As we continue to navigate these unprecedented times, KCBS Radio is getting the answers to your questions about the coronavirus pandemic. Every morning at 9:20 a.m. Monday-Friday we're doing an "Ask An Expert" segment. Each day we'll focus on a different aspect of this situation.
Today, we’re getting a look at the state, local and federal options available for people in need of financial assistance with State Senator Nancy Skinner.
Q: We’ve got a long list here, let’s start with this one: I’m 80 years old and I live off of Social Security. Will I receive a check from the stimulus package?
Everyone is supposed to, I would go to the state’s website. Governor Newsom has put up his own website: covid19.ca.gov. There’s a resource link that has all of that kind of information. So I would go and check on that for details.
But as I understand it even those who are on Social Security will receive a check. How much that is, it does vary depending on income. But as most people who are on social security are not in the higher income brackets, they will probably receive the whole amount but I would definitely go to that website and take a look.
Q: Why hasn’t the Governor suggested that everyone shelter in place for at least one week? Example: all except for police, fire, EMS, nurses and doctors stay at home. That would include essential businesses as well. This person is saying expand the shelter in place, what do you think?
I think the governor is doing a great job and he’s trying to strike that balance between making sure everybody knows, look you are absolutely smartest and wisest if you just stay home. Don’t go to the grocery story every other day or every week. Stay at home as much as you can. And yes the essential services are open, but when you go to the grocery store, stock up for two weeks. Don’t keep going.
The reason it hasn’t been mandated that you better just never go to the store is Americans, we basically don’t like to be ordered so directly. But I think the clear advice and directions from our county public health officials, from the state, is stay home as much as possible.
Q: Not all affected by this crisis have a bank account, will banks cash checks from the state or US Treasury for non-customers as a courtesy?
That’s a very good question, I will have to get my staff to look at that because check cashing places charge such high fees. That for those without bank accounts, this could be a very serious time to be affected by that.
So I would recommend folks that have that question go onto my State Senate website, direct it through that website and my staff will do that research and get back to you.
Q: By the way Senator, in limited cases, Alameda County has cut a deal with one bank in Oakland to take in property tax payment checks because today is the property tax payment date and the county offices are not open, so there are some limited things like this floating around.
And the other thing - we’ll get into unemployment in a minute - but for example here’s very important advice for those of you who have either already applied for unemployment or are going to. When you apply you have the option to receive your benefits by check or by what’s called a debit card or EBT - Electronic Benefits Card. Opt for the EBT. if you opt for the EBT, not only will you receive your benefit faster, then you do not have to worry - if you are without a bank - about trying to cash a check. The EBT will be taken by vendors. It can be used both for online sales and for direct pay - say the grocery store, drug store, et cetera. So opt for the EBT.
Q: I’ve owned a catering business in Marin for 24 years and been extremely affected by COVID-19. All wedding and corporate events for April, May and June already cancelled and more to come. Guidelines for paycheck protection? Any thoughts or suggestions most helpful.
The federal Small Business Administration loans are available to businesses such as this person who wrote in, and there are loans that will be 100% forgiven if the person is willing to continue to pay their employees. Now, there has been a delay in accessing those loans. We’ll just have to see how fast the Small Business Administration and the banks they are working with can administer those things but there is a program like that.
In terms of other paycheck protection, I’m not aware of it but there certainly is that 100% forgivable loan for a small business or even a nonprofit that is going to continue to pay their employees even though they’ve been impacted by this terrible pandemic.
Q: Rent forgiveness: what is the status of that? What are my rights?
First let me just say that obviously so, so many individuals and families have been so seriously impacted by the loss of jobs, the loss of everything that they are having a very hard time meeting their bills, paying their rent, paying their whatever normal regular bills. But what I want to encourage people is, if you are able - if you are an essential worker or if you have the resources - and you are able to continue to pay things, like for example your property taxes or your rent, do your best to do it. And I am not advising that for those who are really hit economically. But I am advising it because for many - for example some property is owned by people that only own a few properties and their entire income is that rent - and so we certainly don’t want them to become completely destitute.
But that said, the good news is that throughout the state of California no matter where you live, our Judicial Council - that is our state judges - they have passed an order where there will be no eviction enforcement and foreclosure enforcement through the end of this summer. So people are protected from any type of eviction or foreclosure action. Additionally, almost all of the sheriffs in all of the Bay Area counties have completely stopped any eviction proceedings so that’s the one good news.
