Prop 1D – SCLC Summary

Published: March 17, 2009

You may be aware that the Southwest Riverside County Association of Realtors has been a supporting Partner of the Southwest California Legislative Council since its inception. The SCLC, a coalition of Southwest California Chambers of Commerce, Legislative Representatives and business representatives – advocate on behalf of Southwest County Businesses. Each of you, as working Realtors, is the owner of your own business. The SCLC has proven to be an effective lobbyist for local concerns and we have a great dialogue with our local Legislators.
Today the SCLC posted recommendations on the Proposition votes upcoming in May. CAR has not yet taken positions on the ballot propositions and, since they are not primarily real estate related, they may not.

This is the summary of Prop 1D. The committee took a position to ‘oppose’ Prop 1D.

Proposition 1D – Children’s Services Funding


  1. Proposition 1D temporarily redirects a portion of excess funds from a voter-approved tobacco tax, Proposition 10 (1998).

  1. Proposition 1D would achieve state savings of up to $608 million in 2009 – 2010 and $268 million annually from 2010 – 2011 through 2013 – 2014.


  1. Proposition 10, otherwise known as the California Children and Families Act, was enacted by the voters of California in the November 1998 election.

  1. The Act created the California Children and Families Program (now commonly known as the First 5 program) to expand early development programs for children up to age five.

  1. The First 5 program is funded by revenues from a state excise tax on cigarettes (50 cents per pack) and other tobacco products.

  1. Proposition 1D amends the California Children and Families Act to temporarily allow Proposition 10 revenues to be used to fund other state health and human services programs for children up to age five.

  1. In effect, these Proposition 10 (1998) revenues would be used to offset existing state General Fund costs, thereby achieving savings to help address the state’s current budgetary problem.

  1. Proposition 1D achieves state General Fund savings in two ways:
    1. By redirecting up to $340 million of available unspent reserves held by the state commission as of July 1, 2009.
    2. By temporarily redirecting a portion of future Proposition 10 revenues. Specifically, from 2009 – 2010 through 2013 – 2014, Proposition 1C would divert annually $268 million in Proposition 10 funds. Of the redirected funds, $54 million would come from state commission funds and $214 million from local commission funds. During these five years, the redirected funds would be subject to appropriation by the Legislature.

Arguments in Support

  1. These redirected funds will be used to pay for children’s health and social services and to prevent deep cuts to kids’ healthcare and other programs. Only a portion of the tobacco tax funds will be redirected, so existing programs currently funded by this revenue are protected.

Arguments in Opposition

  1. The reduction in state and local First 5 commission funding could result in other costs to the state and local agencies (primarily counties and schools). This would occur to the extent that some children and families rely on other health and human services programs instead of those now provided under First 5.


California Chamber of Commerce

California Fire Chiefs Association

California Police Chiefs Association

Central California Hispanic Chamber of Commerce

Former Assembly Speaker Pro Tempore Fred Keeley

Former Secretary of State Bill Jones

National Tax Limitation Committee

The California Taxpayers Association


Southwest California Legislative Council

Last modified: March 17, 2009 at 11:16 am | Originally published: March 17, 2009 at 11:16 am
Printed: September 30, 2020