California Proposition 98 (1998)
From Ballotpedia
California Proposition 98 was on the 1998 ballot in California, where it was approved.
It requires a minimum percentage of the state budget to be spent on K-14 education. Prop 98 guarantees an annual increase in education in the California budget.[1] Prop 98, also called the "Classroom Instructional Improvement and Accountability Act," amended the California Constitution to mandate a minimum level of education spending based on three tests. Test one, used only for 1988 to 1989, requires spending on education to make up 39% of the state budget. Test 2, used in years of strong economic growth, requires spending on education to equal the previous years spending plus per capita growth and student enrollment adjustment. Test 3, used in years of weak economic growth guarantees prior years spending plus adjustment for enrollment growth, increases for any changes in per capital general fund revenues, and an increase by 0.5 percent in state general funds.[2]
This is accomplished by shifting specified amounts of property tax revenues from cities, counties and special districts to "educational revenue augmentation funds" (ERAF) to support schools statewide. [3] Prop 98 can only be suspended with the consent of a 2/3 supermajority vote of the California Legislature.
The initiative was a result of 1978's Proposition 13, which limited assessed property taxes to one percent of a home's value in California and thus limited the amount of local funds that could be spent on school districts.[4]
Proposition 98 has been attacked by some groups because it mandates "auto-pilot spending" and reduces the legislatures' budgetary flexibility.[5],[6]
Changes possible in 2009
The California state budget problems in 2009 have led to the possibility that Proposition 98 from 1998, Proposition 10 from 1998 and Proposition 63 from 2004 will go back before the voters on a special 2009 ballot so that dedicated funds approved by the voters when these propositions were passed can be used for the state's general fund.[7]
California Proposition 13 (May 2009) is the ballot proposition on the May 19, 2009 ballot that effects Prop. 98.
External links
References
- ↑ Proposition 98 Primer
- ↑ San Diego Union-Tribune, "A warped debate; Focus on school reform as well as funding", March 26, 2008
- ↑ Fact Sheet: The ERAF Property Tax Shift
- ↑ "Senator Peace: Cure Prop. 13 'Sickness' by Reassessing Commercial Property, Boosting the Homeowners' Exemption and Cutting the Sales Tax". Cal Tax Digest. http://www.caltax.org/MEMBER/digest/feb2000/feb00-4.htm.
- ↑ California Family Council
- ↑ PE.com | Opinion | Agenda 2006
- ↑ Inside Bay Area, "Editorial: Budget deal a step forward, but voters must pass five ballot measures", February 15, 2009
Acknowledgement
