Posts Tagged ‘prop 30’

NO on Prop 30 – An Expensive Bandaid to a Bigger Problem

November 2, 2012

I haven’t posted in a while, but I’ve decided to write a series as a Voter Guide for this year’s election. Mainly this is a way for me to formulate my thoughts on matters. Ballotpedia is a great resource.

The first ballot measure in the 2012 Election in California is Proposition 30. It is a proposed amendment to the California Constitution.

Prop 30 is titled “Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment” and the summary reads:

Increases personal income tax on annual earnings over $250,000 for seven years. Increases sales and use tax by ┬╝ cent for four years. Allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community colleges. Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are to be spent. Guarantees funding for public safety services realigned from state to local governments

Governor Jerry Brown says these new taxes will raise an additional $9 billion while other estimates are around $6 billion annually.

Many people in California are against Prop 30 only because it raises taxes. It could leave to wealthy individuals establishing residences in other states to avoid paying higher income taxes and by raising sales taxes, it actually disproportionately hurts lower income families and individuals. But I think that there are bigger issues that need to be addressed.

According to the current budget, California’s state revenue for this year is estimated at $132 billion. California’s state expenditures are estimated at $142 billion. Governor Brown’s revised budget with all the cuts still comes it at $138 billion.

The reason for this proposition is because our state is so dysfunctional that we can’t cut 4.3% of our state budget. You would think that you could find 4.3% somewhere. If you or your family is spending more than it takes in, you have to make sacrifices. You would probably be able to reduce spending by 4.3% fairly easily.

However, rather than trying to make meaningful cuts that could get our state going again, Governor Brown is proposing a couple of new taxes to increase revenues just enough to kick the can down the road a little bit further.

Prop 30 will not solve any of the current problems with California’s finances. It will only allow our politicians in Sacramento to put off any real changes for a few years before they have to come back and ask to raise the sales tax by another 0.25%.

The proponents of Prop 30 say this is saving our schools and it’s worth paying a little more to secure their futures. Having schoolchildren play the victim is a pretty easy card to play. Steven Spielberg even donated $30,000 to the pro-Prop 30 side. If Spielberg cared so much, why didn’t he donate that money directly to schools? Why donate it to a political cause?

I’m all for funding our schools, but I don’t think sending more tax dollars to Sacramento is the way to go.┬áThe current thinking in California, and the United States in general, is that we need government to take care of us. If the state or federal government won’t do it, no one will.

I am a much bigger proponent of local money supporting schools. Raise the funds at school district, city or county level. However, this money that we could raise locally will no longer be available because it has already been taxed away to Sacramento. For every dollar Sacramento takes from us in taxes, that is one less dollar we could have spent more efficiently at the local level.

To support schools in poor areas, we could have school districts set up partnerships with other school districts to help those in areas where funding is harder to come by. This would work much better than having bureaucrats in Sacramento arbitrarily dole it out.

Since Prop 30 is merely a band-aid to temporarily stop the bleeding in our state budget, I would strongly recommend voting NO on Prop 30. Rather than giving more money and power to Sacramento, we need to push for real and meaningful cuts to our state budget and open our minds to solve our school funding problems at the local level, where our dollars will be spent much more effectively.