Official title : Tax to Fund Education and Early Childhood Programs. Initiative Statute.
Summary :
- Increases personal income tax rates on annual earnings over $7,316 using sliding scale from .4% for lowest individual earners to 2.2% for individuals earning over $2.5 million, for 12 years.
- During first four years, allocates 60% of revenues to K–12 schools, 30% to repaying state debt (focusing on education-related debt), and 10% to early childhood programs. Thereafter, allocates 85% of revenues to K–12 schools, 15% to early childhood programs.
- Provides K–12 funds on school-specific, per-pupil basis, subject to local control, audits, and public input.
- Prohibits state from directing new funds, can only be reallocated with ballot measure.
Notes:
- Details for income tax increases:
- 60% of taxpayers would have an increased tax bill
- Moneys for schools from this proposition are over and above current budget requirements for schools.
- Distribution of money to specific schools (not to the districts):
- 70% based on per-student grants based on each student's grades, used for instruction, school support staff (such as counselors and librarians), and parent engagement.
- 18% based on low income student population (based on how many qualify for free meals), used for instruction, school support staff (such as counselors and librarians), and parent engagement.
- 12% based on student population, used for training school staff and purchasing up-to-date technology and teaching materials.
- When the school governing board decides how to spend the funds, it must explain—publicly and online—how CETF school expenditures will improve educational outcomes and how those improved outcomes will be measured.
- All school districts must create and publish an online budget for each of their schools. The budget must show funding and expenditures at each school from all funding sources, broken down by various spending categories.
- up to 1 percent of a school district’s allocation to be spent on budgeting, reporting, and audit requirements. The measure prohibits CETF school funds from being used to provide salary or benefit increases unless the increases are provided to other like employees that are funded with non-CETF dollars.
- In the initial years, it is estimated that schools would receive approximately $1000 per student.
- Early childhood program funds are specifically allocated in 7 areas.
- State would be required to spend at least the same level of funding as in 2012-2013 in the future (roughly 1%) for ECE.
- ECE facility rating system introduced - higher rated facilities would get more money.
- Toddler program established.
- Initial additional revenue would be about $10B, $3B which could be used for General Fund.
- This proposition is funded by Molly Munger ($31M as of 10/10/12)