1988 California Proposition 98

Last updated

California Proposition 98 requires a minimum percentage of the state budget to be spent on K-12 education. Prop 98 guarantees an annual increase in education in the California budget. [1] Prop 98, also called the "Classroom Instructional Improvement and Accountability Act," amended the California Constitution to mandate a minimum level of education spending based on three tests. Test one, used only for 1988 to 1989, requires spending on education to make up 39% of the state budget. Test 2, used in years of strong economic growth, requires spending on education to equal the previous years spending plus per capita growth and student enrollment adjustment. Test 3, used in years of weak economic growth guarantees prior years spending plus adjustment for enrollment growth, increases for any changes in per capita general fund revenues, and an increase by 0.5 percent in state general funds.

This is accomplished by shifting specified amounts of property tax revenues from cities, counties and special districts to "educational revenue augmentation funds" (ERAF) to support schools statewide. [2] Proposition 98 can be suspended only by a two-thirds vote of the California Legislature.

The initiative was a result of 1978's Proposition 13, which limited assessed property taxes to one percent of a home's value in California and thus limited the amount of local funds that could be spent on school districts. [3]

Proposition 98 has been attacked by some groups because it mandates "auto-pilot spending" and reduces the Legislature's budgetary flexibility. [4] [5]

Related Research Articles

1978 California Proposition 13 Ballot initiative which capped property tax at 1% and yearly increases at 2%

Proposition 13 is an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on June 6, 1978. It was upheld as constitutional by the United States Supreme Court in the case of Nordlinger v. Hahn, 505 U.S. 1 (1992). Proposition 13 is embodied in Article XIII A of the Constitution of the State of California.

The Taxpayer Bill of Rights is a concept advocated by conservative and free market libertarian groups, primarily in the United States, as a way of limiting the growth of government. It is not a charter of rights but a provision requiring that increases in overall tax revenue be tied to inflation and population increases unless larger increases are approved by referendum.

2004 California Proposition 1A

Proposition 1A was a California ballot proposition on the November 2, 2004 ballot. The proposition passed with 9,411,198 (83.7%) votes in favor and 1,840,002 (16.3%) against.

2004 California Proposition 65 2004 California ballot proposition

Proposition 65 was a California ballot proposition on the November 2, 2004 ballot. It failed to pass with 3,901,748 (37.6%) votes in favor and 6,471,506 (62.4%) against. It was a state constitutional amendment that would have required voter approval for any state legislation reducing certain local government revenues from January 2003 levels. It was officially known as the Local Taxpayers and Public Safety Protection Act.

1980 Massachusetts Proposition 2½ Ballot measure in Massachusetts limiting taxation

Proposition 2½ is a Massachusetts statute that limits property tax assessments and, secondarily, automobile excise tax levies by Massachusetts municipalities. The name of the initiative refers to the 2.5% ceiling on total property taxes annually as well as the 2.5% limit on property tax increases. It was passed by ballot measure, specifically called an initiative petition within Massachusetts state law for any form of referendum voting, in 1980 and went into effect in 1982. The effort to enact the proposition was led by the anti-tax group Citizens for Limited Taxation. It is similar to other "tax revolt" measures passed around the same time in other parts of the United States. This particular proposition followed the movements of states such as California.

<span class="mw-page-title-main">1996 California Proposition 218</span> Adopted initiative constitutional amendment

Proposition 218 is an adopted initiative constitutional amendment which revolutionized local and regional government finance and taxation in California. Named the "Right to Vote on Taxes Act," it was sponsored by the Howard Jarvis Taxpayers Association as a constitutional follow-up to the landmark property tax reduction initiative constitutional amendment, Proposition 13, approved in 1978. Proposition 218 was approved and adopted by California voters during the November 5, 1996, statewide general election.

2008 California Proposition 92 2008 California ballot proposition

California Proposition 92 was Californian ballot proposition that voters rejected on February 5, 2008. It was a state initiative that would have amended Proposition 98, which set a mandate for the minimum level of funding each year for elementary and secondary schools and for the California Community Colleges.

The Oregon tax rebate, commonly referred to as the kicker, is a rebate calculated for both individual and corporate taxpayers in the U.S. state of Oregon when a revenue surplus exists. The Oregon Constitution mandates that the rebate be issued when the calculated revenue for a given biennium exceeds the forecast revenue by at least two percent. The law was first enacted by ballot measure in 1980, and was entered into the Oregon Constitution with the enactment of Ballot Measure 86 in 2000.

1998 California elections

California's state elections were held November 3, 1998. Necessary primary elections were held on March 3. Up for election were all the seats of the California State Assembly, 20 seats of the California Senate, seven constitutional officers, all the seats of the California Board of Equalization, as well as votes on retention of two Supreme Court justices and various appeals court judges. Twelve ballot measures were also up for approval. Municipal offices were also included in the election.

