE HANDS THE
CREDIT. EXCUSE ME IN THE HANDS
OF THE INDIVIDUALS THAT ARE
CORRECT. SO, UM SO WITH THAT WE
DID DO AN IN DEPTH STUDY OF THE
I. R S S PROGRAM TO ISSUE ITEMS.
UM, IT IS BASICALLY, UM,
STANDARD PROTOCOLS USED
THROUGHOUT THE NATION, INCLUDING
IN PUBLIC SERVICE PROGRAMS ABOUT
HOW YOU IDENTIFY PEOPLE AND HOW
YOU DETERMINE ELIGIBILITY. SO WE
DID NOT IN AND OF ITSELF. UM, AT
THAT STUDY, FIND A WAY TO
SIMPLIFY THAT METHOD. UM THAT IT
WOULD BE, UM, SENSICAL, PERHAPS
FOR FTP TO SET UP A PARALLEL
PROCESS TO ALLOW FOR THE
ISSUANCE OF A CALIFORNIA WRITING
BECAUSE IT WOULD PROBABLY TAKE
JUST AS LONG. UM AND THEN F T.
B, OF COURSE, SUFFERS FROM THE
LACK OF GEOGRAPHICALLY
DISTRIBUTED OFFICES. THAT WOULD
BE ABLE TO HELP PEOPLE DO THIS
IN PERSON, MEANING WE'D HAVE TO
RELY ON SOMEBODY ELSE. UM AND
THEN YOU GET INTO THAT METRIC
AGAIN OF COSTS BEING INCURRED
EITHER BY THE STATE OR BY
TAXPAYERS TO GET THIS NUMBER.
THEY WOULD ALSO NEED TO CONTINUE
TO GET A FEDERAL ITEM IN ORDER
TO PREPARE AND FILE THE FEDERAL
RETURN AS WELL. SO SOMETHING TO
BE AWARE OF AGAIN. IT IS NOT AN
IMPOSSIBLE TASK TO DO. UM, BUT
IT DOES SET UP ANOTHER PROCESS
FOR TAXPAYERS TO GO TO WITHOUT
ELIMINATING THE EXISTING
PROCESS. THEY ALSO NEED TO GO
THROUGH. TWO IMPORTANT ELEMENTS
THAT I WANT TO LEAVE YOU WITH IS
ONE THE IRS HAS ANNOUNCED THEY
ARE REFURBISHING, REENGINEERING
. WHATEVER YOU'D LIKE TO SAY THE
I 10 PROCESS. IT IS CURRENTLY,
UM SHUTDOWN PER SE, UM, WE'LL
OPEN UP BACK IN SUMMER OF 23
WITH THE STATED GOAL OF MAKING
IT EASIER AND QUICKER TO GET
THOSE ITEMS SO WE'LL WAIT AND
SEE WHAT THEY COME UP WITH, BUT
THEY ARE VERY MUCH AWARE OF THE
PROCESSES AND THE, UM CHALLENGES
OF THOSE PROCESSES AND ARE
TRYING TO SIMPLIFY THEM. SO
HOPEFULLY GOOD NEWS THERE. THIS
SUMMER. THIS COMING SUMMER. AND
FINALLY, I WOULD BE REMISS IF I
DIDN'T GIVE A SHOUT OUT TO THE
AMAZING WORK THAT THE CALI EITC
GRANTEES HAVE DONE IN THIS AREA
. 21 22 WAS THE FIRST YEAR THEY
RECEIVED GRANT FUNDS TO FOCUS IN
ON ITEMS. UM AND SOME OF THE
AMAZING WORK THEY DID IN FISCAL
YEAR. 21 21 IS AS FOLLOWED 301
AGENT ACROSS THE STATE, NEW
AGENTS WERE CERTIFIED. 378 NEW
AGENTS WERE IN THE PROCESS OF
BEING CERTIFIED AS OF JUNE 30TH,
SO THAT NUMBER IS PROBABLY LESS
NOW. 4240 4200 AND 35 ITEMS.
APPLICANTS WERE ASSISTED BY THE
GRANTEES AND 27,591 TAX RETURNS
WERE FILED BY THE GRANTEES SO
AMAZING WORK FOR THEIR FIRST
YEAR, UM, TO GET THAT'S GOING ON
THEIR EFFORT AND HOPEFULLY THAT
WILL HELP AS WELL. SO IN THE
INTEREST OF TIME, UM, THIS WILL
CONCLUDE OUR DISCUSSION ON THE
REPORT THE REMAINING SEGMENTS OF
THE REPORT DEAL WITH MULTIPLE
LANGUAGES. UM, IN OUR OUTREACH
MATERIALS, WHICH WE ARE
DILIGENTLY WORKING ON AND THEN
GRANT FUNDING BOTH AS TO THE
ONGOING AND TO THE VALUE OF THAT
GRANT, BOTH OF WHICH, AS YOU ALL
KNOW, CAME THROUGH THE
LEGISLATURE THIS YEAR. UM AND
PERHAPS IS PUTTING THOSE
ELEMENTS IN A BETTER PLACE. SO
WE'RE HAPPY TO DISCUSS ANY
QUESTIONS YOU HAVE, UM WE'RE
VERY MUCH EXCITED TO UNDERSTAND
AND LEARN NEXT STEPS AND ENGAGE
CONVERSATIONS TO MAKE SURE THAT
WHATEVER IS TWO SIDED AND
DECIDED TO PURSUE, WE WERE ABLE
TO DO IT SAFELY AND SUCCESSFULLY
AND SOON SO THAT WE CAN INCREASE
THE VALUE OF THESE CREDITS TO
THESE FAMILIES THAT NEED THEM
VERY MUCH. SO, SO THANK YOU FOR
YOUR TIME AND HAPPY. SUSAN AND I
ARE HAPPY TO ANSWER ANY
QUESTIONS YOU HAVE. RIGHT WELL,
I WANT TO THANK ALL THREE OF YOU
FOR YOUR PRESENTATIONS. I HAVE
TO SAY FROM FT. B. IT'S STILL A
LITTLE FRUSTRATING. YOU COME UP
WITH SOLUTIONS AND THERE'S 10
REASONS WE CAN'T DO IT. SO UM
WE'RE HOPING TODAY TO BE ABLE TO
FIND SOME SOLID WAYS TO THE
REALLY INCREASE UTILIZATION. SO
UH, WE MIGHT HAVE TO WORK
THROUGH SOME OF THOSE ISSUES,
BUT I FIRST WANT TO ASK, UH, MR
ALAMO. I HAVE JUST A COUPLE OF
QUICK QUESTIONS FOR YOU. AND
THEN WE'LL OPEN IT UP FOR, UM
FOR MEMBERS QUESTIONS, BUT WE
DIDN'T GET A CHANCE TO ASK YOU
AFTER YOUR PRESENTATION. SO IN
2020. WE WERE ALLOWED TO OUR
FILERS WERE ALLOWED TO USE
ITUNES INSTEAD OF, UM, SOCIAL
SECURITY. NUMBERS AND I THINK
YOU YOU SAID A LOT OF THOSE
FILERS. THOSE THOSE RETURNS
HAVEN'T COME IN YET. BUT DO WE
KNOW WHAT THE INCREASE IN UPTAKE
WAS SWITCHING OVER TO ITUNES? OR
ALLOWING THE USE OF ITEMS. FOR
THAT PARTICULAR QUESTION, MADAM
CHAIR I'D HAVE TO DEFER TO THE
DEPARTMENT. OUR OFFICE ISN'T
AWARE OF THE OPTICS, SO TO SPEAK
, THAT YOU COULD POINT TO. AS A
RESULT OF THAT POLICY CHANGE, AT
LEAST NOT YET. WE BROUGHT LOTS
OF DATA POINTS, BUT NOT THAT
ONE. SO UM, WE ARE HAPPY TO GET
THAT FOR YOU CAN AT LEAST SHARE
FOR THIS YEAR. AS OF AUGUST 31ST
. WE DID HAVE 228,000 ITEMS THAT
RETURNS THAT HAVE BEEN ALLOWED
FOR A TOTAL OF ABOUT $73
MILLION. AND FOR A YOUNG CHILD
TAX CREDIT THERE WERE ABOUT
35,000 IN VOLUME FOR ITUNES
ALLOWED FOR A TOTAL OF $31
MILLION FOR YOUNG CHILD TAX
CREDIT. I JUST DON'T HAVE THE
YEAR OVER YEAR COMPARISON. I
APOLOGIZE. THANK YOU. AND THEN I
GUESS FOR THE L A. OH UM, YOU
YOU REVIEWED A COUPLE OF REPORTS
THAT HAD SUGGESTIONS. BUT DOES
DO YOU HAVE ANY, UH, CONCRETE,
UM, ADMINISTRATIVE OR
LEGISLATIVE RECOMMENDATIONS FOR
EXPANDING UTILIZATION. OUR OUR
OFFICE LAST DID A SORT OF IN
DEPTH ANALYSIS OF OPPORTUNITIES
TO EXPAND USE OF THE COLLEGE T.
C AS PART OF THE 2018 19 BUDGET,
SO IT'S BEEN A COUPLE OF YEARS
AND AT THAT TIME OUR PRINCIPAL
FINDING WAS THAT NO SUFFICIENTLY
CLEAR EVIDENCE EXISTED AS TO ONE
OUTREACH METHOD OR ANOTHER BEING
MORE AFFECTED THAN THE OTHERS OR
BEING NECESSARILY, UM EFFECTIVE
TO A DEGREE THAT WOULD WARRANT A
STRONG RECOMMENDATION FROM OUR
OFFICE. UM SO TO PUT THAT MORE
PLAINLY, WE HAVE NOT MADE A
RECOMMENDATION ABOUT SPECIFIC
OUTREACH EFFORTS TO INCREASE
UTILIZATION. AT THE TIME. WE
KNEW LESS THAN WE KNOW. NOW UM,
THE 2020 CALIFORNIA POLICY LAB
REPORT CAME OUT AFTER WE HAVE,
YOU KNOW, LOOKED INTO THE
OUTREACH. UM SO CLOSELY. WE HAVE
NOT REASSESSED THAT POSITION IN
LIGHT OF THE POLICY LAB REPORT.
UM, BUT AGAIN, THE KEY FINDINGS
FROM THE POLICY OF LAB REPORT
SUGGESTS THAT AT LEAST THE
EFFORTS THAT THEY TESTED UM
WE'RE NOT SUFFICIENTLY EFFECTIVE
AND INCREASING UTILIZATION FOR
TAXPAYERS WHO ARE ELIGIBLE BUT
WEREN'T FILING TAXES. UM THAT'S
NOT NECESSARILY CONSISTENT WITH
SORT OF THE POSITION WE TOOK AS
PART OF THE 18 19 BUDGET, BUT I
THINK IT DOES RAISE THE QUESTION
OVERALL THAT THERE'S STILL SOME
UNKNOWN ELEMENT OF THE STATE'S
BEST STRATEGY TO INCREASE USE.
UM AND WITH THAT, I WOULD DEFER
TO FT. B AND YOU KNOW THE
INFORMATION IN THE 14 OH, NINE
REPORT, BUT OUR HABITS HAS HAS
NOTHING MORE SPECIFIC. THANK YOU
AND I AM GOING TO TURN IT OVER
TO SENATOR CABALLERO. BECAUSE A
LOT OF THIS IS ABOUT YOUR BILL.
THANK YOU. VERY, THANK YOU VERY
MUCH. MADAM CHAIR. LET ME JUST,
UM AND I WANT TO AGREE WITH WHAT
YOU HAVE TO SAY. BUT LET ME JUST
SAY THAT I REALLY APPRECIATE THE
FRAMING, UM THAT F T B TOOK,
WHICH IS THAT THIS IS THESE TAX
CREDITS ARE NOT HOW THE
ORGANIZATION AND WE'VE ASKED.
YOU TO LOOK AT THIS AND TELL US
HOW TO DO IT. UM AND, UM AND
THAT MEANS WE'VE GOT TO CREATE
ANOTHER SYSTEM AND I DON'T MEAN
THE WHOLE STV SYSTEM, BUT WE'VE
GOT TO CREATE A SYSTEM. THAT CAN
ACTUALLY DO WHAT WE WHAT WE
WOULD LIKE DONE, WHICH IS TO
MAXIMIZE THE RESOURCES THAT GO
OUT TO FAMILIES THAT ARE
ENTITLED TO THE PROGRAMMING THAT
UM I'M ARE ELIGIBLE, BUT CAN'T
ACCESS FOR WHATEVER REASON, SO I
APPRECIATE THAT THAT FRAMING I
I'M WHEN I WAS THE SECRETARY. UM. CONSUMER SERVICES. F T B WAS
PART OF THE AGENCY THAT THAT I
HAD, AND I WAS ALWAYS
TREMENDOUSLY IMPRESSED WITH THE
AMOUNT OF WORK YOU DO, AND THE
RESOURCES THAT PROVIDE US AN
OPPORTUNITY TO OPERATE THE STATE
WITHOUT F T B. WE WOULDN'T WE
WOULDN'T BE ABLE TO DO IT AND
IT'S A EXTREMELY GOOD
ORGANIZATION AT WHAT THEY DO,
BUT WE'VE ASKED THEM TO DO
SOMETHING DIFFERENT AND IT'S
COMPLICATED BECAUSE THERE ARE
ALL OF THESE. IS OBSTACLES THAT
ARE KIND OF INTRINSIC TO HOW THE
WORK IS DONE, AND I AND SO I
WANT TO SEE IF I CAN IF I CAN.
TELL YOU MY FRUSTRATION IS THAT
WE'VE BEEN PUTTING MULTIPLE
MILLIONS OF DOLLARS. AND I THINK
THE LAST BUDGET WAS $10 MILLION
A YEAR INTO TRYING TO GET THIS
MONEY OUT. AND SO WHAT I'D LIKE
TO SEE US DO IS TO SAY, WHAT DO
WE NEED TO CONSTRUCT OR WHAT?
WHAT? POLICIES DO WE NEED TO PUT
IN PLACE? TAKE THAT $10 MILLION.
WE SPEND IT TO CREATE THE
PLATFORM THAT MAKES IT EASIER.
AND RATHER THAN SPENDING $10
MILLION IN OUTREACH. THAT'S NOT
GETTING THE UPTICK. WE PUT IT
INTO SOME PORTALS, SOME THING
THAT CREATES AN OPPORTUNITY FOR
PEOPLE TO BE ABLE TO SIGN UP AND
DO IT AND HAVE ALL THE
PROTECTIONS, FRAUD AND IDENTITY
THEFT WE NEED
AND SO THAT'S WHERE I'M DRIVING
TOWARDS US. UNDERSTANDING
BETWEEN CONCEPT A. B, C, D AND
E. HOW DO WE GET THERE? THE
QUICKEST AND HOW CAN WE DO IT IN
A WAY THAT PICKS THE BIGGEST
UPTAKE AND I GUESS IN TERMS OF
THE DATA THAT YOU PRESENTED US,
UM IN TERMS OF THE L A O IS THE
DIFFICULTY WITH LOOKING AT THIS.
IS THAT WE'VE CHANGED THE
PROGRAM FOR 55 YEARS IN A ROW,
AND WE'VE ADDED PEOPLE. AND SO
WHEN I LOOK AT THE AMOUNT OF
MONEY THAT'S GOING OUT, IT
DOESN'T TELL ME THE PERCENTAGE
OF PEOPLE THAT ARE. WE ESTIMATED
AS ELIGIBLE THAT ARE TAKING UP
THE MONEY. IT MAY BE THAT WHAT
WE'VE DONE IS WE'VE JUST MADE
THE PULL BIGGER. AND SO THAT'S
WHAT WE'RE SEEING. WE'RE STILL
NOT HITTING THE POOREST
FAMILIES. THAT ARE ELIGIBLE FOR
THIS. AND SO I WONDER IF YOU
CAN, IF YOU CAN ADDRESS THAT
DATA POINT. NUMBER ONE AND
NUMBER TWO IS IF YOU HAD TO LOOK
BETWEEN THE CONCEPTS THAT YOU'VE
YOU'VE ARTICULATED AND I'VE READ
THE REPORT A NUMBER OF TIMES AND
I'VE LISTENED TO YOU TODAY AND I
HAD TO PICK ONE OF THE CONCEPTS
. I'M I'M JUST NOT SURE WHICH
ONE WOULD BE THE ONE OTHER THAN
THE COW FRESH OVERLAP THAT TO
ME, JUST SEEMS INTUITIVE. YOU'RE
GETTING CAL FRESH TO GET
SOMETHING IN THE MAIL THAT SAYS
YOU'RE ALSO ELIGIBLE FOR OTHER
MONEY, OR YOU HAVE TO DO IS FILL
OUT THIS FORM AND SEND IT IN. UM
BUT THEN THAT OVERSIMPLIFIES IT.
I MEAN, I UNDERSTAND THAT IT'S
MUCH MORE COMPLICATED THAT SO I
GUESS NUMBER ONE IS, UM IS
WHAT'S THE CONCEPT THAT YOU
THINK WORKS THE BEST THAT WE
COULD. FASHION IS A SOLUTION FOR
IN THE SHORTEST AMOUNT OF TIME
THAT WILL HAVE THE BIGGEST
UPTAKE. AND THEN IS THERE ANY
WAY FOR US TO QUANTIFY. BETWEEN
THESE YEARS. UM 17 TO 20. UH HOW
WHAT THE PERCENTAGE UPTAKE
BECAUSE AT ONE POINT WHEN I WAS
WORKING ON 14 OH, NINE. I THINK
IT WAS 40% OF THE POPULATION
THAT'S ELIGIBLE, IS CLAIMING THE
CREDIT OR 30. IT WAS VERY LOW
AND IT JUST IT. THAT'S IF YOU
SEE THIS AS THE NUMBER ONE
PROGRAM THAT CAN REDUCE POVERTY
IN FAMILIES. AND IT HAS THE
STUDIES ALL SHOW BASED ON THE
FEDERALLY EITC THAT THE LONG
TERM IMPACT IS IT? STUDENTS DO
BETTER ACADEMICALLY, AND THEY
EARN MORE MONEY IN THEIR ADULT
YEARS. IT IS, UM IT'S JUST
SOMETHING WE ABSOLUTELY HAVE TO
DO AND SO AND WE HAVE SAID YES,
LET'S DO IT. SO THE QUESTION IS,
HOW DO WE DO IT IN A WAY THAT
GETS MONEY IN PEOPLE'S POCKETS.
