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Tag: fiscal year

  • Get the Facts: How often do government shutdowns occur?

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    Funding gaps and government shutdowns haven’t always been a regular topic of conversation when Congress debates federal spending. The federal government shut down just after midnight Wednesday, making it the 21st funding gap and 11th shutdown since 1977, according to an analysis by the Get the Facts Data Team.A funding gap is a period of time during which funding for a project or activity is not enacted into law. This can be through a regular appropriations act or a continuing resolution. Funding gaps didn’t start occurring until the Congressional Budget Act of 1974 was passed, which established deadlines for passing federal budgets.Funding gaps and government shutdowns are two separate events. A funding gap occurs when there’s a lapse in funding, but a shutdown happens as a result of a funding gap when agencies begin closing and employees are furloughed.Prior to 1980, many government agencies continued to operate during a funding gap until Attorney General Benjamin Civiletti issued stricter interpretations, believing agencies “had no legal means to operate during a funding gap,” according to the House of Representatives.The shutdowns that occurred in the 1980s were partial or for only a few days, according to Jacob Smith, an assistant professor of political science at Fordham University in New York. The real era of shutdowns began in the 1990s.The process itself is very different now, too. Congress is supposed to pass 12 appropriations bills every year before the start of the fiscal year in October. The last time any of those appropriations bills were passed was in 2019.Instead, continuing resolutions are passed in lieu of the traditional process. When Congress fails to pass regular appropriations acts by the start of a fiscal year, a continuing resolution, or CR, may be used temporarily.The last time a continuing resolution was not needed was fiscal year 1997, when 13 out of 13 appropriations bills needed were enacted before the beginning of the next year.Congress is also pushing up against the deadline frequently — and not just in recent years. Smith believes the race to the deadline has been recent when compared to history, but has been going on for quite a while.“It’s become common that they’re really up against the clock,” Smith said. The Get the Facts Data Team identified continuing resolutions passed at the start of the fiscal year on Oct. 1 for the past ten years, not including the start of fiscal year 2025. These were enacted when regular appropriations bills were not passed by the deadline. The analysis did not include any of the other continuing resolutions passed in a given fiscal year. From fiscal year 1998 to 2025, an average of 4.8 were passed annually.The data team found that half were passed less than 12 hours before the deadline. Four of those instances were from fiscal years 2021 to 2024.The analysis compared the time of the last action by Congress, usually a vote or a motion to reconsider. The time the president signed the resolution into law was not incorporated in the analysis. When continuing resolutions and regular appropriations aren’t used to appropriate funding, Congress also passes omnibus or consolidated appropriations bills. These have played a larger role in recent decades as standalone regular appropriations bills aren’t passed.PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=

    Funding gaps and government shutdowns haven’t always been a regular topic of conversation when Congress debates federal spending.

    The federal government shut down just after midnight Wednesday, making it the 21st funding gap and 11th shutdown since 1977, according to an analysis by the Get the Facts Data Team.

    A funding gap is a period of time during which funding for a project or activity is not enacted into law. This can be through a regular appropriations act or a continuing resolution.

    Funding gaps didn’t start occurring until the Congressional Budget Act of 1974 was passed, which established deadlines for passing federal budgets.

    Funding gaps and government shutdowns are two separate events. A funding gap occurs when there’s a lapse in funding, but a shutdown happens as a result of a funding gap when agencies begin closing and employees are furloughed.

    Prior to 1980, many government agencies continued to operate during a funding gap until Attorney General Benjamin Civiletti issued stricter interpretations, believing agencies “had no legal means to operate during a funding gap,” according to the House of Representatives.

    The shutdowns that occurred in the 1980s were partial or for only a few days, according to Jacob Smith, an assistant professor of political science at Fordham University in New York. The real era of shutdowns began in the 1990s.

    The process itself is very different now, too. Congress is supposed to pass 12 appropriations bills every year before the start of the fiscal year in October. The last time any of those appropriations bills were passed was in 2019.

    Instead, continuing resolutions are passed in lieu of the traditional process. When Congress fails to pass regular appropriations acts by the start of a fiscal year, a continuing resolution, or CR, may be used temporarily.

    The last time a continuing resolution was not needed was fiscal year 1997, when 13 out of 13 appropriations bills needed were enacted before the beginning of the next year.

    Congress is also pushing up against the deadline frequently — and not just in recent years. Smith believes the race to the deadline has been recent when compared to history, but has been going on for quite a while.

    “It’s become common that they’re really up against the clock,” Smith said.

    The Get the Facts Data Team identified continuing resolutions passed at the start of the fiscal year on Oct. 1 for the past ten years, not including the start of fiscal year 2025. These were enacted when regular appropriations bills were not passed by the deadline.

    The analysis did not include any of the other continuing resolutions passed in a given fiscal year. From fiscal year 1998 to 2025, an average of 4.8 were passed annually.

    The data team found that half were passed less than 12 hours before the deadline. Four of those instances were from fiscal years 2021 to 2024.

    The analysis compared the time of the last action by Congress, usually a vote or a motion to reconsider. The time the president signed the resolution into law was not incorporated in the analysis.

    When continuing resolutions and regular appropriations aren’t used to appropriate funding, Congress also passes omnibus or consolidated appropriations bills. These have played a larger role in recent decades as standalone regular appropriations bills aren’t passed.

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  • Get the Facts: How often do government shutdowns occur?

