Business Snapshot of Governor’s Proposed Budget
- Modify legislation that was approved in February of 2009 that allowed multi-state and multinational corporations to choose between two methods for stemming the share of their profits that would be taxed in California beginning in 2011.
- Eliminate tax breaks linked to the state’s enterprise zone and other geographically targeted programs.
- Loan $362.3 million from the Unemployment Compensation Disability Fund (State Disability Insurance (SDI) fund) to the General Fund to pay interest due on loans from the Federal Unemployment Account (FUA). The Employment Development Department (EDD) began borrowing from the FUA to pay Unemployment insurance benefits in January 2009 when the state’s Unemployment Insurance (UI) fund became insolvent.
- Provide $19.5 million to continue the EDD’s Automated Collection Enhancement System (ACES) for auditing the payment of employer payroll taxes.
- $84.4 million in federal funds from the Small Business Jobs and Credit Act of 2010 for the Small Business Loan Guarantee Program.
- Provides additional funds from the Public Transportation Account to local transit agencies to maintain the higher level of funding provided by the fuel tax swap enacted by the legislature in March 2010