Environmental and Fiscal Intersections Checklist for tax preparation

Dec 20, 2016

Central Coast Regional Newsletter December 2016

Environmental and Fiscal Intersections

The Golden State’s environmental health and financial health are deeply interconnected. Environmental degradation can directly affect businesses, jobs, and the overall economy. As a member of the State Lands Commission (and chairperson in 2016), the State Controller oversees the use and protection of millions of acres of land with tremendous impact on all Californians. The decisions about what to do with state lands and resources – which belong to the people of California and are managed for collective benefit – must be balanced between protecting our air, soil, and water, and responsibly managing state finances.

Throughout the state, the Commission works to expand public access to beaches, lakes, and other natural resource areas, prevent oil spills at offshore platforms and marine oil terminals, and prevent introduction of marine invasive species. For example, the Commission is identifying resources to inventory, properly abandon, and remediate abandoned oil wells and other hazards, and reduce oil seepage along the central coast. This year the Commission also put California on the path to decommissioning the Diablo Canyon Nuclear Power Plant after negotiations to maintain zero-greenhouse gas emission energy resources, provide for retention and retraining of affected workers, and address San Luis Obispo community needs.

Between January and October 2016, operations overseen by the Commission generated more than $69 million in revenue for the state’s General Fund from oil and mineral rights, pier leases, and more, as well as almost $4 million for the California State Teachers’ Retirement System. Learn more at www.slc.ca.gov.

Checklist for Tax Preparation

As 2016 comes to an end, it is time to begin preparing for tax filing season. Here is a list of some of the major documents and records needed to complete the federal IRS Form 1040 and state FTB Form 540:

W-2 statements (received by first week of February)

1099 forms documenting other money earned like investment income or unemployment compensation (received by first week of February)

Form 1098 (mortgage income)

Tuition and fees

Child care expenses

Form 1095 (health insurance proof)

Unreimbursed medical expenses

Self-employment expenses

Charitable contributions

Social security numbers for all claimed dependents

State Cash Report Findings for November

California November revenues of $7.98 billion topped projections in the 2016-17 Budget Act by 7.5 percent, according to Controller Yee’s monthly cash report.

Five months into the new fiscal year, total revenues of $38.87 billion are 0.5 percent above estimates in the state budget signed by Governor Jerry Brown in June.

November personal income tax (PIT) receipts of $4.55 billion beat budget projections by $559.7 million, or 14.0 percent. For the fiscal year to date, PIT receipts are $560.7 million ahead of budget estimates.

Gross corporation tax collections of $294.6 million were higher than projected, but they were offset by higher corporation tax refunds. For the fiscal year, corporation tax receipts of $1.46 billion are $318.2 million lower than anticipated, or 17.9 percent.

Retail sales and use tax receipts of 3.10 billion for November missed expectations by $73.4 million. For both the month and fiscal year to date, they are 2.3 percent shy of budget projections.

The state ended November with unused borrowable resources of $22.96 billion, which was $2.40 billion more than expected. Outstanding loans of $16.23 billion were $708.2 million more than projected.

Increasing Corporate Diversity

As the state's chief fiscal officer, Controller Yee serves on 79 boards and commissions including the California Public Employees’ Retirement System (CalPERS) and California State Teachers’ Retirement System (CalSTRS) – the nation’s two largest public pension funds. With a combined $495 billion of assets under management, CalPERS and CalSTRS are responsible for the retirement income security of 2.7 million Californians. Increasingly, CalPERS, CalSTRS, and other long-term institutional investors have factored social and governance considerations into investment decisions.

Research shows beneficial outcomes from corporate board members with a broader array of skill sets, experience, and viewpoints. Over a recent six-year period, companies with at least one female board member outperformed comparable companies with all-male boards by 26 percent. Companies in the top quartile for racial/ethnic and gender diversity are 35 percent more likely to have financial returns above national medians.

Unfortunately, only about three percent of senior executive teams in the United States actually reflect the diversity of the nation’s population. At the current rate of progress, it would take 25 years to reach a point of equality in corporate gender representation at the senior vice-president level. For the C-suite, parity would take 100 years.

The first step in changing insular corporate culture is escalating awareness. The lack of corporate leader diversity is why CalPERS and CalSTRS leaders called on the U.S. Securities and Exchange Commission to enhance disclosure requirements for board member nominees. Recruiters, executives, and investors all have a hand in increasing board diversity. It is good business.

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