Video: Feinstein on Her Role in a New World

Senator Dianne Feinstein was clear about the challenges ahead for a California Democrat in contentious times.

“Here we are: outnumbered, outvoted, in the West, fairly liberal,” she said.

Speaking before an energetic capacity crowd in San Francisco, Feinstein said her office had received more than a million phone calls about Trump’s cabinet nominees. She described her approach to them: careful evaluation, rather than blanket opposition—an approach too conciliatory for some sign-carrying audience members. Feinstein said that in her role on the Senate Judiciary Committee, she needed to work with the administration officials in charge of national security and felt she could work with Trump appointees James Mattis, defense secretary; John Kelley, secretary of homeland security; and Mike Pompeo, CIA director. But she opposed other nominees because they lacked credentials for the job or they aren’t right for the county, she said. Nevertheless, they went on to win approval.

“The key for me is to figure out how we can begin to win some of these battles.”

Asked about Trump’s nominee to the Supreme Court, Neil Gorsuch, Feinstein wouldn’t say how she would vote. She said she will be particularly interested in his views on gun laws and on women’s reproductive rights.

Feinstein’s visit was greeted by dozens of protesters who marched outside, upset that she had not hosted a traditional town hall. Inside, Feinstein touched on a range of issues from climate change to immigration to health care, in a wide-ranging conversation with Mark Baldassare, PPIC president and CEO. His questions included a number that PPIC solicited online in advance of the event.

Video: An Early Look at Views of President Trump

The January PPIC Statewide Survey asked Californians for to assess their new leaders in Washington and found that just a third of Californians, or 30%, approve of the way President Trump is doing his job. Californians gave Congress a similar rating.

Dean Bonner, associate survey director, presented these and other key findings at a briefing in Sacramento. The survey also examined contentious issues that are the focus of national debate.

  • Solid majorities of Californians favor state action—independent of the federal government—to protect the rights of undocumented immigrants and to address global warming.
  • About half of Californians have favorable opinions of the Affordable Care Act, and a slight majority oppose repealing it.
  • Most Californians—across political parties—say the government should not interfere with a woman’s access to abortion.

The survey also looked at views of Governor Brown’s job performance and his proposed budget. The governor job approval rating is at a record-high 66%. But his budget proposal and his plan to fund maintenance of the state’s roads, highways, and bridges fares less well. Just under half of residents support his budget plan and 41 percent support his transportation proposal.

Learn more

Read the January PPIC Statewide Survey
Learn more about the PPIC Statewide Survey

Immigrants Are Key to the State’s High-Skilled Workforce

Immigrants are integral to California’s highly skilled workforce. As California’s demand for highly educated workers has outpaced the supply produced by its colleges and universities, immigrants have filled the gap. Immigrants now make up a substantial share of the state’s highly educated workers. Today, three of every ten highly educated workers in California is an immigrant, up from one in five in 1990. Immigrants are especially important in the state’s high tech sector, comprising 52% of college graduates who work in computer systems design and services and 57% of those in computer equipment and peripheral manufacturing (findings based on the 2013‒2015 American Community Survey).

Over time, the face of immigration to California has changed. Recent immigrants are more highly educated than immigrants who arrived earlier. In the past, most immigrants arrived from Latin America. But in recent years, most new immigrants to California are from Asia. Because many immigrants from Asia are highly educated, this regional shift has contributed to a change in immigrants’ education levels. Immigrants who have arrived in California in the past five years are among the most highly educated demographic group in the state, with more than half (52%) holding at least a bachelor’s degree, compared to 35% of US-born Californians.

Immigrants to California from the seven countries that are the focus of President Trump’s executive order —Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen—also tend to be highly educated. According to the 2015 American Community Survey, California is home to 305,000 immigrants from these countries—35% of the total number of immigrants from these countries in the nation—with most (213,000) from Iran. Altogether, almost half (47%) of adult immigrants (ages 25‒64) from these countries have a bachelor’s or graduate degree, including 54% of those from Iran.

Given the contribution of highly educated immigrants to California’s economy, and especially to the state’s high tech sector, it is no wonder that many companies and state officials have raised concerns about the president’s executive order.

PPIC has projected that California faces a workforce skills gap and needs to increase the number of adults with a bachelor’s degree by an additional 1.1 million to meet workplace demands by 2030. These projections assume that the state will continue to attract substantial numbers of highly educated immigrants from abroad. Restrictions on the flow of those immigrants could exacerbate the projected workforce skills gap—and cause significant damage to the state’s economy.

