BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Tom Torlakson, Chairman
1101 (Cedillo)
Hearing Date: 4/28/08 Amended: 4/15/08
Consultant: Mark McKenzie Policy Vote: Rev.&Tax. 6-1
_________________________________________________________________
____
BILL SUMMARY: SB 1101 would extend the sunset on the Emergency
Food Assistance Program (EFAP) Fund as a voluntary contribution
fund on the personal income tax form until January 1, 2014. The
bill would also change the name of the designation to the
Emergency Food for Families Fund.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2008-09 2009-10 2010-11 Fund
EFAP voluntary contributions (revenues) ($394)
($394)Special*
FTB, tax revenue loss ____ $24 $24 General
* Emergency Food Assistance Program Fund
_________________________________________________________________
____
STAFF COMMENTS:
Current law allows taxpayers to contribute money to one or more
of 11 voluntary contribution funds by checking a box on their
state income tax return (tax checkoff). These contributions are
made from taxpayers' own resources (not from their tax
liability, as is possible on federal tax returns). Checkoff
amounts are deductable as charitable contributions on taxpayers'
tax returns during the subsequent year. With several
exceptions, each existing voluntary contribution fund has a
sunset date and is required to meet a minimum contribution
amount of $250,000, adjusted annually for inflation. The EFAP
tax checkoff was established by AB 2366 (Cedillo), Chapter 818
of 1998, and extended by SB 43 (Cedillo), Chapter 317 of 2003.
This program is currently scheduled to sunset on January 1,
2009, and the fund needs to receive a minimum of $314,540 from
returns filed in 2008 to remain on the tax form the following
year.
SB 1101 would extend the sunset on the EFAP Fund tax checkoff on
the personal income tax form until January 1, 2014. The bill
would also change the name of the designation to the Emergency
Food for Families Fund.
The tax checkoff funds are used to supplement the existing EFAP
program which is administered by the Department of Social
Services (DSS) to provide USDA commodities, as well as surplus
fresh foods donated by farmers and businesses, to local food
banks for distribution to the working poor, low-income,
unemployed, and homeless persons. The EFAP tax checkoff has
provided $399,876 in 2005, $390,586 in 2006, and $392,424 in
2007 for the program, an average of $394,295 annually.
According to DSS, there are no staff specifically dedicated to
the administration of the revenues generated by the checkoff
because these contributions are a very small part of the program
as a whole. Staff notes that assuming average annual
contributions of $394, 295, the estimated revenue loss related
to the continuation of this checkoff would be $23,658 (applying
the average marginal tax rate of 6%), beginning in 2009-10.
Contributions are claimed as itemized deductions in the
following tax year.