January 2006

The State EITC Online Resource Center is pleased to present its electronic newsletter on current policy developments around state and federal Earned Income Tax Credits. For more information, please go to: www.stateeitc.com.

Feel free to forward this newsletter to your interested associates and to email amy@thehatchergroup.com with news, information or other resources to be added to the update. If you do not want to receive this newsletter in the future, please reply with the word UNSUBSCRIBE in the header.

In this edition of the policy update:

• Nebraska Coalition Reviving EITC Efforts
• Connecticut Coalition has High Hopes for 2006 Legislative Session
• Hawai’i Advocates to Build on Momentum from 2005
• New Mexico Governor Proposes EITC
• CBPP Updating "A Hand Up" Report; Releases Outreach Kit
• Corporate Voices for Working Families Releases Employer Guide
• Georgia Budget and Policy Institute Releases Report on Georgia EITC
• EITC Resource Guide Now Available
• Brookings Interactive Website Back in Operation – TY 2003 Information Coming Soon

Nebraska Coalition Reviving EITC Efforts

A coalition including Voices for Children in Nebraska, the United Way, Nebraska Appleseed, and the Creighton University Legal Clinic have prepared EITC legislation for the 2006 legislative session. Senator David M. Landis introduced the bill, LB 810, on January 4th, the first day of the legislative session. There have been three past efforts to introduce a State EITC in Nebraska, more recently in 2001. "We have a great coalition of organizations working on the EITC effort this year," said Kathy Moore, executive director of Voices for Children in Nebraska. "We've already gained sufficient support from Senators in the Revenue committee to advance the bill once a hearing date has been set, and I think the prospects are looking good. Our greatest challenge will be the short legislative session and the possibility that it will not be a priority bill. We are trying to generate enough public attention through press conferences at the free tax sites and other media opportunities to overcome this challenge and successfully pass the legislation this year."

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Connecticut Coalition has High Hopes for 2006 Legislative Session
The Connecticut Association for Human Services (CAHS) is partnering with CT Voices for Children to push for enactment of a state EITC in Connecticut in the 2006 legislative session. They are seeking a 20 percent refundable EITC. One Connecticut, a statewide campaign to fight poverty and build economic security which is made up of service providers, advocacy groups, labor and clergy, has included enactment of a state EITC in its legislative platform. "It will be a tough fight to finally enact a state EITC," said Jim Horan, executive director of CAHS, "But we're hoping that the upcoming gubernatorial election and projections for a state budget surplus will play to our advantage." Senate Majority Leader Martin Looney recently endorsed enacting the state EITC. Additionally, a CAHS report released last Wednesday recommends enacting a state EITC along with other policy recommendations to connect low-income workers to high-skill, high-wage jobs. Coverage of the report mentioned the state EITC.

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Hawai'i Advocates to Build on Momentum from 2005

During the 2005 legislative session, efforts to adopt a state EITC advanced further than any previous year. Both the Republican administration and the Democratic leadership have championed tax relief for working families and the Governor just released a supplemental budget that includes $300 million in tax relief through increasing the standard deduction and re-indexing the tax brackets. There is still support for a state EITC and advocates are mapping out a strategy to engage policymakers.

Read editorial in the Honolulu Star Bulletin
Read letter to the editor by Brent Dillabaugh, Public Policy Director, Hawai'i Alliance for Community-Based Economic Development

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New Mexico Governor Proposes EITC

New Mexico Gov. Bill Richardson introduced a tax package that includes creating a 7.5 percent refundable state Earned Income Tax Credit. The EITC would be an alternative to the state's current Low-Income Comprehensive Tax Rebate. A taxpayer would have to choose between the two credits, but about 60,000 families should qualify for larger refunds with the EITC. New Mexico Voices for Children is supporting this effort. "The Working Families Tax Credit will be a tremendous help for New Mexico's working families," said Kay Monaco, executive director of New Mexico Voices for Children. "We are especially pleased with Governor Richardson's initiative because he has declared 2006 the Year of the Child. Helping families become economically stable is the single best thing we can do for children, and the state EITC is a huge step in the right direction."

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CBPP Updating "A Hand Up" Report; Releases Outreach Kit

Later this month the Center on Budget and Policy Priorities will publish the 2006 edition of A Hand Up, which is a comprehensive overview of state EITCs. It will be available at www.cbpp.org. To receive same-day notifications of new CBPP publications, please go to http://www.cbpp.org/alerts.htm.

Meanwhile, the 2006 "Make Tax Time Pay" Community Outreach Kit promotes both the Earned Income Tax Credit and the Child Tax Credit. The kit contains up-to-date fact sheets, and includes three new sections on strategies for conducting outreach in Native American communities, rural communities as well as strategies for reaching out to workers who are homeless. The kit includes promotional materials such as posters, flyers, and envelope stuffers in both English and Spanish. It also contains sample tax forms, a guide on how to run a successful outreach campaign, and a special alert on Katrina survivors and the EITC.

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Corporate Voices for Working Families Releases Employer Guide

Corporate Voices for Working Families has released a new Employer Guide: Promoting Tax Credits and Federal Benefit Programs. This guide expands on their previous EITC toolkit and offers resources and tips for employers to communicate to their employees about federal benefit programs. The kit includes information on the Child Tax Credit, Medicaid/State Children's Health Insurance Program (SCHIP), Food Stamps, Low-Income Home Energy Assistance Program (LIHEAP), and the Earned Income Tax Credit.

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Georgia Budget and Policy Institute Releases Report on Georgia EITC

The Georgia Budget and Policy Institute has released a new report: "Fair Taxes for Low-Income Working Families: A Georgia Earned Income Tax Credit." The report details the need for a state EITC in Georgia, how much a state credit would cost and shows who would benefit. Advocates will be able to use the report as support for a Georgia EITC in the upcoming legislative session.

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EITC Resource Guide Now Available

The Hatcher Group has created a dynamic resource guide to provide elected officials and free tax campaigns with the tools they need to work together and spread the word about the benefits of the Earned Income Tax Credit and free tax assistance. Inside the guide, advocates and officials will find a wealth of materials from template press releases and op-eds to EITC tax statistics for their state. Download the resource guide.

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Brookings Interactive Website Back in Operation – TY 2003 Information Coming Soon
The Brookings interactive EITC website, after a 3-month hiatus, is back in operation. You can access it at http://www.brookings.edu/es/urban/eitc.htm by clicking on "Create EITC tables." This tool allows you to view and download zip code-level information on EITC claims for states, counties, cities, and towns for tax years 1997 through 2002. In the coming months, Tax Year 2003 information will be added, as well as an expanded set of information on low-income tax filers.

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