BILL ANALYSIS
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THIRD READING
Bill No: SB 1076
Author: Price (D)
Amended: 3/22/10
Vote: 21
SENATE REVENUE & TAXATION COMMITTEE : 3-1, 4/14/10
AYES: Wolk, Alquist, Padilla
NOES: Walters
NO VOTE RECORDED: Ashburn
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Income tax checkoff: California Arts Council
SOURCE : Author
DIGEST : This bill allows taxpayers to make voluntary
contributions to the California Arts Council on their state
personal income tax returns.
ANALYSIS : 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). Checkoff amounts may be claimed as charitable
contributions on taxpayers' tax returns during the
subsequent year.
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Existing law allows the Franchise Tax Board (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 checkoff designation on the state
personal income tax return for taxpayers to voluntarily
contribute to the California Arts Council (CAC).
This bill 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
programs.
This bill requires that the checkoff meet the minimum
contribution requirement of $250,000.
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, nine appointed by the Governor (subject to Senate
confirmation) and one 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 five percent less funding than in
the current year. Funding sources consist of about
one-third each from the General Fund, the Graphic Design
License 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.
The following are the current 15 checkoffs:
1. Alzheimer's Disease/Related Disorders Fund
2. California Breast Cancer Research Fund
3. California Firefighters' Memorial Fund
4. California Fund for Senior Citizens
5. California Military Family Relief Fund
6. California Peace Officer Memorial Foundation Fund
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7. California Sea Otter Fund
8. Emergency Food for Families Fund
9. Rare and Endangered Species Preservation Fund
10.State Children's Trust for the Prevention of Child
Abuse
11.ALS/Lou Gehrig's Disease Research Fund
12.California Cancer Center Research Fund
13.California Ovarian Cancer Research Fund
14.California Seniors Special Fund
15.Municipal Shelter Spay and Neuter Fund
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/17/10)
Arts Orange County
California Alliance for Arts Education
California Arts Advocates
California Arts Council
California Association of Museums
Gay Men's Chorus of Los Angeles
P.S. ARTS
ARGUMENTS IN SUPPORT : According to the author's office,
this bill will assist the CAC in offsetting the 80 percent
reduction to CAC's budget since 2001-2002. The reduction
in 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 checkoff
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.
DLW:mw 5/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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