State Senate Democrats unveiled two unconventional proposals Tuesday to keep California's economy afloat.
The first plan would raise $25 billion using prepaid tax vouchers. Taxpayers would prepay their income taxes at a slight discount to provide money the state can use immediately.
The other plan would relieve pressure on renters with mounting debt — not with direct payments, but with tax credits.
It would work like this: Landlords who agree to participate in the voluntary program would forgive missed rent payments and promise not to evict tenants. In exchange, the state would offer landlords tax credits that they could sell on the open market to get cash now.
Tenants would still be responsible for paying that money back to the state, interest free, over the next 10 years. Anyone who can prove a hardship would be exempt.
State Senate President Pro Tem Toni Atkins, D-San Diego, said the goal is to avoid major budget cuts while providing immediate relief to both landlords and renters.
The proposal has the support of the California Apartment Association. But it's unclear whether it will win over tenant groups who want corporate landlords, not taxpayers, to cover missed rents.
— Erin Baldassari (@e_baldi)