In terms of when this is over, those people who lost their jobs it’s not like all of a sudden they’re going to make up all the income that they lost. What happens for those people in trying to meet and pay their rent? We see the city of San Jose for example considering doing a three month rent forgiveness. We’ll have to see within each local government, what they act. But that’s something that lots of people are thinking about. Because obviously while you might not be able to pay rent now, if you’re out of a job for say six months your ability to pay that back rent may be very very compromised so that’s being talked about and worked on now all over the state.
Q: Renters have been given a break but what about landlords who need that income to cover mortgages and other property expenses, are they getting a break too?
Well that’s why I raised the issue of - there are still some of us who are getting a paycheck so we need to do our best to pay those that we know are dependent on our payments for their income. And some small property owners are like that.
The difference, if you’re the small property owner, yes if your tenant does not pay you you’re not getting that income. However, the foreclosures have also been completely suspended so you do not have to worry about being foreclosed. And additionally, not that anyone wants to face this, but at least if you’re the owner of a property you have more options for things like refinancing to cover things like losses. But additionally if you have been filing taxes, and are a property owner who receives revenue, you are eligible for the Small Business Administration loan. And even ones that are not 100% forgiven, the other loans are 30 year termed at very low interest so there are lots of opportunities even for property owners.
Q: Since I’ve exhausted sick leave and vacation, I would need to pay the employee portion of health insurance out of pocket. Could I use my HSA? I read only if I’m on unemployment or COBRA but this is an unusual circumstance.
Very good question. That one I would have to research. I think that you can but I do not want to give a definitive answer and again I would recommend - I’m State Senator Nancy Skinner, or your own State Senator - go on my website and submit that question to my staff we will research it and get back to you.
Q: I assume since the legislature is not meeting on a regular basis, there must be more time to do that work that you just described.
Well, we are not in the capital and holding hearings as of yet. We are meeting regularly as most people do by conference call and Zoom. Those are not formal legislative meetings because of course we have the obligation to do those publicly.
But we are getting brief by the Office of Emergency Services, by the governor’s office and just as you have pointed out we have redirected all of our staff, both our capital staff and our district staff to provide assistance to our constituents with all of these kinds of questions.
Q: I have a question regarding my unemployment application. I moved from Illinois to California end of last year, became unemployed mid-March due to COVID-19. I tried to file the application online, however, because I answered “yes” to the first question the system does not allow me to continue online, requires me to fax or call instead. I’ve not been able to contact EDD, not sure where to print out the form so I can fax them since the libraries are closed. How should I proceed?
There is a wonderful organization called Legal Aid At Work. Their website is legalaidatwork.org and they are specialists in all things to do with unemployment, paid sick leave, disability insurance. I would recommend going onto their website to see if they have guidance here.
Back to the issue of applying online. If you need to file for unemployment, apply online because our EDD staff - they’re only answering the phones four hours a day.
Why? Because if they answered 24/7 they would not be processing people’s benefits. So they’re only answering four hours a day so they can continue to have staff continue focused on processing benefits. But as a result, if they’re only answering the phones four hours a day it’s very hard to get through to them. So go to the legal aid at work website and see if the information on their website has answers to that question. You may be able to get through to them online faster than EDD.
Q: How do we get a REAL ID license if the DMV is effectively closed with no appointments? Also, is the state considering extending renewal dates? Will my license still be valid if expired? If not, if I renew my regular license by mail will I be able to update to REAL ID at a later time, and what will be the fee since I’ve already paid the renewal fee?
Good news - the REAL ID deadlines have been extended so you don’t have to worry about that deadline if you don’t have a REAL ID yet.
And the other good news is the DMV now - the state, through an executive order by our Governor has now extended everyone’s deadlines, so do not worry about the expiration of your license right now. And you can also apply online instead of in person for renewal. And even if you otherwise would have had to take a test, they’re going to waive it for the moment. So you can just go onto the DMV website and apply online. And if you’re over 70, they’re extending your license period so you don’t have to worry about your expiration either.
Q: I checked the DMV site but the answer was oddly phrased and not definitive - it sounds like police were told not to enforce expired plates but didn’t say outright that smog tests and registration were okay to not be done. I noticed smog tests are still open as an essential service. Can you explain all that?
