Proposition 38

Proposition 38 is the Tax to Fund Education and Early Childhood Programs and an effort to provide revenue support to California school districts.

• Proposition 38 would raise the income tax rate on most Californians.
• Revenues from Proposition 38, if passed, would go into a special fund called the California Education Trust Fund (CETF). From there, 60% of the funding would go to schools, 10% to pay for Early Care and Education programs, and 30% to pay down state debts.
• Public schools could receive as much as $10 billion in the first year. The bulk of the money (70%) would be distributed to schools on a per-student basis, with more money for students in higher-grade levels. Additional money (18%) would be allotted to schools based on the number of low-income students enrolled. The final portion (12%), also distributed on a per-student basis, would be dedicated solely to technology – allowing for the purchase of new equipment and teaching materials and also for teacher training.
• The money would be tied to a series of restrictions and mandates, including that school districts seek public input before deciding on how to spend the money.

If Proposition 38 passes, it will help to stabilize the trend of deficit spending for the school district.

• Would provide millions of dollars in ongoing revenue to San Jose Unified’s general operating budget.
• Significantly helps reduce dipping into San Jose Unified’s one-time reserves.

 
If Proposition 38 fails, the school district will be forced to make millions of dollars in ongoing cuts to the budget starting in the 2013-14 school year.

• Prior reductions leave limited options remaining, which include reducing the school year for students (furlough days), salary rollbacks, and other cuts to support services for students.
• Maintains the problem of deficit spending in future years that must be addressed through a reduction in budgeted expenditures.
 

The threshold for a state proposition to pass is to have more than 50% of those voting on the proposition saying yes to the measure.