[Vision2020] Legislative update

[Mark Solomon]

Shirley,

How will this help or not help the working poor 
who are not required to file an income tax return?

Mark

At 3:53 PM -0700 1/17/07, Shirley Ringo wrote:
>Visionaries:
>
>Legislative News
>
>
>
>Governor Otter recommends a change in the 
>grocery tax credit.  This is a timely 
>recommendation, since the sales tax was 
>increased to 6% as a result of legislative 
>action taken during the special session last 
>August.  Currently, the grocery tax credit is 
>$20 per person for most people and $35 per 
>person for those at least 65 years old.  The 
>Governor’s proposal would target the credit to 
>people with lower incomes.  Depending upon 
>circumstances, the credit may reach $90 per 
>person.  As incomes increase, the credit 
>eventually is phased down to zero.  The 
>additional cost of this modification to the 
>grocery tax credit program is $22 million.
>
>
>
>Although the notion of completely removing the 
>tax on groceries frequently receives attention, 
>it should be noted that there would be a revenue 
>loss of about $200 million.  By reforming tax 
>laws, that revenue could be recovered.  However, 
>there has not been much support for 
>comprehensive tax reform.
>
>
>
>
>
>The public education budget has not yet been 
>presented to the Joint Finance and 
>Appropriations Committee, but information is 
>available.  State Superintendent Tom Luna 
>requests a 3% increase in money for teacher 
>salaries, and a 1% increase in money for 
>administrator salaries.  The Governor’s request 
>for additional salary money is 5%.  This is 
>consistent with his requests across state 
>agencies.
>
>
>
>During the State of the State message, Governor 
>Otter mentioned his support for Mr. Luna’s 
>request for additional money specified for 
>textbooks and supplies, rural schools, and other 
>programs. The Governor’s budget reflects no 
>appropriation in these areas.  However, 
>indications are that Mr. Luna has been given 
>discretion to take from the Governor’s proposed 
>salary funds to cover other things he would 
>favor.
>
>
>
>Statutory requirements dictate the great 
>majority of funds for public schools.  Thus the 
>“discretionary money” in the budget is important 
>to local districts.  For the next school year, 
>the Governor recommends no increase in $ per 
>support unit, while Mr. Luna recommends only a 
>1% increase.
>
>
>
>Please let me know if you have specific questions.
>
>
>
>Shirley Ringo
>
>
>
>
>
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mailman.fsr.com/pipermail/vision2020/attachments/20070117/bfea3902/attachment.html