Where Your CA Estimated Tax Payments Are Going

Today marks the date by which third quarter estimated income tax payments are due in California. Some of the money will go to a $500 million per year salary increase awarded in June to prison guards by the Legislature and Governor without complying with state law.

According to the Legislative Analysts’ Office, General Salary Increases (GSIs) such as that awarded in June require a compensation study but no such study was provided and LAO is aware of no evidence that would justify an increase.

We can’t do anything about the June increase but here’s what we’re doing going forward:

  • Compensation Study. GFC has retained an outside firm to evaluate California’s compensation of prison guards. A report will be issued later this year.
  • Donation Ban. GFC continues developing legislation to ban political donations from all corporations, unions and associations that receive money, or whose shareholders, employees or members receive money, under agreements with the state. Suppliers of public services should not be allowed to donate to lawmakers who approve agreements compensating those suppliers.

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