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    Funding gaps and government shutdowns haven’t always been a regular topic of conversation when Congress debates federal spending. The federal government shut down just after midnight Wednesday, making it the 21st funding gap and 11th shutdown since 1977, according to an analysis by the Get the Facts Data Team.A funding gap is a period of time during which funding for a project or activity is not enacted into law. This can be through a regular appropriations act or a continuing resolution. Funding gaps didn’t start occurring until the Congressional Budget Act of 1974 was passed, which established deadlines for passing federal budgets.Funding gaps and government shutdowns are two separate events. A funding gap occurs when there’s a lapse in funding, but a shutdown happens as a result of a funding gap when agencies begin closing and employees are furloughed.Prior to 1980, many government agencies continued to operate during a funding gap until Attorney General Benjamin Civiletti issued stricter interpretations, believing agencies “had no legal means to operate during a funding gap,” according to the House of Representatives.The shutdowns that occurred in the 1980s were partial or for only a few days, according to Jacob Smith, an assistant professor of political science at Fordham University in New York. The real era of shutdowns began in the 1990s.The process itself is very different now, too. Congress is supposed to pass 12 appropriations bills every year before the start of the fiscal year in October. The last time any of those appropriations bills were passed was in 2019.Instead, continuing resolutions are passed in lieu of the traditional process. When Congress fails to pass regular appropriations acts by the start of a fiscal year, a continuing resolution, or CR, may be used temporarily.The last time a continuing resolution was not needed was fiscal year 1997, when 13 out of 13 appropriations bills needed were enacted before the beginning of the next year.Congress is also pushing up against the deadline frequently — and not just in recent years. Smith believes the race to the deadline has been recent when compared to history, but has been going on for quite a while.“It’s become common that they’re really up against the clock,” Smith said. The Get the Facts Data Team identified continuing resolutions passed at the start of the fiscal year on Oct. 1 for the past ten years, not including the start of fiscal year 2025. These were enacted when regular appropriations bills were not passed by the deadline. The analysis did not include any of the other continuing resolutions passed in a given fiscal year. From fiscal year 1998 to 2025, an average of 4.8 were passed annually.The data team found that half were passed less than 12 hours before the deadline. Four of those instances were from fiscal years 2021 to 2024.The analysis compared the time of the last action by Congress, usually a vote or a motion to reconsider. The time the president signed the resolution into law was not incorporated in the analysis. When continuing resolutions and regular appropriations aren’t used to appropriate funding, Congress also passes omnibus or consolidated appropriations bills. These have played a larger role in recent decades as standalone regular appropriations bills aren’t passed.PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiPiFmdW5jdGlvbigpeyJ1c2Ugc3RyaWN0Ijt3aW5kb3cuYWRkRXZlbnRMaXN0ZW5lcigibWVzc2FnZSIsKGZ1bmN0aW9uKGUpe2lmKHZvaWQgMCE9PWUuZGF0YVsiZGF0YXdyYXBwZXItaGVpZ2h0Il0pe3ZhciB0PWRvY3VtZW50LnF1ZXJ5U2VsZWN0b3JBbGwoImlmcmFtZSIpO2Zvcih2YXIgYSBpbiBlLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdKWZvcih2YXIgcj0wO3I8dC5sZW5ndGg7cisrKXtpZih0W3JdLmNvbnRlbnRXaW5kb3c9PT1lLnNvdXJjZSl0W3JdLnN0eWxlLmhlaWdodD1lLmRhdGFbImRhdGF3cmFwcGVyLWhlaWdodCJdW2FdKyJweCJ9fX0pKX0oKTs8L3NjcmlwdD4=

    Funding gaps and government shutdowns haven’t always been a regular topic of conversation when Congress debates federal spending.

    The federal government shut down just after midnight Wednesday, making it the 21st funding gap and 11th shutdown since 1977, according to an analysis by the Get the Facts Data Team.

    A funding gap is a period of time during which funding for a project or activity is not enacted into law. This can be through a regular appropriations act or a continuing resolution.

    Funding gaps didn’t start occurring until the Congressional Budget Act of 1974 was passed, which established deadlines for passing federal budgets.

    Funding gaps and government shutdowns are two separate events. A funding gap occurs when there’s a lapse in funding, but a shutdown happens as a result of a funding gap when agencies begin closing and employees are furloughed.

    Prior to 1980, many government agencies continued to operate during a funding gap until Attorney General Benjamin Civiletti issued stricter interpretations, believing agencies “had no legal means to operate during a funding gap,” according to the House of Representatives.

    The shutdowns that occurred in the 1980s were partial or for only a few days, according to Jacob Smith, an assistant professor of political science at Fordham University in New York. The real era of shutdowns began in the 1990s.

    The process itself is very different now, too. Congress is supposed to pass 12 appropriations bills every year before the start of the fiscal year in October. The last time any of those appropriations bills were passed was in 2019.

    Instead, continuing resolutions are passed in lieu of the traditional process. When Congress fails to pass regular appropriations acts by the start of a fiscal year, a continuing resolution, or CR, may be used temporarily.

    The last time a continuing resolution was not needed was fiscal year 1997, when 13 out of 13 appropriations bills needed were enacted before the beginning of the next year.

    Congress is also pushing up against the deadline frequently — and not just in recent years. Smith believes the race to the deadline has been recent when compared to history, but has been going on for quite a while.

    “It’s become common that they’re really up against the clock,” Smith said.

    The Get the Facts Data Team identified continuing resolutions passed at the start of the fiscal year on Oct. 1 for the past ten years, not including the start of fiscal year 2025. These were enacted when regular appropriations bills were not passed by the deadline.

    The analysis did not include any of the other continuing resolutions passed in a given fiscal year. From fiscal year 1998 to 2025, an average of 4.8 were passed annually.

    The data team found that half were passed less than 12 hours before the deadline. Four of those instances were from fiscal years 2021 to 2024.

    The analysis compared the time of the last action by Congress, usually a vote or a motion to reconsider. The time the president signed the resolution into law was not incorporated in the analysis.

    When continuing resolutions and regular appropriations aren’t used to appropriate funding, Congress also passes omnibus or consolidated appropriations bills. These have played a larger role in recent decades as standalone regular appropriations bills aren’t passed.