THE FIRST IS THE DATA POINTS AND
I DON'T KNOW THAT IF WE CAN
ADDRESS THAT, AND THEN THE TWO
IS WITH THE CONCEPT THAT YOU
THINK IS THE MOST LIKELY TO
SUCCEED. ALL RIGHT. THANK YOU
FOR THE QUESTIONS. DO YOU WANT
TO GO OR DO YOU OKAY? ALL RIGHT,
I'LL JUMP RIGHT IN. SAY THANK
YOU FOR THIS QUESTIONS. UM SO
SOME OF THE THINGS THAT WE'RE
DOING TO ADDRESS THOSE, UM IT
HAS BEEN, UM, SOMEWHAT
CHALLENGING TO IDENTIFY THOSE
THAT DON'T QUALIFY. THAT I'M
SORRY THAT QUALIFIED BUT DON'T
BIO THAT'S IDENTIFYING HAS BEEN
CHALLENGING, HOWEVER. WITH THE
USE OF SOME RECENT DATA THAT WE
GOT FROM CDSS, UM AND DEPARTMENT
OF HEALTH CARE AS WELL AS
LOOKING AT W TWO DATA. UM IN
RECENT YEARS, WE'VE BEEN ABLE TO
IDENTIFY INDIVIDUALS THAT APPEAR
ELIGIBLE, BUT EITHER ONE DIDN'T
FILE A RETURN OR TWO FILED A
RETURN BUT DIDN'T CLAIM THE
CREDIT. AND TO THE GOOD NEWS
THERE IS WE PARTNERED WITH CDSS
TO ADDRESS INDIVIDUALS THAT ARE
IN THOSE PUBLIC ASSISTANCE
PROGRAMS, COW WORKS AND CALL
FRESH AND THEY DIDN'T FOLLOW
RETURN AND THEY APPEAR ELIGIBLE
FOR KELLY. IT'S SERIOUS S IS
GOING TO BE REACHING OUT TO THEM
THIS THEY'RE IN THEIR SECOND
YEAR OF DOING SO, UM, SO THAT'S
KIDNEYS THERE BECAUSE WE'RE
HOPING, BUT IT IS, UM, AFTER
INDIVIDUALS HAVE FILED A RETURN,
SO IT'S TYPICALLY GOING TO BE
THIS SUMMER. MONTHS OR THE FALL
MONTHS THAT THAT'S HAPPENING, SO
IT'S ASKING THEM HATE. DID YOU
MISS AN OPPORTUNITY? BUT IT'S
ALSO SAYING HE DON'T FORGET THE
NEXT OPPORTUNITY THAT'S COMING
YOUR WAY AND FILE THE RETURN
NEXT YEAR. AND HERE'S HOW WE CAN
HELP YOU DO ALL OF THIS. WE CAN
HELP YOU FIND A WAY TO FOLLOW
RETURN FOR THIS CURRENT YEAR
THAT THAT MAY BE LATE OR THAT
YOU HAVEN'T DONE AND THEN WE CAN
HELP YOU FOR NEXT YEAR'S TO, UM
AND MOST OF THE TIME. THAT WERE
FOR THEM TO INVITED SERVICE. UM
THAT MAYBE IN THE LOCALITY OF
THE TAXPAYERS OR AN ONLINE
PROGRAM THAT MIGHT BE EFFECTIVE
FOR THEM TO AND FOCUSING IN ON
THE FEDERAL AND STATE AS WELL.
UM FTV IS ALSO TAKEN TO EFFORTS
THAT WE'RE KICKING OFF AND
IMPLEMENTING NOW WITH ROLL OUT
IN 23 IS FIRST OF ALL I
MENTIONED THAT WE LOOKED AT W
TWO DATA. AND WE LOOKED AT THOSE
WT RECIPIENT DATA THAT WE HAVE
THAT HAVEN'T FILED A RETURN. AND
THOSE INDIVIDUALS, UM, WE'RE
GOING TO BE REACHING OUT TO,
PARTICULARLY IF THEY'RE IN THE
WAGE RANGE OF 30,000 OR BELOW,
WHICH IS WHERE CALLIE I TCS.
WE'RE GOING TO BE REACHING OUT
TO THEM NEXT SUMMER WITH A
LETTER THAT SAYS HI, IT SEEMS
YOU WERE ELIGIBLE FOR CREDIT. DO
YOU NEED TO FILE A RETURN?
HERE'S HOW YOU CAN DO. SO HERE'S
HOW WE CAN HELP, ETCETERA. UM
AND WE'RE LOOKING TO SEE IF
WE'RE ABLE TO QUANTIFY THE
CALCULATION OF THE CREDIT ON
THOSE LETTERS. OR NOT, SO THAT
THERE'S SOME IDEA WHAT SORT OF
CREDIT IS AVAILABLE AT THE
CALIFORNIA LEVEL. THE SECOND
THING THAT WE'RE DOING ALSO NEXT
SUMMER IMPLEMENTATION STARTING
NOW IS REACHING OUT TO THOSE
INDIVIDUALS THAT FILED A RETURN
APPEAR ELIGIBLE BASED ON WHAT
THEY'VE STATED ON THE RETURN.
BUT FOR WHATEVER REASON, DIDN'T
CLAIM THE CREDIT. AND WE WILL BE
ISSUING LETTERS TO THEM AS WELL,
SAYING HERE'S A SIMPLIFIED FORM
. SIGN IT GO ONLINE. DID THIS
RETURN IT TO US, AND THEN WE
WILL ISSUE THE CREDIT AND
THEY'LL HELP FINE TUNE ANY
CALCULATION OF THE CREDIT THAT
WE MIGHT HAVE DONE. SO THAT
SHOULD START HELPING IT. BUT IT
IS AFTER THE FACT OF THE APRIL
DATE FOR FILING ETCETERA. AND,
UM. AND WE'LL SEE WHAT SORT OF
OUTREACH IMPACTS WE HAVE, RIGHT
. THAT'S ONE THING THAT'S
UNKNOWN TO US, I WILL SAY ACROSS
THE NATION, UM SOME OF THE
PUBLIC ASSISTANCE PROGRAM
ADMINISTRATORS ACROSS THE NATION
HAVE REACHED OUT MUCH AS CDSS IS
DOING NOW, UM, THEIR MATERIALS
IN THIS THIS CAME FROM A WHITE
HOUSE BRIEFING THAT WE ATTENDED
THE MATERIALS THAT THEY'RE
PRESENTING, ETCETERA AND SO
FORTH. A 123 RESPONSE RATE IS
TYPICALLY CONSIDERED VERY GOOD.
IN THESE OUTREACH EFFORTS. I
LOOK AT THAT, AND I SEE THAT'S
VERY LOW. 123% BUT IT IS 123%
MORE INDIVIDUALS THAT GOT AN
OUTREACH THAT NOW HAVE GOT THE
MONEY IN THEIR POCKET, RIGHT? SO
ONE OF THE THINGS I WOULD SAY TO
THAT IS THE VALUE OF THE
CALIFORNIA CREDIT. I THINK IN
SOME SITUATIONS, UM I DON'T HAVE
ANY CONCRETE DATA HAVE ANCILLARY
DATA TO SUGGEST THIS IT ISN'T
WORTH THE COST OF THE EFFORT TO
GET THE CUT IT MANY TAXPAYERS.
THEY HAVE $20 CREDITS. YOU HAVE
$40 CREDITS, AND IT'S THE COST
TO FILE A RETURN OR THE EFFORT
TO FILE A RETURN WITH OR WITHOUT
A PREPARE EXCEEDS THAT IN THEIR
MIND, AND SO THEY CHOOSE NOT TO
ENGAGE, WHICH ISN'T THE GREATEST
THING BECAUSE WE WANT THEM TO
ENGAGE TO GET THIS MONEY. BUT
HOW DO YOU GET THEM TO ENGAGE?
UM WHEN THEY SOMEWHAT OR EITHER
WITH THE PASSAGE OF TIME, NEVER
DOING IT OR DEFINITIVELY HAVE
MADE THAT DECISION. THIS ISN'T
WORTH MY EFFORT TO DO. SO LAST
YEAR. UM WE DON'T GET INVOLVED
IN POLICY MANAGEMENT LAST YEAR.
OF COURSE, THERE WAS A
DISCUSSION IN THE LEGISLATURE
ABOUT BOLSTERING THE MINIMUM
AMOUNT OF THE CALI EITC AND WHAT
THAT COULD DO IN REGARDS TO THAT
DYNAMIC. SO UM, BUT GOING BACK
TO THE CONVERSATION AGAIN ABOUT
A LOT OF TAXPAYERS JUST SAY IT'S
NOT WORTH MY COST. IT'S NOT
WORTH MY EFFORT FOR 20 BUCKS. UM
AND THEY CHOOSE NOT TO DO IT,
AND UNFORTUNATELY, THEY KIND OF
MAKE THAT A DECISION. ALSO ABOUT
THE FED WILL RETURN AS WELL,
WHICH CAN BE THOUSANDS OF
DOLLARS. AND SOMETIMES THEY JUST
DON'T UNDERSTAND THAT DYNAMIC OR
SOMETIMES THEY WILL FAIL FOR THE
FEDERAL, BUT THEY WON'T GO THAT
EXTRA STEP TO FILE FOR
CALIFORNIA. SO HOPEFULLY THAT
GIVES YOU SOME ASSURANCE. WE ARE
TRYING TO MOVE THIS NEEDLE IN
THAT ARENA. THE LAST THING THAT
I'LL TALK ABOUT TWO IS, UM ONE
OF THE THINGS THAT WE'RE WORKING
ON NOW, AND WE'VE ENGAGED IN
SOME DISCUSSIONS IS MODIFYING
THE STATUTE THAT REQUIRES PUBLIC
ASSISTANCE PROGRAMS AND
EMPLOYERS ACROSS THE STATE. TO
PROVIDE OUTREACH INFORMATION ON
THE CALI I T C PROGRAM. THE
CURRENT STATUTE REQUIRES THAT
OUTREACH TO BE TYPICALLY IN
MAILED OR AN IN PERSON, UM, AND
IT HAS ONLY FOCUSED ON CALAIS,
EITC. WHERE MODIFYING IT TO
INCLUDE NOT ONLY CALLIE EITC,
BUT THE FEDERAL CREDITS AND
FIGHTER AND CAL FILE SO THAT
FOLKS ALSO KNOW THAT IT'S
APPLICABLE TO GETTING FREE FILE
IF THEY WANT AS WELL. AND WE'RE
SUGGESTING, UM, A SECOND
NOTIFICATION ONE IN JANUARY,
WHICH IS UNDER THE CURRENT
STATUTE AND THEN ONE IN MARCH,
WHICH CAN JUST BE A SIMPLE EMAIL
TO ALL STAFF TO LET THEM KNOW
WHAT'S GOING ON. SO UM, THAT
COULD BE ANOTHER VERY BIG WAY TO
GET MORE INFORMATION OUT TO, UM
MILLIONS OF PEOPLE WITH THE
STROKE OF A PEN OR THE PUSH OF A
BUTTON. UM I JUST LIKE TO ADD A
COUPLE OF THINGS TO THAT. THANKS
JEANNIE. UM WE WORKED REALLY
CLOSELY WITH BOTH D HCS AND CDSS
. WHEN WE WERE DOING THIS REPORT
, YOU KNOW, WE EXCHANGE DATA
WITH THEM, SO WE WERE ABLE TO
TAKE A CLOSE LOOK. AT THEIR
PROGRAM PARTICIPANTS AND GET A
GOOD UNDERSTANDING OF WHO WAS
FILING AND WHO WASN'T FILING. UM
WE HAVE ALSO BEEN WORKING VERY
CLOSELY WITH CDSS. WE HAVE A
DATA SHARING AGREEMENT WITH THEM
GOING RIGHT NOW, AND I THINK OUR
DATA SHARING AUTHORITY JUST
PASSED. AS OF THE 30TH AND SO WE
ARE WORKING WITH THEM TO DO
OUTREACH THIS THEY'RE GOING TO
BE DOING OUTREACH THIS FALL.
WE'RE GIVING THEM A NON FILER
INDICATOR FOR ALL OF THEIR
PROGRAM PARTICIPANTS SO THEY CAN
DIRECTLY REACH OUT TO THOSE WHO
Mí
TO BE ABLE TO CLAIM THE CREDIT.
THEY ARE ALSO WORKING WITH CPL.
AND UM WE ARE GETTING DATA BACK
FROM THEM FOR OUR NEXT EITC
ANNUAL REPORT. SO THAT WE CAN
UNDERSTAND WHICH MODALITY? IS IT
A TEXT? IS IT A LETTER? IS IT A
PHONE CALL? HOW ARE PEOPLE
RESPONDING TO OUTREACH? WHAT'S
THE MOST SUCCESSFUL WAY? BECAUSE
AS YOU MENTIONED, WE ARE
PURSUING A FAIRLY AGGRESSIVE
OUTREACH PROGRAM IN NEXT FALL,
UM AND ACTUALLY NEXT SPRING AND
FALL FOR BOTH NON FILERS WHO
HAVE AIDED THE WAGES WITH US
THAT APPEARED TO QUALIFY THEM
FOR THE CALI IT BUT ALSO FOR
THOSE THAT FILE A RETURN AND
FAILED TO CLAIM THE CREDIT IS
JEAN YOU MENTIONED SENDING THEM
JUST A SIMPLIFIED 35 14, WHICH
IS THE TAX FORM NEEDED TO FILL
IT OUT TO CALCULATE THE EITC
CREDIT AND SEEING IF WE CAN HELP
THEM IN THAT WAY TO MAKE IT
EASIER TO CLAIM THE CREDIT
BECAUSE IT'S JEANNIE MENTIONED
OFTEN TIMES WE HAVE HEARD THAT
TAXPAYERS MAY NOT CLAIM THE
CREDIT BECAUSE IT IS MORE
EXPENSIVE TO HAVE THE CREDIT
FORMS PREPARED THAN THE ACTUAL
CREDIT THAT THEY'RE RECEIVING.
AND WHEN I STARTED WITH MY
INTRODUCTION, I HAD NOTED THAT
ROUGHLY 77% OF THE PEOPLE THAT
ARE FILING CREDIT ARE GETTING
LESS THAN $200 SO THANK YOU.
ASSEMBLYMEMBER'S PETRIE-NORRIS
HAS A QUESTION. THANK YOU, MADAM
CHAIR. I HAVE A FOLLOW UP
QUESTION RELATED TO, UM SENATOR
CABALLERO'S QUESTIONING AROUND,
UH, THE OUTREACH AND
COMMUNICATION EFFORTS. UM, SO,
SENATOR, CABALLERO NOTED, WE'VE
SPENT BETWEEN LIKE TWO AND $10
MILLION. LAST YEAR'S BUDGET WAS
$10 MILLION ON OUTREACH AND
COMMUNICATION. AND SO I THINK
IT'S REALLY QUITE STARTLING FOR
ALL OF US, UM, TO READ. REPORTS
AS NOTED IN THE REPORT, UM
CALIFORNIA POLICY LABS 2020
REPORT CONCLUDED THAT NONE OF
THE TESTED OUTREACH EFFORTS LED
TO INCREASED FILING. OR TAX
FILING OUR CREDIT, CLAIMING SO
THAT SEEMS TERRIBLE BECAUSE WITH
$10 MILLION, WE JUST LIKE STAND
ON A CORNER AND GET PEOPLE ON
THEIR BACKS AND ACTUALLY DO MORE
THAN WE'VE DONE WITH THOSE
DOLLARS. SO UM, I GUESS QUESTION
A COUPLE OF QUESTIONS ON THAT.
SO WHAT'S THE PROCESS OR
AWARDING THE GRANTS FOR
ORGANIZATIONS WHO ARE ACTUALLY
RESPONSIBLE FOR THE
COMMUNICATION AND OUTREACH AND
WHAT IS THE PROCESS FOR
EVALUATING? UH THEIR PERFORMANCE
AND DECIDING WHO IS GOING TO GET
THIS GRANT FUNDING NEXT YEAR?
THANK YOU. I CAN ASSIST WITH
THAT QUESTION. SO UM, FRANCHISE
TAXPAYERS WORKS WITH CAN
COMMUNITY AND SERVICES. UH,
DEVELOPMENT DEPARTMENT. I SAID
THAT WRONG DEPARTMENT OF THE
COMMUNITY AND SERVICES, UM,
DEVELOPMENT. I GUESS I SAID IT,
RIGHT? UM SO WE WORK WITH THEM
TO DO THE GRANTS, AND THEY ARE
VERY FAMILIAR WITH IT, AND SO WE
KIND OF LEVERAGE THEIR EXPERTISE
TO DO IT. SO UM, ON AN ANNUAL
BASIS TO DATE BECAUSE THE FUNDS
HAVEN'T NECESSARILY BEEN ONGOING
. UM WE HAVE DONE WHAT IS CALLED
A NOTING OF FUNDING
AVAILABILITY. ALSO ACRONYM NO FA
AND ANYBODY THAT IS INTERESTED
IN ACQUIRING ACCESS TO THESE
GRANT FUNDS NEEDS TO PRESENT A
PROPOSAL THAT SAYS WHAT THEY'RE
GOING TO DO. THEY NEED TO
PROVIDE METRICS THEY NEED TO
PROVIDE INFORMATION ON THEIR
GROUP GRAPHIC AREAS THAT THEY
WORK WITH. THEY NEED TO PROVIDE
INFORMATION ON FOR SAY, LIKE
LANGUAGES THAT THEY USE, UM,
WAYS THAT THEY'RE GOING TO
OUTREACH AND THEN THEY HAVE TO
FOLLOW UP WITH THE PRESENTATION
OF STATISTICS. TO SHOW THAT I
REACHED OUT I SENT 4900 TEXT
MESSAGES. I SENT 100 LETTERS. I
HUNG, YOU KNOW 10,000 DOORKNOB
HANGERS. I STOOD OUT IN FRONT OF
A CHURCH AND BY THE END OF THE
DAY, I HAD 50 LESS PAMPHLETS IN
MY HAND, RIGHT? THOSE ARE THE
TYPES OF METRICS THAT WE GET
BACK TO SHOW THAT THEY HAVE DONE
WHAT THEY'VE INDICATED THAT
DOING. AND THEN, OF COURSE, THE
ITEM STATISTICS THAT I MENTIONED
EARLIER OR FROM THE SAME
REPORTINGS, RIGHT? THEY TELL US
HOW MANY FOLKS THAT THEY'VE
TRAINED HOW MANY RETURNS THAT
THEY PREPARED TO THEIR VITAL
SITES WITH OR WITHOUT AN ITIN,
ETCETERA. SO THERE IS
INFORMATION THAT COMES BACK IN
AS FAR AS EVALUATING THE
PERFORMANCE, BUT IT'S NOT
NECESSARILY EVALUATING IN THEIR
PERFORMANCES TO WHAT THEY'VE
DONE HAS BEEN SUCCESSFUL AND
MOVE THE NEEDLE. IT IS ABOUT
EVALUATING THEIR PERFORMANCE
THAT THEY'VE DONE WHAT THEY
SAID. THEY'RE GOING TO DO SO
THAT WE CAN COMPENSATE THEM FOR
THEIR WORK. SO WE HAVE HAD
MULTIPLE DISCUSSIONS OVER MANY
YEARS AMONGST OURSELVES AND WITH
THE GRANTEES AS WELL AS HOW DO
WE TALK ABOUT THE EVALUATION OF
THE IMPACTS THAT HAVE HAPPENED
BECAUSE OF THE OUTREACH. SO IN
2018 A STATUTE UM ACTUALLY, I
THINK WE JUST DID IT. WE WORK
WITH THE GRANTEES TO SAY WE NEED
SOME BETTER DATA. WE NEED SOME
NAMES TO COME BACK. WE NEED TO
KNOW WHERE THE ADDRESSES WERE
THAT YOU HUNG THOSE DOOR HANGERS
AND WHAT THOSE PEOPLE'S NAMES
WERE THAT YOU GAVE TEXT,
ETCETERA. SO THAT WE COULD TAKE
THAT DATA AND SAY WHO FILED THE
RETURN. YOUR FATHER RETURN FOR
THE FIRST TIME WHO USED THEIR
VITAL RESOURCE AS OPPOSED TO
PRAY. PREPARE THE YEAR BEFORE
THEY USED TO PAY PREPARE. NOW
THEY'RE USING A VITA RIGHT
BECAUSE AND SO WE WERE ABLE TO
SEE IF WE WANTED TO BE ABLE TO
SEE IF WE COULD QUANTIFY THOSE
EXACT IMPACTS THAT I THINK
YOU'RE LOOKING FOR. UM
UNFORTUNATELY, UM, LESSONS
LEARNED. I'LL JUST SAY THE
FAMOUS GARBAGE IN GARBAGE OUT.