Yes automotive shops are still open for essential service. Registration is different that your license expiration so I recommend that people do re-register their car. Obviously if they’re in real financial distress that’s a different story.
But the governor’s executive order deal with license renewal and it was only done very recently so it may be Monday before the DMV has posted this updated information, but I know they’ll have it up very very soon.
Q: Back to the landlord side of the rent situation. With the delay, by state order, of tenants’ rent payment it delays my cash flow. Not just mortgages but vendors such as PG&E, the second installment of property tax due today. Can I defer these payments without penalty?
So the other good news besides the fact that there will be no eviction enforcement, no foreclosure enforcement: PG&E and other utilities are not turning off people’s power because of lack of payment.
Again it’s better, if you can to pay at least portions of those bills but no one has to worry about their utilities being shut off.
Q: Let’s get into taxes. This questioner says please summarize, can I assume July 15th is what used to be April 15th for everything income tax? If I owe California can I wait until July 15th? If I have quarterly estimated payments in April usually, can I wait until July 15th? What about the June 15th estimated payment?
And another person says if I submit to California for a refund, do I have to submit to the IRS to which I owe money at the same time or can that wait until July 15th?
Those are good questions, I believe all of it is July 15th.
Q: I think I can help a little on this one. If you’ve got a refund coming from either the state or the federal, file it now and get your money back now. You don’t have to wait until July 15th, you could do it yesterday. So if you’ve got a situation that’s split, in which you owe one entity and not the other, I would file the income tax return, get the refund and then wait until July 15th to file the one for which you have to pay.
That’s very good advice because you’re more likely, given the federal governments slowness right now in administering the various benefits that they’ve offered including the payments to individuals, it is better to file your taxes and make sure you have direct deposit because then you again won’t have to worry about whether they process the check, they will direct deposit that benefit.
And July 15th is the deadline for all now, so even those quarterly tax payments.
Q: We’re three weeks into our mortgage refinance process with a broker. General rule of thumb is to make no new applications during the approval process, but my husband does need to file for his business relief funding under the paycheck protection program. Should we wait to file the paycheck protection program until the refinance completes, or will lenders make the exception for this type of loan application?
That one I am not as familiar with the details, the rules around that so I can’t provide that answer because I don’t want to provide the wrong guidance.
Q: Understood, we’re all in kinda tricky territory now. I do know a few good mortgage brokers and they’re the kind who would run that kind of information down. My guess would be if you talk to the broker with whom you’re working and just be honest, you’re going to get a straight answer because they want to do business too.
This is really more of a societal question - I understand the basics of social distancing, masks, latex gloves. What I really want to do is just go take drive, and not even get out of my car except for gas. Can I?
There’s no rule against that. I don’t think our good law enforcement folks will stop you just for going out for a drive. But obviously the word “social distancing” - it’s kinda funny. The governor has been using physical distancing which is wiser because it’s more clear to all of us. What does physical distancing mean? It means stay away from people, be at least minimum six feet away.
So if you go on a drive, maybe you have to stop somewhere, maybe you have to be potentially engaging so just think about that. But there’s no limitation on you just going for a drive.
Q: I set aside $2,000 in my childcare FSA with my employer for my daughter’s summer school this year. However, summer schools are certain to be cancelled. Are there any provisions in the FSA plan that allows participants to make changes because of situations like this? Can I get the amount I set aside back if I’m not able to spend it because of this life changing event?
Well you certainly should be able to but that’s federal rule. Whether the feds have addressed that in various actions that either Congress has taken or IRS, I don’t know. But certainly it’s something they should do.
Q: Thank you for taking the time, we appreciate your willingness to have staff run down some of these. Your website is easy to find and you have a simple way for people to ask a question.
Yes very simple, it’s “contact your senator” or “ask a question,” boom the form comes up and you can send us the email and we’ll answer.
Additionally my office, as are many of my colleagues in the Assembly and the Senate are having regular telephone town halls on just these kinds of questions. So the other thing people can do is go on our website and make sure we have your contact information, your email address and we’ll invite you to those telephone town halls where we have people from, for example, Legal Aid At Work and from the Small Business Administration and others who join us on those telephone town halls to provide the information like I did today.