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  • Starbucks announces significant store closures and layoffs

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    Starbucks is taking “significant action” to turn around its struggling business, closing a large number of cafés and announcing a second round of layoffs at its headquarters as part of CEO Brian Niccol’s efforts to resuscitate the troubled chain.Niccol announced Thursday that Starbucks will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and the company said it will end September with 18,300 stores.The company expects its restructuring efforts will cost $1 billion. Shares of Starbucks were flat in premarket trading.In a letter to employees, Niccol said the company underwent a review of its footprint and the locations that will close were ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”Starbucks often closes locations for a variety of reasons, including underperformance. But Niccol said this larger-scale effort is more substantial.”This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” he said.Despite the hundreds of closures, which will take place before the end of the company’s fiscal year next week, Starbucks said it will return to growth mode, and it also plans to remodel more than 1,000 locations. The new look for Starbucks features cozier chairs, more power outlets and warmer colors.In addition to the store closures, Starbucks announced an additional 900 corporate layoffs, on top of the roughly 1,000 layoffs in February. Affected employees will be notified on Friday and will receive “generous severance and support packages.” Also, “many” open positions will be closed, he announced.”I know these decisions impact our partners and their families, and we did not make them lightly,” Niccol wrote. “I believe these steps are necessary to build a better, stronger and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers and the communities we serve.”One year onNiccol joined Starbucks about a year ago, hoping to revive the storied coffee chain. However, the financial results haven’t come to fruition, with the stock down about 12% and sales haven’t turned around.He’s pared back the menu by about 30%, while also introducing new items to keep the brand on trend, like protein toppings and coconut water. Food is also getting a revamp, with new croissants and baked goods being rolled out.In addition to remodels, smaller touches have been integrated, like bringing back self-serve milk and sugar stations as well as doodles on coffee cups. The company also tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots.However, his changes have butted heads with some baristas, including uniform changes that sparked a lawsuit. And some new drinks are causing stress for baristas because they are overcomplicated to make during peak times.

    Starbucks is taking “significant action” to turn around its struggling business, closing a large number of cafés and announcing a second round of layoffs at its headquarters as part of CEO Brian Niccol’s efforts to resuscitate the troubled chain.

    Niccol announced Thursday that Starbucks will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and the company said it will end September with 18,300 stores.

    The company expects its restructuring efforts will cost $1 billion. Shares of Starbucks were flat in premarket trading.

    In a letter to employees, Niccol said the company underwent a review of its footprint and the locations that will close were ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

    Starbucks often closes locations for a variety of reasons, including underperformance. But Niccol said this larger-scale effort is more substantial.

    “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” he said.

    Despite the hundreds of closures, which will take place before the end of the company’s fiscal year next week, Starbucks said it will return to growth mode, and it also plans to remodel more than 1,000 locations. The new look for Starbucks features cozier chairs, more power outlets and warmer colors.

    In addition to the store closures, Starbucks announced an additional 900 corporate layoffs, on top of the roughly 1,000 layoffs in February. Affected employees will be notified on Friday and will receive “generous severance and support packages.” Also, “many” open positions will be closed, he announced.

    “I know these decisions impact our partners and their families, and we did not make them lightly,” Niccol wrote. “I believe these steps are necessary to build a better, stronger and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers and the communities we serve.”

    One year on

    Niccol joined Starbucks about a year ago, hoping to revive the storied coffee chain. However, the financial results haven’t come to fruition, with the stock down about 12% and sales haven’t turned around.

    He’s pared back the menu by about 30%, while also introducing new items to keep the brand on trend, like protein toppings and coconut water. Food is also getting a revamp, with new croissants and baked goods being rolled out.

    In addition to remodels, smaller touches have been integrated, like bringing back self-serve milk and sugar stations as well as doodles on coffee cups. The company also tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots.

    However, his changes have butted heads with some baristas, including uniform changes that sparked a lawsuit. And some new drinks are causing stress for baristas because they are overcomplicated to make during peak times.

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  • Los Angeles approves plan to spend nearly $425 million in ‘mansion tax’ money

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    The Los Angeles City Council on Tuesday approved a plan to spend nearly $425 million collected from Measure ULA, directing the money to a series of affordable housing and homelessness programs.

    The spending plan for the 2025 fiscal year that started Tuesday is the largest yet under Measure ULA, also known as the mansion tax.

    The voter-approved measure, which taxes property sales above about $5 million, has drawn criticism from the real estate industry for years and recently been the subject of several reports that found it has limited property sales and thus reduced property tax revenue and the construction of new housing.

    Backers, however, tout the measure as providing crucial dollars to affordable housing and homelessness prevention programs at a time when the state and county have cut funding.

    In all, the 2025 ULA spending plan is greater than all other years combined.

    “Don’t believe the hate from big-money real estate or their lies appearing all over the media,” Joe Donlin, director of United to House LA, said in a statement. “Measure ULA is doing the steady work to create stable homes and good jobs for Angelenos.”

    Under the plan approved Tuesday, more than $100 million is set to flow to homelessness prevention programs, including income support for at-risk tenants and eviction defense.

    The majority of the 2025 funds, more than $288 million, is to be spent on the production and preservation of affordable housing.

    Since voters passed the measure in late 2022, the tax has collected more than $702 million, according to the city’s Housing Department.

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    Andrew Khouri

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  • Mayor Karen Bass’ plan for rebuilding the size of the LAPD has fallen short so far

    Mayor Karen Bass’ plan for rebuilding the size of the LAPD has fallen short so far

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    When Mayor Karen Bass laid out her budget proposal for the Los Angeles Police Department last year, she had big plans for rebuilding the size of that agency’s workforce.

    The mayor’s budget called for the LAPD to end the 2023-24 budget year with about 9,500 police officers — a target that would require the hiring of nearly 1,000 officers over a 12-month period.

    Now, a new assessment from City Administrative Officer Matt Szabo — the city’s top budget analyst — shows the department is falling well short of its staffing goal. By June 30, the end of the fiscal year, the department is expected to have 8,908 officers, according to Szabo’s projections.

    That would leave the LAPD with its lowest sworn staffing levels in over two decades.

    Szabo’s report, issued Tuesday, is likely to fuel calls for the council to scale back the LAPD’s hiring goal. Even before it was released, some at City Hall had begun arguing that the annual budget calls for hundreds of officer positions that have little to no chance of being filled.

