California has already sent two stimulus checks under its Golden State Stimulus program. Now, it seems likely that another California stimulus check could be on the way. State Senator Brian Jones, on Wednesday, suggested that the government could use the budget surplus to send stimulus checks to Californians.
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Why Another California Stimulus Check Is Possible
Jones, in a video on Wednesday, talked about the state’s $45 billion budget surplus and how it could be used. In the video, Jones used grains of rice to show the size of the surplus.
“What would you do with $45 billion?” Jones said. “If each grain of rice is $100,000, that means California’s $45 billion surplus is taxes over-collected by this much.”
Jones noted that the surplus amount is enough to give a stimulus check of $1,125 to each Californian, or over $4,000 to a family of four.
“If it’s 2,500, if it’s 1,500, any amount that we can convince the state, the governor, the Democrats in the Legislature to send back, I think is a benefit to every Californian and every California family,” the senator said.
California, this year, is also expected to pass the Gann Limit. If passed, this Gann Limit would restrict the amount of tax revenue that the state can spend, and thus, would give more options on using the remaining revenue.
Another Hint Of Stimulus Check
This is not the first time there have been talks of giving another California stimulus check. A few weeks back, Governor Gavin Newson also hinted about helping Californians using the budget surplus.
“Yes, there likely will be substantial contributions back to the taxpayers. What form they come in, we’ll work with the Legislature, and to what degree will be determined more closely in May,” Newsom said while presenting his state budget proposal last month.
Though Newson suggests a decision on another California stimulus check could come by May, many believe waiting until May would leave little time for negotiations. With a budget deadline of June 15, a decision on another California stimulus check in May would leave lawmakers and the governor with just a few weeks to negotiate.
Though Newsom’s budget proposal didn’t directly mention giving money back to the taxpayers, it does include a few provisions that would directly benefit Californians. The budget proposal sets aside $70.5 billion on K-12 education, as well as $21.8 billion on higher education.
Newsom also has plans to spend $1.5 billion over the next two years to expand housing for people with behavioral health conditions. Also, $500 million would be used to clear homeless encampments and house their occupants.
There is also a proposal to spend $1 billion over two years for housing in downtown areas. The proposal also calls for spending $1 billion toward affordable housing, through low-income housing tax credits and other investments.
