Why We Support: Schools and Local Public Safety Protection Act of 2012

What is the Schools and Local Public Safety Protection Act? 

The “Schools and Local Public Safety Protection Act” is a ballot initiative proposal that asks everyone, especially the richest Californians, to pay their fair share to help fund public education and vital public services. 

What does the Schools and Local Public Safety Protection Act propose to do? 

It will ask high income earners—people who earn in excess of $250,000 yearly—to pay one per cent more in taxes on any income over their first quarter million; people who earn more than $300,000 yearly to pay two per cent more in taxes on any income over that; and people who make a million dollars per year to pay three percent more, so that we can begin to reverse the decline of California.  It will also ask everyone in California to pay a modest ¼ cent more in sales taxes.  The Act would raise an estimated $7 billion per year for schools (K-12 through community college), and public safety at the local level.  Because the first “year” is actually 18 months, it would raise an estimated $9 billion the first year.  The income taxes will last for seven years.  The sales tax will end after four years. 

Why do we need the Schools and Local Public Safety Protection Act? 

Due to the Great Recession, coupled with many years of inadequate tax rates on the rich and corporations, the state of California now suffers an annual budget deficit of around $10 billion to $14 billion dollars.  Public education, public health, public safety, and other services we all deserve and need have been slashed ($20 billion over the last three years), with terrible impact upon the state’s population.  This tax will help restore some of the program funding that has been lost.  In addition, the initiative makes the 2011 county public safety realignment permanent, guaranteeing continued funding for public safety at the local level.  

A progressive tax proposal 

The Schools and Local Public Safety Protection Act asks no one but the wealthy to pay more in income taxes.  This income tax affects no one below $250,000/year.  The top one percent of income earners has doubled its share of total state income over the past twenty years (from 12% to over 20%), while income for the rest of us has stagnated. Meanwhile, the top tier tax rates (state and federal) are lower than they used to be.  20 years ago the highest tax rate in California was 11% of income; today it is 10.3%.  When Congress extended Bush’s federal tax cuts for the rich in 2010, the top one percent in California received a windfall of nine to fourteen billion dollars per year—nearly equal to the entire state budget deficit.  The people who would be affected by this income tax can afford to invest more in their state. 

Is it fair? 

Nearly six of every seven dollars raised by the Schools and Local Public Safety Protection Act will come from the richest Californians.  Numerous public opinion polls show that the electorate understands the growing economic inequality in California and the country.  Most people believe the richest Californians do not pay their fair share of taxes, and should. The Schools and Local Public Safety Protection Act is the best policy to restore education and public services and reduce economic inequality.  While most people do not like sales tax, due to its regressive nature, the small ¼ cent increase proposed by the Schools and Local Public Safety Protection Act is more than counterbalanced by the revenues from high income earners:  the ratio is 85% progressive (high income), 15% regressive (sales). To put things in perspective, if a low income earner who makes $20,000/year spends all her income on sales taxable items, she would pay an extra $50 per year 

due to the ¼ cent increase, while receiving approximately $250 per year in added access to education and services. 

Accountability 

The initiative guarantees that new revenues will go to education through the Proposition 98 funding mechanism (40% of the general fund goes to K – 14 education), and requires that education funds be subject to a public audit when they are allocated, ensuring transparency in state spending. 

Supporters  

Alliance of Californians for Community Empowerment (ACCE) • California Calls • California Federation of 

Teachers • California School Employees Association • California Teachers Association • Governor Jerry Brown • 

Service Employees International Union State Council