key takeaway
Nearly six in 10 Californians say that recent price increases have caused hardship. Strengthening the state’s refundable income tax credits is a proven way policymakers can improve Californians’ economic security.
Every Californian deserves to be able to put food on the table, pay the rent, and support their families. But millions of people across California struggle to make ends meet every day. Although inflation has slowed in recent months, the cost of basic needs like food and housing remain high and continue to strain family budgets.
Nearly six in 10 Californians say that price increases have caused hardship. Additionally, nearly half — including 63% of low-income Californians — say that their housing costs are placing a financial strain on them and their families. On top of this, the number of Californians living in poverty has likely risen because policymakers let pandemic supports expire. This includes emergency food assistance and expansions of the federal Earned Income Tax Credit (EITC) and Child Tax Credit.
A key and proven way policymakers can improve Californians’ economic security is by strengthening the state’s refundable income tax credits. These tax credits provide tax refunds to people with low incomes. California’s largest of such credits — the California Earned Income Tax Credit (CalEITC) — helps millions of Californians with low incomes meet basic needs each year.
Last year, the CalEITC put over $700 million back in the pockets of workers with low incomes and their families. So far this year, it’s provided well over $800 million. These dollars help families and individuals. Additionally, it supports local businesses, jobs, and economies by boosting the spending power of tax credit recipients. Research on the expanded federal Child Tax Credit as well as the federal EITC shows that the vast majority of families with low incomes spend their credits on basic household needs, with food being the most common expense.
Increasing the amount of cash provided through the CalEITC is a simple, effective way for state policymakers to help more Californians in working families make ends meet while also supporting local businesses and jobs. This investment is especially imperative now that federal pandemic supports have expired. This expiration makes it more difficult for many Californians to make ends meet. Tens of thousands of households in every legislative district across the state currently benefit from the CalEITC. Further investments in the credit could inject significant resources into their communities.
Assembly District Order
| Assembly District | Assemblymember | Party | Number of Households Benefitting from the CalEITC Tax Year 2021 | Amount of CalEITC Credits Going to Households Tax Year 2021 |
|---|---|---|---|---|
| 1 | Megan Dahle | Republican | 38,800 | $7,307,300 |
| 2 | Jim Wood | Democrat | 40,900 | $7,511,700 |
| 3 | James Gallagher | Republican | 44,900 | $9,364,300 |
| 4 | Cecilia M. Aguiar-Curry | Democrat | 34,700 | $6,171,900 |
| 5 | Joe Patterson | Republican | 27,500 | $4,552,000 |
| 6 | Kevin McCarty | Democrat | 45,200 | $9,098,200 |
| 7 | Josh Hoover | Republican | 39,300 | $7,274,100 |
| 8 | Jim Patterson | Republican | 40,900 | $7,736,200 |
| 9 | Heath Flora | Republican | 39,700 | $7,596,200 |
| 10 | Stephanie Nguyen | Democrat | 49,000 | $10,131,400 |
| 11 | Lori D. Wilson | Democrat | 38,300 | $7,196,200 |
| 12 | Damon Connolly | Democrat | 27,100 | $4,651,000 |
| 13 | Carlos Villapudua | Democrat | 48,400 | $11,172,200 |
| 14 | Buffy Wicks | Democrat | 30,400 | $5,364,700 |
| 15 | Timothy S. Grayson | Democrat | 38,000 | $7,510,100 |
| 16 | Rebecca Bauer-Kahan | Democrat | 16,900 | $2,438,600 |
| 17 | Matt Haney | Democrat | 31,200 | $5,287,000 |
| 18 | Mia Bonta | Democrat | 37,500 | $7,570,200 |
| 19 | Philip Y. Ting | Democrat | 27,400 | $3,949,300 |
| 20 | Liz Ortega | Democrat | 35,700 | $6,276,200 |
| 21 | Diane Papan | Democrat | 20,700 | $3,417,000 |
