Assembly Democrats have presided over an era where budgets are on-time, balanced and focused on the priorities that matter to Californians. In fact, every budget passed since 2012, when the majority-vote budget took effect, has been delivered by the constitutionally required deadline and spends no more than it takes in in revenue. For the first time in decades, the State has experienced seven straight years of structural surplus.
State revenues have recovered from the recession, increasing to $133.3 billion, 34.2 percent higher than the $99.1 billion collected in 2012. General taxes haven’t gone up, but our economy is booming.
While the state is experiencing a budget surplus now, Assembly Democrats are also preparing for the possibility of economic recessions. That’s why we fought for a Rainy Day Fund to stabilize the State’s Finances with ACA 1 in 2014, which was approved by voters as Proposition 2 that year.
By 2018, California has $13.8 billion in the account that can be used in lean years.
Assembly Democrats established (and later expanded) the State Earned Income Tax Credit (EITC) to put money back in the pockets of the lowest-income wage earners in the state. People with incomes up to 22,300 can qualify for a tax credit.
Further, we created three new tax programs for business, adopted a five-year extension of the California Competes Tax Credit program that benefits small businesses, and approved $20 million annually for five years for the newly created Small Business Development Technical Assistance Expansion Program.