RIGHT IT IS VERY HARD TO GET, UM
FULL NAME STATUE, ETCETERA THAT
WE CAN USE IN IRON V IRON MINT
TO DO AN ANALYSIS. THERE'S A LOT
OF ROBERT SMITH'S. THERE'S A LOT
OF, UM, DIFFERENT THE SAME NAME
PEOPLE, SAME SPELLING SOME
JUNIORS AND SENIORS, ETCETERA
THAT BUT ACTUALLY, THE DATA THAT
WE GOT BACK, UM, WAS NOT
SUFFICIENT THAT WE COULD
ACTUALLY EVALUATE THE IMPACTS OF
WHAT HAPPENED. UM SUSAN STAFF
ACTUALLY DID SOME ANALYSIS NOT
PERFECT. LOTS OF ASSUMPTIONS
BASED ANALYSIS, FOCUSING IN ON
THE ZIP CODES. AS FAR AS THOSE
WERE THOSE QUINT FUNDS WERE
GOING LOOKED AT THE EXIT CODES
PRIOR TO THE OUTREACH FUNDS
BEING AWARDED AND LOOKED AT THE
ZIP CODES IMPACTED AND HOW,
BECAUSE OF THOSE GRANTS BEING
AWARDED, AND THAT IS A REPORT
THAT WE PUBLICLY ISSUED ITS
AVAILABLE IF YOU'D WANT TO SEE
THE METHODOLOGY AND LOGIC BEHIND
THAT, BUT UNFORTUNATELY, THAT
REPORT ALSO DIDN'T SHOW UM OR
WAS INCONCLUSIVE ON THE VALUE OF
THE GRANTS AND HOW THEY MADE
IMPACTS IN THOSE LOCAL
COMMUNITIES. JUST BECAUSE OF THE
DATA WASN'T THERE. UM SO WE'RE
CONTINUING DISCUSS WAYS THAT CAN
DO ON THE GRANTEES ARE AN
IMPORTANT PART OF THAT
CONVERSATION. THEY'RE VERY BUSY
TRYING TO DO THE OUTREACH
THEMSELVES. UM THEY'VE MADE IT
VERY CLEAR AND I CAN CERTAINLY
APPRECIATE IT FROM MY OWN
WORLDVIEW THAT, UM, TAKING TIMES
TOGETHER, STATS CAN BE VERY TIME
CONSUMING. UM BUT THAT IS WHAT
WE HAVE MOST BEEN TALKING ABOUT
IS IN ORDER TO GET THAT LOOK
ABOUT WHAT HAPPENED IN THE
FILING UNIVERSE. UM WE NEED TO
GET THE NAMES OF THOSE
INDIVIDUALS THAT THEY REACHED
OUT TO AN ASSISTED SO THAT WE
CAN KIND OF TAKE A LOOK DOWN
MEMORY LANE IN OUR RECORDS TO
FIND OUT WHAT HAPPENED.
UNDERSTOOD AND I WILL ALSO JUST
SAY AH! OUR LOCAL ORGANIZATION,
THE ORANGE COUNTY UNITED WAY,
ACTUALLY THINK IT'S DONE A
TREMENDOUS JOB. AND SO I THINK,
PERHAPS IS A EXAMPLE OF SOME
BEST PRACTICES. SO WE HAVE A
DEDICATED WEBSITE. WE'VE HAD
200,000UNIQUE VIEWS ON THE
WEBSITE. THEY'VE INCREASED THE
NUMBER OF, UM BENEFICIARIES FROM
LIKE 12 TO 14,000 IN THE LAST
YEAR. SO I THINK THERE ARE
PROBABLY SOME BEST PRACTICES
HAPPENING. I THINK IT'S REALLY
IMPORTANT FOR US TO FIGURE OUT
WHAT THOSE ARE AND IDENTIFY
THOSE, AND I DON'T THINK THIS IS
WHAT I'M ABOUT TO SAY IS NOT
UNIQUE TO THIS PROGRAM OR UNIQUE
TO THIS DEPARTMENT. BUT WE CAN'T
JUST SORT OF KEEP THROWING GOOD
MONEY AFTER BAD AND EXPECT TO
GET A DIFFERENT RESULT. SO I
THINK WE'VE GOT TO IDENTIFY IF
THERE ARE BEST PRACTICES ON
EDUCATION AND OUTREACH. AND
DOUBLE DOWN ON THOSE, AND THEN
YOU KNOW FOR YOU TO COME BACK TO
THE LEGISLATURE AND SAY YOU KNOW
WHAT? WE DON'T THINK WE CAN
PRODUCTIVELY SPEND THIS $10
MILLION ON EDUCATION OUTREACH.
WE THINK THAT THIS MONEY WOULD
BE BETTER SPENT ADDRESSING SOME
OF THE SYSTEMIC BARRIERS OR
RAISING SOME OF THE YOU KNOW THE
MINIMUM CLAIM AMOUNTS BECAUSE WE
DON'T WANT TO KEEP DOING THE
SAME THING AND SORT OF
FRITTERING AWAY MONEY ON
SOMETHING THAT WE ACTUALLY DON'T
THINK IT'S GOING TO BE
EFFECTIVE. UM, AND WORK SO I
WOULD URGE US TO CONTINUE KIND
OF THAT THAT CONVERSATION AND
REALLY URGE US TO CONTINUE THAT.
I THINK VERY HONEST EVALUATION,
UM, TO MAKE SURE THAT WE'RE
SPENDING THIS MONEY EFFECTIVELY.
THANK YOU. ASSEMBLYMEMBER'S
GRAYSON. THANK YOU, MADAM CHAIR
AND JUST FOR THE SAKE OF TIME.
I'M REALLY INTERESTED IN HEARING
THE OTHER PANEL AS WELL. SO UH,
I JUST, UH I HEARD HINTS OF SOME
OF THE ANSWERS THAT I MIGHT GET
FROM MY COMMENT AND FORGIVE ME
FOR BEING OVER SIMPLISTIC WHEN
IT IT JUST SOUNDED LIKE THERE
WERE TRYING TO FORCE THIS LARGE
ROUND OBJECT THROUGH A VERY
SMALL SQUARE HOLE. WHEN IT COMES
TO THE NON FILERS AND TRYING TO
FORCE THEM INTO A STREAM THAT
THEY'RE NOT REALLY REQUIRED TO
BE A PART OF HAVE WE CONSIDERED
, UH, POSSIBLE, DIFFERENT
PLATFORM, AND I THINK I HEARD
THE WORD OR MAYBE EVEN READ IT
IN THE REPORT ABOUT STREAMLINED
FOR THE NON FILERS THAT MAY
QUALIFY FOR THE CREDIT. TO NOT
HAVE TO GO THROUGH THAT PROCESS
THAT WE ALREADY HAVE SET UP BUT
CREATE THIS, UH, STREAMLINED OR
DIFFERENT TYPE OF A PLATFORM
PROCESS TO GET MONEY INTO THEIR
INTO THEIR HANDS TO BENEFIT
THEM, THE MOST IN, UH, IN OTHER
WORDS, A LOT OF RESOURCES BEING
PUT INTO SOMETHING THAT EXISTS
THAT THEY'RE NOT NECESSARILY A
PART OF THAT EXISTENCE. SO TO BE
ABLE TO, INSTEAD OF FORCE THEM
INTO ONE WORLD. WHY DON'T WE TRY
TO GO AND ACCOMMODATE THEM IN
THAT SPACE THAT THEY'RE ALREADY
IN? AND SO I'M NOT SURE IF I
LIKE I SAID, I HEARD HENCE THAT
THERE MIGHT BE THINGS LIKE THAT.
THE STREAMLINING AND THE LETTER
PROCESS AND THE OUTREACH BUT I'M
NOT SURE WE'RE ACTUALLY CROSSING
THAT THRESHOLD TO WHERE THEY'RE
AT TO ACTUALLY GET THE RESOURCES
INTO THEIR HANDS. SO NOT REALLY
A QUESTION, BUT JUST AN
OBSERVATION. RIGHT THEN. I WILL
, JUST AND REALLY QUICKLY, UM.
ONE LAST SET OF QUESTIONS, AND
YOU NOTED THAT 60% OF THE FTV
HAS NOTED THAT 60% OF THE
CLAIMED THE FILES. THE RETURNS
WERE FILED BY A, UH, TAX
PREPARATION PERSON. HOW MANY OF
THOSE WERE PAID? SO THAT'S 60%
METRIC IS ALL PAID, PREPARES.
THE REST ARE EITHER USING THEIR
SELF PREPARING THEIR TAX RETURN,
MAYBE USING SOFTWARE OR USING A
FREE SERVICE, A FREE FILE OR A
VAIDA TYPE SERVICE. UM SO, YES
AS WELL. THOSE ARE ALL FALLING
TEAR. YES, THOSE ARE VOLUNTEER
INCOME TAX ASSISTANCE PREPARED
RETURN, WHICH IS FREE TO THAT
WHICH IS FREE TO THE TAXPAYERS.
SO THE 60% METRIC REPRESENTS ALL
PAID PREPARES. AND DO WE HAVE
ANY IDEA HOW MUCH PEOPLE ARE
PAYING TO GET THERE? SO ECHOES?
THEY REALLY DIDN'T HAVE TO PAY
ANYTHING? YES. SO F T B DOESN'T
REALLY COLLECT THE METRICS ON
HOW MUCH SOMEBODY MIGHT PAY TO
PREPARE A RETURN, BUT WE HAVE
HEARD FROM ANY OF THE CALI 80 C
ADVOCACY GROUPS AND IN HEARINGS
IN ANOTHER PLACES THAT IT'S
BETWEEN SOMEWHERE BETWEEN MAYBE
204 $100. TO HAVE A RETURN BOTH
STATE AND FEDERAL PREPARED AND I
ABSENT ANY, YOU KNOW INFORMATION
TO THAT THAT THAT'S NOT CORRECT
. I WOULD YOU KNOW, ASSUME THAT
THAT IS PROBABLY AROUND THE
RANGE, AND THAT JUST TAKES UP
THE ENTIRE CREDIT GENERALLY,
RIGHT? WELL YES, ABOUT 77% OF
OURFOLKS THAT ARE CLAIMING
KELLY EITC RIGHT NOW ARE SINGLE
WITH NO DEPENDENTS AND GETTING,
UM LESS THAN $200 IN CREDIT. UM
AND THEN YOU ALSO TALKED ABOUT
POTENTIALLY HAVING F T B STAFF
HELP PREPARE RETURNS, AND SO
HAVE YOU HAD A LEGAL ANALYSIS ON
THE VIABILITY OF THIS AND WITH
THIS REQUIRE STATUTORY AUTHORITY
OR COULD YOU JUST DO? YES SO
I'LL TAKE THAT ONE AND SAY THAT
IS THE CONCEPT C TWO IN OUR
REPORT. UM AND YES, WE WE'VE
TALKED ABOUT THAT A LOT WITH 60
GROUPS DURING THE, UH, PREPARED
FOR PREPARATION OF THE REPORT
ITSELF. UM AND THEN OTHER
CONVERSATIONS WITH SOME OF OUR
PEERS, STATE AGENCIES AS WELL SO
THAT STUDY CAN BE DONE WITHOUT
LEGAL AUTHORITY. UM, ABSOLUTELY
, UM, THAT DOES IT IS LIKELY
THAT A STUDY WHICH SO THAT THERE
COULD BE LEGAL CHANGES,
STATUTORY CHANGES THAT ARE
NEEDED AND THOSE COULD BE BOUT
THE STATE AND POTENTIALLY
FEDERAL LEVEL. SO THERE'S REALLY
TWO QUESTIONS THAT WE'RE LOOKING
TO HAVE THAT LEGAL ANALYSIS DONE
ON THE FIRST ONE IS, UM WHEN, UM
CALIFORNIA PURPOSES IN ORDER TO
PREPARE RETURN, YOU HAVE TO BE
AN ENROLLED AGENT. A C P A N
ATTORNEY OR YOU HAVE TO BE
REGISTERED WITH THE CALIFORNIA
TAX EDUCATION COUNCIL. C T. E C
AND THAT IS A STATUTE THAT'S
CALIFORNIA BASED, UM AND SO
AGAIN FOR STATE EMPLOYEES OR TO
DO THIS, THEY CERTAINLY WOULD
NOT BE ONE OF THOSE OTHER
PROFESSIONAL LICENSES SO WE
WOULD NEED TO MAKE SURE THAT THE
REGISTRATION PROCESS AND THE
CURRENT STATUTORY FUNCTION OVER
THAT WOULD ALLOW FOR US TO
ENGAGE STATE EMPLOYEES AND
ENSURE THEY HAVE THE RIGHT
EDUCATION AND THE RIGHT. UM
OTHER ANY OTHER METRICS THAT
THEY NEED TO DO NOT AND AN
OBSTACLE THAT CAN BE OVERCOME OR
STATUTE THAT CAN BE MODIFIED TO
CHANGE THAT DYNAMIC. SO UM, WE
JUST WANT TO MAKE SURE WE'RE
UNDERSTANDING WHAT WE'RE DOING
AND GET THOSE PROPER STRUCTURES
IN PLACE. THE FEDERAL RULES ARE
A LITTLE BIT DIFFERENT. UM YOU
JUST NEED TO YOU CAN BE AN
ENROLLED AGENT OR CPA OR AN
ATTORNEY, CERTAINLY, BUT SHE
ALSO JUST NEED TO GET A PETEN,
WHICH IS A PROFESSIONAL TAX
IDENTIFICATION NUMBER, WHICH
DOES NOT REQUIRE PER SE ANY
LICENSING, BUT IT DOES REQUIRE,
UM, CHECK THE BOX THINGS THAT
NEED TO BE MET AGAIN. A FUNCTION
WE CAN GET PAST THAT EASY
ENOUGH. THE SECOND ONE, UM IS
MORE FOCUSED IN ON THE LIABILITY
THE STATE WOULD OCCUR BECAUSE OF
THIS SO UNDER TAX LAW,
CALIFORNIA AND FEDERAL FOR THOSE
INDIVIDUALS THAT PAY PREPARE
RETURNS FOR COMPENSATION. AND
THE PART OF THIS QUESTION IS IF
THE STATE IS PAYING THE WAGES IS
THAT CONSTITUTE COMPENSATION FOR
PREPARING TAX RETURNS? IF THE
ANSWER IS YES, THEN UNDER THE
CURRENT STATUTES, IF THERE IS AN
AIR ON THAT RETURN OR SOMETHING
IS OMITTED BY AIR, THE STATE.
THERE'S FINANCIAL RELIABILITY
FOR THAT THEY NEED TO CORRECT IT
. THEY COULD OWE THE TAXES ON
THE PATH. THE TAXPAYER CAN SUE
THEM FOR THOSE HEIRS OR
EMISSIONS. THOSE ARE PART OF
PRACTICING, UM, WITHIN THOSE
BOUNDARIES, AND SO WE'RE TRYING
TO MAKE SURE THAT IN THE EVENT
THAT WE'RE PREPARING THOSE
RETURNS BY STAFF THAT ARE BEING
PAID BY THE STATE DOES THAT MAKE
COMPENSATION? AND THEN WHAT IS
THE LIABILITY TO THE STATE? UM
AGAIN. ONCE THOSE STUDIES ARE
DONE, THEY MAY NOT ACTUALLY BE
SIGNIFICANT BARRIERS OR ANY
BARRIERS OR THEY MIGHT NEED
LEGISLATIVE CHANGE TO OVERCOME.
SO IF YOU'RE INTERESTED IN THAT
FURTHER, WE'RE HAPPY TO LOOK
INTO THAT AS WELL. OH, YEAH, THE
SO. CAN CANADA'S LIABILITIES BE
OVERCOME BY STATUTORY CHANGE?
AGAIN FOR STATE PURPOSES. UM WE
CAN IF THERE IS A LIABILITY. IS
SHE THERE? WE CAN. CERTAINLY THE
NEXT STEP WOULD BE TO LOOK TO
SEE IF THERE IS ANY PROTECTIONS
THAT CAN BE PUT IN PLACE TO
PROTECT THE STATE AND THE
TAXPAYER BOTH RIGHT IN DOING
THAT, AND THAT'S PROBABLY THE
FEDERAL AGAIN. WE WOULD NEED TO
LOOK AND SEE IF WE'RE IN FACT
PREPARING THE FEDERAL RETURN AS
WELL AS THE CALIFORNIA UM, WHAT
THE RISK ARE FOR THAT BECAUSE,
OF COURSE, FEDERAL LAW IS HARDER
AS IMPOSSIBLE FOR CALIFORNIA TO
CHANGE. IT EXISTS RIGHT? AND SO
UNLESS WE'RE ABLE TO GET
CONGRESS TO ENACT SOME SORT OF
CHANGE, WE JUST NEED TO ABIDE BY
THOSE LAWS SO AND THAT STUDY
WILL HELP US UNDERSTAND HOW MUCH
OF THAT BARRIER IS FLEXIBLE OR
INFLEXIBLE. SO, UM AH! MISS
PETRIE-NORRIS WAS TALKING ABOUT
VADA OR UNITED WAY THOSE
PROGRAMS IN OUR COMMUNITY SEEM
PRETTY SUCCESSFUL, BUT KIND OF
RESOURCE LIMITED HOW MUCH IS THE
STATE HELPING WITH THAT IS THAT
IS THAT AN AREA WHERE
POTENTIALLY WE WOULD GET A
BIGGER BANG FOR THE BUCK, THEN
OUTREACH SO OUR FRANCHISE
TAXPAYER, WE DO HAVE A GUIDED
GROUP. UM, THE VITAL PROGRAM IS
ACTUALLY RUN BY THE I. R S AND
SO MOST OF THE TRAINING THAT IS
DONE FOR FEDERAL PURPOSES HAS
DONE BY IRS AND ALSO UNITED WAY,
FOLKS. UM WE DO HAVE THE F T B
VITA FOLKS DO THE STATE PORTION
OF THE TRAINING BECAUSE THERE'S
A SIGNIFICANT OUR EDUCATION THAT
GOES IN TO TRAIN VIæT VOLUNTEERS
. AND SO WE TAKE THAT PORTION OF
IT AT FT. BE TRAINING THE VITAL
VOLUNTEERS FOR THE STATE PORTION
OF IT, EXCEPT FOR OUR OWN FTP
EMPLOYEES WHERE THEY DO BOTH THE
FEDERAL AND THE STATE PEACE. UM
AND THERE ARE VOLUNTEERS THAT GO
OUT THAT THAT FROM FT. B AS WELL
AS YOU KNOW, FROM THE COMMUNITY
THAT ARE DOING PREPARING THE
RETURNS AT THE VARIOUS LOCATIONS
THAT ARE ORGANIZED BY THE VITA
PROGRAM. WHICH AGAIN IS RUN BY
THE I. R S IS THERE I MEAN,
DOESN'T MAKE SENSE TO EXPAND
THOSE PROGRAMS. WELL THE ISSUE
THAT I THINK I MAY BE ALLUDED TO
A LITTLE BIT EARLIER IS WITH THE
VOLUNTEERS. IT HAS BEEN VERY
DIFFICULT TO ACQUIRE ENOUGH
VOLUNTEERS REALLY, TO STAFF SOME
OF THOSE, AND THAT'S WHAT WE'VE
HEARD WHEN WE ENGAGED WITH SOME
OF THE COMMUNITY BASED
ORGANIZATIONS, UM, IS THAT THEY
ARE ALSO HAVING DIFFICULTIES
OBTAINING ENOUGH VOLUNTEERS TO
REALLY STAFF THOSE LOCATIONS AS
AS MUCH AS THEY'D LIKE TO, BUT
WHAT IS WHETHER IT BE SOME WAY
TO HIRE PROFESSIONALS AND PAY
THEM OR DOES AND SO THAT'S WHERE
WE RUN INTO THAT? THE PROBLEM.