November 2008 San Francisco general election

The November 2008 San Francisco general elections were held on November 4, 2008 in San Francisco, California. The elections included seven seats to the San Francisco Board of Supervisors, one seat to the San Francisco County Superior Court, and twenty-two San Francisco ballot measures.

2009 California Proposition 1A Failed California ballot measure

Proposition 1A was a defeated California ballot proposition that appeared on the May 19, 2009 special election ballot. It was a constitutional amendment that would have increased the annual contributions to the state's rainy day fund. The proposition was legislatively referred to voters by the State Legislature.

November 2012 California elections

The California state elections was held on Election Day, November 6, 2012. On the ballot were eleven propositions, various parties' nominees for the United States presidency, the Class I Senator to the United States Senate, all of California's seats to the House of Representatives, all of the seats of the State Assembly, and all odd-numbered seats of the State Senate.

<span class="mw-page-title-main">2012 California Proposition 39</span> Ballot measure in California modifying corporate tax burdens

Proposition 39 is a ballot initiative in the state of California that modifies the way out-of-state corporations calculate their income tax burdens. The proposition was approved by voters in the November 6 general election, with 61.1% voting in favor of it.

<span class="mw-page-title-main">2012 California Proposition 32</span> California ballot measure in 2012

Proposition 32 is a California ballot measure that was decided by California voters at the statewide election on November 6, 2012. This initiative statute would have affected political contributions via payroll deductions, and contributions to political candidates. The proposition was defeated by voters by a margin of 56 to 44 percent.

2012 California Proposition 30 California ballot measure regarding taxes

Proposition 30, officially titled Temporary Taxes to Fund Education, is a California ballot measure that was decided by California voters at the statewide election on November 6, 2012. The initiative is a measure to increase taxes to prevent US$6 billion cuts to the education budget for California state schools. The measure was approved by California voters by a margin of 55 to 45 percent.

2016 California Proposition 55 2016 California ballot proposition

Proposition 55 is a California ballot proposition that passed on the November 8, 2016 ballot, regarding extending by twelve years the temporary personal income tax increases enacted in 2012 on earnings over $250,000, with revenues allocated to K–12 schools, California Community Colleges, and, in certain years, healthcare. Proposition 55 will raise tax revenue by between $4 billion and $9 billion a year. Half of funds will go to schools and community colleges, up to $2 billion a year would go to Medi-Cal, and up to $1.5 billion will be saved and applied to debt.

2018 California Proposition 69

California Proposition 69 was a legislatively referred constitutional amendment that appeared on ballots in California in the June primary election in 2018. This measure put the revenue from the Road Repair and Accountability Act, which increased fuel taxes, in a "lockbox" so that it can only be used for transportation-related purposes. It also exempts said gas tax revenue from the previously existing appropriations mandate and expenditures limit. This state constitution amendment ensures that revenues from SB1 Gas Taxes established by the Road Repair and Accountability Act of 2017 can only be used for transportation-related purposes.

2020 California Proposition 15 2020 California ballot measure

California Proposition 15 was a failed citizen-initiated proposition on the November 3, 2020, ballot. It would have provided $6.5 billion to $11.5 billion in new funding for public schools, community colleges, and local government services by creating a "split roll" system that increased taxes on large commercial properties by assessing them at market value, without changing property taxes for small business owners or residential properties for homeowners or renters. The measure failed by a small margin of about four percentage points.

<span class="mw-page-title-main">2012 California Proposition 31</span> California ballot measure in 2012

The 2020 California Proposition 31 was officially titled "State Budget. State and Local Government. Initiative Constitutional Amendment and Statute." and was a California ballot measure that appeared on the ballot in the November 2012 California elections. The initiative would have established a two-year state budget, allowed the Governor to make budget cuts in fiscal emergencies, would have prevented the state Legislature from spending more than $25 million without creating spending cuts or other budget offsets, and would have allowed local governments the ability to transfer certain amounts of property taxes among themselves instead of the state. Although the law was supported by the California Republican Party multiple conservative groups came out against proposition 31 including members of the tea party movement who viewed the law as a way to undermine property rights.

References

  1. Proposition 98 Primer
  2. http://www.ci.covina.ca.us/news/ERAF_facts.pdf Archived 2008-05-29 at the Wayback Machine Fact Sheet: The ERAF Property Tax Shift
  3. "Senator Peace: Cure Prop. 13 'Sickness' by Reassessing Commercial Property, Boosting the Homeowners' Exemption and Cutting the Sales Tax". Cal Tax Digest. Archived from the original on 2015-02-03.
  4. :: California Family Council :: [ permanent dead link ]
  5. PE.com | Opinion | Agenda 2006