One in four children in California lives in poverty – the highest rate in the nation when you take into account the high cost of living.
This is a human and fiscal crisis for the future of our state.
THE RESEARCH-BACKED SOLUTION
The Lifting Children and Families Out of Poverty Initiative is based on extensive research conducted by the Stanford Center on Poverty and Inequality that provides a comprehensive plan to reduce poverty by providing services to all children in California living under the Federal Poverty Line, with additional supports for their families.
The initiative will provide funding for data-driven programs that research shows work to reduce poverty:
- Pre-natal and Home Visiting Services for children 0-5
- Childcare for children 0-2
- Preschool for children 3-4
- After School and Summer School Programs for children 5-12
- Job Training
- Expanded State EITC
- Increased CalWORKS grants
- California will designate up to 40 state “Promise Zones” to coordinate programs and funding in areas of concentrated poverty
The initiative will provide over $7 billion in funding annually for 20 years.
- Child poverty will be reduced by 50%
- 170,000 new jobs will be created
- Significant reduction in child abuse
THE COST SAVINGS
- Over 2-1 return on investment
- Estimated savings of $13 million annually from reduction in incarceration, delinquency, public assistance, social services and healthcare costs
- Tax revenues are projected to increase by $2.5 billion annually as a result of increased wages, productivity and economic output
THE FUNDING MECHANISM
This comprehensive plan will be financed by a surcharge on the portion of currently assessed valuations of real property in excess of $3 million.
The first $3 million in assessed value of all properties will be exempt from the surcharges. Multi-unit residential buildings with apartments valued under $2 million are also exempt. Proposition 13 protections against re-assessments and limitation on increases remain in place.
For properties valued at above $3 million, the surcharges will be:
- 0.3% on the portion of the assessed value between $3 million and $5 million.
- 0.6% on the portion of the assessed value between $5 million and $10 million.
- 0.8% on the portion of the assessed value in excess of $10 million.