This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article II of the California Constitution.
This initiative measure amends and adds sections to the Education Code, the Penal Code, and the Revenue and Taxation Code; therefore, existing provisions proposed to be deleted are printed in
strikeout type and new provisions proposed to be added are printed in to indicate that they are new.
OUR CHILDREN, OUR FUTURE: LOCAL SCHOOLS AND EARLY EDUCATION INVESTMENT AND BOND DEBT REDUCTION ACT
SECTION 1. Title.
This measure shall be known and may be cited as "Our Children, Our Future: Local Schools and Early Education Investment and Bond Debt Reduction Act."
SEC. 2. Findings and Declaration of Purpose.
(a) California is shortchanging the future of our children and our state. Today, our state ranks 46th nationally in what we invest to educate each student. California also ranks dead last, 50th out of 50 states, with the largest class sizes in the nation.
(b) Recent budget cuts are putting our schools even farther behind. Over the last three years, more than $20 billion has been cut from California schools; essential programs and services that all children need to be successful have been eliminated or cut; and over 40,000 educators have been laid off.
(c) We are also failing with our early childhood development programs, which many studies confirm are one of the best educational investments we can make. Our underfunded public preschool programs serve only 40 percent of eligible three- and four-year olds. Only 5 percent of very low income infants and toddlers, who need the support most, have access to early childhood programs.
(d) We can and must do better. Children are our future. Investing in our schools and early childhood programs to prepare children to succeed is the best thing we can do for our children and the future of our economy and our state. Without a quality education, our children will not be able to compete in a global economy. Without a skilled workforce, our state will not be able to compete for jobs. We owe it to our children and to ourselves to improve our children's education.
(e) It is time to make a real difference: no more half-measures but real, transformative investment in the schools on which the future of our state and our families depends. This act will enable schools to provide a well-rounded education that supports college and career readiness for every student, including a high-quality curriculum of the arts, music, physical education, science, technology, engineering, math, and vocational and technical education courses; smaller class sizes; school libraries, school nurses, and counselors.
(f) This act requires that decisions about how best to use new funds to improve our schools must be made not in Sacramento, but locally, with respect for the voices of parents, teachers, other school staff, and community members. It requires local school boards to work with parents, teachers, other school staff, and community members to decide what is most needed at each particular school.
(g) In order for all our schools to be transformed, so that all our children benefit, this act makes sure that new funding gets to every local school--including charter schools, county schools, and schools for children with special needs--and is allocated fairly and transparently. New funding will be allocated to every local school on a per-pupil basis, with funds required to be spent at local schools, not district headquarters.
(h) This measure holds local school boards accountable for how they spend new taxpayer money. They are required to explain how expenditures will improve educational outcomes and how they propose to determine whether the expenditures were successful. They will be required to report back on what results were achieved so that parents, teachers, and the community will know whether their money is being used wisely.
(i) This act limits what schools can spend from these new funds on administrative costs to no more than 1 percent and ensures schools may not use these new funds to increase salaries and benefits.
(j) This act will help prepare disadvantaged young children to succeed in school and in life by raising standards for early childhood education programs and by expanding the number of children who can attend.
(k) As Californians, we all should share in the cost of improving our schools and early education programs because we all share in the benefits that better schools and a well- educated workforce will bring to our economy and the quality of life in our state.
(l) Our schools and early childhood programs have suffered from years of being shortchanged. Rather than allow further cutbacks, we need to increase funding to provide every child an opportunity to succeed. If we all join together to send more resources to all our children and classrooms, and we all participate in ensuring good decisions are made about how to use these funds effectively, we can once again make California schools great and grow our economy.
(m) This measure raises the money needed to invest in our children through a sliding scale income tax increase which varies with taxpayers' ability to pay, with the highest income earners contributing the most.
(n) During the first four years of this initiative, as described below, 60 percent of the funds will go to K-12 schools, 10 percent will go to early education and 30 percent will go to reduce state debt and prevent further harmful budget cuts that could undermine these new educational investments. For the remaining eight years of the initiative, from 2017 on, 100 percent of the funds will go to increase K-12 and early education funding. To avoid wide fluctuations in revenue and ensure continued investment in needed school and early education facilities, any revenues that exceed the rate of growth of California per capita personal income will be used to help service and pay down existing state education bond debt, ensuring California's ability to issue new bonds, as needed, to build and modernize school and early education facilities.