Learn more

Visit the PPIC Higher Education Center

California’s 4.5 Million Trump Voters

In the November election, California voters passed several ballot initiatives acting on liberal priorities, and votes for Hillary Clinton in the state exceeded votes for Donald Trump by a two-to-one margin. Nevertheless, 4.5 million Californians voted for Donald Trump—7% of his total support across the country. California’s Trump voters stand apart from other voters—both those who supported past Republican presidential nominees and Clinton supporters—in important ways. But many Trump voters align with California’s Democratic majority on issues of taxation and undocumented immigrants.

California Trump voters’ low level of trust in the federal government is one of the major ways that they differ from other voters. The October PPIC Statewide Survey found that 81% of Trump voters say the federal government is run by a few big interests, wastes a lot of taxpayer money, and only does what is right sometimes (or never), compared to only 24% of Clinton voters. The large gap on these questions between Trump and Clinton voters in 2016 stands in sharp contrast to 2008, when McCain and Obama voters were about equally likely to express distrust (55% and 57%, respectively).

Yet there are some areas of overlap between Trump and Clinton voters. In California’s US Senate race between two Democrats, PPIC surveys indicate that about half of Trump voters decided not to participate. Of those who indicated they would vote, though, Trump voters were about evenly split between Kamala Harris—preferred by most Clinton voters (58%)—and Loretta Sanchez. In October, we found a noteworthy 22% of Trump voters saying they would vote for Harris, who was ultimately the winner of the seat.

Another winner in November was Proposition 55, which extended a tax on high incomes in California. While Clinton voters were far more likely than Trump voters (75% to 24%) to say they favored the tax extension, a quarter of Trump voters said they would vote yes. It’s likely that many of them contributed to the success of the measure, which passed with 63% support.

Immigration is another policy area with some notable overlap in opinions between Trump and Clinton supporters. Although Trump voters were far more likely than Clinton voters to support building a wall along the border with Mexico (82% to 7%), a majority of Trump voters (52%) agreed with the 95% of Clinton voters who said undocumented immigrants should be allowed to stay in the country if certain requirements are met. As California policymakers consider potential responses to a change in federal immigration policy, it will be interesting to see how Trump’s voters feel about new federal and state action.

Though California remains a Democratic-majority state, millions of Californians voted for the president-elect in November. While there are large differences in opinion between them and Clinton supporters, neither group is monolithic, and our survey findings suggest some potential areas of cooperation between them.

Learn more

Find out more about the PPIC Statewide Survey

Worlds Apart: California’s Partisan Divide and the 2016 Election

With the June 7 primary behind us, it’s time to reflect on what we have learned about California’s likely voters as we look ahead to the November 8 election.

The December 2015 PPIC Statewide Survey reported a profound schism between Republicans who wanted “new ideas and a different approach” and Democrats who favored “experience and a proven track record” in a presidential candidate. Last Tuesday’s election provided more evidence of these attitudes. Donald Trump, a businessman with no political experience, won the Republican primary while Hillary Clinton, with a long record of public service, won the Democratic primary. It is now obvious that Californians’ candidate preferences are just one example of a deep partisan fissure that has emerged in the 2016 PPIC Statewide Surveys.

We found another example of this divide when we asked about the mood of the California electorate in 2016. Most Republican likely voters (78%) said the state is going in the wrong direction while most Democratic likely voters (67%) said it is going in the right direction in our May PPIC Statewide Survey. We found a similar divide in views about the direction of the US and about whether California and the US are headed into good economic times or bad ones next year.

The job approval ratings of elected officeholders also largely depend on one’s partisan stripes. President Obama has an 84% approval rating among Democratic likely voters and an 85% disapproval rating among Republican likely voters. This party split is also clear in the approval ratings of the US Supreme Court, California US Senators Barbara Boxer and Dianne Feinstein, Governor Jerry Brown, the California Legislature, and even local House members and state legislators. The only area of consensus is the overwhelming disapproval of the US Congress (84% Republican, 81% Democrat).

There are also large and consistent partisan divides over the role of government. The vast majority of Republicans—83%— want a smaller government with fewer services, while a strong majority—69%—of Democrats say they prefer a bigger government with more services.