THAT'S NOT YET IS THAT THE PAY
PREPARE ISSUE. OKAY. UM I CAN
KIND OF ADD ON THAT SOMETHING
THAT'S KIND OF BEEN INTRIGUING
IF I COULD, BECAUSE VOLUNTEERS
HAVE ALWAYS BEEN CHALLENGING ONE
OF THE THINGS THAT WE'VE HAD
OFTEN ON CONVERSATIONS ON THE
LAST FIVE YEARS IS WHETHER THE
COMMUNITY COLLEGES AND COLLEGES
AND UNIVERSITY COULD BE OF
ASSISTANCE, PARTICULARLY THOSE
THAT HAVE BUSINESS PROGRAMS AND
WHETHER OR NOT THEY COULD
INCORPORATE A FIGHTER. UM
VOLUNTEER FUNCTION WITHIN THEIR
CURRICULUM SO THAT THE
ACCOUNTING STUDENTS OR THE
BUSINESS STUDENTS COULD ASSIST
DURING THE SEMESTER. I'M TOO
KIND OF SOLVED THAT PROBLEM WITH
VOLUNTEERS AND ALSO POTENTIALLY
SOLVE THE PROBLEM OF GEOGRAPHIC
LOCATIONS BECAUSE THERE THERE
ARE COMMUNITY COLLEGES AND
ANOTHER COLLEGES UNIVERSITY
THROUGHOUT, UM, THAT HAS NEVER A
LOT OF PEOPLE HAVE FOUND THAT
ATTRACTIVE, BUT WE JUST NEVER
CUT THE LEGS BEHIND IT TO TALK
ABOUT IT FURTHER TO SEE IF IT
WILL OR WON'T WORK. BUT SINCE
IT'S AN INFORMATION HERE, AND
I'LL JUST KIND OF THROW IT OUT
THERE IF IT'S SOMETHING THAT
MIGHT BE OF INTEREST TO PICK UP
SOUND LIKE DEFINITELY AN IDEA TO
EXPLORE SO I'M SURE WE HAVE MANY
MORE QUESTIONS FOR YOU. BUT
UNFORTUNATELY WE'RE RUNNING
SHORT ON TIME. AND WE HAVE A
ANOTHER PANEL THAT WE'RE LOOKING
FORWARD TO HEARING FROM. SO
THANK YOU VERY MUCH FOR JOINING
US THIS THANK YOU VERY MUCH FOR
YOUR TIME TODAY. THANK YOU. ALL
RIGHT. AND FOR OUR NEXT PANEL WE
ARE GOING TO HEAR ABOUT EXPECT
PERSPECTIVES ON EXPANDING
UTILIZATION AMONG ELIGIBLE NON
CLAIMANTS. AND I THINK WE ARE
GOING TO BE STARTING WITH, UH,
TERRY ALI. AND YES, PLEASE,
PLEASE GO AHEAD AND INTRODUCE
YOURSELF. THANK YOUR LIGHT. YEP.
YEAH, THANK YOU. GOOD MORNING,
MADAM CHAIR, SENATOR CABALLERO,
MEMBERS OF THE COMMITTEE. MY
NAME IS TERRY OLIE. I'M THE
CALIFORNIA CAMPAIGN DIRECTOR
WITH ECONOMIC SECURITY PROJECT.
WE'RE AN ORGANIZATION THAT
ADVOCATES FOR IDEAS THAT BUILDS
ECONOMIC POWER FOR ALL AMERICANS
SPECIFICALLY THROUGH CASH
SUPPORTS LIKE TAX CREDITS AND
GUARANTEED INCOME. I JUST REALLY
WANT TO THANK YOU FOR HOLDING
THIS HEARING TODAY FOR YOUR
LEADERSHIP ON THIS ISSUE, AND,
OF COURSE, THE SENATOR CABALLERO
FOR AUTHORING SP SP 14 09 A
COUPLE OF YEARS AGO. I WILL CUT
TO THE CHASE A LITTLE BIT, SINCE
A LOT OF THE INFORMATION HAS
BEEN COVERED IN TERMS OF THE
REAL CHALLENGES OF INCREASING
TAKE UP OF CALI, EITC. BUT I
KNOW WE THIS WE'RE ALL HERE
BECAUSE THIS MATTERS SO MUCH
BECAUSE WITHOUT FULL TAKE UP,
THESE TAX CREDITS CANNOT FULFILL
THEIR FULL PROMISE OF CUTTING
POVERTY OF REDUCING RACIAL
INEQUITIES AND OF IMPROVING THE
LIVES OF CALIFORNIANS. AND BY
DESIGN AND PRACTICE. AS WE'VE
HEARD MANY OF THE PEOPLE WHO
NEED TAX CUT. IT'S THE MOST HAVE
THE HARDEST TIME GETTING THEM,
AND THIS INCLUDES THOUSANDS OF
PEOPLE WHO ARE ALREADY CONNECTED
TO OTHER GOVERNMENT AGENCIES IN
OUR STATE AND RESEARCH FROM
CALIFORNIA POLICY LAB SHOWS THAT
SO WHAT IS STANDING IN THE WAY
OF FULL TAKE UP ONE OF THE MAJOR
CHALLENGES THAT WAS JUST, UM,
DOVE INTO IT IN GREAT DETAIL IN
THE LAST 20 MINUTES. IS THAT THE
CHALLENGE IS ON IS THE ONUS FOR
CLAIMING TAX CREDITS FALLS ON
PEOPLE TO PERFORM THE RIGHT
COMBINATION OF TASKS AT THE
RIGHT TIME TO UNLOCK THEM. AND
IN THIS CASE THAT'S ABOUT FILING
A TAX RETURN. BUT FOR MANY, AS
WE'VE HEARD FILING TAXES IS
DAUNTING, IT'S BURDENSOME. IT'S
EXPENSIVE AND ESPECIALLY FOR LOW
INCOME WORKERS, IMMIGRANTS AND
PEOPLE WITH LANGUAGE BARRIERS.
SO THESE HOUSEHOLDS WHO ARE
DISPROPORTIONATELY BLACK, LATINO
, NATIVE AMERICAN AND IMMIGRANT
REMAINED LARGELY UNCONNECTED TO
OUR TAX SYSTEM, WHICH LOCKS THEM
OUT OF HUNDREDS AND POSSIBLY
THOUSANDS OF DOLLARS THAT THEY
REALLY COULD USE. OUR VISION
INSTEAD IS TO MAKE CLAIMING
THESE TAX CREDITS IS AUTOMATIC
AS POSSIBLE FOR INDIVIDUALS AND
FAMILIES. THAT WOULD ULTIMATELY
MEAN FLIPPING THE BURDEN FROM
THE INDIVIDUAL TAXPAYER TO THE
GOVERNMENT. TO ENSURE THAT
ELIGIBLE PEOPLE RECEIVE THE TAX
CREDITS THAT THEY DESERVE.
RECENT CHANGES TO SOME OF OUR
STATE TAX CREDITS, AS WELL AS
MOMENTUM FROM MULTIPLE PANDEMIC
RELIEF CASH PAYMENTS. IT GIVES
US A REAL OPPORTUNITY TO REFLECT
AND LEARN FROM THESE EFFORTS AND
CONSIDER INNOVATIVE SOLUTIONS TO
SIGNIFICANTLY IMPROVE THE
FUNCTIONING OF OUR TAX CREDIT
SYSTEM AND TO ALSO SHOW WHAT
AFFECTED GOVERNMENT CAN LOOK
LIKE. SOME OF THE IDEAS I'M
PRESENTING TODAY WOULD USE SOME
OF THE EXISTING SYSTEMS THAT WE
DO HAVE AND THEN OTHERS WOULD
CHALLENGE US TO THINK BIGGER
ABOUT THE WAY OUR WHOLE SYSTEM
WORKS. FIRST I WANT TO START
WITH AN IMMEDIATE AND URGENT
NEED. I DON'T THINK THAT'S
REALLY COME UP YET TODAY AND
THAT IS, UM THE SUPPORT FOR THIS
IS SIMPLE IN ADMINISTRATION AND
SIMPLIFIED PROCESS FOR CLAIMING
THE NEWLY EXPANDED YOUNG CHILD
TAX CREDIT. THIS IS, OF COURSE,
GOING TO BE AVAILABLE TO
HOUSEHOLDS WITH ZERO EARNINGS
FOR THE FIRST TIME THIS YEAR.
THIS IS A GROUNDBREAKING POLICY
AND OUR STATE SHOULD TAKE GREAT
PRIDE IN IT, AND IT'S REALLY
INCUMBENT UPON US TO GET IT
RIGHT SO THAT EVERYONE WHO IS
ELIGIBLE FOR IT ACTUALLY GET
GETS IT. WE NEED AN EASY SAFE
WAY FOR FAMILIES WHO OTHERWISE
HAVE NO NEED TO FILE NO
OBLIGATION TO FILE WHATSOEVER TO
CLAIM THESE CREDITS. PROMISING
MODEL, MAYBE THE SAME SYSTEM
THAT WE I UNDERSTAND IS BEING
CREATED TO GET THE FORMER FOSTER
YOUTH TAX CREDIT, UH TO PEOPLE,
AND THAT'SALSO OF COURSE, A NEW
CREDIT THIS YEAR, BUT THAT LOOKS
LIKE IS A SELF ATTESTATION WHERE
A PERSON IN THIS CASE THE FORMER
FOSTER YOUTH SELF TESTS ON A TAX
FORM THAT THEY ARE A FORMER
FOSTER YOUTH AND GIVES CONSENT
FOR THE FRANCHISE TAX BOARD TO
VERIFY INFORMATION ON THE BACK
END. MAKING IT MUCH SIMPLER FOR
THIS PERSON TO CLAIM THE CREDIT.
WE COULD DO SOMETHING SIMPLER. A
SIMILAR FOR FAMILIES WITHOUT
EARNINGS THAT ARE ELIGIBLE FOR
THE YOUNG CHILD TAX CREDIT BY
HAVING A SELF ATTESTATION THAT
THEY HAVE NO INCOME AND GIVE
CONSENT TO FOR THE F T B TO
VERIFY ON THE BACK END. THIS
WOULD BE REALLY CRITICAL IN
MAKING SURE THAT THESE FAMILIES
GET THESE CREDITS AS SIMPLY AS
POSSIBLE AND ALSO WILL BUILD
MOMENTUM FOR MORE PEOPLE TO KNOW
THAT THESE CREDITS ARE ACTUALLY
AVAILABLE AND ACCESSIBLE. THE
SECOND SET OF THINGS I WANT TO
TALK ABOUT IS LEVERAGING
EXISTING DATA, AND I WAS REALLY
HEARTENED TO HEAR SOME OF THE
EFFORTS THAT THE FRANCHISE TAX
BOARD IS DOING WITH CDSS AND
OTHERS TO, YOU KNOW, FIND AND
IDENTIFY PEOPLE WHO MAY BE
ELIGIBLE AND NOT CLAIMING, AND I
WANT TO HIGHLIGHT A COUPLE OF
THINGS THAT I KNOW OTHER STATES
ARE DOING USING IRS DATA. UM SO
YOU KNOW, DESPITE THE FACT THAT
THERE ARE CHALLENGES WITH SORT
OF LIKE THE WAY DATA LINES UP
AND AVAILABILITY AND TIMING AND
ALL THAT SOME STATES HAVE
ACTUALLY BEEN TAKING STEPS TO
USE IRS TAX FILING DATA TO
IDENTIFY AND REACH OUT TO
ELIGIBLE TAXPAYERS WITH A
STREAMLINED PROCESS TO CLAIM
THEN STATE CREDITS ONE OF THE
BEST EXAMPLES IS ILLINOIS AND
IT'S BEEN VERY PROMISING. THEY
JUST RECENTLY CONDUCTED A TWO
YEAR PILOT THAT USED IRS DATA TO
IDENTIFY PEOPLE WHO HAD CLAIMED
THE FEDERALLY I, D C BUT HAD NOT
CLAIMED THE STATE TAX OF THE
STATE TAX CREDIT. WITH THAT
INFORMATION, THEY PRE POPULATED
A STATE TAX RETURN AND SENT IT
TO THE TAXPAYERS AND THEIR HIT
RATE WAS HUGE. IN OVER TWO YEARS
, THEY AVERAGED 46% OF THE
PEOPLE THAT THEY REACHED OUT TO
ACTUALLY CLAIMED AND GOT GOT THE
REFUND THE STATE REFUND.
MARYLAND IS ALSO DEVELOPING A
VERY SIMILAR PROCESS, AND THAT'S
UNDERWAY AND THEN FINALLY
WASHINGTON STATE WHICH IS OUR
KIND OF NEWEST STATE TO JOIN,
UM, STATES THAT HAVE A STATE TAX
CREDIT. JUST PASSED A LAW WITH
THEIR STATE EARNED INCOME TAX
CREDIT, WHICH WILL MAKE A FLAT
$300 AVAILABLE TO ANYONE WHO
WITHIN THE INCOME RANGE WHO
CLAIMS AT LEAST $1 ELIGIBLE FOR
AT LEAST $1 OF THE FEDERALLY
EITC. SO AGAIN, IT'S A PRETTY
SIMPLE TRIGGER AND MAKES IT
EASIER TO ADMINISTER. WE ALSO
WANT TO SUPPORT FINDING WAYS TO
EXPAND DATA SHARING AMONG STATE
AGENCIES AND AGAIN REALLY HATS
OFF TO FTP FOR ALL OF THE
EXPLORATION THEY'VE BEEN DOING
ON THIS FRONT. UM I THINK THAT
WHILE WE KNOW THAT, UM FRANCHISE
TAX BOARD HAS DUG IN ON THE
THEIR ABILITY TO SORT OF
IDENTIFIED DETERMINE AND
CALCULATE REFUNDS FOR PEOPLE
BASED ON THE INFORMATION THEY
HAVE, AND IT'S YOU KNOW, NOT
EXACTLY PERFECT. I THINK THERE'S
A LOT OF OPPORTUNITY THERE TO
EXPLORE FURTHER WHICH
POPULATIONS AND IF THERE ARE
POPULATIONS FOR WHOM THEY MIGHT
BE ABLE TO MAKE A MORE ACCURATE.
DETERMINATION MORE RELIABLY AND
REALLY EXPLORE WHETHER THERE'S
AN OPPORTUNITY TO DO A PILOT TO
THEN DO SOME KIND OF VERY
TARGETED OUTREACH OR EVEN BETTER
AUTOMATICALLY PAY OUT THOSE
CREDITS. NOW I WANT TO TURN TO
SOME BIG IDEAS. THE DISCUSSION
AROUND ALL OF THE DATA SHARING
AND THE DISCUSSION WE'VE BEEN
HAVING REALLY SHOWS HOW HARD IT
IS TO SOLVE THIS PROBLEM FROM
THE GROUND UP. UH YOU KNOW IF WE
CONTINUE TO RELY ON THE USUAL
PROCESS OF A PERSON BEING
REQUIRED TO FILL OUT A TAX
RETURN AND HAS CLAIMED SCHEDULE
WITH ALL SORTS OF INFORMATION
REQUIRED OF THEM, EVEN IF WE CAN
GET THE DATA FROM ELSEWHERE,
WE'RE GOING TO CONTINUE TO HAVE
THESE SILO CHALLENGES. AND IN
ALL FAIRNESS, AS HAS BEEN STATED
, THESE PROGRAMS WEREN'T REALLY
DESIGNED TO WORK TOGETHER, AND
WE'VE NOW REALLY PUT A BIG LOAD
ON OUR TAX CREDIT SYSTEM FOR
REDUCING POVERTY WITH DIRECT
CASH THAT SAID THAT DIRECT CASH
IS REALLY IMPORTANT. AND WE WANT
TO MAKE SURE THAT PEOPLE HAVE
THESE UNRESTRICTED RESOURCES TO
MEET THEIR OWN NEEDS, WHETHER
THAT'S PUTTING, YOU KNOW NEW
TIRES ON THE CARB. PAYING THEIR
MONTHLY BILLS OR PAYING DOWN
DEBT. AND I THINK THAT WE CAN
LOOK AT THE LAST TWO PLUS YEARS
OF PANDEMIC RESPONSE AS
INSTRUCTIVE ON SEVERAL OCCASIONS
, BOTH AT THE STATE LEVEL AND
THE FEDERAL LEVEL WE HAVE FOUND
WAYS TO SORT OF TURN THIS
PROCESS UPSIDE DOWN AND TO GET
PEOPLE DIRECT CASH VERY QUICKLY
AND WITHOUT A CLAIMS PROCESS. NO
ONE ASKED FOR A STIMULUS CHECK.