(o) All the new money raised by this initiative will be put in a separate trust fund that can only be spent for local schools, for early childhood care and education, and to help service and retire school bond debt, according to the provisions of this act. The Legislature and the Governor will not be allowed to use this money for anything else, nor will they be able to change the per-pupil allocation system that ensures money flows fairly to every local school.
(p) This initiative contains tough, effective accountability provisions that require oversight, audits, and public disclosure. For the first time, we will have transparent schoolsite budgets and know exactly how our money is being spent in every school. Anyone who knowingly violates the allocation or distribution provisions of this act will be guilty of a felony.
(q) The initiative also builds in an extra layer of accountability by ending the tax after 12 years unless it is re-approved by the voters. That gives our schools enough time to show that the new funds have actually improved educational outcomes, while protecting taxpayers by eliminating the tax if voters decide they don't want to keep it.
(r) This initiative will be taking effect as California grapples with one of the worst economic downturns in its history. If the initiative were fully implemented immediately and nothing were done to help close our state's budget deficit, continuing extreme budget cuts could deprive our schools and children of the support they need to fully benefit from the educational investments provided by this act. Therefore, this initiative will be implemented in two phases. For the first four fiscal years, until the end of 2016-17, 30 percent of the funds--about $3 billion--will go to service and retire state school bond and other bond debt, freeing up a like amount to meet other budget needs critical to the overall well-being of children and the families and communities in which they live. Beginning in the 2017-18 fiscal year, the initiative will be fully implemented, and 100 percent of the funds will be new money, which cannot be used in place of Proposition 98 or any other current funding for K-12 education or early childhood programs. The result of this phased approach will be that, beginning immediately, 70 percent of the funds will be used to increase funding for schools and early education programs as required by this act, and after four years, all of the funds--100 percent--must be spent for that purpose to fulfill our obligation to our children and our future.
SEC. 3. Purpose and Intent.
The people of the State of California declare that this act is intended to do the following:
(a) To strengthen and support California's public schools, including charter schools, by increasing per-pupil funding to improve academic performance, graduation rates, and vocational, college, career, and life readiness.
(b) To strengthen and support the education of California's children by restoring funding, improving quality, and expanding access to early care and education programs for disadvantaged and at-risk children.
(c) To create more accountability, transparency, and community involvement in how public education funds are spent.
(d) To ensure that the revenues generated by this act will be used for K-12 educational activities at the schoolsite; to expand and strengthen early care and education for disadvantaged children; and, to the limited extent and under the limited circumstances specifically permitted by this act, to strengthen the overall fiscal position of the state and encourage adequate future investment in educational facilities by reducing the burden of current state education bond debt.
(e) To ensure that the revenues generated by this act cannot be used to supplant existing state funding for K-12 education or early care and education.
(f) To ensure that the Legislature cannot borrow or divert the revenues generated by this act for any other purpose, nor dictate to local school communities how those funds shall be spent.
SEC. 4. Part 9.7 (commencing with Section 14800) is added to Division 1 of Title 1 of the Education Code, to read:
SEC. 5. Section 46305 of the Education Code is amended to read:
46305. Each elementary, high school, and unified school district shall report to the Superintendent of Public Instruction on forms prepared by the Department of Education in addition to all other attendance data as required, the active enrollment as of the third Wednesday of each school month and the actual attendance on the third Wednesday of each school month; except that if such day is a school holiday, the active enrollment and actual attendance of the first immediate preceding schoolday shall be reported. "Active enrollment" on a day a count is taken means the pupils in enrollment in the regular schooldays of the district on the first day of the school year on which the schools were in session, plus all later enrollees, minus all
withdrawals since that day
SEC. 6. Chapter 1.8 (commencing with Section 8160) is added to Part 6 of Division 1 of Title 1 of the Education Code, to read:
SEC. 7. Section 425 of the Penal Code is amended to read:
425. Every officer charged with the receipt, safe keeping, or disbursement of public moneys, who neglects or fails to keep and pay over the same in the manner prescribed by law, is guilty of felony.
