 |
Program Enhancements and Other Budget Adjustments
Franchise Tax Board
The Governor's Budget includes $623.4 million ($518 million General Fund), a decrease of $139.9 million ($44.2 million General Fund) from the revised 2006-07 Budget.
The Franchise Tax Board (FTB) administers the personal income tax and corporation tax, as well as the Homeowners' and Renters' Assistance Programs, Child Support Automation, Department of Motor Vehicles Collections, Courts Collections, and Political Reform Act Audits. The FTB's tax collection activities result in over 60 percent of General Fund revenue.
TAX GAP ENFORCEMENT
The Governor's Budget proposes $19.6 million General Fund and 230 positions for various efforts to close the state's estimated $6.5 billion tax gap. The tax gap is the difference between the amount of tax owed and the amount paid. Of the proposed resources, $13.6 million and 180.5 positions are associated with six existing pilot programs proposed for permanent establishment. The existing programs concentrate on detecting non-filers and filers of fraudulent returns and on audit and collections activities. The FTB estimates these programs will generate $64.7 million in revenues in 2007-08, and $68.5 million in revenues in 2008-09.
The remaining $6 million and 49.5 positions are for new initiatives to educate independent contractors about filing requirements, expand the corporate non-filer program, address out-of-state tax avoidance, and increase investigations of persons who fail to file a return, or who file fraudulent returns. The FTB estimates these initiatives will generate $12.8 million in revenues in 2007-08, and $29.8 million in revenues in 2008-09.
ENHANCE CUSTOMER SERVICE STAFFING
The Governor's Budget proposes to redirect $1.3 million in savings to restore 27 customer service positions that were previously eliminated due to budgetary constraints. The proposed positions will allow FTB to reduce customer service wait times and to respond more effectively to taxpayer inquiries.
The savings proposed for re-direction are associated with Chapter 773, Statutes of 2006 (AB 2341), which eliminated the need for corporations to file tax clearance certificates before dissolving.
CALIFORNIA CHILD SUPPORT AUTOMATION SYSTEM
The Governor's Budget proposes to reduce CCSAS funding by $99.2 million ($33.7 million General Fund) in 2007-08. This adjustment reflects the transition of the project from development to implementation.
CHAPTER HIGHLIGHTS for
State and Consumer Services Back to Top
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - State and Consumer Services (pdf * - 50K)
-
Provides this entire State and Consumer Services Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - State and Consumer Services
Displays Proposed Budget Detail information for State and Consumer Services.
|
pdf* This file requires the latest Adobe Acrobat reader plugin. If you do not have it - click here to download.
