Bill Author Drops the Corporate Tax Increase but Reaffirms Commitment to Bridge Funding for the $2.4 Billion needed to End the Cycle of Homelessness
- Ruy Laredo
- Communications Director
SACRAMENTO, CA - Today, Assemblywoman Luz Rivas announced key amendments to AB71 that eliminate a proposed corporate tax increase but reinforce the bill’s commitment to ending tax loopholes that allow large corporations to hide their profits overseas in order to avoid paying California taxes. Finally ensuring that corporations pay appropriate taxes on income they shift overseas, or Global Intangible Low-Tax Income (GILTI), remains a critical part of achieving the long-term goals of the sponsoring coalition Bring California Home.
The amendments come as Governor Gavin Newsom once again reaffirmed his vision for building a permanent source of homelessness funding in his 2021 State of the State address, especially given the growing rates of homelessness that resulted from the COVID-19 pandemic. The success of his hallmark program to alleviate homelessness, Project Homekey, only elevates the need to take urgent action in this year’s legislative session.
“We need to meet the scale of our homelessness crisis – which has only gotten worse during the pandemic. That’s why I introduced AB 71, and it’s why I’ve introduced these new amendments today,” said Assemblywoman Luz Rivas (D-Arleta). “The time is now to revolutionize California’s approach to fighting homelessness; the stakes could not be higher. I’m dedicated to fighting for the soul of this bill and working with homelessness advocates to find the bridge funding needed to achieve their ultimate goal of helping our unhoused neighbors find a home all across the state”
“Today’s action brings us one step closer to achieving our $2.4 billion revenue goal that will provide a stable, safe, affordable home for the more than 150,000 Californians suffering without one,” said Lisa Hershey, Executive Director of Housing California. “Going forward, our coalition looks forward to augmenting this GILTI revenue by also securing additional ongoing funding through the 2021-22 budgeting process. By combining funding in the budget with the GILTI revenue, we can fully fund every piece of AB 71, and meet our appropriately ambitious goals. All options are on the table, including a potential ballot measure, if we’re unable to secure a permanent source of funding to combat homelessness.”
AB 71 is a historic piece of legislation that would establish a first-of-its-kind statewide approach and permanent source of funding, to reverse the cycle of homelessness in California. The bill will provide resources for state agency, local government and community-based organizational partnerships to invest in strategies proven to keep Californians in their homes, ensure the safety of those experiencing homelessness, and help people exit homelessness faster. It will transform how both our state and local governments respond to homelessness and foster greater collaboration among state and local agencies -- and also contains innovative accountability measures, such as regular public accounting and strict adherence to set plans, to ensure every dollar is spent wisely.
AB 71 is endorsed by over 275 organizations and community leaders, and is co-sponsored by Corporation for Supportive Housing, Housing California, City of Los Angeles, Mayor Eric Garcetti, City of Oakland, Mayor Libby Schaaf, All Home, Brilliant Corners, Los Angeles Homeless Services Authority, Episcopal Community Services-San Francisco, HOPICS, John Burton Advocates for Youth, National Alliance to End Homelessness, Non-Profit Housing Assn. of Northern California (NPH), Steinberg Institute, and United Way of Greater Los Angeles.
To find out more about the Bring California Home Coalition and to get involved, visit www.bringcahome.org.
Assemblywoman Luz Rivas proudly represents the 39th Assembly District, which includes the City of Los Angeles communities of Arleta, Lake View Terrace, Granada Hills, Mission Hills, North Hollywood, Pacoima, Sun Valley, Sunland-Tujunga, Sylmar, and the City of San Fernando.