    “I do not think 9,500 is realistic,” Councilmember Hugo Soto-Martínez said Wednesday. “We can’t be in denial about this. It is not realistic. And the reason it’s not realistic is because … people who are entering the workforce do not want to be police officers.”

    Soto-Martínez has long argued for the idea of shifting certain duties out of the LAPD and into agencies with unarmed responders. He asked for the LAPD’s 12-month hiring projections last month, just as the council began the process of cutting an as-yet-unknown number of civilian city positions — part of a larger effort at reining in a budget shortfall.

    Meanwhile, police staffing is continuing its year-to-year slide.

    The LAPD had about 10,000 officers in 2019, the last full year before COVID-19. In June 2020, not long after the murder of George Floyd, the City Council voted to scale back the deployment to about 9,750.

    Bass took office in 2022. By the time her first budget went into effect, the number of officers had fallen to 9,027. In an attempt to reverse those trends, she negotiated a four-year package of pay increases and higher starting salaries.

    That deal, approved in August, is now a major contributor to the city’s budget shortfall, which could reach as much as $400 million in the coming fiscal year.

    De’Marcus Finnell, a spokesperson for Bass, said Wednesday that the salary agreement with the police officers’ union is producing results, helping to spur recruitment and lower attrition.

    “According to conversations with LAPD, retirement rates could’ve been much higher if we hadn’t taken the action we did,” Finnell said in an email.

    Councilmember Nithya Raman, who voted against the salary agreement last year, has been offering a different assessment, calling the police contract financially irresponsible. Raman, now running for reelection with support from the mayor, has repeatedly warned that the police raises will leave the city with insufficient funds for other government programs.

    “I thought that the size of the raise would be so much that it would create significant budget deficits going forward,” she told an audience last month, adding: “So far, the data has proven me correct.”

    Others on the council say they still support the police raises.

    Councilmember Katy Yaroslavsky, in an interview, said attrition has “slowed significantly” at the LAPD since the contract was approved. The contract, she said, is “doing what we needed it to do.”

    Bass, as part of her budget, had been hoping to hire 780 new officers during the current fiscal year. She also had been looking to bring 200 retirees back to the department.

    So far, only 15 retirees have come back, Szabo said.

    The decrease in LAPD staffing is producing at least one benefit — cutting costs in the city budget.

    The city’s financial analysts are currently projecting an $82-million shortfall in the LAPD’s sworn salary account this year. Had the department had been successful in reaching the mayor’s hiring goals, that number would have grown to more than $118 million, Szabo said in his report.

    Meanwhile, some categories of crime continue to fall.

    Homicides have decreased by nearly 6% compared with the prior year, according to LAPD figures covering the period ending Jan. 27. Burglaries decreased by nearly 7% over the same time frame.

    Other types of crime are on the rise. Assaults have gone up by 12% compared to the same period last year, according to LAPD figures. The number of shooting victims is up 29% so far this year.

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    David Zahniser

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  • Healthcare minimum wage expected to cost $4 billion in first year as California budget deficit looms

    Healthcare minimum wage expected to cost $4 billion in first year as California budget deficit looms

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    When Gov. Gavin Newsom signed a law that set a first-in-the-nation minimum wage for healthcare workers, three words in a bill analysis foretold potential concerns about its cost: “Fiscal impact unknown.”

    Now, three weeks after Newsom signed SB 525 into law — giving medical employees at least $25 an hour, including support staff such as cleaners and security guards — his administration has an estimated price tag: $4 billion in the 2024-25 fiscal year alone.

    Half of that will come directly from the state’s general fund, while the other half will be paid for by federal funds designated for providers of Medi-Cal, California’s Medicaid program, according to Newsom’s Department of Finance.

    SB 525 is one of the most expensive laws California has seen in years and comes as the state faces a $14-billion budget deficit that could grow larger, if revenue projections continue to fall short.

    The costly legislation — promoted by unions as a way to curb the healthcare worker shortage and in turn improve patient care — was signed into law even as Newsom has warned about the state’s shaky financial future, vetoing dozens of bills last month in the name of cost savings.

    “With our state facing continuing economic risk and revenue uncertainty, it is important to remain disciplined when considering bills with significant fiscal implications, such as this measure,” Newsom said repeatedly in veto messages, rejecting some bills that had far lower cost projections than SB 525.

    Among the many proposals that Newsom vetoed citing financial concerns was a bill that would have required that colleges pay for diagnostic assessments for students with disabilities, which would have cost the state $5 million annually, and a bill that would have expanded cash assistance for aged, blind and disabled immigrants, which would have cost the state at least $100 million.

    Unknowns remain about implementation of the new wide-reaching minimum wage law, including the exact long-term costs, in part because of significant amendments made to the bill in the final days of the legislation session — a result of a rare truce between union and health-industry leaders deemed necessary to its passage.

    Newsom officials declined to give The Times a cost estimate reflecting those amendments when the governor signed the bill last month. But the amendments were expected to significantly soften the immediate financial impact to the state and hospitals, since gradual wage schedules were introduced in lieu of an instantaneous increase for all.

    Despite the unknowns, Democrats in the state Legislature — including some who were first hesitant about potential costs — were quick to pass the legislation after a deal was made between powerful interest groups.

    The bill originally aimed to increase the minimum wage to $25 per hour for all healthcare employees starting Jan. 1. The opposition estimated that would have cost up to $8 billion annually.

    While leaders of appropriations committees killed bills based on cost in September, rejecting measures that cost millions less than SB 525, the healthcare minimum wage bill cleared that key fiscal hurdle even as the Department of Finance opposed it, citing “significant economic impacts.”

    It’s unclear whether other state programs will be cut to make room for the wage hikes, but expect state lawmakers to rush to write bills when the Legislature returns in January to try to address some financial concerns.

    Unlike a law passed in 2016 that mandated a $15-per-hour minimum wage statewide, the healthcare worker bill does not currently include any mechanism that allows the state to delay wage hikes during economic downturns.

