Proposition 30, a Sales and Income Tax Increase Initiative
WHAT WILL IT COST?
- It raises California’s sales tax to 7.5% from 7.25% . When combined with your local sales tax, most of Alameda County will see the sales tax paid on purchases increase from 8.75 % to 9.00%. The two highest sales tax cities in San Joaquin county (Tracy and Manteca) will see an increase from 8.25 % to 8.5%
- Additionally, it raises income tax rate for those taxable incomes exceeding $250,000 – roughly the top 3% of California tax payers. Our current income tax rate for these high-income tax brackets ranges from 9.3% to 10/3%. The tax rate range after the increase will be from 10.3% to 13.3% RETRO – Operative as of January 1, 2012.
- This increase will be in effect for the next 7 years.
- The expected revenue from this tax is anywhere from $6.8 billion to $9 billion of which 85% of the money will go to to K–12 schools and 11% to community colleges.
HOW CAN SCHOOLS SPEND THIS MONEY?
- This measure takes funds away from state control and places them in special accounts that are exclusively dedicated to schools and local public safety. The only stipulation is that only a minimal amount can used for administrative costs. Outside of that, it’s completely up to the local schools’ governing boards discretion for how funds are to be spent.
Proposition 38 – Our children, Our future: Local Schools and Early Education Investment and Bond Debt Reduction Act.
WHAT WILL IT COST?
- It raises CA State income tax for most Californians. Any one who has annual earnings over $7,316 will pay more in State income taxes using sliding scale from .4% for lowest individual earners to 2.2%. You will pay this increased tax rate on your earnings using a sliding scale for the next twelve years (until 2024).
- The expected revenue from this tax is about $10 billion a year.
HOW CAN SCHOOLS SPEND THIS MONEY?
- For the first 4 years it allocates 60% of revenues to K–12 schools, 30% to repaying state debt, and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K–12 schools, 15% to early childhood programs. Schools will be required to spend the money on a per-pupil basis, subject to local control – This act requires that decisions about how best to use new funds to improve our schools must be made not in Sacramento, but locally, with respect for the voices of parents, teachers, other school staff, and community members. It requires local school boards to work with parents, teachers, other school staff, and community members to decide what is most needed at each particular school. It holds local school boards accountable for how they spend new taxpayer money, as they will be required to explain how expenditures will improve educational outcomes and how they propose to determine whether the expenditures were successful. They will be required to report back on what results were achieved so that parents, teachers, and the community will know whether their money is being used wisely. This act limits what schools can spend from these new funds on administrative costs to no more than 1 percent and ensures schools may not use these new funds to increase salaries and benefits.
WANT TO HEAR MORE? CHECK OUT THESE YOUTUBE VIDEOS
[youtube http://www.youtube.com/watch?v=OlyWW9uPwU4?list=PLCkgBFt_2LYXTqDL9htfR7mtjeMhKoX_d&hl=en_US]