Californians eager for another stimulus check may get one, according to the Legislative Analyst’s office, because $31 billion in funds are likely to be surplus by next year.
Because of the large sum available, the state will be able to provide certain benefits to its citizens. This also adds the option of stimulation checks to the list.
Golden State Stimulus Program
The Golden State Stimulus Program was created for California residents who are tax filers and meet the requirements of the Franchise Tax Board (FTB).
Residents with an annual income of less than $75,000 who file their taxes by October 15, 2020, for example, are eligible for this program. The goal of implementing this program was to assist families of low to middle socioeconomic class who were experiencing problems during COVID-19.
This pandemic has been a setback and a financial burden for millions and billions of people around the world, not just in California. As a result, this one-time payment ranging from $600 to $1200 was one of the government’s efforts to assist Californians.
Residents now expect that this program will not be canceled, and that two more checks will be issued in the year 2022. For the time being, around 9 million people across the state are projected to get their checks by the end of 2021.
California’s Comeback Plan includes all of these cheques being sent out. Newsom set aside $12 billion to cover the cost of the stimulus payments. The most recent set of checks is now being sent out.
Gavin Newsom’s Plan
California Governor Gavin Newsom announced his plan to invest the funds in infrastructure.
He has promised that, similar to how we “framed” the excess last year, they will take a similar “method” this year. He stated that he will make a choice that is “in the best interests of the 40 million Californians.”
The Probability of Another Round of Stimulus Checks
The repercussions of COVID-19 are still being felt in the United States. The stimulus funds are being utilized to make ends meet, pay off debts, and get through the layoff time.
Unemployment continues to be higher than it was prior to the pandemic. It’s also important to keep in mind the recent increase in inflation. As a result, leading economists have signed a letter supporting “continuing direct stimulus payments until the economy recovers.”
However, given that the Biden administration has now moved its focus to the infrastructure plan, it appears exceedingly unlikely. By upgrading or replacing aging schools, highways, airports, and other infrastructure, this strategy would help to enhance and reorganize the economy.
It is yet unknown if such large direct payments would be made in 2022, or even if the stimulus checks will be issued at all. In any event, the budget surplus monies will undoubtedly help to improve the lives of California residents.
Tax cuts, stimulus payments, and public school improvements are just a handful of the many options. The new budget is most likely to be proposed in January, so the steps implemented will be evident.