    “This is an important law to ensure California has a robust healthcare workforce. We’re working with legislative leadership and stakeholders on accompanying legislation to account for state budget conditions and revenues,” Newsom spokesperson Alex Stack said on Friday when asked about cost concerns surrounding the bill.

    The $4-billion estimate could change when the Legislative Analyst’s Office releases its annual fiscal outlook expected later this month. The cost is only expected to grow in the future, as more groups of workers become eligible for raises.

    The latest estimated cost to the state reflects pay raises expected to go to half a million healthcare workers who provide services to Medi-Cal patients, plus 26,000 employees at state-owned facilities.

    But the cost to the state could decrease if hospitals pay a bigger share of labor costs, said Tia Orr, executive director of SEIU California, who was involved in shaping the policy. She pointed to billions already set aside for Medi-cal providers through revenue from a tax on managed healthcare organizations as one way to “help manage the impact of increased labor costs.”

    “SEIU California has committed to working with the administration and the Legislature to ensure safeguards are in place to guarantee that this critical measure is taken in a way that preserves California’s fiscal health, just as we did when negotiating the last statewide minimum wage increase,” Orr said. “This is how you make progress — through flexibility and compromise in achieving shared goals.”

    In a statement, David Simon, spokesperson for the California Hospital Association, which ultimately supported the bill, called the plan that Newsom signed a “better, more measured” approach to raising wages than past efforts, which the organization worried would hurt rural hospitals already struggling financially and potentially pass costs onto patients.

    Like Orr, Simon signaled more work to come.

    “As far as any future work related to this issue, we are committed to working with the Legislature and the governor to advance the joint goals of SB 525: investing in our state’s healthcare workforce and preserving access to healthcare,” Simon said.

    Under the law, workers at large healthcare facilities will earn $23 an hour starting in June, $24 an hour in 2025 and $25 in 2026. That applies to all staff, including launderers and hospital gift shop workers.

    Employees at independent rural hospitals and facilities that serve high rates of Medicare and Medi-Cal patients will see $18 an hour next year and won’t reach $25 an hour until 2033. Other smaller workplaces are required to pay employees $21 an hour next year, reaching $25 an hour in 2028.

    Newsom supporters see the legislation as bold national leadership amid labor unrest and worker strikes across industries, and as a more organized way to address local demands for $25 per hour already moving ahead in cities across California. His critics question if he approved it too soon without a concrete plan in order to gain political favor.

    Labor unions have long held outsize power in the California Legislature, but their wins this year were remarkable. Their influence in state politics is undeniable: the Service Employees International Union pumped nearly $4 million into eight independent expenditures alone to get their Democrats of choice elected to the Legislature this year.

    Michael Genest, founder of Capitol Matrix Consulting who served as a budget director for former Gov. Arnorld Schwarzenegger, pointed to union power — and pressure — as one reason why Newsom may have moved too soon.

    “This is no time to start adding really major costs to the state budget when it’s very possible we could go deeply in the wrong direction,” he said, noting the state’s economic uncertainty. “There’s always a reason to spend money, but some people care more about the reason than they do about what’s in the bank account.”

    H.D. Palmer, Newom’s Department of Finance spokesperson, has also acknowledged the state’s financial unknowns but was confident in the governor’s budgeting.

    “The governor is required under the state Constitution to present a balanced budget by Jan. 10 of next year, which he will do,” he said. “There are any number of actions that can be done to balance a budget. Obviously the major thing right now is: where are revenues going to go?”

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    Mackenzie Mays

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  • Is ’90 Day Fiancé’ having an effect on visa approvals? A new report argues it is

    Is ’90 Day Fiancé’ having an effect on visa approvals? A new report argues it is

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    Since it first aired in 2014, TLC’s “90 Day Fiancé” has shown viewers the complexities of long-distance, international romances between U.S. citizens and people from foreign countries. But as the reality TV series has grown in popularity over the last decade, the approval rate for fiancé visas has dropped.

    Those things could be linked, according to a report released Monday by Boundless Immigration, a tech company that helps people navigate immigration processes. The organization is looking into the ways in which the series might be affecting regular visa applicants, and says that while the show raised awareness about the visa process, it may have led to increased scrutiny of applications.

    U.S. Citizenship and Immigration Services, however, said there isn’t any correlation between the show and the approval process.

    “Requests for immigration benefits are not determined based on television entertainment or other forms of media content,” spokesman Matthew Bourke said.

    “USCIS adjudicators individually evaluate every request for immigration benefits fairly, humanely and efficiently before issuing a determination,” Bourke said.

    Viewership for “90 Day Fiancé” has steadily increased since the show launched in 2014, according to the report. Meanwhile, the approval rate for fiancé visas dropped nearly by a quarter, from 87% in fiscal year 2015 to 63% in 2022, according to U.S. Citizenship and Immigration Services data.

    Before the show started, the approval rate was 75% in 2013. Data through the third quarter of this fiscal year show a 75% approval rate of applications processed so far. Still, Boundless Immigration said, the drop after “90 Day Fiancé” began airing is worth continuing to examine.

    “The vast majority of Americans and even members of Congress would agree that keeping people in purgatory or keeping families from starting their lives together is probably not the best way of operating for the country,” said Boundless Immigration’s chief executive Xiao Wang, adding that the company has had clients who were featured on the show.

    Representatives for TLC did not respond to requests for comment.

    The K-1 visa is designed to reunite U.S. citizens with their foreign fiancés, giving them 90 days to get married before the visa expires.

    But as with all immigration processes, the pandemic caused significant delays for fiancé visas. Early this year, the average processing time for the I-129F petition by the U.S. citizen fiancé for their foreign partner — a critical step in the visa process — ballooned to 21 months from seven months, according to the report.

    On an episode of “90 Fiancé: Before the 90 Days,” participant Gino Palazzolo lamented how difficult it was leaving his partner, Jasmine Pineda, after he proposed to her in Panama.

