Second Proposition 30 extension initiative filed with attorney general
Initiative would permanently extend income tax provisions
Published: September 23, 2015
Following the California Teachers Association-sponsored initiative filed on Sept. 14, a separate November 2016 ballot initiative to extend the income tax portion of Proposition 30 was filed with the attorney general on Monday, Sept. 21. This second initiative, entitled the “Invest in California’s Children Act,” would make permanent the existing Proposition 30 income tax provisions on high wage earners, and also add additional provisions on higher income levels. Half of the anticipated revenue would go directly to K-14 education, with the other half split between Medi-Cal (40 percent) and early childhood development programs (10 percent). The initiative was filed by a coalition led by the California Hospital Association, Service Employees International Union-United Healthcare Workers West and Common Sense Kids in Action.
Each of the two initiatives is currently awaiting title and summary from the attorney general to begin signature gathering and would need 585,407 signatures, collected at least 131 days before the election, to qualify for the November 2016 ballot. While the initiatives are similar, they would be competing with each other if they both qualify for the ballot, with the one receiving the most votes prevailing. Neither measure seeks an extension of the sales tax portion of Proposition 30, which expires in 2016.
Since these measures have not been anticipated in any of the revenue projections from the Department of Finance and the Legislative Analyst’s Office, the new revenues could accelerate when a contribution to the Proposition 98 rainy day fund is made — a condition which could trigger the school district reserve cap. This issue will require further analysis. CSBA will continue to closely monitor both initiatives, and will report any additional information as it becomes available. The initiatives can be viewed online.