Newsom: Legislature plan delays checks until October
He wants refunds through DMV; legislators prefer Franchise Tax Board
After a flurry of proposals from Sacramento in March to send money back to Californians, a rebate check could still be nearly five months away under plans promoted by legislative leaders, Gov. Gavin Newsom warned, as he argued that his contentious plan linking financial relief to car ownership is the quickest alternative to landing money back in wallets.
In a recent interview with the Bay Area News Group editorial board, Newsom criticized California’s Democratic leadership for outlining a plan that would funnel $8 billion through the Franchise Tax Board, which he said could add months to the refund timeline. Under that proposal, taxpayers making up to $125,000 would see $200 checks with an additional $200 for each child or other dependent.
“FTB can’t get the money out quickly because they’re in the middle of tax refund season,” Newsom said, adding that refunds would start in late September and could span all the way into next spring. “My sense was, people may get a little cranky about that. They may want a little quicker relief.”
The wrangling between Democrats — who hold a supermajority in the legislature — over how to give Californians relief at the gas pump has dragged on for weeks as gas prices have remained well over $5 a gallon for the past two months. Democratic leadership and the governor remain at loggerheads over whether the money should be going to all residents at all income levels, as Newsom has proposed, or be just for people in greater need.
Newsom has proposed $400 for each vehicle Californians own, capped at $800 for two vehicles, totaling $11 billion in rebates. Under Newsom’s plan, the Department of Motor Vehicles — not the Franchise Tax Board — would be responsible for distributing debit cards that could start hitting mailboxes “earlier in the summer,” the governor said.
Newsom said the two-vehicle rebate cap would prevent “people with 23 Teslas” from exploiting the state’s generosity. But the governor said this rebate should include higher-income earners who were left out of the previous stimulus check that was limited to people earning $75,000 or less.
“We want to acknowledge that the middle class felt a little left out of the last one,” Newsom said.
Negotiations between key legislators and the governor are taking place ahead of a May budget revision due out next week. The revision will provide an updated picture of how much money the state has and how Newsom wants to spend it.