2009 2008 2007 2006 2005 2004
Policy and Legislative Manager
Office of the Treasurer & Tax Collector
Submitted By: David Augustine
We'd like the City to support programs related to asset building and financial empowerment, especially given the Mayor's support for Baby bank accounts in his inaugural address. Here are four bills that we support in this realm. These bills have been voted on by the State Legislation Committee at the March 27, 2008 meeting.
In addition, we'd like to support a bill to amend state law to allow a municipality to vote for a local income tax. There are a lot of tax reform proposals going around, and this would expand the discussion and include an income tax, which we think is fair, easy to administer, and progressive. Plus San Franciscans would still have to vote for it before it was implemented.
First Policy Hearing April 7 in the Assembly Banking and Finance Committee
Will commit the state to start addressing the root causes of personal and state economic struggles precipitated by a lack of financial education. Through the establishment of a dedicated Financial Literacy Advocate and a Financial Literacy Advisory Committee, this bill will codify the state’s financial interest in reducing consumer debt, bolstering savings, and deterring financial predicaments like those evident in the current foreclosure crisis. AB 2123 will create an information warehouse where Californians can turn to for answers on basic financial questions and for referral to other, more specific resources closer to home. Finally, the bill establishes the Financial Services Corps, designed to be a dedicated cadre of financial planner volunteers committed to helping low and middle-income Californians make sound financial decisions.
Human Services Committee April 15 has not passed the Senate yet
The CalWORKs Mobility Initiative repeals the vehicle asset limit on CalWORKs applicants and recipients to encourage low-income families become employed and self-sufficient by building the savings they need to permanently exit CalWORKs. California is currently tied with Texas and Idaho in having the most restrictive asset test for vehicles of any state in the country. Twelve states exclude all vehicles owned by the household; another 15 exclude at least one vehicle per household. The rest have substantially increased the value of the vehicle exclusion. California, however, continues to employ an overly restrictive vehicle asset test – one that undermines a workers ability to gain and maintain employment, thereby encouraging continued reliance on public assistance. A recent report by the County of Los Angeles on the transportation barriers faced by low-income families concludes that “car ownership is strongly correlated with employment status, and increases the likelihood of employment.”
First Policy Hearing in Banking and Finance Committee
The Pay Day Loan Reform Act caps the loan rates on ‘pay day loans’ at 36% which typically bear interest rates of 400 percent and traps low-income families in a cycle of indebtedness.
Kevin De Leon
The Golden State Voluntary Savings Account is a retirement savings program that offers a voluntary, universal, portable retirement account for California workers who do not have access to retirement savings plan. The account would supplement the current employer-based system and Social Security. It promotes expanded retirement security for working Californians by making it easier for them to save while providing smaller employers a basic retirement plan to offer their employees.