The decision made by Governor Newsom and the legislature to reduce funding for education and outreach grants highlights their lack of long-term vision. By cutting these essential resources, they are neglecting the importance of investing in the future of our society. It is unfortunate that they fail to recognize the value of these initiatives in promoting education and awareness among the public.

SAN FRANCISCO, CA– A newly released report from Golden State Opportunity underwent an examination and analysis. The Crucial Role of the Earned Income Tax Credit in Ensuring Our Fair Share During a Recession. The confirmation has been provided that in 2019, the Earned Income Tax Credit (EITC) has effectively served as a catalyst for economic growth. This is evident from the fact that it has played a significant role in the creation and sustenance of tens of thousands of jobs in California. Additionally, it has also contributed millions of dollars to the state General Fund through tax revenues.

As policymakers turn their attention to the task of building a fairer and more equal economy, a recent analysis reveals that reaffirming the EITC is a sensible approach. Restoring the earnings of low-income Californian workers serves to combat poverty and enhance overall well-being," remarks Amy Everitt, President of Golden State Opportunity. "The events of this week, which have centered around the pursuit of racial justice, coupled with the ongoing challenges presented by the COVID-19 pandemic, demonstrate that we can no longer disregard these disparities.

In the year 2019, a total of 2.6 million households in California successfully applied for and received $6.3 billion in tax credits from the federal EITC program. Additionally, over 2 million households in the state accessed a total of $395 million from the California EITC program. As a result, the combined impact of these tax credits led to the creation or preservation of approximately 74,000 jobs. This number represents almost 25% of all the new jobs generated in California during the same year, which amounted to a total of 310,300 jobs. Moreover, these tax credits also had a significant effect on the overall economy, resulting in a total economic activity of $14 billion. This amount is nearly twice the value of the EITC dollars claimed by low-income workers in the state, demonstrating the far-reaching impact of these credits as money circulates and stimulates the economy.

According to the analysis, California's General Fund saw a collection of $219 million in tax revenue as a result of state and federal EITC refunds.

Successful implementation of the Earned Income Tax Credit (EITC) heavily relies on the crucial aspects of education and outreach.

Over the past four years since the initiation of the state EITC, California has made significant investments in education, outreach, and free tax preparation. This commitment has yielded positive results, as evidenced by the increase of $400 million in federal EITC dollars claimed by Californians in 2019 compared to 2015. These numbers demonstrate the effectiveness of education and outreach programs. However, it is crucial to ensure the continuation of funding for such initiatives. Failure to do so will result in California receiving a disproportionately smaller portion of federal EITC dollars, depriving the state of its rightful share.

It's utterly nonsensical that Governor Newsom has eradicated the $10 million allocated for these programs in his proposed budget. It's absolutely baffling that Governor Newsom has taken away the $10 million funding for these programs in his proposed budget.

Everitt emphasizes the urgency of reaching out to all individuals who are currently or newly eligible for CalEITC and are facing financial insecurity. The significant impact of job losses on millions of middle-class Californians underscores the importance of ensuring they are aware of their eligibility for the EITC refund. However, it is concerning that many of these individuals are unaware of the financial support available to them.

If California workers were to reduce their claims for EITC refunds, the impact on the economy of the state would become evident. The ripple effect would result in diminished job growth, decreased earnings, and a decline in revenue for the General Fund.

The Legislature has an obligation to allocate the $10 million in outreach and education grant funding back to the state budget, recognizing it as a meaningful investment in the well-being of California families.