Prop30_FAQs_download - California Labor Federation

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Yes on Prop 30: Frequently Asked Questions
How does Prop 30 work?
To protect schools and local public safety, Prop 30 temporarily increases personal income taxes on the highest
earners – about 1% of CA filers – and establishes the sales tax at a lower rate than it was last year.
Families earning below $500,000 will pay no additional income taxes. The increase affects only the highest
earners. Prop 30 asks those who earn the most to temporarily pay a little more on income exceeding $500,000
for joint filers, or $250,000 for individual filers. These taxes will be in effect for seven years. According to a
recent LA Times poll, the majority of Californians favor this proposal.
To protect schools and local public safety, Prop 30 also temporarily raises sales taxes one-quarter of one
percent. Even with this slight increase, sales taxes will still be lower than they were last year. These taxes
would expire in four years.
The revenue from Prop 30 will go directly to schools and public safety services on the local level. The funds will
enable our state to pay off its debts, and if economic growth is consistent with historical patterns, this growth
will enable California to keep pace with its commitment to schools and public safety, even after the temporary
taxes expire.
Who are the backers of Prop 30?
Prop 30 is endorsed by Governor Jerry Brown and Speaker of the Assembly John A. Pérez, along with a broad
coalition of labor, education, public safety, community, business and health care organizations. See the full list
of endorsements at www.YesOnProp30.com.
Won’t most of this revenue get lost in the bureaucracy?
NO, Prop 30 is intentionally designed to protect taxpayers. New money raised by this initiative will be put into
an independently-audited special fund that the legislature cannot touch. Prop 30 revenue also cannot be used
for state bureaucracy or administrative costs, including the salaries and benefits of administrators.
How does Prop 30 prevent deep school cuts?
Schools are often the first victims to lose funding when the economy is suffering. In the last four years alone,
our schools have been hit with $20 billion in cuts, more than 30,000 educators have been laid off, and our
class sizes are among the largest in the country.
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But the story doesn’t end there. If Prop 30 does not pass, our schools and colleges face an additional $6
billion in devastating cuts this year. There will be larger class sizes, tuition hikes, more teacher lay-offs and a
shorter school year, among other terrible cuts. Schools and community colleges will lose over half a billion in
funding and city police departments would lose 20 million in grants . Students attending the University of
California would see tuition increase by 20%.
Prop 30 will provide billions in new funding for our schools starting this year. There will be smaller class sizes,
updated textbooks, and more teachers around to help students.
What is public safety?
Public safety is anything needed to ensure a safe environment, from preventing crime by putting more cops on
the streets, to protecting children through child welfare services. Public safety programs also include
supportive services such as substance use disorder, mental health services, foster care and many more public
services.
Why is this initiative good for public safety?
Prop 30 will guarantee public safety funding through writing it into the state constitution. It will also move
public safety programs closer to the people by localizing the programs so that local elected officials can decide
how best to meet their community’s needs. Prop 30 will also help California save billions in future prison costs.
How does Prop 30 help balance the budget?
Prop 30 kills two birds with one stone: while investing in schools and public safety through taxes, it frees up
other state revenue to go towards the state budget deficit.
Prop 30 will enable California to pay down the debt built up by years of gimmicks and borrowing while
preventing cuts to schools, public safety and critical services for seniors, families and small businesses. Since
the new tax revenue will be distributed through this local fund, state funding is then freed up to balance the
budget and prevents more cuts. As The League of Women Voters of California’s President, Jennifer Waggoner,
explained:
The Governor’s initiative is the only measure on the November ballot that works within the framework of the
state finance system and, therefore, will actually help eliminate the structural budget deficit. Important
government services like health care depend on a balanced, adequate budget.
Prop 30 is a critical step in addressing the continual budget shortfalls that plague California while also
prioritizing our schools and public safety.
Learn more at www.YesOnProp30.com.
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