SEC. 8. Section 17041.1 is added to the Revenue and Taxation Code, to read:
|If the taxable income is:||The additional tax on taxable income is:|
|Not over $7,316||0|
|Over $7,316 but not over $17,346||0.4% of the excess over $7,316|
|Over $17,346 but not over $27,377||$40 plus 0.7% of the excess over $17,346|
|Over $27,377 but not over $38,004||$110 plus 1.1% of the excess over $27,377|
|Over $38,004 but not over $48,029||$227 plus 1.4% of the excess over $38,004|
|Over $48,029 but not over $100,000||$368 plus 1.6% of the excess over $48,029|
|Over $100,000 but not over $250,000||$1,199 plus 1.8% of the excess over $100,000|
|Over $250,000 but not over $500,000||$3,899 plus 1.9% of the excess over $250,000|
|Over $500,000 but not over $1,000,000||$8,649 plus 2.0% of the excess over $500,000|
|Over $1,000,000 but not over $2,500,000||$18,649 plus 2.1% of the excess over $1,000,000|
|Over $2,500,000||$50,149 plus 2.2% of the excess over $2,500,000|
|If the taxable income is:||The additional tax on taxable income is:|
|Not over $14,642||0%|
|Over $14,642 but not over $34,692||0.4% of the excess over $14,642|
|Over $34,692 but not over $44,721||$80 plus 0.7% of the excess over $34,692|
|Over $44,721 but not over $55,348||$150 plus 1.1% of the excess over $44,721|
|Over $55,348 but not over $65,376||$267 plus 1.4% of the excess over $55,348|
|Over $65,376 but not over $136,118||$408 plus 1.6% of the excess over $65,376|
|Over $136,118 but not over $340,294||$1,540 plus 1.8% of the excess over $136,118|
|Over $340,294 but not over $680,589||$5,215 plus 1.9% of the excess over $340,294|
|Over $680,589 but not over $1,361,178||$11,680 plus 2.0% of the excess over $680,589|
|Over $1,361,178 but not over $3,402,944||$25,292 plus 2.1% of the excess over $1,361,178|
|Over $3,402,944||$68,169 plus 2.2% of the excess over $3,402,944|
SEC. 9. Section 19602 of the Revenue and Taxation Code is amended to read:
19602. Except for amounts collected or accrued under Sections 17935, 17941, 17948, 19532, and 19561,
and revenues deposited pursuant to Section 19602.5, all moneys and remittances received by the Franchise Tax Board as amounts imposed under Part 10 (commencing with Section 17001), and related penalties, additions to tax, and interest imposed under this part, shall be deposited, after clearance of remittances, in the State Treasury and credited to the Personal Income Tax Fund.
SEC. 10. Severability.
The provisions of this act are meant to be severable. If any of the provisions of this measure or the applicability of any provision of this measure to any person or circumstances shall be found to be unconstitutional or otherwise invalid, that finding shall not affect the remaining provisions of the act or the application of this measure to other persons or circumstances.
SEC. 11. Conflicting Initiatives.
(a) In the event that this measure and another measure or measures amending the California personal income tax rate for any taxpayer or group of taxpayers, or amending the rate of tax imposed on retailers for the privilege of selling tangible personal property at retail, or amending the rate of excise tax imposed on the storage, use or other consumption in this state of tangible personal property purchased from any retailer for storage, use or other consumption in this state, shall appear on the same statewide election ballot, the rate-amending provisions of the other measure or measures and all provisions of that measure that are funded by its rate-amending provisions, shall be deemed to be in conflict with this measure. In the event that this measure receives a greater number of affirmative votes than any such other measure, the rate-amending provisions of the other measure, and all provisions of that measure that are funded by its rate-amending provisions, shall be null and void, and the provisions of this measure shall prevail instead.
(b) Conflicts between other provisions not subject to subdivision (a) shall be resolved pursuant to subdivision (b) of Section 10 of Article II of the California Constitution.
SEC. 12. Amendments.
This act may not be amended except by majority vote of the people in a statewide general election.
SEC. 13. Effective Dates and Expiration.
(a) This measure shall be effective the day after its enactment. Operative dates for the various provisions of this measure shall be those set forth in the act.
(b) The tax imposed by subdivisions (a) and (b) of Section 17041.1 of the Revenue and Taxation Code added pursuant to this act shall cease to be operative and shall expire on December 31, 2024, unless the voters, by majority vote, approve the extension of the act at a statewide election held on or before the first Tuesday after the first Monday in November, 2024.