BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 164 (Simitian)
Hearing Date: 05/26/2011 Amended: As Introduced
Consultant: Mark McKenzie Policy Vote: G&F 6-1
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BILL SUMMARY: SB 164 would extend the repeal dates for the State
Children's Trust Fund for the Prevention of Child Abuse and the
Rare and Endangered Species Preservation Program voluntary
contribution funds (VCFs) from January 1, 2013 to January 1,
2018.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Taxpayer donations (revenue) Average annual revenues of
$1,173 Special*
from 2014-15 through 2018-19
Tax revenue loss Average annual revenue loss of $70General
from 2014-15 through 2018-19
DSS administration Minor costs to administer child abuse
General
prevention funds
DFG administration Minor costs to administer
endangeredSpecial**
species preservation funds
FTB administration Minor annual administrative costs,General
reimbursed from donations
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* Average annual donations of approximately $563,000 to the
State Children's Trust Fund and approximately $610,000 to the
Endangered and Rare Fish, Wildlife, and Plant Species
Conservation and Enhancement Account.
** Fish and Game Preservation Fund
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STAFF COMMENTS: SUSPENSE FILE.
Currently, there are 15 VCFs, or "check-off" programs, on the
personal income tax return which allow taxpayers to donate their
own funds for various purposes. Generally, each tax check-off
program has a specific sunset date and an initial minimum
contribution amount of $250,000, adjusted annually for
inflation, with specified exceptions. Donations to check-off
programs are deductable as charitable contributions on
taxpayers' income tax returns during the subsequent tax year.
The State Children's Trust Fund for the Prevention of Child
Abuse and the Rare and Endangered Species Program VCFs have both
SB 164 (Simitian)
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appeared on the state income tax form since 1984, and the
minimum contribution amount for both funds for the 2011 tax year
is $305,388. Funds donated to the State Children's Trust Fund
are administered by the Department of Social Services (DSS), and
funds donated to the Rare and Endangered Species Prevention
Program are administered by the Department of Fish and Game
(DFG). Both of these VCFs are set to expire on January 1, 2013.
SB 164 would extend the sunset date for the State Children's
Trust Fund and the Rare and Endangered Species Preservation
Program VCFs until January 1, 2018.
Recent data provided by the Franchise Tax Board (FTB) indicates
that the State Children's Trust Fund has received annual
contributions averaging $562,877 since 2003, while the Rare and
Endangered Species Preservation Program has received annual
contributions averaging $609,609 over the same period. Using an
average marginal tax rate of 6 percent, the average annual
revenue loss associated with taxpayer deductions of these
amounts would be $70,350 from 2014-15 through 2018-19. FTB
costs to administer the programs are minor and are reimbursed
from donated amounts. DSS costs to distribute the funds for
child abuse and neglect prevention and intervention programs are
also minor. DFG costs to administer the distribution of
endangered and rare species preservation funds are minor and may
be covered by the contributions.