Federal Reserve Establishes U.S. Coin Task Force to Address Low Coin Inventories

According to the Federal Reserve, business and bank closures associated with the COVID-19 pandemic have significantly disrupted the supply chain and normal circulation patterns for U.S. coins. While there is an adequate overall amount of coins in the economy, the slowed pace of circulation has reduced available inventories in some areas of the country.

The primary issue with coin is a dramatic deceleration of coin circulation through the supply chain. As of April 2020, the U.S. Treasury estimates that the total value of coin in circulation is $47.8 billion, up from $47.4 billion as of April 2019. While there is adequate coin in the economy, the slowed pace of circulation has meant that sufficient quantities of coin are not readily available where needed. With establishments like retail shops, bank branches, transit authorities and laundromats closed, the typical places where coin enters our society have slowed or even stopped the normal circulation of coin. The coin supply chain includes many participants, from the U.S. Mint who produces new coin, to the Federal Reserve who distributes coin on the U.S. Mint’s behalf, to armored carriers, banks, retailers and consumers, all of whom have a role to play in helping to resolve this issue.

The Federal Reserve is working with the U.S. Mint and others in the industry on solutions. As a first step, a temporary cap was imposed on the orders depository institutions place for coins with the Federal Reserve to ensure that the current supply is fairly distributed. In addition, a U.S. Coin Task Force was formed to identify, implement, and promote actions to address disruptions to coin circulation.

Members of the U.S. Coin Task Force include individuals from the American Bankers’ Association, Department of the Treasury, National Armored Carrier Association, Federal Reserve System and other organizations.

The task force will meet for a series of virtual working sessions in July with the goal of sharing a set of recommendations at the beginning of August. The group will focus on identifying actionable steps that supply chain participants can take to address the current coin circulation issue.

As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the rebuilding of coin inventories.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act and Other COVID-19 Recovery Programs

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by the Senate and is anticipated to be approved by the House tomorrow and signed into law by the President. CARES provides over $2 trillion in relief. About a quarter of the cost of the bill are "Recovery Rebate" checks we've heard about. Here's a summary of this program:

1. Payouts will be up to $1,200 per adult ($2,400 if married filing jointly) plus $500 per child under age 17.

2. Single taxpayers with adjusted gross income (AGI) up to $75,000 will receive a full $1,200 payment. The payment phases out by $5 for every $100 in AGI over $75,000, which means payments are reduced to zero at an AGI of $99,000.

3. Married taxpayers with AGI up to $150,000 will receive a full $2,400 payment. The payment phases out by $5 for every $100 in AGI over $150,000, which means the payment phases out at $198,000.

4. Head of household taxpayers with AGI up to $112,500 will receive a full $1,200 payment. The payment phases out by $5 for every $100 in AGI over $112,500, which means the payment phases out at $136,500 in AGI.

5. Taxpayers will receive an additional $500 per child under age 17, although it is unclear as of what date the age is determined.

6. The AGI is calculated based on your 2019 return, if filed; if not, your 2018 return.

7. You’ll be paid via direct deposit if they have your banking information on your last return; if not, then via check.

8. When? Starting sometime in April, until TBA.

9. I claim my parents as dependents. Will they receive checks? No.

10. Will it be taxable? No. It will be a refundable tax credit on your return.

11. Although the initial payments are based on your 2018 or 2019 tax returns, technically the payments are based on the AGI in your 2020 returns. What this means is that while you may not have qualified based on your 2018/2019 return, you may still qualify for the payment based on your 2020 return that will be filed in 2021. Inversely, if your 2020 AGI renders a smaller payment or no payment, I believe you will not have to pay the $$ back (this could change).

An example:

You are married with 2 kids under 17 and your 2019 AGI was $170,000. Your maximum payment is $3,400. But it is reduced by $1,000 ($170,000 - $150,000 = $20,000. $20,000 divided by $100 = 200. 200 x $5 = $1,000). Total payout is $2,400.

In February 2021 you file your 2020 return. Your AGI dropped to $150,000. Your payout will be increased to $3,400. You were previously paid $2,400, so you’ll receive another $1,000 credit on your 2020 tax return.

Here are some additional financial resources for those struggling as a result of the COVID-19 pandemic situation:

Penalty-Free IRA Withdrawals

CARES enables those impacted by COVID-19 to withdraw up to $100,000 from qualified retirement plans without penalty in 2020, though you will still owe taxes on the withdrawal, stretched over 3 years.

Unemployment: In states where the President approves a major disaster declaration, federal assistance comes in the form of Disaster Unemployment Assistance (DUA). DUA is generally available to any unemployed worker or self-employed individual who cannot work as a result of the disaster.  Learn more about this on the Calif EDD website at www.edd.ca.gov/unemployment/disaster_unemployment_assistance.htm.

SBA Loans: Small business owners are eligible to apply for low-interest loans due to COVID-19 with the SBA. Details at disasterloan.sba.gov/ela. There are also SBA Express Disaster Bridge Loans available for certain businesses that have existing relationships with an SBA Express Lender.

CARES also expands the SBA loan program to support new “Paycheck Protection Program” loans that would increase loan amounts and allow use for payroll, mortgage, rent and utility payments, insurance and other debt. Certain borrowers may be eligible for loan forgiveness for an 8 week period for payroll, interest, rent and utilities while retaining employees over that period (effectively an incentive to retain staff during the COVID-19 crisis).

City of Los Angeles Small Business Emergency Microloan Program offers business in the City of L.A. to apply for low-interest loans of $5K to $20K ranging from 6 months to 5 years. Details at www.edd.ca.gov/unemployment/disaster_unemployment_assistance.htm.