Similar partisan differences are evident when Californians are asked about gun laws, government regulation, and economic inequality. While 64% of Republicans say the government goes too far regulating guns, 79% of Democrats say it does not do enough. A majority of Republicans—66%—say government regulation does more harm than good, while 76% of Democrats say government regulation is necessary to protect the public. And 68% of Republicans say the government should not be doing more to reduce the gap between the rich and poor, while 79% of Democrats say it should be.

Last but not least is the partisan gulf on immigration and race. There are also different perspectives on the proposal to build a wall along the entire Mexico border (60% Republicans favor; 87% Democrats oppose) and whether immigrants are a burden (66% Republicans) or a benefit (78% Democrats) to California. Most Republican likely voters (58%) say there is equal treatment in the criminal justice system while most Democratic likely voters (80%) say that blacks and minorities do not get equal treatment.

Looking ahead to the November ballot, there are starkly different views on extending a temporary income tax on the wealthy, with 68% of Republicans opposing the extension of this Proposition 30 tax and 80% of Democrats in favor of it. The results are similar when our survey asked about a state school bond (50% Republicans no, 82% Democrats yes) and marijuana legalization (56% Republicans oppose, 69% Democrats favor).

How will California’s partisan divide impact the November election? Democrats now have an 18-point edge over Republicans in voter registration (45% to 27%).The PPIC Statewide Surveys this year also indicate that independent voters are leaning in the same direction as Democratic voters in their presidential, US Senate, and ballot choices, and their overall outlook, approval ratings, and policy preferences. In this context, the May PPIC Statewide Survey found that the state’s likely voters favor the presidential candidate who stands for experience and a proven track record over the presidential candidate who stands for new ideas and a different approach. Still, Republicans overwhelmingly support their party’s standard bearer and appear to be aligned with his perspectives and policies.

California seems poised to maintain its blue status this fall. However, the geo-political segregation of the state —with Republican pockets of strength in California’s northern, inland, and rural regions—means that federal and state legislators will be elected to represent the views of voters who are worlds apart. Indeed, the political polarization and antipathy of this year’s election may result in a California Congressional delegation that will contribute to Washington gridlock and a California Legislature that will struggle to find common ground on solutions to the many challenges facing California’s future.

Income and Inequality Vary Widely Across California

Income inequality has been growing for decades and—despite the recovery from the Great Recession—remains historically high. Today, the low end of the income spectrum (the 10th percentile) in California is 19% lower than what it was in 1980, and the upper end of the spectrum (90th percentile) is 40% higher, according to our new report. As a result of these trends, the ratio of high to low incomes—a key measure of income inequality—is nearly twice the size it was three decades ago.

In Los Angeles County, high-income families have 15 times more income than low-income families.

Both income and income inequality vary substantially across California. Looking at after-tax family incomes, we find that, in 2014, the Bay Area had the highest incomes. However, the gap between high and low incomes was biggest in Los Angeles County, the Central Valley, and northern parts of the state—places where low incomes tend to be particularly low. For example, in Los Angeles County, high-income families have 15 times more income than low-income families. At the other end, the Inland Empire and Orange County have the lowest income inequality.

Why does the gap between families across the income spectrum matter? In part because low-income families may have insufficient resources to meet their basic needs. If family incomes are widely spread (inequality is high) but even families at the low end of the economic spectrum are able to attain a sufficient level of well-being (poverty is low), income inequality may not be a big problem. But that is not the case: one in five Californians live in poverty.

Inequality itself may also raise concerns for a host of social, cultural, and political reasons. One economic consequence of inequality is that the greater spread of incomes may inhibit upward mobility. Recent research finds a correlation between income inequality in a region and the upward mobility of its children. Low-income children who grew up in areas with higher income inequality have, on average, lower incomes as adults than otherwise similar children who grew up in regions with less income inequality. In this and other ways, the consequences of growing income inequality may play out over generations, highlighting the need for policies that take this long-range view into account.