| 22 | Juan Alanis | Republican | 47,900 | $10,521,200 |
| 23 | Marc Berman | Democrat | 15,300 | $2,272,100 |
| 24 | Alex Lee | Democrat | 24,900 | $3,892,500 |
| 25 | Ash Kalra | Democrat | 39,700 | $7,222,400 |
| 26 | Evan Low | Democrat | 19,700 | $3,151,700 |
| 27 | Esmeralda Z. Soria | Democrat | 61,500 | $14,809,700 |
| 28 | Gail Pellerin | Democrat | 22,000 | $3,498,000 |
| 29 | Robert Rivas | Democrat | 51,100 | $11,484,600 |
| 30 | Dawn Addis | Democrat | 31,600 | $5,232,100 |
| 31 | Dr. Joaquin Arambula | Democrat | 65,800 | $17,041,200 |
| 32 | Vince Fong | Republican | 47,100 | $10,464,000 |
| 33 | Devon J. Mathis | Republican | 60,800 | $15,246,800 |
| 34 | Tom Lackey | Republican | 49,300 | $11,402,400 |
| 35 | Jasmeet Kaur Bains | Democrat | 67,500 | $17,022,400 |
| 36 | Eduardo Garcia | Democrat | 60,100 | $14,462,800 |
| 37 | Gregg Hart | Democrat | 40,700 | $8,009,800 |
| 38 | Steve Bennett | Democrat | 46,200 | $9,110,500 |
| 39 | Juan Carrillo | Democrat | 60,500 | $15,277,800 |
| 40 | Pilar Schiavo | Democrat | 40,600 | $6,916,900 |
| 41 | Chris R. Holden | Democrat | 35,500 | $6,024,500 |
| 42 | Jacqui Irwin | Democrat | 28,700 | $4,279,200 |
| 43 | Luz M. Rivas | Democrat | 64,000 | $13,048,000 |
| 44 | Laura Friedman | Democrat | 42,500 | $6,309,100 |
| 45 | James C. Ramos | Democrat | 61,900 | $14,078,900 |
| 46 | Jesse Gabriel | Democrat | 50,500 | $9,333,600 |
| 47 | Greg Wallis | Republican | 48,200 | $9,378,200 |
| 48 | Blanca E. Rubio | Democrat | 53,200 | $9,508,500 |
| 49 | Mike Fong | Democrat | 53,200 | $8,654,500 |
| 50 | Eloise Gómez Reyes | Democrat | 54,200 | $10,656,200 |
| 51 | Rick Chavez Zbur | Democrat | 36,900 | $5,207,900 |
| 52 | Wendy Carrillo | Democrat | 59,200 | $11,011,300 |
| 53 | Freddie Rodriguez | Democrat | 55,300 | $10,734,700 |
| 54 | Miguel Santiago | Democrat | 63,600 | $13,057,200 |
| 55 | Isaac G. Bryan | Democrat | 44,900 | $8,402,600 |
| 56 | Lisa Calderon | Democrat | 52,600 | $9,400,700 |
| 57 | Reginald B. Jones-Sawyer, Sr. | Democrat | 70,400 | $17,673,400 |
| 58 | Sabrina Cervantes | Democrat | 52,000 | $10,111,000 |
| 59 | Phillip Chen | Republican | 33,300 | $5,400,700 |
| 60 | Dr. Corey A. Jackson | Democrat | 55,600 | $12,396,800 |
| 61 | Tina S. McKinnor | Democrat | 53,000 | $10,988,700 |
| 62 | Anthony Rendon | Democrat | 57,800 | $12,008,900 |
| 63 | Bill Essayli | Republican | 42,100 | $7,895,700 |
| 64 | Blanca Pacheco | Democrat | 56,500 | $10,634,100 |
| 65 | Mike A. Gipson | Democrat | 63,300 | $14,612,200 |
| 66 | Al Muratsuchi | Democrat | 29,300 | $4,855,700 |
| 67 | Sharon Quirk-Silva | Democrat | 48,200 | $8,547,200 |
| 68 | Avelino Valencia | Democrat | 57,300 | $10,921,900 |
| 69 | Josh Lowenthal | Democrat | 48,500 | $9,086,200 |
| 70 | Tri Ta | Republican | 55,200 | $9,556,700 |
| 71 | Kate A. Sanchez | Republican | 31,900 | $5,182,500 |
| 72 | Diane B. Dixon | Republican | 29,700 | $4,467,900 |
| 73 | Cottie Petrie-Norris | Democrat | 32,700 | $5,280,000 |
| 74 | Laurie Davies | Republican | 37,200 | $6,207,900 |
| 75 | Marie Waldron | Republican | 35,400 | $6,434,400 |
| 76 | Brian Maienschein | Democrat | 32,500 | $5,614,400 |
| 77 | Tasha Boerner | Democrat | 25,500 | $3,542,300 |
| 78 | Christopher M. Ward | Democrat | 38,200 | $5,977,400 |
| 79 | Dr. Akilah Weber, M.D. | Democrat | 57,100 | $11,188,500 |
| 80 | David A. Alvarez | Democrat | 65,000 | $12,615,700 |
Notes: Number of households is rounded to the nearest hundred. It reflects those receiving the CalEITC in tax year 2021 as of 12/31/22. Just over 49,000 households that received the CalEITC (1.4%) filed taxes from zip codes outside of California. These households are not included in this analysis. Another 48,000 households that received the CalEITC & filed taxes from within California (1.3%) are not included in this analysis. They could not be matched to an Assembly or Senate district or because FTB did not report the zip code from which they filed in order to meet confidentiality standards.
