SACRAMENTO — Details of propositions 30 and 38 on the Nov. 6 ballot:
Proposition 30 (Gov. Jerry Brown’s initiative):
Who pays: Individuals with taxable income above $250,000 will pay higher income tax rates, on a sliding scale, for seven years. All Californians, regardless of income level, will pay a quarter-cent higher sales tax rate for four years.
What it does: Increases personal income tax rate by 1 percent for single filers on taxable income between $250,001 and $300,000 and joint filers’ taxable income between $500,001 and $600,000; by 2 percent on taxable income between $300,001 and $500,000 for single filers and between $600,001 and $1 million for joint filers; and by 3 percent for single filers with taxable income over $500,000 and joint filers with taxable income above $1 million. The new taxes apply only to the portion of income above the specified threshold.
Increases the state sales tax rate by a quarter-cent for four years, starting Jan. 1, bringing the statewide tax rate to 7.5 percent. Local sales taxes push the rate higher in many cities and counties.
Guarantees funding for public safety services realigned from state to local governments, including the governor’s shift of lower-level offenders from state prison to county jails.
Where the money goes: Raises about $6 billion a year for the first five years, with smaller amounts after that, to help balance the state budget and provide funding for K-12 education and community colleges. It also includes a constitutional funding guarantee to pay for public safety services that have been transferred from the state to local governments. Lawmakers and the governor could determine how much of the money is spent within the state budget, which also requires a minimum level of school funding based on state revenue.
Prevents about $6 billion in cuts to public schools and universities the governor says would take effect if the initiative fails.
Support: Democrats, California Teachers Association, California Association of Hospitals and Health Systems, California School Employees Association, Bay Area Council, dozens of elected school boards and school districts.
Oppose: California Republican Party, Howard Jarvis Taxpayers Association, Small Business Action Committee.
Contributions: Supporters have raised about $32 million, with the largest contributions coming from unions, including more than $6 million from the California Teachers Association. Opponents have raised more than $20 million in a political action committee to fight this initiative and support another that would restrict labor unions. Most of the opposition money has come from Charles Munger Jr., a physicist at Stanford University.
Proposition 38 (Molly Munger initiative):
Who pays: Anyone with taxable income (after deductions) above $7,317 for individuals or above $14,633 for joint filers will pay a higher income tax rate, on a sliding scale, for 12 years.
What it does: Increases the personal income tax rate by 0.4 percent for single filers with taxable income above $7,317 and joint filers with taxable income above $14,633; increases the rate for others on a sliding scale, up to the maximum additional tax rate of 2.2 percent for individual taxable incomes above $2.5 million or joint filers with taxable income above $5 million.
Where the money goes: The proposal is expected to generate about $10 billion in the next fiscal year, and increase over time. For the first four years, about $6 billion would go directly to schools on a per-student basis, with more going to schools with low-income populations. Another $1 billion would go toward child care and preschool, and $3 billion would go to pay off state debt, freeing up some money in the state budget. After that, about 85 percent would go to schools and 15 percent to early childhood programs. The money would bypass the Legislature and state Department of Education. School districts would be required to provide detailed reports on how the money is spent.
Support: California State PTA, California School Boards Association, dozens of elected school boards and school districts.
Oppose: California Democratic Party, California Republican Party, California Chamber of Commerce.
Contributions: Civil rights attorney Molly Munger has provided most of the funding, more than $31 million to date. Opponents have raised only about $25,000, primarily from the chamber.