BILL ANALYSIS
AB 2017
Page 1
Date of Hearing: May 12, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2017 (Hall) - As Amended: April 27, 2010
Policy Committee: Human
ServicesVote:4 - 0
Revenue and Taxation 9 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill adds the Young Men's Christian Association (YMCA)
Youth and Government Fund checkoff to the list of voluntary
contribution funds included on the personal income tax form. It
also codifies findings and declarations concerning the value of
the California YMCA Youth and Government Program.
FISCAL EFFECT
1)The contributions may be taken as an itemized deduction on
income tax returns. The Franchise Tax Board estimates that the
annual revenue losses from these deductions would about
$15,000 beginning in 2011-12.
2)Potentially significant litigation costs to the extent the
bill's provisions are challenged on the grounds that the state
would be supporting a religious-based organization.
COMMENTS
1)Purpose . According to the author, in recent years, costs to
operate the California YMCA Youth and Government Program as
well as participant demand for financial assistance have
increased while donations to the program have declined. This
bill is intended to help fund the program through voluntary
contributions made on state tax returns.
2)Background . The YMCA Youth and Government program offers high
school and middle school students the opportunity to serve in
a model government process at the local, state, national, and
AB 2017
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international levels.
3)Voluntary Contribution Funds (VCFs) . California taxpayers can
make voluntary contributions to any of 15 funds listed on the
state personal income tax return. The contributions are in
addition to any tax liabilities otherwise owed. Thus, they do
not directly reduce state taxes otherwise available to support
state-funded programs in the year in which they are made.
However, the amounts are allowed as an itemized deduction for
charitable contributions on the subsequent year's income tax
return. These voluntary contributions support various
purposes, including cancer research, endangered species
preservation, and emergency food assistance. Contributions to
the VCFs have historically ranged from $300,000 to $800,000
per year. All but one VCF (the California Seniors Special
Fund) have sunset dates, and most must meet a minimum annual
contribution to remain on the return.
4)Related legislation . SB 516 (DeSaulnier) 2009-2010 would
establish a state tax return check off box for the funding of
the California Youth Legislature, a similar program to the
YMCA Youth and Government Program. That bill is currently in
the Assembly Revenue and Taxation committee. The YMCA opposed
SB 1516 last year because they contend it is duplicative of
their program.
5)Key Issue . Irrespective of the merits of YMCA Youth and
Government Program, the bill raises a sensitive question about
the appropriateness of codifying a program sponsored by a
religious-based organization and using publicly-funded tax
returns to facilitate contributions to the program.
Analysis Prepared by : Brad Williams / APPR. / (916) 319-2081