California Voters to Decide on Education Spending

SACRAMENTO, Calif. — Though the state has had difficulty balancing its budget, California’s economy continues to rival those of many countries in terms of overall production. The San Francisco Bay Area has also managed to maintain a mini housing and tech bubble. The sheer size of the state’s economy means most industries perk up their ears when California residents head to the polls. This year is no exception, as professionals and business owners in the construction and design industries will be closely watching two education funding bills, Propositions 30 and 38, which will have a massive impact on school budgets, and likely swing many facility decisions in one direction or another.

Proposition 30
Proponents: Governor Jerry Brown, California Teachers Association, California Police Chiefs Association, League of Women Voters, California Federation of Teachers, California Democratic Party
Opponents: Howard Jarvis Taxpayers Association, National Federation of Independent Business California, California Republican Party

Proposition 38
Proponents: California State PTA, the Advancement Project
Opponents: California Chamber of Commerce, California Republican Party, California Democratic Party, California State Sheriffs’ Association

The state’s strange mix of laws, which keep taxes low while allowing spending to grow, has created a seemingly perpetual imbalance in the budget, which Governor Jerry Brown and his last two predecessors have all promised to fix. Part of the current governor’s solution was to cut education funding in the budget and allow voters to decide if they wish to raise taxes or not. Different forms of this strategy have had varying levels of success in the past but seem to be the way of the future in the Golden State. The legislature in California requires a two-thirds vote in both houses to pass any bill that involves raising taxes. Such a dominant show of support can almost never be found in such a politically divisive legislature, meaning governors must build spending cuts into the budget and hope voters will approve the funding to replace some of those cuts and achieve what they consider to be a balanced approach.

Proposition 30, the solution presented by Gov. Brown, would raise income taxes by one to three percent over seven years for individuals earning $250,000 or couples filing jointly for $500,000. It would also raise the state sales tax by one-fourth of a cent. This would raise an estimated $6 billion per year, with $2.9 billion going to K-12 schools and community colleges in the first year.

Proposition 38, the product of millionaire civil rights attorney Molly Munger and her Advancement Project, a civil rights group based in Los Angeles, would increase income taxes on a sliding scale, affecting all Californians for 12 years. The tax rate for most people would increase by .4 percent, while those earning more than $2.5 million would experience an increase of 2.2 percent. The proposal would bring in $10 billion per year, with all of the funds going to K-12 schools and early education programs beginning in the fifth year of the program. The proposal designates 30 percent of the funding over the first four years to paying down state bond debt.

If both proposals pass, the one receiving the most votes will be implemented. If neither effort proves successful, a $5.4 billion cut to education funding will occur, without any funds to backfill the gap.