Source: Budget Center analysis of Franchise Tax Board data
Senate District Order
| Senate District | Senator | Party | Number of Households Benefiting from the CalEITC Tax Year 2021 | Amount of CalEITC Credits Going to Households Tax Year 2021 |
|---|---|---|---|---|
| 1 | Brian Dahle | Republican | 94,100 | $17,456,600 |
| 2 | Mike McGuire | Democrat | 70,100 | $12,915,800 |
| 3 | Bill Dodd | Democrat | 72,700 | $12,736,000 |
| 4 | Marie Alvarado-Gil | Democrat | 88,500 | $17,803,500 |
| 5 | Susan Talamantes Eggman | Democrat | 99,100 | $21,230,400 |
| 6 | Roger W. Niello | Republican | 84,200 | $15,812,600 |
| 7 | Steven M. Glazer | Democrat | 56,500 | $10,301,400 |
| 8 | Angelique V. Ashby | Democrat | 87,700 | $17,980,800 |
| 9 | Nancy Skinner | Democrat | 84,300 | $15,805,000 |
| 10 | Aisha Wahab | Democrat | 57,300 | $9,389,700 |
| 11 | Scott D. Wiener | Democrat | 57,500 | $9,073,100 |
| 12 | Shannon Grove | Republican | 97,400 | $21,370,000 |
| 13 | Josh Becker | Democrat | 37,900 | $6,036,700 |
| 14 | Anna M. Caballero | Democrat | 158,700 | $39,116,600 |
| 15 | Dave Cortese | Democrat | 56,800 | $9,870,400 |
| 16 | Melissa Hurtado | Democrat | 122,900 | $30,957,300 |
| 17 | John Laird | Democrat | 69,300 | $12,383,700 |
| 18 | Steve Padilla | Democrat | 144,600 | $30,670,200 |
| 19 | Monique Limón | Democrat | 86,700 | $16,999,400 |
| 20 | Caroline Menjivar | Democrat | 139,000 | $26,503,300 |
| 21 | Scott Wilk | Republican | 109,500 | $25,102,600 |
| 22 | Susan Rubio | Democrat | 141,700 | $25,980,200 |
| 23 | Rosilicie Ochoa Bogh | Republican | 133,900 | $28,638,200 |
| 24 | Benjamin Allen | Democrat | 65,100 | $9,310,900 |
| 25 | Anthony J. Portantino | Democrat | 85,000 | $13,519,600 |
| 26 | María Elena Durazo | Democrat | 125,900 | $24,237,900 |
| 27 | Henry I. Stern | Democrat | 74,600 | $12,569,600 |
| 28 | Lola Smallwood-Cuevas | Democrat | 106,400 | $22,981,400 |
| 29 | Josh Newman | Democrat | 88,900 | $15,325,300 |
| 30 | Bob Archuleta | Democrat | 107,900 | $19,269,800 |
| 31 | Richard D. Roth | Democrat | 141,900 | $28,535,500 |
| 32 | Kelly Seyarto | Republican | 96,400 | $17,757,800 |
| 33 | Lena A. Gonzalez | Democrat | 124,500 | $27,371,400 |
| 34 | Thomas J. Umberg | Democrat | 115,500 | $21,410,800 |
| 35 | Steven Bradford | Democrat | 122,900 | $26,426,700 |
| 36 | Janet Nguyen | Republican | 83,500 | $13,528,800 |
| 37 | Dave Min | Democrat | 68,800 | $11,102,800 |
| 38 | Catherine Blakespear | Democrat | 66,600 | $10,406,900 |
| 39 | Toni G. Atkins | Democrat | 93,900 | $15,232,500 |
| 40 | Brian W. Jones | Republican | 78,500 | $13,860,400 |
Notes: Number of households is rounded to the nearest hundred. This reflects those receiving the CalEITC in tax year 2021 as of 12/31/22. Just over 49,000 households that received the CalEITC (1.4%) filed taxes from zip codes outside of California. These households are not included in this analysis. Another 48,000 households that received the CalEITC and filed taxes from within California (1.3%) are not included in this analysis. They could not be matched to an Assembly or Senate district or because FTB did not report the zip code from which they filed in order to meet confidentiality standards.
Source: Budget Center analysis of Franchise Tax Board data
