According to independent research conducted by California Budget and Policy Center, schools have shown significant benefits because of the passage of Proposition 30 in 2012. According to the study, revenues increased school funding and allowed for reinvestment in other public services after years of cuts. Prop. 30’s tax rate increases are scheduled to expire over the next several years.
Although California is in a much stronger fiscal situation now than it was in 2012, the phasing out of Prop. 30’s revenue boost would mean fewer resources available in the coming years to fund California’s various priorities.
Prop. 30 successfully raised the state sales tax rate by one-quarter cent through 2016 and added three new personal income tax (PIT) rates for very-high-income Californians through 2018:
- A 10.3 percent tax bracket for single filers’ taxable income between $250,001 and $300,000 and joint filers’ taxable income between $500,001 and $600,000;
- An 11.3 percent tax bracket for single filers’ taxable income between $300,001 and $500,000 and joint filers’ taxable income between $600,001 and $1 million; and
- A 12.3 percent tax bracket for single filers’ taxable income above $500,000 and joint filers’ taxable income above $1 million.
Proposition 30 helped the state to reinvest in preschool, K-12 schools, and community colleges in the aftermath of the Great Recession. A growing economy and Prop. 30 worked together to boost Prop. 98 K-14 spending from $47.2 billion in 2011-12 to $71.9 billion in 2016-17. Since voters passed Prop. 30, Prop. 98 K-12 spending per student has increased by more than 14 percent — from $9,168 per student in 2012-13 to $10,493 in 2016-17, after adjusting for inflation (Figure 5). This increased support for California’s students followed a significant reduction in funding during and after the economic decline. Furthermore, the average number of annual instructional days in California schools has increased and the number of K-12 students per teacher in California has decreased since voters approved Prop. 30.
Read the California Budget and Policy Center study here.