    “As soon as I got home, I filed the K-1 visa to bring Jasmine to the United States,” Palazzolo says on the episode. “But, you know, it’s taken a long time to process. We’re at, like, 12 months. So that makes Jasmine frustrated, because she wants to be with me now, and it causes friction between us.”

    Though the show hasn’t led to an increase in fiancé visa applications, the backlog of applications waiting to be processed has more than doubled since before the pandemic to 51,500, according to U.S. Citizenship and Immigration Services data.

    Although visa issuances have risen since 2020, they are still nowhere near pre-pandemic levels, according to the report. Fiancé visas make up less than half a percent of all yearly non-immigrant visa admissions.

    Bourke of U.S. Citizenship and Immigration Services said the agency recently implemented changes to reduce the backlog of fiancé visa cases after the pandemic caused an agency-wide hiring freeze. Appropriations by Congress last year have been critical to reducing the backlog, he said, and proposed application fee increases would also help.

    California is among the most common states for fiancé visa holders, as well as Texas, Florida and New York, according to the report.

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    Andrea Castillo

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  • Kevin McCarthy Is a Hostage

    Kevin McCarthy Is a Hostage

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    The speaker’s abrupt impeachment probe against Biden is the latest sign that he’s still fighting for his job.

    Chip Somodevilla / Getty

    As Kevin McCarthy made his televised declaration earlier today that House Republicans were launching an impeachment inquiry into President Joe Biden, the House speaker stood outside his office in the Capitol, a trio of American flags arrayed behind to lend an air of dignity to such a grave announcement. But McCarthy looked and sounded like a hostage, and for good reason.

    That the Republican majority would eventually try to impeach Biden was never really in doubt. The Atlantic’s Barton Gellman predicted as much nearly a year ago, even before the GOP narrowly ousted Democrats from control in the House. McCarthy characterized the move as “a logistical next step” in the party’s investigation into Biden’s involvement with his son Hunter’s business dealings, which has thus far yielded no evidence of presidential corruption. But intentionally or not, the speaker’s words underscored the inevitability of this effort, which is as much about exacting revenge on behalf of the twice-impeached former President Donald Trump as it is about prosecuting Biden’s alleged misdeeds.

    From the moment that McCarthy won the speakership on the 15th vote, his grip on the gavel has seemed shaky at best. The full list of concessions he made to Republican holdouts to secure the job remains unclear and may be forcing his hand in hidden ways nine months later. The most important of those compromises, however, did become public: At any time, a single member of the House can force a vote that could remove McCarthy as speaker.

    The high point of McCarthy’s year came in June, when the House overwhelmingly approved—although with notably more votes from Democrats than Republicans—the debt-ceiling deal he struck with Biden. That legislation successfully prevented a first-ever U.S. default, but blowback from conservatives has forced McCarthy to renege on the spending provisions of the agreement. House Republicans are advancing bills that appropriate far less money than the June budget accord called for, setting up a clash with both the Democratic-controlled Senate and the White House that could result in a government shutdown either when the fiscal year ends on September 30 or later in the fall.

    GOP hard-liners have also backed McCarthy into a corner on impeachment. The speaker has tried his best to walk a careful line on the question, knowing that to keep his job, he could neither rush into a bid to topple the president nor rule one out. Trump allies like Representatives Marjorie Taylor Greene of Georgia and Matt Gaetz of Florida have been angling to impeach Biden virtually from the moment he took office, while GOP lawmakers who represent districts that Biden won—and on whom the GOP’s thin House advantage depends—have been much cooler to the idea. McCarthy has had to satisfy both wings of the party, but he has been unable to do so without undermining his own position.

    Less than two weeks ago, McCarthy said that he would launch a formal impeachment only with a vote of the full House. As the minority leader in 2019, McCarthy had castigated then-Speaker Nancy Pelosi for initiating an impeachment probe against Trump before holding a vote on the matter. “If we move forward with an impeachment inquiry,” McCarthy told the conservative publication Breitbart, “it would occur through a vote on the floor of the people’s House and not through a declaration by one person.” By this morning, the speaker had reversed himself, unilaterally announcing an impeachment inquiry just as Pelosi did four years ago this month. (McCarthy made no mention of a House vote during his speech, and when reporters in the Capitol asked about it, a spokesperson for the speaker told them no vote was planned.)

    The reason for McCarthy’s flip is plain: He doesn’t have the support to open an impeachment inquiry through a floor vote, but to avoid a revolt from hard-liners, he had to announce an inquiry anyway. Substantively, his declaration means little. House Republicans have more or less been conducting an impeachment inquiry for months; formalizing the process simply means they may be able to subpoena more documents from the president. The effort is all but certain to fail. Whether it will yield enough Republican votes to impeach Biden in the House is far from clear. That it will secure the two-thirds needed to convict the president in the Senate is almost unthinkable.

    McCarthy’s announcement won praise from only some of his Republican critics. Barely an hour later, Gaetz delivered a preplanned speech on the House floor decrying the speaker’s first eight months in office and vowing to force a vote on his removal if McCarthy caves to Democrats during this month’s shutdown fight. He called the speaker’s impeachment announcement “a baby step” delivered in a “rushed and somewhat rattled performance.” A longtime foe of McCarthy’s, Gaetz was one of the final holdouts in the Californian’s bid to become speaker in January, when he forced McCarthy to grovel before acquiescing on the final ballot. “I am here to serve notice, Mr. Speaker,” Gaetz said this afternoon, “that you are out of compliance with the agreement that allowed you to assume this role.”

    If McCarthy has become a hostage of the House hard-liners, then Gaetz is his captor—or, more likely, one of several. Publicly, the speaker has dared Gaetz to try to overthrow him, but caving on impeachment and forsaking a floor vote suggests that he might not be so confident.

    The speaker is as isolated in Washington as he is in his own conference. Senate Republicans have shown no interest in the House’s impeachment push, and they are far more willing to adhere to the terms of the budget deal that McCarthy struck with Biden and avert a government shutdown. Perhaps McCarthy believed that by moving on impeachment now he could buy some room to maneuver on the spending fights to come. But the impetus behind today’s announcement is more likely the same one that has driven nearly all of his decisions as speaker—the desire to wake up tomorrow morning and hold the job at least one more day.

