- Increases personal income tax on annual earnings over $250,000 for seven years.
- Increases sales and use tax by ¼ cent for four years.
- Allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community colleges.
- Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are to be spent.
- Guarantees funding for public safety services realigned from state to local governments.
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government:
- Additional state tax revenues of about $6 billion annually from 201213 through 201617. Smaller amounts of additional revenue would be available in 201112, 201718, and 201819.
- These additional revenues would be available to fund programs in the state budget. Spending reductions of about $6 billion in 201213, mainly to education programs, would not take effect.
Increases taxes on earnings over $250,000 for seven years and sales taxes by 1/4 cent for four years, to fund schools. Guarantees public safety realignment funding. Fiscal Impact: Increased state tax revenues through 201819, averaging about $6 billion annually over the next few years. Revenues available for funding state budget. In 201213, planned spending reductions, primarily to education programs, would not occur.