NEWS
California’s Poverty Rate Soars to Alarmingly High Levels in 2023
California Budget & Policy Center
California’s poverty rate has increased significantly, with disproportionate impacts on Black and Latinx residents. This alarming trend highlights the urgent need for federal and state policymakers to implement robust anti-poverty measures, such as strengthening the Child Tax Credit, Earned Income Tax Credit, and SNAP program.
Anti-Poverty Advocates Applaud Budget
Agreement that Protects Children, Families and
Californians with Low Incomes
CalEITC Coalition’s Statement to the State Budget Agreement
The California Earned Income Tax Credit (CalEITC) Coalition applauded the announcement of a budget agreement between Governor Newsom and the State Legislators which largely protects critical investments in children, families, and equity for immigrant communities. The anti-poverty coalition praised California leadership’s approach to closing the budget shortfall while maintaining family-supporting investments in CalWORKs, health care, child care, and tax credits which are all critical to prevent families and individuals from falling into poverty, and urged state leaders to fully restore historic funding for Free Tax Preparation Assistance, Individual Taxpayer Identification Number Application Support, and Education and Outreach (FTPA, ITIN, E&O) at $20 million.
Advocates Applaud Joint Budget Proposal, Urge Increased Investments in Children and Families
CalEITC Coalition’s Statement to the Senate and Assembly Joint Budget Proposal
The California Earned Income Tax Credit (CalEITC) Coalition, a leading statewide anti-poverty coalition of service providers, labor, community and faith-based organizations applauded the Senate and Assembly Joint Budget proposal for FY 24-25, which proposes to maintain critical anti-poverty investments in the CalEITC and Young Child Tax Credit (YCTC) and provide an additional $2 million to fund Free Tax Preparation Assistance (FTPA), ITIN Application Support, and Education and Outreach (E&O).
California’s Future Depends on Investing in Families and Children
CalEITC Coalition’s Statement to the Governor’s May Revision
The California Earned Income Tax Credit (CalEITC) Coalition, a leading statewide anti-poverty coalition of service providers, labor, community and faith-based organizations, responded to Governor Newsom’s May Revision budget proposal. Anti-poverty advocates are urging state policymakers to reject the Administration’s proposed cuts to the Safety Net Reserve and anti-poverty programs, including cuts to Free Tax Preparation Assistance (FTPA) and Education and Outreach (E&O) and Individual Tax Identification Number (ITIN) Application Assistance.
POVERTY RATES INCREASED SHARPLY IN CALIFORNIA. HERE’S WHO WAS HURT THE MOST
Sacramento Bee
Poverty has increased dramatically in California and the nation, a surge that new studies attribute to the expiration of pandemic-era federal relief programs such as the expanded Child Tax Credit. The spike has been particularly steep among Black and Latino Californians and children across all ethnicities. Researchers found 16.4% of Californians were living in poverty last year, up from 11% in 2021. The rate of child poverty more than doubled last year.
CALIFORNIANS IN EVERY LEGISLATIVE DISTRICT BENEFIT FROM CALEITC
California Budget & Policy Center
Every Californian deserves to be able to put food on the table, pay the rent, and support their families. But millions of people across California struggle to make ends meet every day. Although inflation has slowed in recent months, the cost of basic needs like food and housing remain high and continue to strain family budgets.
A THIRD OF CALIFORNIA FAMILIES DON’T EARN ENOUGH TO AFFORD BASIC NEEDS, UNITED WAY FINDS
Sacramento Bee
More than one-third of California families don’t have enough money to meet their basic needs, according to a newly released study from the United Ways of California. Black and Latino families, immigrant-led households, parents with lower educational attainment and families led by single mothers all struggle disproportionately.
Free Tax Prep Investment Will Connect Families to Powerful Anti-Poverty Tax Credits
CalEITC Coalition Statement to Passage of AB 1
Members of the California Earned Income Tax Credit (CalEITC) Coalition applauded the restoration of $2 million in Free Tax Preparation Assistance (FTPA), Individual Taxpayer Identification Number (ITIN) application support, and Education and Outreach (E&O) in AB 157. As poverty rates continue to soar, this funding helps Californians and families who are struggling to afford the basics and access thousands of dollars in tax credits to which they are entitled.
LESS THAN 2% OF STATE TAX BREAKS GO TO CALIFORNIANS WITH LOW INCOMES
California Budget & Policy Center
California’s three refundable tax credits — the California Earned Income Tax Credit (CalEITC), the Young Child Tax Credit, and the Foster Youth Tax Credit — are the only credits that benefit people with very low incomes.
Yet, these credits make up less than 2% of the nearly $80 billion total cost of state tax breaks for individuals and businesses. Many of these other tax breaks largely benefit high-income individuals and profitable corporations.
Everyone deserves an opportunity to achieve economic security. State leaders can make the tax system more fair by expanding credits that reach Californians with low incomes.