Hello Governor Becca Habegger ABC 10 news.
We know many Californians are
waiting on the final round of the
Golden State stimulus checks,
which of course are in the
process of going out right now.
And many families,
however, are still hurting.
So especially with the projected
surplus that you have told us about Ken,
Californians expect to see more
direct payments coming this
upcoming fiscal year, and if so,
might eligibility expand to
include even more Californians?
As you know, no other state in U.S.
history. Has ever provided $12 billion
at the state level of tax rebates,
and that's what we are committed to doing.
We've done the vast majority.
As you suggest, there are still
some that are awaiting those checks
and look forward to getting those
in their accounts very shortly.
So that is something without precedent.
Now, to your question.
Should they or expect more?
That's an open ended question.
I am currently and this
is a question perhaps.
He'll be asking later to our budget team,
but let me respond before
it's specifically even asked.
We project on the basis of the January
budget that we will exceed what we refer
to as the GAN limit by $2.6 billion.
Now, as you may know that $2.6 billion
half of it roughly goes to education.
The other half has to go
back to the taxpayers,
so that's a more specific response to
your question about potential tax relief
or contributions of excess tax revenue.
Going back to the people of
the state of California.
Now,
the reason I didn't highlight that
is that number will radically well
that number will substantially,
most likely substantially
change between now and may,
and so we are waiting more.
Contemporary information and data more
reflective of what is currently happening.
Before we had to put this budget to bed
to ultimately make that determination,
my sense is to your question that yes.
There likely will be substantial.
Contributions back to the taxpayers
what form they come in will work with
the legislature and to what degree,
in terms of total amounts of of dollars,
will be determined more closely in May.
I also want to note and important.
I know,
many people believe that our reserves
are not as high as they should be.
I agree with you.
But I hope they also would agree
with me that in order to get those
reserves where they need to go,
we need a constitutional amendment to reform.
Are reserved. System.
And right now I'll give you an example.
We reached the 10% constitutional threshold,
and there's an additional 2.4 billion
pursuant to the Constitution that needs
to go for infrastructure investment.
That's a good investment,
but for those that would prefer
those dollars to be in that account,
it would require some changes to
the Constitution that are much more
nuanced than what I'm presenting.
But the Gan limit the constitutional caps.
All of these things.
Will become, I think,
more clear will be indeed more
clear in the May revise and will
be more specific in terms of being
able to respond to your question.
Thank you quick follow up in regard
to avoiding hitting the GAN limit.
Would you personally be in favor of
if there is that money to give back
to the taxpayers having that come
in the form of direct payments to
families rather than say you know
investing further in education,
but you know giving it to to
families in those direct payments.
I'm very proud of the education investments.
I think there's a lot of wisdom
in maintaining that space.
We still have a lot of work
to do in the education space,
as you know, and I know in every
family in this state knows.
And providing choice and so much
of our budget is about providing
choice before after school,
summer school programs.
The choice to send your kids to high
quality pre K Community Schools,
enhancements and all the other choices
that we're now availing to families
and this year and last year's budget
as it relates to the Gann limit,
I am open to reforms and discussions.
That said the frame.
That is,
advanced is the one that we are advancing,
meaning the rules of the
road are well established,
and so we estimate January
budget that $2.6 billion,
two point 4 above the constitutional
cap for infrastructure on the basis of
the reserves will be set aside again,
may it will change into the
extent we will reform.
I look forward to working with
stakeholders and including parents
and leaders across the spectrum
in this state to determine what
that reform should look like.