BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SBx1 3 (La Malfa)
          
          Hearing Date: 08/15/2011        Amended: 07/05/2011
          Consultant: Mark McKenzie       Policy Vote: G&F 6-0
          _________________________________________________________________
          ____
          BILL SUMMARY: SBx1 3 would establish the "Help Our State Fund" 
          as a voluntary contribution fund (VCF) that benefits the General 
          Fund on the personal income tax form until January 1, 2016.  
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14    Fund
           Net revenue impact     minor revenue gains              General

          FTB                    minor administrative costs to update 
          forms                  General
          _________________________________________________________________
          ____

          STAFF COMMENTS: 
          
          Existing law allows taxpayers to make voluntary contributions of 
          their own funds to one or more of the 15 VCFs on the personal 
          income tax return that benefit various programs.  As charitable 
          contributions, the taxpayer may deduct the amount donated to VCF 
          "checkoff" programs on the subsequent year's tax return.  All 
          but one of the existing VCFs has a sunset date and most require 
          a minimum annual contribution amount of $250,000, adjusted 
          annually for inflation, to ensure that a program has sufficient 
          public support to warrant continued placement on the tax return. 
           

          SBx1 3 would establish the "Help Our State Fund" as a VCF on the 
          tax return until January 1, 2016.  Unlike other VCFs, there is 
          no minimum contribution amount.  Revenues generated from this 
          VCF would be deposited directly into the General Fund.

          The Franchise Tax Board estimates that interest in this VCF 
          would be minimal, so the net revenue impact (amounts contributed 
          vs. revenue loss related to corresponding deductions) is 
          expected to be a gain of approximately $6,000 annually.  








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          The only other state that has a similar tax return designation 
          is Arizona, which allows for contributions to the "I Didn't Pay 
          Enough Fund" beginning in the 2010 tax year.