By ADAM BEAM
Associated Press
SACRAMENTO, Calif. (AP) – Most California taxpayers would receive hundreds of dollars in cash to help offset the high price of fuel and other goods under a tentative budget compromise being discussed by legislative leaders and Gov. Gavin Newsom. .
The plan would return to taxpayers a portion of the record $97 billion budget surplus, but the money would only go to people earning below a certain income level.
Newsom and legislative leaders were still negotiating the state budget Friday, with talks scheduled to run through the weekend. Although both sides had agreed on a framework for reimbursements, the overall figures could change as other parts of the budget are finalized. But in general, the less money citizens earn in a year, the more money they would receive from the state.
The current proposal would return about $9.5 billion to taxpayers. Singles earning less than $75,000 a year and couples earning less than $150,000 a year would receive $350 per taxpayer, plus another $350 for each dependent. That means a married couple earning $100,000 a year with one child would receive $1,050.
Singles earning less than $125,000 a year and couples earning less than $250,000 a year would each receive $250, plus their dependents. Single people earning less than $250,000 a year and couples earning less than $500,000 a year would receive $200 each plus their dependents.
The proposal was confirmed by Assemblyman Miguel Santiago, a Democrat from Los Angeles. Santiago announced the plan in a press release late Friday afternoon, calling it a deal between Newsom and the Legislature. But a representative from the Santiago office later clarified that the deal has not yet been closed.
“As prices rise on everything from gasoline to baby formula, this rebate will help the vast majority of California taxpayers, including undocumented Californians, with hundreds of dollars in direct cash assistance, providing relief critical during tough times,” Santiago said.
The state median price for a gallon of regular unleaded gasoline in California hit an all-time high of $6.44 last week. The median price was 6.35 cents a gallon on Friday, compared to the national average of $4.93.
Republicans, who do not control enough seats in the state legislature to pass anything, have asked Newsom and Democrats to temporarily suspend the state gas tax, which at 51.1 cents a gallon is the second highest in the country. The tax is scheduled to rise to 53.9 cents a gallon next week, an automatic adjustment that is part of a state law meant to keep pace with inflation.
Newsom and Democratic leaders have refused to suspend the gas tax, arguing that it would not guarantee a price drop large enough to benefit drivers. They also said it would cost construction jobs, since the tax pays for road maintenance throughout the state.
Instead, they pledged months ago to use the state’s budget surplus to send the money directly to taxpayers. But so far nothing has happened because Newsom and legislative leaders have been unable to agree on how to do it. Newsom had proposed sending the money to registered vehicle owners, while lawmakers wanted to send the money to tax filers.
The proposal announced on Friday is a compromise. The money would go to taxpayers instead of vehicle owners, but the checks would be larger than legislative leaders had initially proposed.
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