THEY JUST GOT HIM SEEMS TRUE OF
THE GOLDEN STATE STIMULUS. IF
YOU FILED THE TAX CREDIT TAX
RETURN THE YEAR BEFORE YOU JUST
GOT THAT. YOU JUST GOT THE
CREDIT. UM, YOU KNOW, SENT TO
YOU. AND I THINK THAT IS THOSE
ARE SOME SUCCESSFUL MODELS THAT
WE CAN USE TO THINK BIG ABOUT
REDESIGNING AND REBUILDING THE
TAX SYSTEM. THERE ARE THREE
IDEAS HERE. I'LL TRY TO KEEP IT
BRIEF. UM, THE FIRST HAS BEEN
TALKED ABOUT ALREADY. BUT WE
SHOULD CREATE A MINIMUM. CALLIE
EITC THAT IS THE PHASING
STRUCTURE NOT ONLY MAKES
ADMINISTRATION MORE DIFFICULT,
IT ALSO IS A DESIGN FEATURE THAT
PERPETUATES RACIALLY INEQUITABLE
IMPACTS AND IS HONESTLY
ANTITHETICAL TO THE WHOLE POINT
OF POVERTY, REDUCING CREDITS
BECAUSE THE LESS MONEY YOU HAVE,
THE LESS CREDIT YOU GET. THAT
DOESN'T REALLY MAKE A LOT OF
SENSE. UM WITH THE MINIMUM
CREDIT VALUE WEEK, ELIGIBILITY,
DETERMINATION AND CREDIT
CALCULATION IS MUCH SIMPLER.
COMMUNICATION IS MUCH SIMPLER,
AND IT REALLY KIND OF PAVES THE
WAY FOR SOME OF THESE MORE
AUTOMATED, YOU KNOW, LIKE, TICK
A BOX TYPE PROCESSES THAT WE'VE
BEEN TALKING ABOUT. THE SECOND
IDEA IS TO STRUCTURE, POVERTY,
REDUCING TAX CREDITS, UH
THEMSELVES SO THAT THEY ARE JUST
SIMPLER AND IN CONCEPT AND LESS
VARIABLE AND THEREFORE EASIER TO
ADMINISTER. UM SO RIGHT NOW WE
HAVE THE CALI A T C AND THE
YOUNG CHILD TAX CREDIT. THE
KELLY OTC IS VARIABLE, BASED ON
INCOME BUT ALSO A NUMBER OF
DEPENDENTS. AND THEN THE YOUNG
CHILD TAX CREDIT IS JUST ABOUT
DEPENDENCE. WE COULD CONTINUE TO
EXPAND AND ENHANCE THE YOUNG
CHILD TAX CREDIT TO MAKE IT MORE
LIKE A CHILD ALLOWANCE OR MORE
LIKE THE FEDERAL CHILD TAX
CREDIT SO THAT IT IS AVAILABLE
TO FAMILIES WITH DEPENDENT
CHILDREN, INCLUDING ADULT
DEPENDENTS. AND THEN DECOUPLE IT
FROM THE EARNED INCOME TAX
CREDIT AND CREATE A CREDIT THAT
IS SOLELY DESIGNED TO BOOST LOW
WAGES BUT DOESN'T VARY BASED ON
THE NUMBER OF DEPENDENTS. YOU
HAVE DECOUPLING. THESE THINGS
WOULD PROVIDE A SIMPLE TO CREDIT
SYSTEM. IF YOU'RE A LOW WAGE
WORKER WITH DEPENDENTS, YOU CAN
GET BOTH CREDITS NO PROBLEM, BUT
THEY WOULD BE OPERATING
INDEPENDENTLY. AND OF COURSE, WE
WOULD SHOULD MAKE SURE NO
HOUSEHOLD SHOULD BE, YOU KNOW
WORSE OFF. MAKING THESE SIMPLER
MAKES CALCULATOR CALCULATION AND
DISTRIBUTION EASIER AND
THEREFORE AGAIN MORE AMENABLE TO
SOME OF THESE OTHER PROPOSALS
THAT WE'VE BEEN TALKING ABOUT
TODAY. THIRD AND FINALLY WE
SHOULD EXPLORE ESTABLISHING
AUTOMATIC ELIGIBILITY FOR TAX
CREDITS BASED ON ELIGIBILITY AND
OTHER SOCIAL SERVICE PROGRAMS.
FOR YEARS, WE'VE BEEN TALKING
ABOUT AUTOMATIC OR SIMPLIFIED
FILING WITHOUT ALL KIND OF LIVES
IN THE TAX SYSTEM, AND IT
REQUIRES USING DATA FROM MAYBE
OTHER PROGRAMS TO PRE FILL OR
PRE POPULATE A PERSON'S TAX
RETURN TAX RETURN. BUT AS YOU'VE
HEARD TODAY, THERE ARE NUMEROUS
CHALLENGES WITH THAT, AND AT THE
SAME TIME WE HAVE SEEN MULTIPLE
INSTANCES AGAIN OVER THE LAST
COUPLE YEARS WHERE WE'VE JUST
PAID OUT MONEY TO PEOPLE BASED
ON INFORMATION THAT WE HAVE ON
SYSTEM, BUT WE'VE JUST DONE IT
AUTOMATICALLY. AND WE COULD
THINK ABOUT, UM YOU KNOW WHAT IF
WHAT IF WE TOOK THAT EXACT SAME
CONCEPT, AND WE APPLY THAT
PRINCIPLE TO ELIGIBILITY IN
OTHER SOCIAL PROGRAMS. SO FOR
EXAMPLE, WE COULD SAY THAT
ANYBODY WHO'S ELIGIBLE FOR CALL
WORKS. THESE ARE VERY LOW INCOME
HOUSEHOLDS ELIGIBLE FOR COW
WORKS OR CERTAIN MEDICAL CODES
IS JUST AUTOMATICALLY
CATEGORICALLY ELIGIBLE FOR THE
CALI, EITC AND OR THE YOUNG
CHILD TAX CREDIT. PEOPLE COULD
PROVIDE PAYMENT INFORMATION OR
OTHER CONSENT AS THEY ARE
REGISTERING AND CERTIFYING WITH
THOSE SOCIAL SERVICES PROGRAMS.
BUT THEN AFTER THAT, THEY WOULD
JUST GET THE CASH. UM AND YOU
KNOW THIS WOULD REALLY JUST BE
FLIPPING THIS WHOLE IDEA ON ITS
HEAD AND IS HONESTLY THOUGH,
PREMISED ON THE SAME IDEA THAT
MADE THE GOLDEN STATE STIMULUS
AND THE FEDERAL STIMULUS CHECKS
SO POWERFUL AND SO USEFUL PEOPLE
WANT AND NEED UNRESTRICTED CASH
AND USING THE TAX SYSTEM TO GET
TO THEM IS A REALLY GOOD EXAMPLE
OF EFFICIENT AND GOOD
GOVERNMENT. AND AS AN INTERIM
STEP, OR MAYBE A MORE MODEST
PROPOSAL, WE COULD ACTUALLY
REWORK THE CURRENT BUSINESS
PROCESS IN THESE SOCIAL SERVICES
AGENCIES SO THAT ANYONE SIGNING
UP FOR RE CERTIFYING FOR ANY
SOCIAL SERVICES PROGRAM WOULD BE
ASKED THE NECESSARY QUESTIONS TO
DETERMINE ELIGIBILITY FOR TAX
CREDITS AND THEN BE DIRECTED TO
A MAYBE A CBO RUN. VI ASIDE. I
KNOW WE'VE GOT THIS ISSUE ABOUT
EMPLOYEES AND WHO CAN DO WHAT
BUT IDEALLY, MAYBE IT COULD
HAPPEN RIGHT THERE ON SITE, BUT
OR ALTERNATIVELY, IT COULD BE
PEOPLE COULD BE DIRECTED TO
CBOS. AND WE ARE ACTUALLY, UM,
WORKING ON THIS IN IN CONCERT
WITH COUNTIES TO SEE IF WE MIGHT
BE ABLE TO PILOT SOMETHING LIKE
THIS NEXT YEAR. WITHOUT LIKE TO
CLOSE OUT. AND JUST THANK YOU
FOR TAKING YOUR TIME FOR YOUR
TIME TODAY AND YOUR ATTENTION
AND ALSO JUST NOTE THAT OVER THE
LAST FEW WEEKS, I'VE HAD A
CHANCE TO SPEND TIME WITH
COLLEAGUES FROM OTHER STATES AND
CAN REALLY CONFIDENTLY SAY THAT
PEOPLE LOOK TO CALIFORNIA AS A
REAL LEADER ON HAVING CREATED
EQUITABLE TARGETED, INCLUSIVE
TAX CREDITS, AND WE HAVE A LOT
TO BE PROUD OF HERE. THE
ADMINISTRATION IN THE
LEGISLATURE HAVE DONE SO MUCH
AND I KNOW WE ALL SHARE THE GOAL
OF MAKING SURE THAT EVERYONE WHO
IS ELIGIBLE FOR THESE INCREDIBLE
TAX CREDITS ACTUALLY GETS THEM.
I LOOK FOR IS WORKING WITH YOU.
IN THE FUTURE. THANK YOU VERY
MUCH, AND ACTUALLY, BECAUSE I'M
SURE EACH OF YOU ARE HAVE A
DIFFERENT SET OF IDEAS. IF YOU
DON'T MIND, WE'LL JUST DO
QUESTIONS AFTER YOUR
PRESENTATION. SO RIGHT NOW, IF
YOU DON'T NO PROBLEM, SO, UM,
THE I JUST THERE WERE A LOT OF
GOOD IDEAS THERE, AND I DO THINK
IT'S IMPORTANT TO LOOK AT YOU
KNOW WHAT'S BEEN SUCCESSFUL IN
OTHER STATES. UH YOU WERE
TALKING ABOUT I MISSED THE
NUMBER YOU WERE TALKING ABOUT
ONE STATE IS PRE POPULATING
RETURNS. UM AND WE HEARD FROM
FTP. THERE'S CONCERN ABOUT
CHANGING FAMILY STATUS AND
CHANGING INCOME. OBVIOUSLY YOU
COULD ASK QUESTIONS TO SAY HAS
YOUR INCOME OR WHAT IS YOUR
INCOME CHANGE TO OR HAS YOUR
FAMILY STATUS CHANGE? IS THAT
WHAT THE STATE YOU WERE TALKING
ABOUT DOES BECAUSE WHAT WAS IT
40% WHAT? WHAT WAS THE NUMBER?
IT WAS 46% OF THE PILOT IN
ILLINOIS OVER TWO YEARS. SO LIKE
ONE YEAR WAS LIKE 48% AND THE
OTHER WAS A LITTLE LOWER. IT'S A
IT'S A PRETTY FINITE GROUP OF
PEOPLE THAT THAT PILOT WAS
TARGETING. SO THAT WAS TARGETING
PEOPLE WHO HAD FEDERAL FILED
FEDERAL TAX RETURNS BUT HAD NOT
FILED FOR THEIR STATE. E I T C,
SO THEY GOT A DATA DUMP FROM THE
IRS IN LIKE FALL AND SAID, OKAY,
THIS GROUP OF PEOPLE, YOU KNOW,
HAVEN'T FILED FOR THEIR STATE,
THE EITC. UH BUT BASED ON WHAT
THEY FILED AT THE FEDERAL LEVEL
, WE CAN DETERMINE WHAT THEY'D
BE ELIGIBLE FOR THE STATE AND WE
ARE JUST GOING TO FILL OUT THEIR
THEIR THEIR TAX CLAIM, UM FOR
THE STATE CREDIT AND SEND IT TO
THEM AND WITH BY DOING THAT THEY
GOT YEAH. NEARLY 50% SUCCESS
RATE OF REFUNDING, SO IT'S A
SMALL GROUP OF PEOPLE, SO IT IS
STILL KIND OF WITHIN OUR CURRENT
SYSTEM. BUT IT IS SOMETHING THAT
WAS REALLY SUCCESSFUL. I KNOW
THERE. THAT HAS NOT BEEN THE
CASE IN CALIFORNIA, AND SO I
THINK IT MIGHT BE WORTH
EXPLORING. WHAT THEY DID
DIFFERENTLY. YOU KNOW HOW THAT
WORKS. IT'S BEEN IT'S BEEN
WRITTEN UP, BUT I THINK MAYBE
SOME, YOU KNOW SOME PIERRE
CONVERSATIONS AROUND WHAT WHAT
THEY ATTRIBUTE THEIR SUCCESS TO
WOULD BE REALLY HELPFUL WOULD BE
GREAT TO A SENATOR. CAVIAR. OH,
DO YOU HAVE ANY QUESTIONS OR
SHOULD ALRIGHT. OKAY UM WE'LL
PROBABLY MIGHT HAVE MORE
QUESTIONS AT THE END. BUT THANK
YOU VERY MUCH FOR THAT
PRESENTATION. OKAY. NEXT WE HAVE
CAROLINE DANIEL. I DON'T
DANIELSON. THANK YOU. THANK YOU
FOR JOINING US IS MY MIC ON
OKAY? AND YOU ARE THE POLICY
DIRECTOR OF THE PUBLIC POLICY
INSTITUTE. UH FEEL FREE TO START
WHEN YOU'RE READY. THANK YOU.
THANK YOU, MADAM CHAIR AND
MEMBERS OF THE COMMITTEE FOR
INVITING ME TO SPEAK WITH YOU
TODAY. UM MY NAME IS CAROLINE
DANIEL SEND HIM A POLICY
DIRECTOR AND SENIOR FELLOW AT
THE PUBLIC POLICY INSTITUTE OF
CALIFORNIA. I'D LIKE TO MAKE
THREE MAIN POINTS GROUNDED IN MY
EXPERIENCE AS A RESEARCHER,
STUDYING THE ROLE OF TAX CREDITS
AND HELPING FAMILIES MAKE ENDS
MEET, AND THROUGHOUT, I DRAW ON
DATA FROM THE CALIFORNIA POVERTY
MEASURE, OR CPM, WHICH IS A
COLLABORATION BETWEEN PPC AND
THE STANFORD CENTER ON POVERTY
AND INEQUALITY. AND I THINK
TODAY UM, MAYBE WHAT I CAN BE
ADDING AS A KIND OF POPULATION
PERSPECTIVE ON HOW THESE CREDITS
ARE HELPING FAMILIES IN
CALIFORNIA. RATHER THAN A
CASELOAD PERSPECTIVE OF WHO IS
ALREADY CLAIMING THE CREDIT. UM
SO NEXT SLIDE, PLEASE. MY FIRST
MAIN POINT IS THAT STATE TAX
CREDITS ASSIST A LARGE SHARE OF
LOW INCOME FAMILIES. ALREADY
THIS FIRST CHART SHOWS THE SHARE
OF FAMILIES RECEIVING ANY REFUND
FROM THE CAL KELLY EITC, OR WHY
CTC THE YOUNG CHILD TAX CREDIT.
UM AMONG FAMILIES WITH ANY CASH
EARNINGS. UM OR ANY EARNINGS
UNDER $30,000 CLOSE TO HALF TO
TWO THIRDS BENEFIT FROM THE CALI
EITC. THAT'S 44 TO 69% AND THESE
SHARES ARE ACTUALLY HIGHER,
ALTHOUGH NOT SHOWN ON THE SLIDE
, UM THAN THE FEDERALLY EITC,
WHICH IS JUST A QUARTER TO A
THIRD OF FAMILIES WITH CASH
INCOMES UNDER $50,000. PLEASE
NOTE THAT THROUGHOUT WE WILL
LOOK AT THE CREDITS FROM THE
PERSPECTIVE OF THE FAMILY RATHER
THAN ATTACKS FINALLY NOON IT
WHILE THESE CAN BE THE SAME,
THEY ARE NOT ALWAYS. FOR
EXAMPLE, COHABITING ADULTS OR
MULTI GENERAL ASIANS.
GENERATIONAL FAMILY IS LIKE A
LIKELY FILE TAXES AS SMALLER
UNITS. THIS ALSO MEANS THAT THE
PERCENTAGES SHOWN DO NOT
STRICTLY RELATE TO TAKE UP
RATES. NEXT SLIDE, PLEASE,
LOOKING AT THE SAME DATA BY
EDUCATIONAL ATTAINMENT. WE SEE A
CLEAR PATTERN. FOR EXAMPLE, 50%
OF FAMILIES WITH YOUNG CHILDREN
AGES 0 TO 5 AND LESS THAN A HIGH
SCHOOL DEGREE BENEFIT FROM THESE
TWO CREDITS, WHILE JUST 8% OF
FAMILIES WITH A COLLEGE DEGREE
DO THIS IS NOT SURPRISING, GIVEN
THE STRONG POSITIVE CORRELATION
BETWEEN HIGHER LEVELS OF
EDUCATION AND GREATER EARNINGS.
IT'S ALSO NOTABLE THAT
ASSISTANCE FROM THESE CREDITS IS
FAIRLY WIDESPREAD, EVEN IN
FAMILIES WITHOUT YOUNG CHILDREN
, AND EVEN THOUGH THE DESIGN OF
THE CREDITS PROVIDES MUCH HIGHER
DOLLAR AMOUNTS TO FAMILIES WITH
YOUNG CHILDREN. BUT IN OTHER
WORDS FOR ALL FAMILIES WITH LOW
LEVELS OF CASH INCOME, THE REACH
OF THE CALI EITC IS NOW QUITE
BROAD. HOWEVER THE FACTS THAT
I'VE SHOWED SO FAR PASSAGE
DIFFICULTIES AND OUTREACH
EFFORTS, WHICH HAS ALREADY BEEN
DISCUSSED BY OTHERS ON THE
PANELS INTENDED TO INCREASE
VIOLIN AND ULTIMATELY RECEIVING
THE CREDITS. SO, FOR EXAMPLE,
THOSE WITH VERY LOW INCOMES ARE
NOT REQUIRED TO FILE TAXES AND
THOSE WITH LESS FORMAL EDUCATION
MAY HAVE MORE DIFFICULTY AND
CONTENDING WITH THE COMPLEXITIES
OF FILING TAXES. A MORON TAKE UP
ISSUES IN A MOMENT. NEXT SLIDE,
PLEASE. MY SECOND OVERALL POINT
IS THAT THE KELLY HTC NY CTC
PLAY IMPORTANT ROLES IN
MITIGATING POVERTY, BUT MAINLY
FOR THOSE WHO LIVE WELL BELOW,
BUT IN LARGE PART FOR THOSE WHO
LIVE WELL BELOW THE POVERTY
LINE. CREDITS ARE TARGETED AS
YOU'VE HEARD TO THOSE WITH QUITE
LOW INCOMES, AND THIS CHART
SHOWS THOSE WITH CASH INCOMES UP
TO $10,000 FROM 10,000 TO
$20,000 AND $20,000 AND ABOVE.
FOCUSING ON THE FAMILIES WITH
THESE VERY LOW LEVELS OF INCOME
RATHER THAN THOSE REALLY CLOSE
TO THE POVERTY LINE ALLOWS US TO
SHOW THE EFFECTS OF THESE
PROGRAMS MORE FULLY. THE CPM
POVERTY LINE ON AVERAGES NEARLY
$37,000 FOR A FAMILY OF FOUR.
