Measure to slightly raise taxes in California, generating an estimated six billion dollars to be allocated for education and public safety fund programs
In the upcoming Nov. election Governor Jerry Brown is proposing a new tax initiative in an effort to help balance the state budget. The measure, titled Proposition 30, is set to create a slight increase in sales tax and also raise personal income tax for upper-income earners in the state of California. The resulting overflow will then be divided amongst K-12 schools and higher education, as well as guarantee funds for public safety.
Specifically, Proposition 30 is an initiative amendment to the state constitution that will raise sales tax one-quarter of a cent on the dollar for four years. Those earning, over $250,000 a year, will also see an increase on personal income tax for seven years.
The amendment to the state constitution would provide that local school governing boards be the ones to decide how funds are spent, preventing the funding from pooling into administrative costs.
According to the California State website, ca.gov, the projected increase will mean about six billion dollars added to the state budget. These revenues could then be allocated to fund programs that would have otherwise seen a cut, notably education programs.
While the state’s budget plan assumes passage of the measure, a backup plan has also been made in the event California state residents vote down the increase. The backup plan will enact “trigger cuts,” spending reductions, that will immediately follow if the measure does not pass. In the event these trigger cuts occur, the CSU system will see a projected $250 million dollars in budget cuts.
Categories:
Proposition 30 to appear on ballots in Nov.
By Kailey Fisicaro
•
September 12, 2012
0
More to Discover