Gov. Jerry Brown visited UCLA today to rally support for Proposition 30, which would hike sales and income taxes to fund education.
Flanked by supporters carrying signs reading "Yes on 30," Brown told several hundred people on the Westwood campus that passage of the measure will "send a message to the rest of the country that we as a people can invest together in our schools, our community colleges and this great University of California."
Proposition 30 would increase the sales tax by a quarter-cent on the dollar for four years and raise the income tax on annual earnings over $250,000 for seven years.
The increased revenues would result in an increase to the minimum guarantee for schools and community colleges under terms of Proposition 98, approved by voters in 1988.
Revenue generated by Proposition 30 would be deposited into a newly created state account, the Education Protection Account. Of the funds in the account, 89 percent would be devoted to schools from kindergarten through 12th grade and the other 11 percent to community colleges.
Each school district would receive at least $200 per student in funds from the account and each community college district at least $100 per full- time student.
The measure would also guarantee funding for public safety services realigned from state to local governments.
Proposition 30 would generate an additional $6 billion in state tax revenues from the 2012-2013 through 2016-17 fiscal years, according to an estimate from the state's Legislative Analyst's Office and Director of Finance Ana J. Matosantos. Smaller amounts would be generated in the 2017-18 and 2018- 19 fiscal years.
A rival measure, Proposition 38, would increase personal income tax rates for 12 years for annual earnings over $7,316 using a sliding scale from 0.4 percent for the lowest individual earners to 2.2 percent for individuals earning more than $2.5 million.
During the first four years, 60 percent of revenues would go to schools from kindergarten through 12th grade, 30 percent to repaying state debt and 10 percent to early childhood programs. Thereafter, 85 percent of revenues would go to schools from kindergarten through 12th grade and 15 percent to early childhood programs.
The increase would be roughly $5 billion in the 2012-13 fiscal year, $10 billion in the 2013-2014 fiscal year and tending to increase over time, according to an estimate from the Legislative Analyst's Office and Matosantos.
If both measures are approved by voters, the one getting the most yes votes will prevail.
In campaign literature, opponents of Proposition 30 contend there is no specified formula regarding how the new revenue will be disbursed.
"It gives Sacramento politicians a blank check without requiring budget, pension or education reform," opponents wrote in the official voter information guide.