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    Russell Berman

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  • American Food Will Never Look Natural Again

    American Food Will Never Look Natural Again

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    In 1856, an amateur chemist named William Henry Perkin mixed a batch of chemicals that he hoped, in vain, would yield the malaria drug quinine. When Perkin’s failed experiment turned purple, a hue so vivid that it could stain silks without fading, he realized he’d stumbled upon a different marvel of modernity: a commercially viable synthetic dye, the first of a new generation of chemicals that would revolutionize the way humans colored their clothes and, soon after, their food.

    The edible versions of the chemicals, in particular, were a revelation, offering food manufacturers ”cheap and convenient” alternatives to pigments squeezed painstakingly from natural sources such as plants, says Ai Hisano, a historian and the author of Visualizing Taste: How Business Changed the Look of What You Eat. Dyes could keep peas verdant after canning and sausages pink after cooking; they could turn too-green oranges more orange and light up corner-shop candy displays. By the Second World War, synthetic dyes had become, as one grocer put it, “one of the greatest forces in the world” in the sale of foods. And the more foods the chemicals were introduced to, the more the chemicals came to define how those foods should look: the yellow of butter, the crimson of strawberry Jell-O.

    But after hitting a mid-20th-century peak, the roster of synthetic dyes used in Western foods began to shrink. In recent years, European countries have appended warning labels onto the products that contain them; the United States has whittled down its once-long list of approved artificial food dyes to just nine. The FDA is now reviewing a petition to delist Red No. 3, which colors candy corn, conversation hearts, and certain chewing gums and cake icings; California and New York are mulling legislation that could ban the additive, along with several others, by 2025.

    The concern is that the dyes add not just colors but a substantial health risk. Several of the compounds have been linked to patterns of hyperactivity and restlessness in kids. Red No. 3 has also been known since the 1980s to cause cancer in rats. The precise explanation for the harm is unclear; research into the issue has been spotty, and “there is no comprehensive set of data that says, ‘This is the mechanism,’” according to Elad Tako, a food scientist at Cornell University. Several respected researchers have even dismissed the evidence as overhyped. More than a century into the dyes’ tenure, “there is not even consensus on the fact that they are dangerous,” or what happens when our bodies snarf them down, says Monica Giusti, a food scientist at Ohio State University.

    Even so, the argument against artificial food dyes seems as though it should be simple: They have no known nutritional benefits and potentially carry several health risks. “We’re talking about something that’s cosmetic versus something that is hurting kids,” says Lisa Lefferts, an environmental-health consultant who has petitioned the FDA to ban Red No. 3. And yet, the dyes endure—precisely because they offer our foods and our eyes shades that nature never could.


    When synthetic food dyes were newer, their shortcomings were hard to miss. One of the colorants’ main ingredients was derived from the by-products of the process that turned coal into fuel—and in the absence of careful scrutiny, some early batches of the dyes ended up contaminated with arsenic, mercury, and lead. Companies also used the dyes to conceal defects or spoilage that then sickened many people. By the 1930s, Congress required, among other safety measures, that government scientists vet the chemicals’ safety and restricted companies to sourcing exclusively from an approved list.

    But dangerous chemicals seemed to keep slipping through. In the 1950s, after a batch of Halloween candy sickened several children, FDA scientists found that the culprit was the synthetic dye that had turned the treats orange—a dye so toxic that it caused organ damage and even premature death in animals in labs. The agency hastily banned it and, by the late 70s, axed nearly a dozen other synthetic dyes linked to cancers and organ damage in animals. Today, Americans regularly see just seven artificial dyes in their foods; two others are used very sparingly.

    Still, roughly 19 million pounds of the seven prevalent synthetic dyes were certified by the FDA to flood the U.S. food supply in fiscal year 2022—and no one agrees on which colorants pose the biggest threat. In the European Union and the United Kingdom, foods containing any of six synthetic food dyes—including the three most common ones in the U.S.: Red No. 40, Yellow No. 5, and Yellow No. 6—must warn customers that the colorants “may have an adverse effect on activity and attention in children.” The FDA, however, has yet to adopt any such posture—even though it’s long since delisted Red No. 2, which is still allowed in Europe. Even Red No. 3—which has been linked to both cancer in animals and behavioral issues in kids, and may be one of the most concerning additives remaining in the American food supply, according to Peter Lurie, the president and executive director of the Center for Science in the Public Interest—carries a mixed rap. The FDA banned it from cosmetics and externally applied drugs decades ago but still allows it in food; countries in Europe have restricted its use but don’t mind adding it to certain canned cherries to maintain their hue.

    On the whole, the International Association of Color Manufacturers, which represents the color-additives industry, told me that the claims around food dyes and health risks aren’t sound, pointing out that many of the studies on synthetic colors have yielded conflicting results. The FDA, too, maintains that color additives “are very safe when used properly.” The links, to be fair, are tough to study: With behavior-focused outcomes in kids, for instance, “you’re looking at more subtle kinds of changes that you find on a population basis,” and some children seem more sensitive than others, further muddying the stats, says Linda Birnbaum, the former director of the National Institute of Environmental Health Sciences and the National Toxicology Program. And some laboratory studies on the chemicals have delivered them into rodents in high doses or via tubes down their throat, making the data’s relevance to us a bit shakier. But although some argue that there’s not enough evidence to conclude that the dyes definitely pose a peril, others rightly note that there’s also insufficient data to conclude that they don’t. For all of the pounds of the chemicals we’ve gulped down, “there are still more questions than answers about artificial colorants,” says Diego Luna-Vital, a food scientist at the Monterrey Institute of Technology and Higher Education, in Mexico.