AND SO THE SHERIFF, PEOPLE MOVED
OUT OF POVERTY BY THESE CREDITS
IS RELATIVELY SMALL COMPARED TO
SOME OTHER SAFETY NET PROGRAMS
THAT THE STATE HAS. BUT IF WE
ZOOM AND FEDERAL GOVERNMENT, BUT
IF WE ZOOM IN ON THE PERCENTAGE
BOOSTER RESOURCES, INCLUDING
FAMILY RESOURCES FROM BOTH
EARNINGS AND SAFETY NET
PROGRAMS. FOR FAMILIES WITH
THESE VERY LOW LEVELS OF CASH
INCOMES, WHO CLAIMED THE CREDITS
WE SEE A SUBSTANTIAL BOOST TO
FAM ANNUAL FAMILY RESOURCES AT
THE LOWEST LEVEL, THIS
INCREASING AMOUNTS TO 7% OVERALL
AND 41% FOR FAMILIES WITH ANY
CHILDREN AGES 0 TO 5. A KEY
TAKEAWAY HERE IS THAT THE
POTENTIAL FOR STATE CREDITS TO
SUBSTANTIALLY ASSIST THOSE WITH
THE LOWEST CASH INCOMES. IT'S
ALSO WORTH RECALLING, AS OTHERS
HAVE NOTED THE LARGE RESEARCH
LITERATURE SHOWING THAT THE
FEDERALLY EITC HAS DOWNSTREAM
POSITIVE CONSEQUENCES BEYOND
BOOSTING RESOURCES AMONG LOW AND
MODERATE INCOME FAMILIES,
ALTHOUGH WE DO NOT AS OF YET
HAVE THE SAME BODY OF LITERATURE
ABOUT THE MORE TARGETED KELLY I
T C SO FAR, WE'VE SEEN THAT THE
CREDITS ARE COMMON AND CAN BE AN
IMPORTANT BOOST TO FAMILY
RESOURCES, PARTICULARLY FIT WITH
VAMP FOR FAMILIES WITH LOW CASH,
INCOMES AND LESS EDUCATION. BUT
ACCORDING TO RECENT RESEARCH A
QUARTER TO A HALF OF THE LOWEST
INCOME ELIGIBLE FAMILIES ARE
MISSING OUT ON THE CREDITS. NEXT
SLIDE, PLEASE. MY THIRD OVERALL
POINT IS DIRECTED TOWARDS TAKE
UP. AND I THINK, AS OTHERS HAVE
ALSO NOTED, THERE'S AN IMPORTANT
DISTINCTION BETWEEN THOSE WHO DO
FILE CREDIT TAXES BUT MISSED THE
CREDITS AND THOSE WHO DID NOT.
FILERS HAVE ALREADY TAKEN THAT
FIRST NECESSARY STEP AND AT
LEAST FEDERAL EFFORTS TO INFORM
THOSE WHO MISSED THE CREDIT HAVE
BEEN SHOWN TO BE EFFECTIVE FOR
FILERS, HOWEVER, UM, SOME OF THE
CALIFORNIA POLICY LAB RESEARCH
THAT'S ALREADY BEEN NOTED,
INDICATES THAT TWO THIRDS OF
THOSE WHO DO NOT BENEFIT FROM
THE KITTY KELLEY OTC HAVE NOT
FILED TAXES. SO REACHING, UM,
NONVIOLENCE IS CRITICAL TO
INCREASING THE REACH OF THE CALI
80. C N Y. C T. C AND THERE'S
TWO PARTICULAR CHALLENGES. UM
AGAIN, AS OTHERS HAVE NOTED,
HAVING INCOMES BELOW THE LEVEL
REQUIRED TO FILE AND SECOND THE
EXPANSION TO ITIN FILERS. THOSE
WHO LACK A SOCIAL SECURITY
NUMBER WHERE THE LEVEL OF
MISTRUST OF GOVERNMENT AND
MISUNDERSTANDING IS LIKELY
HIGHER. FOR EXAMPLE, RESEARCH
FROM OTHER SAFETY NET PROGRAMS
HAS SHOWN A CHILLING EFFECT OF
THE PREVIOUS FEDERAL
ADMINISTRATION'S PROPOSED
CHANGES TO THE PUBLIC CHARGE
ROLE, UM, WHICH IS NO LONGER
CURRENTLY IN EFFECT, BUT IT DID
HAVE AN EFFECT ON, UM MIXED
STATUS AND UNDER UNDOCUMENTED
IMMIGRANT FAMILY TAKE UP OF
OTHER KINDS OF SOCIAL SERVICES
PROGRAMS. UNFORTUNATELY RECENT
CALIFORNIA RESEARCH SHOWS THAT
LOW TOUCH NUDGES ARE NOT ENOUGH
TO PROMPT NONVIOLENCE TO FILE SO
THIS IS THE CALIFORNIA POLICY
LAW. 2021 2020 REPORT WITH
EXPERIMENTAL EVIDENCE SHOWING
THAT LOW TOUCH TEXT MESSAGES AND
MAILERS EVEN FROM TRUSTED
GOVERNMENT SOURCES ARE JUST NOT
ENOUGH TO INCREASE TAKE UP.
HOWEVER IT'S NOT CLEAR THAT
KNOWING ABOUT THE EITC
SPECIFICALLY IS NECESSARY RATHER
APPROACHES THAT SIMPLY GET
PEOPLE TO FILE WILL BE A BIG
ADVANCE IN MAKING THE CREDITS
UNIVERSITY ACCESSIBLE. NEXT
SLIDE, PLEASE. KEY STRATEGIES TO
INCREASE TAX CREDIT TAKE UP
INCLUDE CONTINUING TO BUILD OUR
UNDERSTANDING OF WHO DOES AND
DOES NOT FILE AND SOME OF THE
COMMENTS BY THE PREVIOUS PANEL
WHERE, UM, INSTRUCTIVE HERE AND
ENCOURAGING THIS IS CRITICAL TO
DEVELOPING WELL TARGETED
STRATEGIES. FOR EXAMPLE, AMONG
THOSE WHO DO FILE CHARACTERIZES
IN DIFFERENCES BETWEEN THOSE WHO
ALWAYS FILE AND THOSE WHO
SOMETIMES FILE ACROSS THE SPAN
OF YEARS CAN HELP FILL THE NINE
FINALLY GAP IN ANY SINGLE YEAR.
AND RESEARCH CAN ALSO HELP
PINPOINT CHARACTERISTICS OF
FILERS WHO, THOUGH ELIGIBLE ARE
LIKE LESS LIKELY TO RECEIVE
STATE TAX CREDITS. AND FINALLY
BUILDING ON RESEARCH BY THE
CALIFORNIA POLICY LAB. AND
HEARING FROM COMMENTS FROM THE
DEPARTMENT LINKING DATA TO OTHER
PROGRAMS LIKE HELL FRESH OR
INDEED, WICK CAN HELP
POLICYMAKERS DEVELOP EFFECTIVE
STRATEGIES TO CONVERT
NONVIOLENCE TO FILERS. ALSO
EXPANDING A NETWORK OF TRUSTED
MESSENGERS WHO CAN OFFER HIGHER
TOUCH NUDGES TO FILE IS AN
APPROACH THAT HOLDS PROMISE FOR
FAMILIES WITH CHILDREN. THIS
COULD INCLUDE TRUSTED PROGRAMS
IN PLACES WITH STATEWIDE REACH,
BUT LOCAL FOCUS SUCH AS WICK AND
PUBLIC SCHOOLS, HOWEVER SIMPLE
NOTIFICATIONS ABOUT POTENTIAL
ELIGIBILITY ARE NOT LIKELY TO
MOVE THE NEEDLE. IT'S ALSO
IMPORTANT TO RECOGNIZE THAT, AT
LEAST FOR NOW PAID PREPARERS DO
PLAY A LARGE ROLE. SO WHILE
EXPANDING OPPORTUNITIES FOR IN
PERSON AND ONLINE FREE FILING
ARE IMPORTANT, EXAMINING WHETHER
THERE ARE OPPORTUNITIES TO
LEVERAGE, THE ROLE OF PAID
PREPARERS IS WORTH CONSIDERATION
. RESEARCH HAS SHOWN THAT THE
AVAILABILITY OF NEARBY TAX PREP
SERVICES AND TAPS TAX PRACTICE
UP SOFTWARE, SO PAID SERVICES
DID INCREASE THE FEDERALLY EITC
TAKE UP. UM FINALLY, EVEN SMALL
STEPS, EVEN SMALL ONES TOWARDS
AUTOMATIC FILING COULD HELP
OVERCOME THE KEY HURDLE TO
CLAIMING CALIFORNIA TAX CREDITS
AS WE START WITH FEDERAL
STIMULUS PAYMENTS IN 2020 AND
2021, ALONG WITH THE 2021
ADVANCED CHILD TAX CREDIT, THERE
WILL STILL BE CHALLENGES IN
REACHING ALL ELIGIBLE FAMILIES
WITH THIS APPROACH. NONETHELESS
AUTOMATIC FILING ADDRESSES
SECURE KEY BARRIER TO CLAIMING
CREDITS. SO IN CLOSING OUR WORK
ON THE CALIFORNIA POVERTY
MEASURE, UM IN IN OUR WORK ON
THE CALIFORNIA POVERTY MEASURE,
WE CONTINUE TAX CONSIDER TAX
CREDITS IN ESSENTIAL COMPONENT
RESOURCES THAT HELP FAMILIES
MAKE ENDS MEET. SOME GOOD NEWS
IS THAT IN COMPARISON TO OTHER
KEY STATES SAFETY NET PROGRAMS,
INCLUDING CAL FRASCHILLA WORKS
OVERALL TAKE UP FOR TAX CREDITS
IS COMPARABLE OR HIGHER. BUT
INCREASING THE TAKE UP FOR THE
CALI. HTC WOULD MAKE A BIG
DIFFERENCE IN THE LIVES OF
CALIFORNIANS IN A SPECIAL NEED,
EVEN THOUGH DOING SO WILL
REQUIRE SIGNIFICANT THANK YOU
FOR THE OPPORTUNITY TO SPEAK
TODAY. ALRIGHT. THANK YOU VERY
MUCH. SENATOR CABALLERO. DO YOU
HAVE ANY QUESTIONS OR SHOULD WE
MOVE ON TO THE NEXT SPEAKER? OH,
OKAY, I THOUGHT, SHE SAID. ALL
RIGHT. WE WILL MOVE ON TO OUR
NEXT PANELIST, THEN, UM MR
CHRISTOPHER SANCHEZ, POLICY
ADVOCATE WITH THE WESTERN CENTER
ON LAW AND POVERTY. WHENEVER
YOU'RE READY. GOOD AFTERNOON,
MADAM CHAIR AND MEMBERS
CHRISTOPHER SANCHEZ POLICY
HAVING AT THE WESTERN CENTER ON
LAND POVERTY, AS IT'S ALREADY
BEEN STATED THAT CALLIE TC IS
CRITICAL CRITICAL TO ASSIST
FAMILIES ARE EXPERIENCING
POVERY, INCLUDING IMMIGRANT
COMMUNITIES, WHICH WILL BE
FOCUSING MY COMMENTS ON TODAY.
AS WE ALL ACKNOWLEDGE MORE CAN
BE DONE OUTREACH ENSURE THAT ALL
CALIFORNIA'S ARE ELIGIBLE WHO
ARE ELIGIBLE FOR THE CALI? OTC
CAN BENEFIT FROM IT, ESPECIALLY
WHEN IT COMES TO IMMIGRANT
COMMUNITIES. OVER THE YEARS,
CALIFORNIA HAS BUILT AN
INFRASTRUCTURE THAT IS MORE
SUPPORTIVE AND INCLUSIVE EVENT.
IMMIGRANT COMMUNITIES, FOR
EXAMPLE, WE PROVIDE DRIVER'S
LICENSE, ACCESS AND PATHWAYS TO
EDUCATION. OBTAINING
PROFESSIONAL LICENSES ARE LABOR
LAWS, AND MUCH MORE CALIFORNIA
HAS BUILT TO ENSURE THAT WEIGHS
THESE CALIFORNIANS CAN ACCESS
RESOURCES AND WE MUST BUILD UPON
THIS INFRASTRUCTURE. AND LEARN
FROM THE LESSONS IN THE
IMPLEMENTATION OF THIS TO ENSURE
THAT WE COULD, UH, INCREASED
PARTICIPATION OF THE KELLY A. T.
C. FOR EXAMPLE, DURING THE 2020
CENSUS, WE KNEW IT WAS GOING TO
BE VERY DIFFICULT TO COUNT
IMMIGRANT COMMUNITIES BECAUSE OF
THE CLIMATE, HOWEVER, THE STATE
FOUND VARIANT OF INNOVATIVE WAYS
TO ENSURE THAT IMMIGRANT
COMMUNITIES WERE OUTREACH TO AND
EDUCATED AND EVEN CREATED
SPECIFIC STRATEGIES FOR THOSE
CONSIDERED TO BE HARD TO REACH.
COMMUNITIES RECOGNIZE THE CENSUS
IS MUCH DIFFERENT THAN FILING
TAXES. WE BELIEVE THE STATE MUST
TREAT IT. SIMILARLY BY TRULY
INSTITUTIONALIZING THE CULTURE
OF HOW WE TALK ABOUT TAXES AND
TAX CREDITS WITH IMMIGRANT
COMMUNITIES. WE BELIEVE IN MANY
CASES, WITH THE STATE'S CURRENT
INFRASTRUCTURE AVAILABLE AND
WITH TRUSTED COMMUNITY PARTNERS
THAT WE CAN CREATE A CULTURE BY
CREATING THAT NORMALIZES CALAIS
TC AND HAVING MULTIPLE ACCESS
POINTS TO THESE COMMUNITIES. UM,
ADDITIONALLY, UH WE WOULD
ENCOURAGE THE EDUCATIONAL
EFFORTS INCLUDE INFORMATION
ABOUT ACCESSING AND OBTAINING AN
ITEM AS IT'S BEEN STATED EARLIER
. HAVING THE I 10 HAS MULTIPLE
BENEFITS, IN ADDITION TO FINALLY
TEXT, TAX CREDITS AND TAX IS
HAVING AN I 10 OPENS DOORS TO
ACCESSING BANK ACCOUNTS FOR
CERTAIN BANKS. ACCESSING
PERMITS. IF YOU'RE IF YOU WANT
TO BECOME A STREET VENDOR IN
CERTAIN CITIES AND COUNTIES
STATE LICENSES SOON I D S AND SO
MUCH MORE, ADDING, THIS
COMPONENT IS CRITICAL MOVING
FORWARD SO WE CAN INCREASE THE
AMOUNT OF TENS OBTAINING
CALIFORNIA BUT ALSO DEBUNKING
THE MISSING RUMORS THAT MANY MAY
REMAIN IN THE IMMIGRANT
COMMUNITIES ABOUT PROVIDING THE
INFORMATION TO THE FEDERAL
GOVERNMENT AND OTHER ENTITIES IN
GENERAL. AH UNFORTUNATELY,
BECAUSE OF THE RHETORIC THAT HAS
COME OUT AND AS PREVIOUSLY
STATED BY THE FEDERAL GOVERNMENT
AND THE PREVIOUS ADMINISTRATION
, THERE'S A LOT OF WORK THAT WE
STILL HAVE TO REDO. UM AS WE
KNOW THAT WE WILL CONTINUE TO
SEE IMMIGRANT COMMUNITIES WHO
ARE FEARFUL OF PROVIDING
INFORMATION TO ANY GOVERNMENT
ENTITY, AS MENTIONED BY PREVIOUS
PANELIST THAT THE THAT EVEN WHEN
THE STATE INVESTS INCREASE AND
EVEN WHEN THE STATE INVESTED
INCREASING EDUCATION ABOUT
ATTENDS CALIFORNIA MAY CONTINUE
TO FACE DELAYS. UM, OBTAINING,
UM, OBTAINING NIGHT AND DO THE
BACKLOGS OF THE I R S, UH,
TYPICALLY IT IS STATED THAT IT
SHOULD BE SEVEN WEEKS, BUT WE
HAVE HEARD THAT IT WAS MUCH
BEYOND THAT. AND IT IS FOR THESE
REASONS THAT WE SUGGEST THAT
CALIFORNIA SHOULD BE A BIT MORE
FLEXIBLE WITH 10 FIREFIGHTERS AS
THEY MAY APPLY IN THEORY IN A
TIMELY MATTER, HOWEVER, MISSED
DEADLINES TO FILE TAXES, UH, TO
RECEIVE LOCALITY SEE? BECAUSE
THEY RECEIVED THEIR I10 IN A
MUCH LATER DATE THAN EXPECTED.
AH THANK YOU, MADAM CHAIR THAT
CONCLUDES MY REMARKS FOR TODAY.
SO COULD YOU. UM IS THERE AN
ADVANTAGE TO A JUST A
CALIFORNIA, CALIFORNIA ITIN? WE
THINK WE WOULD WANT TO EXPLORE
THAT ISSUE. UM, WITH CAUTION, I
THINK IN GENERAL, IMMIGRANT
RIGHTS ORGANIZATIONS AND
PRACTITIONERS ALWAYS ENCOURAGE
IMMIGRANTS TO FILE TAXES. AND SO
WHEN IT COMES TO ADJUSTING YOUR
STATUS, AND THAT'S THE THAT'S
THE BENEFIT OF IT, RIGHT. WE
WANT YOU TO FILE YOUR TAXES OR
WHEN YOU DO ADJUST YOUR STATUS
IF THAT WAS TO EVER BE AVAILABLE
TO YOU. AH THAT YOU KNOW THE
PERSON REVIEWING YOUR
IMMIGRATION APPLICATION. WAS
THERE ALL YOU DO FILE TAXES, AND
SO WE WOULD WANT THEM TO FILE
THE ONE, YOU KNOW, HAVE THE ONE
I 10, SO THEY'RE FINALLY BOTH
TAXES, FEDERAL AND STATE AND
THERE'S NO CONFUSION IN THE IN
THE FEDERAL IMMIGRATION PROCESS
. UM SO, HOWEVER, THERE MAY BE
OTHER BENEFITS, BUT I THINK WE
SHOULD JUST PROCEED WITH
CAUTION. AND I, I, UM I AGREE
THAT GOING MADE YOUR COMMENT ON
WHAT A GOOD JOB THEY DID WITH
THE CENSUS. I KNOW IN OUR
COMMUNITY AND IN VENTURA COUNTY
, UH, IN IN OXNARD, THAT WAS ONE
OF THE MOST DIFFICULT TO COUNT
AREAS. BUT WHEN YOU WORK WITH
THESE THESE TRUSTED NGOS, UM IT
ENDED UP BEING, UH, AT THE
HIGHEST LEVEL IN THE ONE OF THE
HIGHEST LEVELS IN THE COUNTRY
FOR, UM OR COUNTED, FOLKS, SO,
UH, IF WE WERE TO USE A LOT OF
THOSE GROUPS, I THINK TO REACH
OUT AND INFORM THEM ABOUT E I T
C KELLY. I T C I THINK IT WOULD
BE, UM, THAT WOULD BE A REALLY
GOOD CONNECTION. SO HOW DO YOU
EXPAND THAT? UM, THAT RESOURCE
THAT'S THAT'S ALREADY SOMEWHAT
ESTABLISHED FROM THE LAST IN THE
LAST COUPLE OF YEARS, AND
FORTUNATELY I THINK, YOU KNOW,
UM, WE HAD IN IN, UH, FOR THE
2020 CENSUS WE HAD, YOU KNOW, A
COUPLE OF YEARS OF CONVERSATIONS
ON WHAT IS IT GONNA LOOK LIKE?
