(PatriotsUnited.org)- As California continues to deliberate over its deepening state deficit, a planned initiative that would offer financial support to residents living with disabilities through a pre-funded savings account has received mixed responses. Democratic state Senator Josh Newman introduced Senate Bill 1362 on the matter last week, which seeks to widen the current California Achieving a Better Life Experience (CalABLE) program. If passed, Newman’s new bill would allocate a $250 one-time payment minimum to eligible people in the state.
The CalABLE program, currently overseen by state Treasurer Fiona Ma, offers savings and investment platforms targeted towards individuals with disabilities. The scheme currently oversees more than 10,000 accounts and assets exceeding $120 million, catering to under 1% of the state’s population. Newman has stated that his proposed new bill plans to encourage eligible Californians to maximize the benefits of savings accounts they are already entitled to.
Newman also stressed his holistic approach to the state’s economic well-being, arguing that “Increasing the financial well-being of individuals with disabilities” will help California be “more inclusive and prosperous.” Ma echoed Newman’s sentiments, stating that empowering CalABLE to incentivize accounts aligns it with other state-sponsored savings programs and positions it for further growth.
Of course, some voices have expressed reservations about the plan. Susan Shelley, spokesperson for the Howard Jarvis Taxpayers Association pressure group highlighted the importance of balancing potential long-term costs and impact on the state’s budget before kickstarting yet more entitlement programs. The bill does not yet offer a detailed analysis of its fiscal implications, which has provoked concern in some quarters given California’s poor budgetary forecasts. A recent report from the Legislative Analyst’s Office projected a staggering deficit of up to $73 billion, far surpassing previous estimates. The report attributes this increase to a significant erosion in revenues, exacerbating the state’s financial woes.
As Governor Gavin Newsom finds himself grappling with his state’s looming budget crisis, various social and economic hurdles have already prompted an exodus of Californians in search of a better quality of life, especially in the wake of Covid-19 restrictions and the subsequent hike in living costs. As debates over Senate Bill 1362 rumble on, the Golden State continues to face a major choice over balancing fiscal responsibility with a need to offer government support to vulnerable elements of the population as financial strains increase.
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