Politichaos

Resolving the Ruckus

Proposition 55

vote.jpg

Tax Extension to Fund Education and Healthcare.

"California Children's Education snd Health Care Protection Act of 2016"

initiative constitutional amendment

*PASSED*

Official Summary

Extends 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.

Fiscal Impact: Increased state revenues—$4 billion to $9 billion annually from 2019–2030—depending on economy and stock market. Increased funding for schools, community colleges, health care for low–income people, budget reserves, and debt payments.

Notes

  • extends Prop 30 tax increase on taxable income for singles over $263k, joint over $526k, HOH over $340k:
    • extra 1% for $263k-$316k(s), $526k-$632k(j)
    • extra 2% for $316k-$526k(s), $632k-$1,053k(j)
    • extra 3% for over $526k(s), $1,053k(j)
  • original hike enacted in 2012, set to expire 2018, this extends it through 2030
  • affects approx 1.5% of taxpayers
  • Allocates revenues: 89% K-12 schools, 11% California Community Colleges
  • funding for health care up to $2 Billion, depending on whether general fund revenues exceed education spending plus cost of government programs in place on Jan 1, 2016. If so, 50% of the excess (up to $2 B) would go to Medi-Cal. The rest would go to budget reserves, debt payment and programs enacted since Jan 1, 2016.
  • Prop 30 sales tax hike of .25% will expire at the end of 2016