Propositions 30 & 38 - Tax Increases

Sep 19, 2012

Proposition 30

TEMPORARY TAXES TO FUND EDUCATION. GUARANTEED LOCAL PUBLIC SAFETY FUNDING.
INITIATIVE CONSTITUTIONAL AMENDMENT.
• Increases personal income tax on annual earnings over $250,000 for seven years.
• Increases sales and use tax by ¼ cent for four years.
• Allocates temporary tax revenues 89% to K–12 schools and 11% to community colleges.
• Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open
meetings and subject to annual audit, how funds are to be spent.
• Guarantees funding for public safety services realigned from state to local governments.

Proposition 38

TAX TO FUND EDUCATION AND EARLY CHILDHOOD PROGRAMS. INITIATIVE STATUTE.
• .Increases personal income tax rates on annual earnings over $7,316 using sliding scale from .4%
for lowest individual earners to 2.2% for individuals earning over $2.5 million, for twelve years.
• During first four years, allocates 60% of revenues to K–12 schools, 30% to repaying state debt,
and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K–12 schools,
15% to early childhood programs.
• Provides K–12 funds on school-specific, per-pupil basis, subject to local control, audits, and public
input.
• Prohibits state from directing new funds.