    Lefferts, the environmental-health consultant, is one of several researchers who’d rather err on the side of caution and expunge the entire current roster of artificial food dyes. The potential losses seem negligible, she told me, and the possible benefits immense. Scientists may not even yet know the extent of the dyes’ issues: Just last year, a group led by Waliul Khan of McMaster University published evidence that Red No. 40 may raise the risk of colitis in mice. But without an outright push from the FDA, manufacturers have little incentive to change their practices. And there’s not exactly a clear-cut path toward developing new synthetic colorants with a less dubious safety profile: Without identifying why current dyes might be dangerous, scientists can’t purposefully avoid the root problem in future ones, says Thomas Galligan, CSPI’s principal scientist for food additives and supplements.


    In the background of the fight over artificial dyes, the colorants’ natural counterparts are making a slow and steady comeback. In the EU and the U.K., consumers can find Starburst and M&M’s tinted mostly with plant extracts. And in the U.S., Kraft has re-created the artificial-orange hue of its mac and cheese with a blend of annatto, turmeric, and paprika. Recent surveys have shown that a growing contingent of the global population is eager to eat cleaner ingredients—not, as Jim Murphy, the former president of General Mills, once put it, “colors with numbers in their foods.”

    But in late 2017, Murphy would go on to eat his words, after his company’s all-natural version of Trix debuted, then rapidly tanked. Trix traditionalists were horrified at the revamped recipe’s muted melange of purple-y reds and orangey yellows, devoid of the greens and blues that General Mills had struggled to naturally replicate; they called it “disgusting,” and “basically a salad now.” Just two years after pledging to purge its products of artificial additives, General Mills reinstated “classic Trix”—complete with its synthetics-laden ingredient list. A similar story played out with Necco, which removed the artificial dyes from its wafers only to quickly return them; Mars, too, publicly promised to remove synthetics from its American products then let its self-imposed deadline pass without making good.

    Natural dyes, it turns out, are still a chore to work with, for the same reasons they were once so easily replaced. They’re expensive to extract and process; their colors are inconsistent, and tend to fade quite fast, especially in the presence of light and heat, Luna-Vital told me. Humans are also limited to what nature has available, and the fickleness of those compounds: They often “change on us,” Giusti told me, when researchers mix them into recipes. Sometimes the colors even impart unwanted flavors or funk.

    Several companies, including Sensient and Kalsec, told me that they are now trying to introduce modifications or tweaks that enhance natural pigments’ stability and vibrancy to help them compete. But the more tinkering happens, the more these new dyes could start to resemble the ones that researchers want them to oust. Nowadays, even natural colorants “are artificially created, on some level,” Hisano, the historian, told me. And although the FDA’s regulatory standards assume that plant-, animal-, and mineral-derived dyes will be a safer alternative to synthetics, going as far as to exempt them from certain tests, relying on the simple reassurance that a source is natural is, admittedly, “not the strongest scientific argument,” Michael Jacobson, the former executive director of CSPI, told me. Nature-made, after all, has never been synonymous with safe: It wasn’t so long ago that bakers were bleaching their breads with chalk and dairy manufacturers were tingeing their milks yellow with lead chromate. (“The FDA’s regulations require evidence that a color additive is safe at its intended level of use before it may be added to foods,” a spokesperson told me.)

    There is, technically, another option—abstaining from adding colors to foods at all. But that would fundamentally transform how we experience our meals. Added dyes and pigments—both artificial and natural—are mainstays not just of sports drinks and packaged sweets but also salad dressing, yogurt, pickles, peanut butter, and dried and smoked meats; they’re what makes farmed-salmon flesh pink. Vision is key to taste: “There’s probably no other sensory cue that gives us as much information about what we’re about to eat,” says Charles Spence, an experimental psychologist at the University of Oxford. In what might be an echo of the preferences that helped our ancestors find ripe fruits, Spence told me, our modern brain still tends to link pinks and reds to sugar and yellows and greens to all things tart. Colors can play tricks too: When researchers artificially darken the tint of drinks or yogurt, study subjects insist that it tastes sweeter; when consumers see a rainbow of flavors in their snacks, the sheer appeal of variety may persuade some of them to eat more.

    Some of artificial dyes’ biggest dangers, then, may not even be entirely inherent to the chemicals themselves. Foods that need a color boost tend to be the ones that experts already want us to avoid: candies, sodas, and packaged, processed snacks, especially those marketed to children, points out Lindsay Moyer, a CSPI nutritionist. Colors so exaggerated, so surprising, so unnatural inevitably tempt kids “to reach out of the grocery cart,” Moyer told me. Dyes, once cooked up by us to mimic and juxtapose with the natural world, have long since altered us—manipulating our base instincts, warping our appetites—and transformed into a luxury that the world now seems entirely unable to quit.


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    Katherine J. Wu

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  • Govt on track for bumper tax collections this fiscal year

    Govt on track for bumper tax collections this fiscal year

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    Direct tax collections for fiscal 2022-23 are expected to surpass the budget target by at least Rs 1.5 lakh crore, finance ministry sources have told Business Today Television.

    The budget for this fiscal year has estimated direct tax collections at Rs 14.20 lakh crore, higher than the actual collections of Rs 14.10 lakh crore in the previous fiscal year ending March 31, 2022.

    “Inflation and increased compliance have helped boost tax receipts,” a finance ministry source said.

    The government last week released the figures for direct tax collections up to November 10, 2022.

    The net amount after adjusting refunds stood at Rs 8.71 lakh crore, which is close to 60 percent of the budget estimate for the full year’s direct tax collection target. Direct tax collections comprise income tax from both corporations and individuals.

    Direct tax collections up to November 10, 2022, show that gross collections are at Rs. 10.54 lakh crore, which is 30.69 percent higher than the gross collections for the corresponding period of last year.

    Refunds amounting to Rs 1.83 lakh crore have been issued between April 1 and November 10, 61 percent more than what was issued in the corresponding period last year.

     

    Also read: EXCLUSIVE: After GST, income tax probes online gaming firms

    Also read: Why economists are forecasting a ‘partial recession’ for India in coming quarters

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