MAYOR NEWSOM AND TREASURER CISNEROS RELEASE $2 MILLION TO WORKING FAMILIES THROUGH THE NEW WORKING FAMILIES CREDIT PROGRAM

From the Mayor's Office of Communications

September 30, 2005

Mayor Gavin Newsom and Treasurer José Cisneros today announced that the City has mailed over $2 million to 9,500 low-income San Francisco families as part of the innovative Working Families Credit program (WFC). The WFC is a new, local 10% match to the federal Earned Income Tax Credit (EITC).

The WFC will match over $20 million in EITC tax credits for low-income San Francisco families.

The EITC is a federal refundable tax credit that provides up to $4,300 to qualified families earning less than $36,000 per year. The EITC rewards work and helps low income families with children keep more of their earned income.

In previous years, as much as $12 million has gone unclaimed by eligible San Francisco families who qualified for the EITC but did not claim it on their federal tax returns. The Mayor and Treasurer launched the WFC in January 2005 in order to provide an increased incentive for working San Francisco families to apply for the EITC.

"The EITC is one federal program that actually helps the working poor get ahead," said Mayor Newsom, who was unable to attend the press conference.

The Mayor continued, "But not enough low-income San Franciscans have accessed this program in the past. That's why we created this innovative partnership that is helping almost 10,000 San Francisco families draw down over $20 million in federal tax credits." The average EITC benefit for participating families is $2,200, which will be matched by an additional average of $220 from the Working Families Credit.

The Treasurer's Office received over 11,000 applications for the Working Families Credit. To help these families maximize the amount of money they keep, the Treasurer worked with 18 local banks and credit unions who agreed to cash the WFC checks for free. Many will also help WFC recipients open free bank accounts. "I am proud that 18 of our local banks and credit unions are helping San Francisco families become banked and begin to build assets," said Treasurer Cisneros.

Major sponsorship for the Working Families Credit was provided by H&R Block, whose clients made up approximately one-third of all applicants.

"We have made significant progress this year in building
the foundation for public and private sectors to work together to help working families," stated Bernie Wilson, vice president of H&R Block.

"On behalf of Block and the Working Families Coalition, I want
to thank Mayor Newsom and Treasurer Cisneros and look forward to working together again to help more eligible San Francisco families claim both the Earned Income Tax Credit and the Working
Families Credit next tax season."

SFWorks partnered with the City to develop and implement the WFC.

"We all want a City in which parents that work are able to support their families economically," said Terri Feeley, director of SFWorks. She adds, "The Working Families Credit can be a vehicle for connecting these families to additional resources that help them keep and invest more of what they earn." To that end, the City is mailing families a list of services and programs along with their checks.

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