What happens if prop 30 passes

Palmer, a spokesman for the state Department of Finance, explains that this measure would ensure education gets its share of funding: "All of the money goes into an account in Proposition 30 that is dedicated to schools; the indirect effect of that is that it relieves pressure on other parts of the General Fund.

Wait, what does that mean? In all, Prop. The exact amount generated for education through the measure may fluctuate, however, as it depends on a recovering state economy and changeable tax revenues.

According to the Legislative Analyst's Office, the money is put in the Education Protection Account and cannot be used for administrative costs. It provides local school boards the "discretion to decide, in open meetings and subject to annual audit, how funds are to be spent.

Does this mean that money can go toward pensions? Each locality will ultimately decide how the money is spent, but it's likely that teachers who were laid off will be rehired and that funds could go toward salary, which does include benefits such as a pension. The new revenues would also be used to pay down deferrals, or IOUs, the state has racked up over the years to school districts.

At some point those cards reach their limit. So one of the things that occurs, if Prop. The state would begin to pay schools back via a complicated funding mechanism in Prop.

Edgar Cabral, a principal fiscal and policy analyst for the Legislative Analyst's Office says that Prop. Mockler, who advised the governor on Prop. These are referred to as marginal tax rates. Higher marginal tax rates are charged as income increases. This measure temporarily increases the statewide sales tax rate by one-quarter cent for every dollar of goods purchased.

This higher tax rate would be in effect for four years—from January 1, through the end of As shown in Figure 2, this measure increases the existing 9. The additional marginal tax rates would increase as taxable income increases. These new tax rates would affect about 1 percent of California PIT filers. These taxpayers currently pay about 40 percent of state personal income taxes. The tax rates would be in effect for seven years—starting in the tax year and ending at the conclusion of the tax year.

Because the rate increase would apply as of January 1, , affected taxpayers likely would have to make larger payments in the coming months to account for the full-year effect of the rate increase. Proposition 38 on this ballot would also increase PIT rates. The nearby box describes what would happen if both measures are approved. Proposition 30 and Proposition 38 on this statewide ballot both increase personal income tax PIT rates and, as such, could be viewed as conflicting.

Proposition 30 and Proposition 38 both contain sections intended to clarify which provisions are to become effective if both measures pass:.

Additional State Revenues Through Smaller revenue increases are likely in , , and due to the phasing in and phasing out of the higher tax rates. The revenues raised by this measure could be subject to multibillion-dollar swings—either above or below the revenues projected above. This is because the vast majority of the additional revenue from this measure would come from the PIT rate increases on upper-income taxpayers.

Most income reported by upper-income taxpayers is related in some way to their investments and businesses, rather than wages and salaries. While wages and salaries for upper-income taxpayers fluctuate to some extent, their investment income may change significantly from one year to the next depending upon the performance of the stock market, housing prices, and the economy. Due to these swings in the income of these taxpayers and the uncertainty of their responses to the rate increases, the revenues raised by this measure are difficult to estimate.

Revenues deposited into the General Fund support a variety of programs—including public schools, public universities, health programs, social services, and prisons. School spending is the largest part of the state budget. Earlier propositions passed by state voters require the state to provide a minimum annual amount—commonly called the Proposition 98 minimum guarantee—for schools kindergarten through high school and community colleges together referred to as K education.

The minimum guarantee is funded through a combination of state General Fund and local property tax revenues. In many years, the calculation of the minimum guarantee is highly sensitive to changes in state General Fund revenues. In years when General Fund revenues grow by a large amount, the guarantee is likely to increase by a large amount. A portion of the new revenues therefore would be used to support higher school funding, with the remainder helping to balance the state budget. From an accounting perspective, the new revenues would be deposited into a newly created state account called the Education Protection Account EPA.

Of the funds in the account, 89 percent would be provided to schools and 11 percent to community colleges. Schools and community colleges could use these funds for any educational purpose. The Legislature and the Governor adopted a budget plan in June to address a substantial projected budget deficit for the fiscal year as well as projected budget deficits in future years.

Muhammad Ali. Southland Sessions. Line of Separation. Icon: Music Through the Lens. The Latino Experience. Variety Studio: Actors On Actors. Death in Paradise. Independent Lens. In Concert at the Hollywood Bowl. Earth Focus. City Rising. Lost LA. See All Shows.

More on Art in the Desert. More on Filipino Eats. More on Cinema Series. Your donation supports our high-quality, inspiring and commercial-free programming. Other Ways to Give. Connect with Our Team. PBS Passport. Leadership Circle. Gift Planning. Corporate Support. Recognizing Your Generosity.