Relief checks part of newly-signed state budget — but won't come soon
(Graphic by Solano NewsNet)
Californians who listed a gross annual revenue of $75,000 or less on their 2020 income tax return are set to receive a $600 stimulus check as part of the newly-enacted state budget.
The checks will hit the bank accounts and mailboxes of approximately two out of three Californians, according to a press release by the Office of Governor Gavin Newsom, which touted that the checks would provide “immediate” financial relief for those whose pocketbooks have been severely impacted by the economic effects of the coronavirus pandemic.
“California is roaring back from this pandemic because we have your back,” Newsom said in a prepared statement on Tuesday.
As part of the budget passed this week, Californians with a qualified rate of income will receive one $600 stimulus check. Those with children will receive an additional $500, according to state officials.
Though touted as “immediate” relief, the checks will not come anytime soon: The California Franchise Tax Board, which is overseeing the disbursal of the checks, says payments will likely not go out until September at the earliest.
Dr. Sanjay Varshney, the founder of the Sacramento Business Review and a professor of finance at California State University in Sacramento, said state officials are acting slower than their counterparts in the federal government, who provided economic relief to struggling Americans much faster.
Speaking to ABC affiliate KXTV (Channel 10) on Tuesday, Dr. Varshney said he believed Newsom’s claim of “immediate relief” was due to the ongoing recall campaign that seeks to oust him from office. The disbursal of the checks is expected to happen around the same time that Californians are set to vote on the recall measure.
“If truly you wanted to provide immediate relief, immediate means, checks should have gone out within the week, [and that] hasn't happened so far,” he criticized.
Dr. Varshney’s position appeared to shift from an opinion he gave to Sacramento Fox affiliate KTXL (Channel 40) in May. During that interview, he contended that Californians did not need stimulus checks at all, though his criticism of Newsom was just as fierce.
“They’re going to get these checks, [and] they don’t really need these checks,” Dr. Varshney complained. “They’re going to save that money somewhere, or they’re going to write down debt someplace, so it’s not going to show up in the economy the way people think it’s going to show up in the economy.”
The stimulus checks afforded in the budget will be the second round of direct payments issued by state officials since the start of the pandemic. Earlier, eligible residents received a one-time payment of either $600 or $1,200 if their household income was at or under $75,000 as reported on an individuals’ 2020 tax return.
All told, the state is expected to spend more than $12 billion providing direct payments to eligible Californians from both stimulus initiatives.
Those interested in checking their eligibility for the second round of stimulus payments can review the specific criteria and estimate their payment amount by visiting the California Franchise Tax Board’s website.
Money for Solano County
Along with the direct stimulus payment, the budget signed by Newsom this week includes several provisions for Solano County, local governments and various agencies and non-profits, including:
$1.5 million to the Food Bank of Contra Costa and Solano, to assist with the expansion of volunteer services, to improve storage and processes, and to purchase additional delivery trucks;
$2 million for the First 5 Solano Children and Families Commission, which disburses funds to local agencies and groups that are focused on child and family development; and
$5 million to the City of Benicia, which is intended to fund the Kyle Hyland Foundation for Teen Support.
The county government will itself receive $1.9 million in wildfire fighting assistance, with the money intended to be used toward initiatives that reduce fire fuel, improve alert warning systems and help engage the public in fire preparedness and education. Solano County could receive even more funding focused on wildfire prevention and assistance through so-called “budget trailer bills” that could be introduced and approved later this summer.
The budget also provides more than $9 million in various funding for the California State Prison in Vacaville, mainly in the form of medical distribution and health care facility improvements.
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