California Budget Project: What Would Proposition 30 Mean for California
ITEP Work in Action“Proposition 30, which will appear on the November 6, 2012 statewide ballot, would increase personal income tax rates on very-high-income Californians for seven years and raise the state’s sales tax rate by one-quarter cent for four years. The Legislative Analyst’s Offi ce (LAO) estimates that the measure would raise an average of approximately $6 billion annually between 2012-13 and 2016-17, and smaller amounts in 2011-12, 2017-18, and 2018-19 as the taxes are phased in and out.1 Revenues generated by the tax increases would provide additional funding for public schools and help avoid deeper state spending reductions. The measure would also put key provisions of the recent “realignment” of public safety, health, and human services programs in the state Constitution, ensuring that counties receive ongoing funding to support realigned programs.2 Proposition 30 was placed on the ballot by Governor Jerry Brown via the initiative process, and supporters include the California Federation of Teachers and California Teachers Association. The California Budget Project has endorsed Proposition 30. This Budget Brief provides an overview of the measure and the policy issues it raises.”