BILL ANALYSIS
SENATE REVENUE & TAXATION COMMITTEE
Senator Lois Wolk, Chair
SB 1076 - Price
Amended: March 22, 2010
Hearing: March 24, 2010 Fiscal: Yes
SUMMARY: This bill would allow taxpayers to make voluntary
contributions to the California Arts Council on
their state personal income tax returns.
EXISTING LAW allows taxpayers to contribute money to
one or more of 15 voluntary contribution funds by checking
a box on their state income tax return. California law
requires contributions made through check-offs to be made
from taxpayers' own resources (not from their tax
liability, as is possible on federal tax returns).
Check-off amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
Allows the FTB to design tax returns to provide for
the designation of contributions to specified funds either
on the return itself or on a separate schedule that must be
attached to the return.
THIS BILL creates a check-off designation on the state
personal income tax return for taxpayers to voluntarily
contribute to the California Arts Council (CAC).
Establishes the Arts Council Fund in the State
Treasury and allows the CAC to receive the moneys deposited
into this fund and use these moneys only for allocation of
grants to individuals or organizations administering arts
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programs.
Requires that the check off meet the minimum
contribution requirement of $250,000.
FISCAL EFFECT:
According to the FTB, extending this check-off will
result in annual revenue losses of approximately $15,000
per year beginning in the 2010-12 fiscal years.
COMMENTS
A. Purpose of the Bill
According to the author's office, this bill would
assist the CAC in offsetting the 80% reduction to the CAC's
budget since 2001-2002. The reduction in the CAC's budget
has resulted in reduced arts education programming and less
funding for arts programs both in rural and underserved
urban areas.
By creating a check-off designation on the personal
income tax return for taxpayers to voluntarily contribute
to the CAC, this bill creates a dedicated source of funding
for arts programs throughout the state.
B. Background
The CAC was established in 1975. The mission of the
CAC is to promote the arts in California. The CAC consists
of 11 members, 9 appointed by the Governor (subject to
Senate confirmation) and 1 each by the President pro
Tempore of the Senate and the Speaker of the Assembly.
The Governor's Budget proposes $5.7 million for the
CAC in 2010-1l approximately 5% less funding than in the
current year. Funding sources consist of about one-third
each from the General Fund, the Graphic Design License
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Plate Account (GDLPA), and federal funds. While the amount
of federal funds budgeted for 2010-11 have decreased over
the current year, the General Fund and GDLPA budgeted
funding portions for 2010-11 have increased slightly over
the current year.
C. Many worthy causes
In the past, the Committee has expressed concern that
countless worthy causes may be funded by tax check-offs.
The Committee has stated that the current check-off system
forces them to choose between worthy charities and
non-profits for a spot on the tax return. The current
system remains subjective and is limited to those
organizations that can convince the Legislature to include
them on the form. Additionally, taxpayers may currently
contribute portions of their refunds to worthy
organizations. Taxpayers may also claim a deduction for
charitable contributions. The Committee may wish to
consider whether the state should use the tax code to
encourage contributions to certain charitable
organizations.
In addition to this bill, the following bills have
been introduced this year:
AB 1049 (Torrico, 2009/2010) would create a VCF
designation on the personal income tax return for
taxpayers to contribute to the Safely Surrender Babies
Fund. This bill has been referred to the Assembly
Revenue and Taxation Committee.
AB 1088 (Fletcher, 2009/2010) would create a VCF
designation on the personal income tax return in order
for taxpayers to contribute to the Morale, Welfare,
and Recreation Fund for each of the veterans' homes,
as provided. This bill is currently set for hearing in
the Assembly Veterans Affairs Committee.
The following related bills were chaptered in 2009:
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AB 292 (Yamada, Stats. 2009, Ch. 232) extended the
expiration date of the Alzheimer's Disease and Related
Disorders Research Fund from January 1, 2010, to
January 1, 2015.
AB 563 (Cook, Stats. 2009, Ch. 451) made changes to
the California Military Family Relief Fund related to
the allocation of the funds and revised the minimum
contribution amount required to remain on the personal
income tax return.
SB 91 (Correa, Stats. 2009, Ch. 29) extends the
expiration date of the California Fund for Senior
Citizens from January 1, 2010, to January 1, 2015.
Contributions to voluntary funds in 2008 and 2009 were
as follows:
--------------------------------------------
| Voluntary Contribution | 2008 |
|Fund |Contribution|
| | s |
|-------------------------------+------------|
|Alzheimer's Disease/Related | $505,510 |
|Disorders Fund | |
|-------------------------------+------------|
|California Breast Cancer | $596,729 |
|Research Fund | |
|-------------------------------+------------|
|California Firefighters' | $250,060 |
|Memorial Fund | |
|-------------------------------+------------|
|California Fund for Senior | $288,695 |
|Citizens | |
|-------------------------------+------------|
|California Military Family | $306,750 |
|Relief Fund | |
|-------------------------------+------------|
|California Peace Officer | $184,261 |
|Memorial Foundation Fund | |
|-------------------------------+------------|
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|California Sea Otter Fund | $294,966 |
|-------------------------------+------------|
|Emergency Food for Families | $438,582 |
|Fund | |
|-------------------------------+------------|
|Rare and Endangered Species | $580,823 |
|Preservation Fund | |
|-------------------------------+------------|
|State Children's Trust for the |$528,609 |
|Prevention of Child Abuse | |
--------------------------------------------
-------------------------------
| Newly Added as of January |
|2009 |
|-------------------------------|
|ALS/Lou Gehrig's Disease |
|Research Fund |
|-------------------------------|
|California Cancer Center |
|Research Fund |
|-------------------------------|
|California Ovarian Cancer |
|Research Fund |
|-------------------------------|
|California Seniors Special |
|Fund |
|-------------------------------|
|Municipal Shelter Spay and |
|Neuter Fund |
| |
| |
-------------------------------
Support and Opposition
Support:California Alliance for Arts Education
California Arts Council
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P.S. Arts
Arts Orange County
Gay Men's Chorus of Los Angeles
Oppose:None registered
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Consultant: Meg Svoboda
March 19, 2010