Source: Based on California Poverty Measure data, 2012–2013 (Bohn and Danielson 2016).
Notes: Dollar amounts are rounded to the nearest $1,000. Income shown includes cash from work and retirement sources net of federal and state income and payroll taxes; low-income tax credits are not included. Dollar amounts adjusted to represent a family of four. The inequality ratio shown is calculated as the ratio of the 90th percentile of income to the 10th percentile of income; higher numbers indicate greater income inequality. Regions defined as follows. Northern: Butte, Colusa, Del Norte, Glenn, Humboldt, Lake, Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra, Siskiyou, Tehama, and Trinity Counties; Sacramento area: El Dorado, Placer, Sacramento, Sutter, Yolo, and Yuba Counties; Bay Area: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Santa Cruz, Solano, and Sonoma Counties; Central Valley and Sierra: Alpine, Amador, Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Mono, San Joaquin, Stanislaus, Tulare, and Tuolumne Counties; Central Coast: Monterey, San Benito, San Luis Obispo, Santa Barbara, and Ventura Counties; Inland Empire: Imperial, Riverside, and San Bernardino Counties. Los Angeles, Orange, and San Diego Counties are shown separately.

Learn more

Read the report Income Inequality and the Safety Net in California

Video: Survey Looks at Candidates & Issues

The most recent PPIC Statewide Survey found a tightening primary race between Democratic presidential candidates Hillary Clinton and Bernie Sanders, and strong majority support for Donald Trump among Republican primary likely voters.

Dean Bonner, associate survey director, presented the findings at a Sacramento briefing last week. In addition to examining views of presidential candidates, the survey asked California likely voters for their choices in the election for US Senate—and it looked ahead at potential matchups for November in both races.

The survey offers a snapshot of Californians’ views on two key topics being widely debated nationally:

  • Immigration policy. A strong majority of likely voters oppose building a wall along the entire border with Mexico, as Trump has promised to do. There is a stark partisan divide: 86% of Democrats and 72% of independents oppose building a wall, while 59% of Republicans favor it. Asked whether or not undocumented immigrants living in the United States should be allowed to stay legally, 75% of likely voters favor allowing them to stay. Majorities across partisan lines say undocumented immigrants should be allowed to stay.
  • US Supreme Court. At a time when the court has issued rulings on a number of polarizing topics, California likely voters are divided in how they rate the court: 46% approve of the way the court is handling its job and 44% disapprove. Should the Senate should confirm Obama’s nominee, Merrick Garland, to the court? About half of likely voters (51%) say yes, and 33% say no.
Learn more

Read the May 2016 PPIC Statewide Survey: Californians and Their Government
Visit the PPIC Statewide Survey pages

Testimony: California’s Exclusive Electorate & the 2016 Election

Mark Baldassare, PPIC president and CEO, testified before the Assembly Select Committee on Civic Engagement in Los Angeles today (May 13, 2016). Here are his prepared remarks.


“If the trends in voting continue, we face the prospect of an electorate making policy choices that neglect the realities and problems facing large segments of California society.” I wrote these words in a 2006 PPIC report, California’s Exclusive Electorate. The report analyzed trends in the state’s electorate from 1990 through May 2006 and polling results from the PPIC Statewide Surveys from 2005 to 2006. It revealed the gulf in political preferences between the state’s voters and the majority of its adult population, and suggested that if California’s nonvoting adult population made their voices heard at the ballot box, the political status quo could change—dramatically. In other words, the choices that voters make do not necessarily represent the preferences—or the needs—of California’s broader population. These disparities could be a problem for any state and are not unique to California.1 However, for California, a state that calls on its voters not only to elect representatives but also to make so much policy through ballot initiatives, these disparities raise real concerns.

In the years since that report, voter participation has continued to fall while the state’s population has become larger and more diverse. This troubling trend, especially notable in primaries and midterm elections, has motivated a statewide conversation about advancing civic engagement and increasing voter participation in California. Compounding this concern is our finding that California’s likely voters—who decide the fate of candidates and ballot initiatives—do not represent the demographics or the policy preferences of the state’s adult population.

At a time when new approaches to boosting voter turnout are being implemented and proposed, and as we approach the 2016 presidential election, it seemed important to update our work on the electorate. Using PPIC Statewide Survey data from 2015—drawn from about 12,000 interviews during seven monthly surveys that included voting and nonvoting adult Californians—our 2016 PPIC report paints a comprehensive picture of likely voters and their nonvoting counterparts. Once again, we find that the people who go to the polls in California are very different from those who don’t; they have different demographic characteristics—such as age, education, homeownership, immigration, income, and race/ethnicity. They also have different political attitudes and policy preferences. As California’s population continues to expand and change, the voting rolls are not keeping pace, and the state’s voters remain unrepresentative of its population.

