STUDIO CITY (CBS) — Proposition 30 would temporarily raise taxes to fund education. The temporary increases would go to the state’s General Fund.
The General Fund is distributed in this way: 41.44% to K-12 schools, 29.23% to Health and Human Services, 10.33% to higher education, 9.73% to the Department of Corrections and Rehabilitation and less than 10% to all others.
Prop 30 increases the state sales tax rate by ¼ of a cent for every dollar for four years and the personal income tax (PIT) rates for higher-income taxpayers for seven years.
Single Filer’s Tax Increases:
$250,000-300,000 – 1%
$300,000-500,000 – 2%
More than $500,000 – 3%
Joint Filer’s Tax Increases:
$500,000-600,000 – 1%
$600,000-1,000,000 – 2%
More than $1,000,000 – 3%
Revenues would be deposited into a new state account known as the “Education Protection Account.” The state’s 2012-13 budget, which was approved by the Legislature and the Governor in June 2012, assumes that Prop 30 will pass. However, the budget also includes a backup plan that would put spending reductions known as “trigger cuts” into effect if voters reject the measure.
The proposition states it will “raise about $6 billion in additional annual state revenues from 2012-13 through 2016-17, with smaller amounts in 2011-12, 2017-18, and 2018-19.” It also states that “the revenues raised by this measure could be subject to multibillion-dollar swings-either above or below the revenues projected.”
Additionally, it says that if Prop 30 is rejected, $5,354,000,000 in spending reductions will take place for schools and community colleges in the 2012-2013 fiscal year.
YES on 30 – Schools and Local Public Safety Protection Act
NO on 30 – Stop Proposition 30 – The $50 Billion Tax Hike
Polls indicate that yes leads no 49.5% to 41.7% as of Oct. 10, 2012.