AND I THINK 11 BIG THING THAT I
WE CAN TAKE AWAY IS THAT, UH,
IMMIGRANT COMMUNITIES LOVE TO BE
TALKED TO AND TOUCHED AND WE
KNOW THIS. THE FIVE POINT REACH
OUT IS A REAL CRITICAL FOR THIS
COMMUNITY. AND SO I THINK THAT'S
WHAT MY COMMENTS WERE REALLY
TRYING TO FOCUS ON IS IF WE
REALLY, TRULY INSTITUTIONALIZED
TALKING ABOUT KELLY KELLY. I T C
AND I 10 NUMBER FOR THESE
COMMUNITIES AND THE MULTIPLE
ACCESS POINTS THAT WE HAVE WITH
THEM. IT WOULD GO GO FAR BECAUSE
THEY'LL CONTINUE TO HEAR IT. AND
IT'S NORMALIZED AS AS FILERS WHO
WHO, UM, HAVE A SOCIAL SECURITY
NUMBER ALREADY HAVE THAT
NORMALIZED FOR THEM BECAUSE IT
WAS A BIG INFRASTRUCTURE BUILT
AND IT WOULD BE UNFORTUNATE. NOT
TO UTILIZE IT IF IT WOULD MAKE
SENSE. SO THANK YOU FOR THAT,
SENATOR. DID I SEE ANY QUESTIONS
OVER. I ACTUALLY DON'T HAVE A
QUESTION. I JUST THINK THAT THE
INFORMATION FROM THIS PANEL HAS
BEEN VERY HELPFUL. AND I THINK
IF YOU PUT TOGETHER THE
INFORMATION FROM F T B, WHICH IS
THEY'RE STRUGGLING AT TRYING TO
RE CRAFTED A SYSTEM THAT WAS
BASICALLY TO TAKE IN MONEY. UM
NOT TO DISTRIBUTE IT. UM, WE
MIGHT NEED TO LOOK AT THIS A
LITTLE BIT DIFFERENTLY. SO I'M
INTRIGUED WITH WITH SOME OF THE
ISSUES THAT HAVE BEEN RAISED,
AND, UM. IT'S A BIT MUCH FOR A
SHORT HEARING LIKE THIS TO
REALLY GET INTO TOO MUCH DETAIL.
BUT I WANT TO THANK THIS PANEL
BECAUSE I THINK IT'S BEEN VERY,
VERY HELPFUL. AND THE I 10 IS 11
PART OF THE OF THE PROGRAM WHEN
I LOOK AT, UM I HADN'T REALIZED
QUITE SO SPECIFICALLY THE
DIFFERENT UM, FILERS THAT WERE
ADDED AS WE EXPANDED THE PROGRAM
. UM WE'VE GOT TO MAKE SURE THAT
WE'RE DID WHERE WE HAVE A TOUCH
POINT FOR EVERYONE RIGHT WHEN
YOU'RE TALKING ABOUT SMALL
BUSINESSES, THAT'S DIFFERENT
THAN WHEN YOU'RE TALKING WITH
ABOUT A 10, AND AS YOU START
GETTING INTO, UM PEOPLE OVER THE
AGE OF 65, THEY AREN'T GOING TO
HAVE THE KIND OF INFORMATION IN
TERMS OF INCOME OTHER THAN, UM,
UM WELL, THE 10 90 NINES, RIGHT?
OR WHATEVER THE WHATEVER THE
NUMBER IS, UM, UNTIL WE NEED TO
WHATEVER WE CRAFT NEEDS TO WORK
FOR ALL OF THOSE DIFFERENT
CATEGORIES, AND I THINK THAT
THERE'S A WAY TO DO THIS. WE
JUST GOT TO FIGURE OUT A
DIFFERENT WAY AND I SO I
APPRECIATE THE PANEL. AND WE
HAVE ONE MORE SPEAKER. EVEN SO,
UM, AND I THINK THIS IS A IT'S A
REALLY GOOD ISSUE FOR BOTH OF US
FOR YOU TO WORK ON IN THE SENATE
AND FOR US TO WORK ON IN THE
ASSEMBLY BECAUSE IT IS A REALLY
IMPORTANT. UM SO OUR FINAL
PANELIST TODAY WILL BE AMY
EVERITT, EXECUTIVE DIRECTOR OF
GOLDEN STATE OPPORTUNITY. MAY
BEGIN WHENEVER YOU'RE READY,
THANK YOU. AND THANK YOU. THANK
YOU, CHAIR IRWIN AND EVERYONE ON
THE PANEL. IT'S SO GOOD TO SEE
SO MANY CHAMPIONS OF THE CALI
EITC IN ONE PLACE. I AM AMY
EVERETTE. I'M THE PRESIDENT OF
GOLDEN STATE OPPORTUNITY. WE ARE
A STATEWIDE NONPROFIT THAT WORKS
TO END POVERTY BY CONNECTING LOW
IN COMMUNITY BELOW INCOME
COMMUNITIES WITH THE RESOURCES
TO BUILD FINANCIAL SECURITY. WE
ARE ALSO ONE OF THE FEW SELECT
ORGANIZATIONS THAT HAS BEEN
CHOSEN BY THE STATE TO IMPLEMENT
THE CALI EITC EDUCATION AND
OUTREACH. ITIN APPLICATION AND
FREE TAX PREP GRANTS. WE REACH
INTO 58 DIFFERENT COUNTIES, AND
WE ARE GROWING OUR CAPACITY AND
EACH OF THEM WE HAVE A PROGRAM
CALLED COMMUNITY CONNECT. AND
THAT IS A NETWORK OF THESE
COMMUNITY BASED ORGANIZATIONS
THAT YOU REFERENCED ABOUT THE
CENSUS FOR THE TRUSTED
MESSENGERS IN THESE COMMUNITIES
WHO ARE DOING THIS WORK. SO
TODAY WE'RE HERE TO TALK ABOUT
HOW TO INCREASE THE UTILIZATION
OF THE CALI I D. C AND THE OTHER
CREDIT YOU'RE THE NUMBER ONE
CHALLENGE. NOT FROM THE STATE
PERSPECTIVE, BUT FROM THE PERSON
ON THE STREET TO GET IT. IT'S
REALLY INTENSIVE, HARD WORK TO
GET LOW INCOME CALIFORNIANS TO
FILE THEIR TAXES. LET ME TELL
YOU THE STORY OF SOMEBODY FOR
PRIVACY. THANKS. I'LL CALL HIM
ROBERT. HE WENT INTO THE NEW
ECONOMICS FOR WOMEN, WHICH IS
ONE OF OUR CBO'S BASED IN VAN
NUYS. ROBERT IS A SINGLE DAD,
YOU HAVE CHILDREN WHO HAVE
SOCIAL SECURITY NUMBERS. HE WENT
INTO NEW ECONOMICS FOR WOMEN TO
GET THE VILE HIS TAXES BECAUSE
HE HAD BEEN HE HAD LEARNED ABOUT
IT. WHAT THEY HAD TO DO WITH NOT
JUST SIT DOWN FILE HIS TAXES.
THEY HAD TO WORK WITH HIS
EMPLOYER SO HE COULD GET THE 10
99 SO HE COULD APPLY FOR THE
ITEM. SO THEN THEY HELPED HIM
WITH HIS ITEMS. ONCE HE HAD HIS
10, 99 AND HIS ITEMS, THEN THEY
WERE ABLE TO HELP HIM FILE
TAXES. AND FOR SOMEBODY WHO IS
MAKING UNDER $30,000 A YEAR IS
$14,000 REFUND, INCLUDING THE
STIMULUS WITH A LIFE CHANGING
BUT I USE THIS EXAMPLE TO
ILLUSTRATE THAT IT ISN'T JUST
FILING TAXES FOR THE LOWEST
INCOME AND THE MOST VULNERABLE
WORKERS IN CALIFORNIA. IT IS A
WRAPAROUND PROCESS THAT NEEDS TO
HAPPEN. THERE ARE DIFFERENT
STEPS AND THESE TRUSTED
ORGANIZATIONS NEED TO GO ABOVE
AND BEYOND JUST FILING TAXES IN
ORDER TO HELP THE FOLKS TAKE UP
AND RECEIVED THE TAX CREDITS. SO
THE POINT IS, IT TAKES AT LEAST
THREE MAYBE MORE MEETINGS TO GO
ABOVE AND BEYOND. TO HELP THESE
MOST ISOLATED WORKERS GET THEIR
CREDIT. SO WHAT CAN WE DO? I
HAVE THREE RECOMMENDATIONS FOR
YOUR CONSIDERATION, AND I KNOW
ON THE LEFT SPEAKER, BUT I'M
GOING TO TAKE A COUPLE EXTRA
MINUTES AND TALK A LITTLE BIT
ABOUT WHAT IT'S LIKE TO BE A
GRANTEE OF THE CALI EITC
OUTREACH ITIN APPLICATION FTP
GRANTS UM, SO FIRST AND IT'S
SOMETHING YOU'RE ALREADY DOING.
IT IS. I'M GOING TO ENCOURAGE
YOU TO CONTINUE THE CALI EITC
EDUCATION AND OUTREACH GRANT. UM
THEY ARE, AS AS, UH, THE F T B
NOTED. LAST YEAR, THEY BEGAN A
NEW PROGRAM, SO IT WAS EDUCATION
AND OUTREACH AND FTP A FREE TAX
PREP ASSISTANCE. IN 2021, THE
FUNDING FOR FREE TAX PREP
DISAPPEARED, IT WAS ZEROED OUT.
IT CAME BACK IN 2021. SO WHEN
WE'RE TALKING ABOUT VITAL
SERVICESAND THE FREE TAX PREP
AND TRYING TO GET TO FILL THAT
VOID OF THE VOLUNTEERS WE
INTERRUPTED THE FUNDING FOR
THAT, AND IT WAS STILL FEELING
THE EFFECTS OF IT THAT AND
OBVIOUSLY COVID IN THE PANDEMIC.
UM BUT THIS MONEY IS THE
GATEWAY. FOR MANY PEOPLE TO
LEARN ABOUT A PROCESS THAT
BRINGS THEM TO THESE TRUSTED
MESSENGERS. THESE COMMUNITY
BASED ORGANIZATIONS WHERE THEY
START TO GET THE WRAPAROUND
SERVICES THAT THEY NEED TO PUT
THEM ON THE ROAD TO FINANCIAL
SECURITY, AND IT STARTS WITH
KNOWING ABOUT THE EC. AND IT
GETS THEM ON THE ROAD TO GETTING
THEIR ITUNES OR PUTTING THEIR
PAPERS IN ORDER FOR SO MANY
OTHER THINGS. UM AND I WILL SAY
THIS ABOUT THE MONEY IS THAT WE
CREATE SO MANY FLYERS. IT'S TRUE
. WE DO THEM IN 13 DIFFERENT
LANGUAGES. WE RUN A WEBSITE IN
THREE FULL LANGUAGES. ENGLISH,
SPANISH AND CHINESE. ALL OF THEM
GET HUNDREDS OF 27,500 HITS THE
DAY AND ON APRIL 15TH. I GOT
100,000 HITS. SO PEOPLE ARE
EAGER FOR THE INFORMATION. BUT
THAT IS NOT THE EXTENT OF THE
PROGRAM. WHEN WE SAY WE TEXT
FOLKS, WE'RE NOT JUST SENDING
OUT A BLANKET TEXT. IT IS PURE
TAPIR. THERE WAS ALWAYS SOMEBODY
ON THE OTHER END THAT WHEN WE
GET QUESTIONS FACT WE'RE
ENGAGING WITH PEOPLE. WHAT I
HAVE FOUND SOMETHING THAT WE
WERE TALKING ABOUT DATA. I'VE
BEEN THE PRESIDENT OF GS OVER
THREE YEARS AND DATA IS A BANE
OF MY EXISTENCE. UM BECAUSE OF
THE PRIVACY RULES, UM, WITH THE
I R S AND THE F T. B SO WE'RE
ACTUALLY LAUNCHING OUR OWN
DATABASE WITH ALL OF OUR
COMMUNITY BASED ORGANIZATIONS TO
START TO GATHER THE INFORMATION.
WHO ARE YOU SEEING? HOW DO WE
TRACK THEM? AND HOW DO WE ENGAGE
WITH THEM THROUGHOUT THE YEAR ON
DIFFERENT PROGRAMS, SO NOT JUST
ONE UM, AND WHERE WE PILOTED AT
THIS YEAR, WE'RE GOING TO EXPAND
IT THIS COMING YEAR AND WE'RE
HOPING TO MAKE IT A PLACE WHERE
WE CAN SHARE DATA THAT WE CAN DO
BETTER ABOUT REACHING AND
MAINTAINING CONNECTION WITH
PEOPLE WHO NEED IT. UM SO
ANOTHER SHOW. I'M HAPPY TO TALK
MORE ABOUT WHAT THESE GRANTS
FUND AND I WANT TO BE CLEAR THAT
EDUCATION AND OUTREACH ITEM
APPLICATION PROFIT, WHICH HAS
ALREADY BEEN NOTED AS
COMPLICATED AND THE FREE TEXT
PREP AND THE VITAL SERVICES,
THEIR DISTINCT AND COMPLEMENTARY
MY SECOND RECOMMENDATION FOR
YOUR CONSIDERATION, IF ACTUALLY
INCREASING THE KELLY KELLY EITC
INCOME LIMIT TO 75,000 FROM
30,000. I'M GOING TO GET A
LITTLE KATIE PORTER ON YOU FOR A
SECOND. UH IF YOU WERE WORKING A
FULL TIME JOB IN CALIFORNIA AT
THE MINIMUM WAGE OF $15 YOU MAKE
$31,200. YOU KNOW LONGER QUALIFY
FOR THE KELLY I T C AND WHAT WE
HAVE SEEN IN HEARTBREAKING CASES
OVER THE LAST TWO YEARS. IS
PEOPLE SO CLOSE. TO IT, AND
UNFORTUNATELY, HONESTLY, THE
KELLY EITC HAS BECOME A CASH
INFUSION THAT A LOT OF FAMILIES
WHO ALREADY GET IT RELY UPON BUT
WHEN THEY START DOING BETTER,
THEY LOSE THAT $100 THAT $1000
AT $14,000 THAT ROBERT GOT THE
RAISING THE INCOME THRESHOLD IS
GOING TO ACTUALLY HELP MORE
PEOPLE. TAKE ADVANTAGE OF IT AND
ENGAGE WITH THE PROGRAM. LASTLY
AND I WAS REALLY HAPPY TO HEAR
THAT. I THINK IT SOUNDS LIKE IT
HAS A LOT OF WIND IN THE SAILS
IS INCREASING THE MINIMUM CREDIT
TO $250. AS JEAN HARRIMAN
POINTED OUT THE OPPORTUNITY COST
FOR A WORKER TO DECIDE. ARE THEY
GOING TO TAKE TIME OFF OF THEIR
JOB OR JOBS? ARE THEY GOING TO
TAKE TIME AWAY FROM THE FAMILY?
THEY DON'T SEE THAT MUCH BECAUSE
OF THE JOBS THEY HOLD. IS IT
WORTH IT FOR THEM TO APPLY FOR
WHAT IS COMPLICATED LOOK, BOTH
OF MY PARENTS WERE ACCOUNTANTS.
I WAS BORN ON APRIL 15TH AND I
STILL FIND TAXES KIND OF
OVERWHELMING. UM SO THE POINT IS
WHAT WILL MAKE IT WORTH THEIR
WHILE? WHAT IS COMPELLING, AND
AS WE'VE NOTED HERE, THE AVERAGE
RETURN AMOUNT IS UNDER $200. AND
IN FACT FOR A FAMILY OR TO ITS
$163 IS THE OPPORTUNITY COST
WORTH IT. AND A LOT OF PEOPLE I
THINK ARE SAYING NO. SO IF WE
HAVE A MINIMUM TAX CREDIT OF
$250 NOT ONLY WILL THAT MAYBE
PAY FOR THE TAX PREPARATION IF
THEY ACTUALLY GO TO A PAID
PREPARER, BUT IT WILL ALSO BE A
BIGGER RETURN AND EASIER AS
TERRY MENTIONED TO IMPLEMENT. SO
THESE ARE SOME SOLUTIONS THAT I
WOULD BE MORE THAN HAPPY TO WORK
WITH YOU ALL ON IMPLEMENTING
NEXT YEAR. OUR FAMILIES ARE
STRUGGLING. THIS PROGRAM. IT'S
LITERALLY A GATEWAY TO REACH
THEM. BRING THEM INTO THE SYSTEM
. THAT AS YOU POINTED OUT, ARE
VERY SUSPECT FOR THEM GOVERNMENT
TAXES. FOR A LOT OF OUR LOW
INCOME WORKERS. THOSE ARE SCARY
THINGS, AND THIS IS A PROGRAM
WHERE THEY CAN GO TO TRUSTED
MESSENGERS IN THEIR COMMUNITY
AND GET NOT ONLY THEIR TAX
CREDITS BUT GET ON THE PATHWAY
TO FINANCIAL SECURITY. THANK
YOU. I WAS JUST CURIOUS PROBERT
WITH $14,000 WAS HOW MUCH
STIMULUS WAS THAT? I DON'T HAVE
THE EXACT BREAKDOWN, BUT I THINK
THE STIMULUS PAYMENTS FOR WHAT
1600 FOR CALIFORNIA. AND IT ALL
ADDED UP TO 14,000. WOW WELL,
AND IF YOU ALSO REMEMBER THAT
WHEN YOU FILE YOUR TAXES, AND
THIS IS A COMPLICATED THING TO
ACTUALLY CONVEY TO PEOPLE IS IF
YOU HAVE NOT FILED BEFORE YOU
CAN FILE FOR UP TO THREE YEARS
IN THE PAST, SO IT ADDS UP,
THAT'S A THAT IS A GREAT
REMINDER. UH GREAT IDEAS FOR US
TO WORK ON IN THE NEXT SESSION.
APPRECIATE IT, SO I WOULD LIKE
TO GIVE THE PUBLIC OPPORTUNITY,
UH, TO PROVIDE COMMENTS. IS
THERE ANYBODY HERE THAT ALL
RIGHT? WE GOT SOME TAKERS. GOOD
AFTERNOON ON A HASSLE BED WITH
UNITED WAYS OF CALIFORNIA. UM
AND I JUST WANTED TO ACKNOWLEDGE
THIS BODY FOR TAKING THE TIME TO
DISCUSS A VERY COMPLEX AND
IMPORTANT ISSUE, SENATOR CAVIAR.
