In Case You Missed It: California Budget & Policy Center Issues Report Examining Significant Loss of Funding for Education and Cuts to Vital Services without Proposition 55

SACRAMENTO – The California Budget & Policy Center today released an issue brief, “Proposition 55: Should California Maintain Higher Taxes on the Wealthiest to Fund Education, Health Care, and Other Services?,” examining Proposition 55 on the November ballot. The new report, the second in a two part series looking at Proposition 30 and Proposition 55, makes a strong case for the need for Proposition 55.

The issue brief details what Proposition 55 will do, how taxpayers are impacted, and what the impacts would be to public education, public services and the overall state budget if Proposition 55 does not pass in November. Specifically, the report found that the rejection of Proposition 55 would:

“Reduce the Prop. 98 funding guarantee for schools and community colleges… Specifically, the Prop. 98 funding level could fall by roughly $2 billion in 2018-19 and by roughly $4 billion in 2019-20 if voters reject Prop. 55.”

“This important report highlights exactly why it is so critical that voters support Prop. 55 this November – to protect the future of education and vital services in our state,” said Jennifer Wonnacott, campaign spokesperson. “As the report shows, without Prop. 55 we know our schools and students will be forced back into the days of cuts and tough choices, all while the wealthiest get a big tax cut.”

Among the findings, the brief points out that “In summary, allowing Prop. 30’s income tax rate increases on very-high-income Californians to expire would eliminate billions of dollars from California’s revenue system. This would leave the state with less funding to invest in schools, community colleges, and other vital public services and systems as well as reduce the state’s ability to pay down debts and save for a rainy day.”

The notable report concludes that, “With Prop. 55, voters have a choice to maintain a level of funding that has allowed California to begin reinvesting in its schools and other public services after years of disinvestment during and following the Great Recession…Moreover, California’s state and local tax system would become even more regressive because the wealthiest households – primarily the top 1 percent – would receive a substantial tax cut and thereby contribute less toward strengthening services that can promote economic security and opportunity for all Californians.”

A link to the full report can be found here.