Gov. Gavin Newsom has proposed in his 2019-20 “California for All” state budget:
– an increase in the earned income tax credit;
– the expansion of personal and corporate income tax credits to develop low- and moderate-income housing; and
– the establishment of a new Safe and Affordable Drinking Water Program which will include the implementation of a fee collection system.
Earned Income Tax Credit
The budget, if implemented, would more than double the existing earned income tax credit by investing $1 billion in a new “Working Families Tax Credit.” This would provide a $500 credit for families with children under the age of six. Moreover, the credit would be expanded to reach full-time workers earning $15 per hour.
Credits to Develop Low- and Moderate-Income Housing
The budget also includes a proposal to expand state personal and corporate income tax credits to further develop low- and moderate-income housing.
Safe and Affordable Drinking Water Program
The budget also includes a proposal to establish the “Safe and Affordable Drinking Water Program.” This program would be funded by new water, fertilizer, and dairy fees. These fees would be used to enable the State Water Resources Control Board to assist communities in paying for access to safe and affordable drinking water. Under the program, the State Water Resources Control Board and the Department of Food and Agriculture would:
– implement fee collection systems;
– adopt an annual implementation plan; and
– develop a map of high-risk aquifers used as drinking water sources.
2019-20 Governor’s Budget, Office of California Gov. Gavin Newsom, January 10, 2019