OH, I THINK YOU SAID IT BEST. I
CAN'T THINK OF A MORE IMPORTANT
ISSUE. NOT EVERYBODY SAYS THAT
ABOUT TAXES AND TAX CREDITS. BUT
I'M GLAD THAT YOU ALL DO. UM. ER
A STATEWIDE NETWORK THAT WORK ON
ENSURING THAT FAMILIES CAN
EXPERIENCE FINANCIAL INCLUSION
AND OPPORTUNITY, AND WE DO OFFER
A LOT OF SERVICES, INCLUDING
VADA. WE ARE ONE OF THE GRANTEES
LIKE GOLDEN STATE OPPORTUNITY. A
STATEWIDE GRANTEE. AND IT IS SO
MUCH MORE THAN OUTREACH OUTREACH
IS THE TIP OF THE ICEBERG AND
UNDER THAT IS MEANINGFUL
RELATIONSHIPS, MULTI TOUCH
ENGAGEMENTS, FINANCIAL COACHING
, UM, AND LOTS AND LOTS OF
COMPLEX PAPERWORK. UM THAT 10
MILLION THAT THE STATE IS
ALLOCATED AND, MOST RECENTLY, A
LITTLE BIT MORE THAN THAT
SUPPORT. ALL OF THAT. WE ALSO
BRING IN OUR OWN FUNDS TO DO
THAT, AS WELL. UM AND SO WE
REALLY SEE IT AS A POWERFUL SORT
OF INCUBATOR FOR A LOT OF REALLY
IMPORTANT COMMUNITY WORK. I WANT
TO ECHO A LOT OF THE ITEMS THAT
MY COLLEAGUES STATED HERE AND SO
I WON'T BOTHER TO REPEAT THEM.
ONE BY ONE, UM BUT I DO JUST
WANT TO HIT UPON A COUPLE OF
THINGS QUICKLY AS A HIGHLIGHT
THE CALI AT MINIMUM, THAT IS ONE
OF THE BEST WAYS I THINK FOR US
TO REALLY OPEN IT UP. GET MORE
PEOPLE IN MAKE THAT TAX CREDIT A
MEANINGFUL AMOUNT SO THAT THEY
DO GET OVER THAT. WELL, MAYBE
IT'S NOT WORTH IT HUMP. WE
REALLY DO THINK THAT THAT'S A
BIG ISSUE BUT ALSO LEADS TO THE
ASPECT. UM ANOTHER POINT THAT I
WANT TO MAKE ABOUT THE PAY
PREPARER MARKET. THAT IS A REAL
CHALLENGE FOR US ANY FREE TAX
PREP SPACE. A LOT OF PEOPLE
TRUST THINGS THAT THEY PAY FOR
FREE. THINGS ARE A LITTLE
SUSPECT, SOMETIMES RIGHT, AND SO
THERE IS A LITTLE BIT OF A
BARRIER THERE. HOWEVER I WOULD
HIGHLIGHT THAT THE BUSINESS AND
PROFESSIONS CODE THAT OVERSEAS
PAID PREPARERS IS UP FOR REVIEW
. THE SUNSET BILL ONLY GOES
THROUGH JANUARY, ONE OF 2024. SO
NEXT YEAR IS OUR OPPORTUNITY TO
LOOK AT THAT. LOOK AT THAT CODE
SECTION AND SAY, IS THERE
SOMETHING ELSE THAT WE WANT TO
DO TO ENSURE THAT TAX FILERS WHO
ARE KELLY DTC ELIGIBLE ARE AWARE
HEY, YOU CAN ALSO GET FREE
SERVICES. YOU ARE ELIGIBLE FOR
I. R S CERTIFIED PRE TAX PREP
SERVICES. WOULD YOU LIKE TO GO
THAT ROUTE? I THINK THERE'S SOME
THINGS THAT WE CAN THINK
THROUGH. UM AND THEN, UM, I
GUESS THE LAST THING I JUST WANT
TO SAY IS AGAIN IS EXPRESSED
GRATITUDE. UM THE COMMUNITY
BASED ORGANIZATIONS THAT DO A
LOT OF THIS WORK. THEY REALLY
JUST KIND OF KEEP THEIR HEADS
DOWN. THERE ARE FOCUSED ON
TRYING TO GET AS MANY PEOPLE THE
TAX CREDITS THAT THEY ARE
ELIGIBLE FOR, AND SO TO KNOW
THAT THE STATE LEGISLATURE IS
THINKING CRITICALLY AND
COLLECTIVELY, ABOUT HOW WE CAN
DO BETTER, UM, IS SO HEARTENING
. WE'RE REALLY EXCITED FOR THE
MOMENTUM THAT'S BEEN BUILT IN
CALIFORNIA. WE THINK THERE'S A
LOT MORE WE CAN DO EXPANDING TAX
CREDIT AS 11 THING, AUTOMATING
SOME OF THE SYSTEMS AS OTHERS,
AND THEN THINKING ABOUT HOW WE
REGULATE IS, I THINK A THIRD
CRITICAL COMPONENT SO THAT'S ALL
I'M GONNA SAY FOR TODAY, BUT I
APPRECIATE IT. THANK YOU. GOOD
AFTERNOON CHAIR AND MEMBERS
JENNIFER TANNEHILL WITH AARON
REID AND ASSOCIATES ON BEHALF OF
THE CALIFORNIA SOCIETY OF
ENROLLED AGENTS. YOU JUST WANTED
TO REACH OUT TODAY AND LET YOU
GUYS KNOW THAT IN GENERAL CSC A
SUPPORTS TAXPAYERS BEING, UM, UH
, THAT THE OUTREACH TAXPAYERS,
AND THAT'S A REAL CRITICAL PART
TO GETTING PEOPLE TO KNOW ABOUT
THE TAX CREDIT. AND TO
IMPLEMENTING ANY PROGRAM, BUT
JUST SOME FEEDBACK THAT WE
RECEIVED FROM THE ENROLLED
AGENTS ABOUT THE CALYX T E T. C
UM IS THAT FILERS EXPRESSED
SEVERAL DISINCENTIVES TO FILING
MANY OF WHICH HAVE BEEN
MENTIONED HERE. UM AND SOME OF
THOSE DISINCENTIVES ACTUALLY
OUTWEIGH THE INCENTIVES OF AS
WE'VE TALKED ABOUT. EXTENSIVE
WORK IS REQUIRED FOR THE TAX
PRACTITIONERS TO DETERMINE IF
THE FILER IS EVEN ELIGIBLE FOR
THE KELLY. UM E I T C AND THE
FORM ALONE IS THREE PAGES. MOST
FILERS WHO WOULD BE ELIGIBLE.
DON'T COME TO THE TAX MEETING
PREPARED WITH THE RIGHT
DOCUMENTATION TO SUBSTANTIATE
THE ELIGIBILITY, SO SOME LEAVE,
AND THEN IT'S THEY DON'T THINK
THAT IT'S WORTH THEIR EFFORT TO
RETURN WITH THE PROPER
DOCUMENTS. UM ANOTHER
DISINCENTIVE IS THAT IF THE
FILLER RECEIVES THE COUNT THE
FEDERAL E I T C FROM THE I R S
THAT CALIFORNIA EITC AMOUNT IS
THEN REDUCED BY THAT ARE THE I R
S AMOUNT? UM AND SO THE TIME AND
THE EFFORT IT TAKES TO FILE THE
CALIFORNIA EITC IS NOT WORTH IT
FOR MANY FILERS AT THAT POINT,
UM AND THEN FILERS ALSO
EXPRESSED CONCERN THAT THEY WILL
BE AUDITED BY THE F T. B. IF
THEY COUNT THE E I. T C IS FILED
INCORRECTLY. THEY DON'T HAVE THE
RESOURCES TO GO THROUGH AN
AUDIT, SO SOME JUST CHOOSE TO
AVOID IT ALTOGETHER. BUT WE LOOK
FORWARD TO WORKING WITH THE
LEGISLATURE AND VIEW THE FUTURE
DISCUSSIONS ON THIS ISSUE. THIS
IS IT'S A REAL COMPLICATED
PROGRAM, AND IT'S INTERESTING
THAT WE'RE GOING TO BE ABLE TO
TAKE A LOOK AT HOW WOULD IF IT'S
REALLY THE BEST WAY TO GET THE
DOLLARS INTO THE HANDS OF THE
PEOPLE THAT NEED IT? THE MOST.
THANKS. THANK YOU. GOOD I GUESS
IT'S AFTERNOON. UM MADAM CHAIR
AND MADAM CHAIR KATHY VAN OSTEN
MBM STRATEGY GROUP ON BEHALF OF
JOHN BURTON. ADVOCATES FOR
YOUTH. UM, AS WE ALL KNOW, TAX
CREDITS REALLY ARE. THE BEST WAY
TO HELP PEOPLE RISE OUT OF
PROBLEM PROPERTY OUT OF POVERTY.
AND YOU KNOW, WE'VE WE'VE SEEN
THE STUDIES. WE KNOW IT WORKS.
UM I WANT TO DO A SHOUT OUT TO
SENATOR CABALLERO UM AND
CONTROLLER BETTY YEE. AS WELL AS
THE GOVERNOR. HE ACTUALLY PUT
THE LAST FEW TAX CREDIT IN HIS
BUDGET, WHICH WAS SURPRISING TO
US AND MADE US VERY HAPPY, BUT
UM, WE SPENT A LOT OF TIME
WORKING DIRECTLY WITH A D B. D S
S UM, TRYING TO FIGURE OUT HOW
TO MAKE SURE THAT, UM CONFIRMING
FOSTER YOUTH OR THE ACTUAL ONES
DOING THE FILING. UM IT DID TAKE
TIME TO WORK THAT THROUGH AND SO
I WOULD CERTAINLY ENCOURAGE THE
COMMITTEE. THE COMMITTEES TO
BOTH, UM. LOOK AT WAYS WHERE YOU
CAN DO THAT VERIFICATION,
POTENTIALLY ON THE BACK END. OR
AS INTAKE FORM FOR PROGRAMS THAT
WOULD HELP PEOPLE QUALIFY. THINK
THAT'S VERY IMPORTANT, UM,
ASPECT, AND CERTAINLY, I THINK,
WILL HELP EASE THE PAYMENT FOR
ESPECIALLY THE FOSTER YOU TACK
TAX CREDIT. UM J BAY HAS FOR THE
LAST FEW YEARS, ORGANIZING DAYS
TO HELP FASTER YOUTH AND FORMER
FOSTER YOUTH FILE THEIR TAXES.
THERE ISN'T A LOT OF INSIGHT AND
FOR THEM THEY'RE NOT MAKING MUCH
MONEY. THEY DON'T REALLY UNDER.
YOU KNOW, IT'S AGAIN. FEAR OF
THE SYSTEM. UM STAND. SO WE'VE
DONE A LOT OF OUTREACH. WE'VE
HELPED THEM PREPARE THEIR TAXES
, AND I THINK ANYTHING THAT THE
STATE CAN DO ANYTHING WE CAN DO.
TO ENCOURAGE AND FOSTER THAT
TYPE OF OUTREACH. UM AND TO MAKE
SURE THAT I'M ESPECIALLY
VULNERABLE POPULATIONS, LIKE THE
LOW INCOME LIKE FOSTER YOUTH DO
HAVE THE ASSISTANCE. THEY NEED
TO MAKE SURE THAT THEY'RE
GETTING IT RIGHT. AND THEY ARE
GETTING, UM, THE MAXIMUM RETURN
POSSIBLE. SO WE APPRECIATE THE
WORK THAT YOU'VE DONE. AND, UH,
REMAIN COMMITTED TO THE WORK
THAT'S COMING AHEAD AND THANK
YOU VERY MUCH FOR YOUR TIME.
THANK YOU. GOOD AFTERNOON, MADAM
CHAIR, SENATOR CAVALLERO, ANDREW
SHANE FROM IN CHILD POVERTY
CALIFORNIA AND GREECE INSTITUTE
. ONE ASSOCIATE MYSELF WITH MOST
OF THE COMMENTS ARE BEING MADE
HERE, BUT JUST TO REINFORCE A
FEW, UM I HOPE FOLKS SAW THAT.
LAST WEEK. THE PRESIDENT HIMSELF
AT THE WHITE HOUSE CONFERENCE TO
END HUNGER. FULL THROATED
ENDORSED A PERMANENT EXTENSION
OF THE CTC. AND WE KNOW THAT
OBVIOUSLY THAT WILL TAKE AN ACT
OF CONGRESS AND IN THE SHORT
TERM MAY NOT HAPPEN, YOU KNOW,
IT'S I JUST REALLY IT'S THE WORK
AS AS FOLKS MENTIONED EARLIER,
THE LEADERSHIP OF CALIFORNIA TO
KEEP PUSHING THAT NATIONAL
CONVERSATION NATION AND THEY GET
THAT ECHO BACK. I JUST DON'T
WANT TO PASS UNNOTICED. AND AS
WE ALL KNOW, THE CTC CUT CHILD
POVERTY IN HALF. I MEAN, THERE'S
JUST NO UM, SECOND, YOU KNOW,
AND THERE'S ANOTHER. THERE'S NO
ONE WHO CAN MATCH THE SCOPE AND
SCALE OF THE FEDERAL GOVERNMENT.
BUT WE ALSO KNOW WHAT A BIG LOSS
THAT WAS FOR OUR FAMILIES IN
CALIFORNIA. AND SO I APPLAUD THE
COMMITTEE TODAY, AS WELL AS THE
F T B FOR LOOKING AT. WHAT ARE
THE WAYS IN WHICH WE CAN MOVE
THE POLICY ON CTC AND I WOULD
PUT IT IN TERMS OF, YOU KNOW,
RAISING THE AGE AND OTHER
IMPROVEMENTS THERE. THAT IS
FUNDAMENTAL IN TERMS OF HAVING
HIGHER INCOME THRESHOLD, HIGHER
MINIMUM BENEFIT. BUT IN ADDITION
WE KNOW WE NEED THE OUTREACH.
SOME OF YOU KNOW THAT I SPENT
NEARLY A DECADE WITH THE
ASSOCIATION OF FOOD BANKS, AND
SO I JUST OUTREACH IS SO VITAL
AS AS CHRISTOPHER SANCHEZ, ONE
ASSOCIATE MYSELF WITH HIS
COMMENTS, ESPECIALLY FOR
COMMUNITIES THAT HAVE BEEN
BEHIND THE EIGHT BALL OF PUBLIC
CHARGE. IT IS JUST HARD TO
DESCRIBE THE LEVEL OF FEAR IN
OUR COMMUNITIES, ESPECIALLY WITH
WHAT A TARGET WE HAD OUR BACKS
IN CALIFORNIA, SO THAT GOES FOR
PUBLIC BENEFITS AS WELL AS THOSE
COMING THROUGH THE TAX SYSTEM.
UM UM, AND FINALLY, JUST THAT WE
ALSO NEED TO WORK THROUGH THE
TYPES OF OPERATIONAL CHALLENGES
THAT WE CAN HAVE AUTOMATIC
ELIGIBILITY FAMILIES THAT HAVE
GOTTEN THROUGH THE GAUNTLET OF
CAL WORKS OR CALIFORNIA SHOULD
NOT HAVE TO PRESENT AGAIN AND
FIND A WAY TO STREAMLINE GET
THEM THE MULTIPLE BENEFITS TO
WISH THEY'RE ENTITLED AND LAST,
BUT NOT LEAST, I APPLAUD THE
COMMENTS BY BY ANA FROM UNITED
WAYS. WHAT CAN WE DO IN TERMS OF
BOLSTERING THE FREE PREPARATION
OPTIONS THE TYPE OF PUBLIC
PORTAL NEEDED FOR FAMILIES TO
HAVE OPTIONS. BESIDES THAT? PAID
PREPARES, AND I LOOK FORWARD TO
ALL THOSE ARE BEING ON THE TABLE
TODAY. THANK YOU. ALL RIGHT.
THANK YOU VERY MUCH. WE HAVE ONE
MORE SPEAKER THERE. FROM UNITED
WAY, I ASSUME, YES. THANK YOU
FOR THE INTRODUCTION. UH GOOD
AFTERNOON. CHAIRWOMAN MEMBERS.
MY NAME IS CARMEN. OH COLD
COCKS. I'M HERE ON BEHALF OF THE
UNITED WAY'S CALIFORNIA CAPITAL
REGIONS OR SO YOUR LOCAL UNITED
WAY HERE IN SACRAMENTO AND FOR
OTHER COUNTIES. WE ARE VERY
GRATEFUL TO THIS COMMITTEE FOR
HOLDING THIS OVERSIGHT HEARING
TODAY. AS HAS ALREADY BEEN SAID
IT'S IMPORTANT FOR CALIFORNIA TO
ESTABLISH BOTH SHORT TERM AND
LONG TERM STRATEGIES TO EXPAND
TAX CREDITS. AS WELL AS FUNDING
PROVIDER. REMOVING BARRIERS TO
CLAIMING CREDITS APPRECIATE ALL
OF THE PANELS TODAY AND ALL OF
THE WONDERFUL IDEAS THAT WERE
LIFTED UP, UM WE APPRECIATE THAT
THE STATE BUDGET AND POLICY
PROCESS ALONG WITH COLLABORATING
WITH THE ADMINISTRATION IS HOW
WE'RE GOING TO ENSURE THAT WE
ACCOMPLISHED THIS QUITE PLAINLY.
WE NEED LEGISLATORS LIKE YOU TO
CHAMPION. ROBUST ROBUST POLICY
PACKAGE IN 2023. BEYOND THAT
WILL SUPPORT OUR FAMILIES AND
THEIR ABILITY TO FULLY ACCESS
ALL OF THE TAX CREDITS. THEY'RE
ELIGIBLE FOR. IT IS QUITE
PLAINLY THIS COLLABORATION, OUR
BEST TOOL TO REDUCE POVERTY AND
SUPPORT FAMILIES DURING TOUGH
ECONOMIC TIMES. WHAT I
APPRECIATE NO ONE SPECIFICALLY
ARTICULATED TODAY, BUT THAT WHAT
WE'RE ALL TALKING ABOUT IS
POLICY CHANGE, BECAUSE WHAT WE
KNOW IS THAT POVERTY IS A POLICY
DECISION, NOT THE CONSEQUENCE OF
THE INDIVIDUAL RESPONSIBILITIES
OR FAILURES. SO APPRECIATE ALL
THE WORK THAT'S BEING DISCUSSED
AND I LOOK FORWARD TO WORKING
WITH YOU IN THE COMING SESSION.
THANK YOU. ALL RIGHT. THANK YOU.
OF WELL, I'D LIKE TO ONCE AGAIN
THANK ALL OUR PANELISTS TODAY.
I'D LIKE TO THANK THE PUBLIC FOR
JOINING US ALSO. AND OF COURSE,
WE KNOW NONE OF THIS IS POSSIBLE
WITHOUT EXCELLENT STAFF WORKS. I
WANT TO THANK ALL OUR STAFF
MEMBERS, UH, FOR PUTTING THIS
HEARING TOGETHER, AND, UM,
OBVIOUSLY VERY HAPPY THAT
SENATOR CAVIAR. OH, AND OUR
OTHER COLLEAGUES WERE ABLE TO
JOIN AND LISTEN TO THIS, UM VERY
IMPORTANT CONVERSATION, SO I
HOPE EVERYBODY HAS A GOOD REST
OF THE DAY. AND WITH THAT THE
ASSEMBLY REVENUE TAX COMMITTEE
IS ADJOURNED.