In our 2016 report, we found a strong connection between economic inequality and political inequality. Likely voters in California tend to be older, white, college educated, affluent, U.S. born, and homeowners. They tend to identify themselves as “haves”—rather than “have nots”—when asked to choose between these two economic categories. Nonvoters tend to be younger, Latino, renters, less affluent, less likely to be college educated, and not U.S. born—and they generally identify themselves as “have nots.” Voters and nonvoters differ noticeably in their views on the role of government, taxes and spending, ballot choices, and elected officials—all of which come into play during an election year and influence governing choices in the long term.

California’s recent steps to encourage voter participation are a step in the right direction, but the divide between voters and nonvoters is deep and persistent. Why has the exclusive electorate phenomenon that we identified 10 years ago been so difficult to change? State laws that make it easier to register to vote and cast ballots are helping to expand the electorate, but only to a limited degree. When eligible adults are asked why they are not registered to vote, most cite a lack of confidence or a lack of interest in elections, a lack of trust in government, and a lack of time to vote. When registered voters are asked why they do not always vote, their top reasons are a lack of interest and time and low levels of confidence and trust.2

More fundamentally, the broad demographic and economic shifts underway in the state are shaping the divide between California’s voters and nonvoters today. Immigration is one important factor. Millions of California adults are documented and undocumented noncitizens. The share of the adult population that is undocumented is on the decline, but it is still a large segment of California society. Public and private efforts are needed to encourage more noncitizens to become citizens and join the voter rolls. Comprehensive federal immigration reform that provides a path to citizenship is another key ingredient in creating a larger and more diverse electorate. Other powerful socioeconomic factors help determine political participation. A significant share of California’s population is living in poverty, housing costs in coastal regions are high, and the state economy is likely to face a shortage of college-educated workers in the near future. Efforts to increase economic opportunity through policies that produce high-paying jobs, provide affordable housing, and increase college graduation rates would also grow and diversify the electorate.3

How will these ongoing trends in political and economic inequality affect the 2016 election cycle? As is always the case, voter turnout will increase and demographic profiles will broaden for the November presidential election. Still, we expect to see a large divide between voters and nonvoters this year. Once again, California faces the prospect of an electorate making policy decisions that neglect the realities and problems facing large and growing segments of society.

What are the larger consequences of uneven participation rates and low voter turnout? First, the fact that a relatively small group of voters is making decisions about elected representatives and public policy raises serious questions about the legitimacy of the democratic system. Next, because the haves in society are the frequent voters, and so many of the have nots are not voting or are not registered to vote, our electoral process does not reflect the broad economic and political interests of all adults. Last, likely voters and nonvoters have different perspectives on the role of government, government spending, ballot choices, and the state’s elected officials.

What might happen if voters were more representative of California’s adult population? There could be more voter support for policies that increase spending for health care and education, and for an expansion of the government’s role in improving the lives of immigrants and the less economically advantaged. If large numbers of new voters continue to register with “no party preference” and the proportion of major party voters continues to shrink, the power of independent voters in determining election outcomes could be bolstered. Finally, growth and change in the electorate could initially produce more political instability, as elected officials, candidates, political parties, and initiative campaigns reach out to a larger and more diverse electorate.4

In the long run, having a larger and more engaged electorate that is more representative of the people of California would be a source of political stability for a state that increasingly relies on the ballot box to make its major policy decisions.

1. Raymond E. Wolfinger and Steven J. Rosenstone, Who Votes? (Yale University Press, 1980); Eric Plutzer, “Becoming a Habitual Voter: Inertia, Resources, and Growth in Young Adulthood,” American Political Science Review 96 (1): 41-56, 2002; Karthick Ramakrishnan, Democracy in Immigrant America, (Stanford University Press, 2005); Mark Baldassare, At Issue: Improving California’s Democracy (Public Policy Institute of California, October 2012); Jan E. Leighley and Jonathan Nagler. Who Votes Now? (Princeton University Press, 2014).
2. Mark Baldassare, Dean Bonner, David Kordus, and Lunna Lopes, “Voter Participation in California,” Just the Facts (Public Policy Institute of California, September 2015).
3. Laura Hill and Joseph Hayes, “Undocumented Immigrants,” Just the Facts (Public Policy Institute of California, June 2015); Sarah Bohn, Caroline Danielson, and Monica Bandy, “Poverty in California,” Just the Facts (Public Policy Institute of California, December 2015); Hans Johnson, Marisol Cuellar Mejia, and Sarah Bohn, Will California Run Out of College Graduates?, (Public Policy Institute of California, October 2015); Hans Johnson and Marisol Cuellar Mejia, California’s Future: Housing, (Public Policy Institute of California, February 2015).
4. Jack Citrin, Eric Schickler, and John Sides, “What If Everyone Voted?” American Journal of Political Science 47 (1) 75-90, 2003; Mark Baldassare, At Issue: Improving California’s Democracy, (Public Policy Institute of California, October 2012); Jan E. Leighley and Jonathan Nagler, Who Votes Now? (Princeton University Press, 2014).

