As California grapples with a growing deficit, a new savings account pre-funded by the state for individuals with disabilities will be considered.
Millions of Golden State residents with disabilities could qualify for a new savings account with a one-time payment of at least $250 ready to spend if a bill introduced this week by Democratic state Sen. Josh Newman becomes law.
The liberal state would expand its existing California Achieving a Better Life Experience (CalABLE) under Senate Bill 1362. The bill, which could cost millions of dollars, is sponsored by state Treasurer Fiona Ma.
Disabled California residents could soon qualify for a new pre-funded savings account. (Getty Images)
Newman said the bill would encourage eligible individuals to “fully utilize the savings accounts to which they’re entitled.”
“By better ensuring the financial well-being of individuals with disabilities, we can create a more inclusive and prosperous California,” he said.
CalABLE is the state’s savings and investment program for individuals with disabilities. It currently has more than 10,000 accounts and more than $120 million in assets. Officials estimate it only accounts for less than 1% of the state’s population.
“Giving CalABLE the ability to incentivize accounts brings it in line with other state-sponsored savings programs and positions it for continued growth,” Ma said in a statement.
Susan Shelley, a spokesperson for Howard Harvis Taxpayers Association, told Fox News Digital in an interview Thursday that it “seems like a bad idea to start a new entitlement program or expand one until they know the true condition of the budget.”
“The decision about whether this should be supported or not depends on an estimate of how many people would be able to access it and what the total cost would be going forward, year after year,” she said.
CALIFORNIA GOV. GAVIN NEWSOM FACING ANOTHER RECALL THREAT, GROUP SAYS HE’S ‘ABANDONED’ STATE
Gov. Gavin Newsom faces a growing deficit in his state. (Tayfun Coskun)
The bill does not have a legislative analysis yet of how much it could potentially cost taxpayers.
California’s budget crisis is projected to expand more than previously thought and could hit a record deficit of $73 billion, according to a new report from the state’s nonpartisan Legislative Analyst’s Office (LAO) this week.
The LAO laid out the grim forecast in a Tuesday report that cautions that a $24 billion “erosion in revenues” corresponds to a $15 billion increase in the state’s budget problem. Due to this, the budget deficit, which last month was estimated to hit $58 billion, could now go as high as $73 billion.
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The projected bad news comes as Gov. Gavin Newsom has worked to increase his profile nationwide. It also occurred as California continues to experience a mass exodus.
Fox News’ Joe Schoffstall contributed to this report.
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