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SCG Policy Update

Resource

July 2019 Public Policy Roundup

Publication date: 
07/29/2019

Executive Summary

This month’s Policy Roundup takes a look into the bustling updates from Sacramento including the newly enacted state budget, a legislative strategy to reduce deep child poverty and what a statewide-run retirement savings option would look like in practice.  We also explore the potential impact of the federal administration’s proposal to shrink the federal poverty threshold and new private university endowments taxes. Other highlights include: 

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Analysis: Taxpayers First Act Requires Nonprofits to E-File Tax Forms

Publication date: 
07/23/2019

The newly enacted Taxpayers First Act (Public Law 116-25) is the first substantial modification reform to the Internal Revenue Service (IRS) in over two decades, revising its organizational structure, increasing cybersecurity measures and revising requirements for electronic filings. The new law also requires all tax-exempt organizations filing a Form 990 and political organizations that receive or spend funds for tax-exempt functions filing a Form 8872 to file their annual tax returns electronically and made available in a machine-readable format. 

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Analysis: IRS Issues New 1.4 Percent University Endowment Income Tax

Publication date: 
07/23/2019

On Friday, June 28th, 2019, the Internal Revenue Service released the proposed tax guidelines for higher education institutions that are now required to pay a new tax on their endowments as outlined under the 2017 Tax Cuts and Jobs Act. The 1.4 percent excise tax on net investment income targets universities with at least 500 tuition-paying students and with assets of $500,000 per student. The newly proposed regulations are estimated to impact between 25 to 40 institutions.  

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SB 298 (Caballero): Poverty reduction - Support

Publication date: 
07/23/2019

Southern California Grantmakers submitted a letter of support for Senate Bill 298: Poverty Reduction, introduced by Senator Anna Caballero. This bill would establish the End Child Poverty Act of 2020 and commit California to a goal of ending deep child poverty within four years and reducing child poverty by 50 percent over the next 20 years using research-backed solutions. 

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State Budget Adopted: New Investments in Early Childhood, Child Welfare, Housing, Homelessness, Healthcare and Health Access, and Justice Reinvestments

Publication date: 
06/24/2019

The California State Legislature passed a $214.8 billion budget that makes “one-time” investments in key priority areas, such as homelessness, ongoing commitments to health access and early childhood, and contributions to “rainy day” funds that protect the state from a predicted economic downturn. Key highlights from the budget include:

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Criminal Justice Reform: Changes to the Pretrial System

Publication date: 
01/07/2019

In 2017-8 California State Legislative Session, SCG developed an analysis on the background and implications of Senate Bill (SB) 10 (Hertzberg), which proposed to restrict the practice of setting “monetary bail” by establishing a risk assessment tool conducted by judges. Monetary bail is a sum of money that an accused person awaiting trial can deposit to receive a temporary release from jail. The deposit conceptually acts as an incentive for accused persons to return to court. SB 10 proposed an alternative to monetary bail system with a statewide “risk assessment tool”. The tool determines whether defendants can be safely released from jail while awaiting trial. SB 10 proposed this change because the bail system unfairly affects individuals who cannot afford to pay for bail.

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