Californians’ Views on the Value of College

An overwhelming majority of Californians view our higher education system as very important to the state’s quality of life and economic vitality over the next 20 years. More than two-thirds of Democrats and Republicans, as well as large majorities across the state’s regions and demographic groups, share this perception. In fact, there has been a general consensus on this issue among Californians since we began asking this question in 2007.

However, Californians report differing opinions about the necessity of a college education for individual success.

A majority of Californians (59%) in our most recent survey say that a college education is necessary to succeed in today’s work world, and more than two-thirds of Asians, Latinos, and blacks concur. But fewer than half of whites hold this view. Notably, the share of whites who say college is necessary has dropped 11 points since 2007, despite staying generally constant among other racial/ethnic groups.

Californians at the lower end of the income scale tend to believe that college is necessary, while higher-income residents are less inclined to this view. Two-thirds of Californians with household incomes below $40,000 think a college education is necessary, compared to about half of those with higher incomes. Among Californians with college degrees and those with no college education, solid majorities say college is a necessity. In contrast, only half of those with some college hold this view.

Democrats and Republicans are divided when it comes to the necessity of a college education in today’s work world: two-thirds of Democrats, compared to fewer than half of Republicans and independents, think of college education as a necessity. Since 2007, the share of Democrats holding this view has remained consistent, while the shares of Republicans and independents holding this view have declined 15 and 19 points, respectively.

Foreign-born adults are far more likely than those born in the United States (80% to 47%) to say college is necessary. Parents of children age 18 or younger are also far more likely than others (68% to 54%) to place high importance on a college education.

While most Californians view our higher education system as very important to the state’s future, differences in opinion emerge regarding the necessity of a college education. In particular, many Asians, blacks, and Latinos, as well as Californians with lower incomes, view a college education as necessary to succeed. These findings are especially salient as the issue of access to California’s higher education institutions gains prominence.

Learn more

Read the March PPIC Statewide Survey: Californians and Their Government
Visit the PPIC Higher Education Center

California’s New Tax Credit

Starting this year, California tax filers with very low incomes from wages are now able to claim a tax credit that builds on the federal Earned Income Tax Credit (EITC). Californians without dependent children can claim the credit if their wages are less than about $7,000, and those with children can claim it if their wages are less than about $14,000.

California joins 25 other states that have their own EITCs. Since California’s credit is brand new, we do not yet know who will claim it. However, our research enables us to characterize the population of those likely eligible for the credit. These estimates are based on family characteristics and incomes reported for 2013.

About 3 million tax filers in California are eligible to claim the federal credit on behalf of themselves and their families. We project that roughly 600,000 filers will be eligible for the California EITC—or about a fifth of those eligible for the federal EITC. If we broaden the scope to include both filers and their family members who will also benefit from the credit, the number of Californians affected by the federal EITC increases to nearly 10 million and by the state credit to 2 million.

Single filers with dependents can generally claim the largest credit. Among those in this group who are eligible for the state EITC, we calculate that the state EITC amount is $932 on average and the federal EITC amount is $2,579, for a combined total of $3,511. This amounts to a 58% boost in earnings on average—20% from the state credit and 38% due to the federal credit. While these filers are working a substantial number of hours (29 hours per week on average), only 37% report working year round (48 weeks or more).

In contrast, single filers with dependents who are eligible only for the federal EITC because their earnings are too high to claim the state EITC see about a 16% increase in income. Compared to those who can claim the state EITC, those eligible only for the federal EITC typically work full time (40 hours a week on average) and year round (83% worked 48 weeks or more).

We know from the research literature that the federal EITC boosts family incomes both directly and indirectly by encouraging work. While it is still too early to assess the full impact of the new California EITC, this early glimpse suggests that the direct effects of the state EITC will be large, at least among a key group of filers eligible to claim the credit.