Bank Leniency: A number of banks are implementing programs to defer payments, suspend late penalties on loans, extend credit limits and payment deadlines and other things for those impacted by COVID-19. Contact your bank for details. A partial list of such banks is at abc7ny.com/6046582/.

Tax Return and Related Deadlines

Both federal and California tax returns due 4/15/20 have been pushed to 7/15/20. Additionally, any federal/California tax payments due 4/15/20, including 2019 taxes as well as 2020 estimated and franchise tax payments, have been pushed to 7/15/20. The Calif 2nd quarter estimated payments due 6/15/20 have been pushed to 7/15/20. The federal 2nd quarter estimated payments at this point in time are still 6/15/20.

IRA contributions for 2019 due to be made by 4/15/20 have also been extended to 7/15/20.

REAL ID Deadline Has Been Delayed From October 1, 2020 to October 1, 2021 by DHS

Today, Acting Secretary of the Department of Homeland Security (DHS) Chad Wolf announced that, due to circumstances resulting from the COVID-19 pandemic and the national emergency declaration, the DHS as directed by President Donald J. Trump, is extending the REAL ID enforcement deadline beyond the current October 1, 2020 deadline. The new deadline for REAL ID enforcement is October 1, 2021. DHS will publish a notice of the new deadline in the Federal Register in the coming days.

Wolf indicated “The federal, state and local response to the spread of the Coronavirus here in the United States necessitates a delay in this deadline. Our state and local partners are working tirelessly with the Administration to flatten the curve and, therefore, we want to remove any impediments to response and recovery efforts. States across the country are temporarily closing or restricting access to DMVs. This action will preclude millions of people from applying for and receiving their REAL ID. Extending the deadline will also allow the Department to work with Congress to implement needed changes to expedite the issuance of REAL IDs once the current health crisis concludes.”

“Protecting both the health and national security of the American people continues to be the top priority for the President of the United States and the Department of Homeland Security.”

www.dhs.gov

California Minimum Wages Increased Today, January 1, 2020 by $1 Per Hour

If you are a minimum wage earner in California, today you received a pay increase of either 9.1% or 8.3%.

Huh? Well it depends on if your employer has 25 or fewer employees or 26 or more employees. If you work for a smaller employer (25 or less employees), the California minimum wage increases from $11 to $12 per hour. If you work for a larger employer (26 or more employees), your wage increases from $12 to $13 per hour.

Hmm, that brings an interesting idea to mind. If you are a minimum wage earner at a smaller company as defined, you could actually receive an 18.2% increase in 2020 simply by finding a larger employer!

In any case, by law, California minimum wage rates for all companies will be raised to $15 per hour with $1 increases on January 1st of each year by 2022 for larger employers and 2023 for smaller employers. See charts below.

The federal minimum wage for 2020 is $7.25, a rate that has stood frozen in time since it became effective on July 24, 2009.

California minimum wage rates apply to Ventura County residents. But City of Los Angeles and County of Los Angeles minimum wage rates are currently higher than Ventura County/California wage rates. They are currently:

• $13.25 for employers with 25 or less employees until 7/1/20, when the rate increases to $14.25 per hour. The rate subsequently increases to $15 per hour 7/1/21.

• $14.25 for employers with 26 or more employees until 7/1/20, when the rate increases to $15 per hour.

Looking for a higher minimum wage? Move to San Francisco, where the rate is currently $15.59 per hour and will be adjusted for inflation on July 1, 2020.

The Number of Registered Voters in Ventura County Has Increased Nearly 10% Over the Last Seven Years

The Ventura County Registrar of Voters website has up to date counts of the number of registered voters in Ventura County. We like to track the totals from time to time to see the trends.

On May 12, 2012, there were 406,644 registered voters in Ventura County, consisting of:

• 157,539 Democrats

• 150,919 Republicans

• 77,994 Nonpartisans

• 20,192 Other

Approximately seven years later, in May 2019, there are 445,217 registered voters, a 9.5% increase, including:

• 176,712 Democrats, a 12% increase

• 130,228 Republicans, a 14% decrease

• 110,225 Nonpartisans, a whopping 41% increase

• 28,052 Other, also a large 39% increase

Update as of 12/8/19: Total registered voters 454,872, up 2.2% in six months, including 183,994 Democrats (up 4.1%), 132,142 Republicans (up 1.5%), 108,208 Nonpartisan (down 1.8%) and 30,528 Other (up 8.8%).

Can’t remember if you are eligible to vote? Look it up at THIS LINK. What I’ve found with this Voter Eligibility Search function is that, unlike a search engine, your search terms have to be precise. If you are registered as Richard King, if you type Rich King into the search, it will not find you.

Register to vote online at registertovote.ca.gov.

Katy Perry's Latest Single "Never Really Over" Filmed at King Gillette Ranch in Calabasas

Katy Perry announced her new single, “Never Really Over,” yesterday at katyperry.com. Those of us that live here in the Conejo Valley and nearby areas in Ventura County may recognize the surrounding in that video.

Yes, this video was filmed at King Gillette Ranch in Calabasas. This 588 acre gem in the Santa Monica Mountains is maintained by the Mountains Recreation & Conservation Authority. The property was owned and developed by razor blade kingpin King C. Gillette. Also located here is the Anthony C. Beilenson Interagency Visitor Center - believe it or not, in what was formerly the horse stable for the Gillette Mansion.

Screenshot from video shows the entrance to King Gillette Ranch in Calabasas.

King Gillette Ranch entrance on a recent spring day.

Another snapshot from the video shows the actual Gillette mansion in the background, situated on King Gillette Ranch.

A similar view from the expansive, beautiful lawn at King Gillette Ranch.