Lawmakers Propose Sending $400 To Californians To Offset Rising Gas Costs
SAN FRANCISCO (CBS SF) — A group of Democratic lawmakers is proposing a plan to send a $400 gas rebate to every California taxpayer to help defray the increased cost of gasoline.
The plan would tap the state's $9 billion budget surplus to fund the rebate, and would cost an estimated $567 million.
Asm. Cottie Petrie-Norris from Irvine, who is spearheading the proposal with the Democratic Caucus of the State Assembly, said the $400 rebate was calculated based on what the average Californian would save if a "gas tax holiday" were implemented. Currently, drivers pay 51.1 cents per gallon in gas tax.
"That $400, for the average Californian, for the average vehicle, that's 52 trips to the pump. That's a yearlong gas tax holiday," said Petrie-Norris. "We know our constituents are hurting right now."
Bay Area Assemblymembers, Rebecca Bauer-Kahan (D-Orinda) and Evan Low (D-Campbell) were among a group of lawmakers detailing the proposal in a letter to Gov. Gavin Newsom. Under this proposal, the rebate would go to every California taxpayer, including those who don't drive a car since everyone has seen an increase in living expenses.
The lawmakers say a rebate is a better approach than suspending the gas tax, a plan favored by Republican lawmakers. Noting that suspending the gas tax would severely impact funding for transportation projects and offer no guarantee that oil companies would pass on the savings to consumers.
"This is a proposal that we have crafted specifically to help consumers, to help California families. Because we want to make sure that we're putting money in the pockets of working families, not in the hands of oil companies, and not foreign dictators. And we know that some of the other proposals out there, the idea is to maybe just suspend the gas tax. There's no guarantee that that will be passed along to consumers," said Asm. Jesse Gabriel of West San Fernando Valley.
Thursday's gathering of lawmakers said they are in talks with the Governor's office.
Last week, Newsom promised a gas tax rebate in his State of the State address, and also proposed to pause a gas tax increase.
Republican Assembly Leader James Gallagher of Yuba City vowed to keep on pushing for a gas tax holiday, but issued a statement supporting the $400 rebate.
"This bill should be fast-tracked to the Governor's desk and targeted to working Californians who actually feel the pain at the pump," Gallagher said.
Abny Amador, mother of three in San Jose, said the recent gas price hikes mean she is on pace to spend an additional $1,000 per month in gas. Amador has already had to cut back on the family's weekly treat of dining out at the end of the work week. Adding that the $400 rebate would likely be spent on groceries.
"So I have to decide, I mean, to eat, our use the car?" said Amador.
The lawmakers are aiming to reach a decision on the gas rebate by the spring.
Kiet Do contributed to this report.