Last year, corporations in California received approximately $94 billion in tax breaks, ostensibly to benefit the public good, create jobs and stimulate the economy – but are we getting what we’re paying for? 

A 2014 state law required all new tax credits to include accountability measures to ensure they achieve their intended outcomes, but that law only applied to new credits while billions of dollars in breaks approved previously continue without any oversight. Even if we assume best intentions, there is currently no process to review these tax expenditures (some of which are decades old) and determine whether they are appropriate and achieving their intended outcomes. 

Right now, we are basically taking the word of corporations that these tax breaks help improve our economy and the quality of life in California communities. In 2023, more than 300,000 profitable corporations in California paid only the minimum $800 in annual tax each while reaping a combined $11.7 billion in profits, according to the California Budget & Policy Center. The rest of us are facing an affordability crisis, wages and job growth are lagging, and essential public services face constant funding cuts in our communities – including our public schools and community colleges where ongoing threats of educator layoffs exacerbate a statewide teacher shortage.   

Educators know intensely the value of every single dollar in our classrooms – that’s why our union is co-sponsoring a bill that would assess major corporate tax credits, deductions and exemptions to determine whether they are achieving the intended benefits for Californians. SB 1349 (Gonzalez) would require a cost-benefit analysis of the largest existing tax expenditures and recommendations to the Legislature about their efficacy, so we can make an informed decision about whether they are in our collective best interest.  

Given the extreme wealth inequality in our state and the chronic underfunding of our schools, we must be vigilant to ensure our students and communities are getting every dollar they deserve. In this era of egregious tax avoidance by corporations and the wealthy, SB 1349 shines a light on corporate tax breaks that impact the funding of every school district in California – many of which have sat on the books for years without any scrutiny, oversight or data to demonstrate results.  

We often hear about California’s massive financial power as the fourth largest economy in the world, but it doesn’t always feel that way in our schools. Even this year with record-high revenues, our governor and Legislature just withheld nearly $4 billion from our schools in the state budget, violating the Prop. 98 minimum education funding guaranteed by our constitution. We know that for every $1 billion reduction to state education funding, there is a potential for 9,600 fewer educators in our schools.  

This chronic funding instability and resulting cuts to services and support our students need should be unacceptable in a state of unprecedented and historic wealth.  

The Legislature must look at every option to ensure our state budget is stabilized, and our schools and public services are fully funded – SB 1349 will help accomplish those goals and guarantee that corporations are paying their fair share of the cost of our collective future. 

Please join educators in calling on our elected legislators to support SB 1349 and let’s make sure Californians are getting what we’re paying for.