A budget plan of more than $300 billion, which includes $8b in tax rebates, has been approved by the California Senate and Assembly but it is still pending approval by Governor Gavin Newsom.
The governor was sent the spending plan by the California Legislature and it remains to be seen whether the lawmakers will strike a deal with Newsom in June.
“Today, the Senate and the Assembly passed a budget that puts California’s wealth to work for individuals, families, and businesses throughout our state,” Senate President Pro Tem Toni Atkins and Assembly Speaker Anthony Rendon said in a joint statement that was released on Monday.
“We look forward to working with the governor in the coming days to ensure we have a responsible budget in place for the start of the fiscal year that delivers prosperity and strengthens the future.”
Amount and eligibility for the California tax rebate
The State’s plan is to provide $200 per taxpayer and each dependent. For individual filers, the limit is a gross income of less than $125,000 per year and for joint-filer households it is double the aforementioned amount.
Meanwhile, Newsom is willing to provide Californians with $400 for each vehicle owner and up to a maximum of $800 for those who own more than one vehicle.
Erika Li, chief deputy director of the Department of Finance, has expressed her concerns about the structure of the relief plan.
“It will take longer to implement and not reach as many Californians when compared to the governor’s refund proposal,” Li said.
“Given the rising costs of gas and food, our priority is to have a relief program that moves with speed and benefits as many Californians as possible.
“Dedicating such a large amount toward new and expanded ongoing programs is concerning.
“Should economic conditions continue to worsen in the near future, there will be a need to scale back or even cut vital programs.”