Proposition 1B – 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 1B. The council took a position to ‘oppose’ Prop 1B.

Special Election: May 19, 2009 Ballot Propositions 1A – 1F

Presentation

Jeremy Madison Harris

Legislative Counsel

Proposition 1B – Education Funding. Payment Plan

Summary

  1. Proposition 1B will modify some of the terms of Proposition 98 (1988) that allows the state to free up money from this ballot initiative created fund for education.

  1. Proposition 1B ensures that schools receive $9.3 billion over time, starting with fiscal year 2011 – 2012.

  1. Payments to schools will come out of the newly created Budget Stabilization Fund as outlined in Proposition 1A.

  1. The funding guarantees in Proposition 1B is contingent upon Proposition 1A also passing.

Background

  1. Proposition 98 (1988) and modified in 1990, requires a minimum percentage of the state budget to be spent on K – 12 education and community colleges (also known as K – 14 education).

  1. Creates $9.3 billion “Supplemental Education” obligation that requires the state to make a total of $9.3 billion in supplemental payments to K-14 education.
    1. The payments would be made in annual installments, beginning in 2011 – 2012.
    2. They would become part of the base budget when calculating the following year’s Proposition 98 minimum guarantee.

  1. The funding mechanism for making the supplemental payments established in Proposition 1B is provided in Proposition 1A.

  1. Proposition 1A establishes a Supplemental Education Payment Account and requires the state to annually deposit 1.5 percent of General Fund revenues into the account, beginning in 2011 – 2012.

  1. These funds would be put into the account annually until the entire $9.3 billion in supplemental payments had been provided.

  1. If Proposition 1A is not approved by the voters, the provisions of this measure would not go into effect, and there would be no obligation to make $9.3 billion in supplemental payments.

Arguments in Support

  1. The education fund will receive the extra $9.3 billion if both Proposition 1A and 1B pass ensuring a repayment to the fund in order to allow the State of California to balance the budget now.

Arguments in Opposition

  1. Proposition 98 (1998) was passed by the voters in order to prevent the decreasing of the education fund and to keep California’s education system operating at its best capabilities.

Supporting

California Chamber of Commerce

California Fire Chiefs Association

California Police Chiefs Association

California Teachers Association

Central California Hispanic Chamber of Commerce

Former Assembly Speaker Pro Tempore Fred Keeley

Former Secretary of State Bill Jones

National Tax Limitation Committee


Opposing

Southwest California Legislative Council


Last modified: March 17, 2009 at 10:57 am | Originally published: March 17, 2009 at 10:57 am
Printed: September 29, 2020