Proposal Calls for Tax Increases To Fund Health Care, Education

On Monday, a coalition of health and youth advocacy groups proposed a ballot initiative to expand and make permanent income tax increases on California's highest earners to help fund several health care and education programs, the Sacramento Bee's "Capitol Alert" reports.

The coalition includes:

• The California Hospital Association;
• Common Sense Kids Action; and
• The Service Employees International Union-United Healthcare Workers West.

Details of Initiative

The proposed ballot initiative seeks to extend increased income taxes under Proposition 30, which were set to expire at the end of 2018. However, the measure would allow Prop. 30's sales tax increase to expire in 2016, as scheduled.

Like Prop. 30, the proposed ballot measure would:

• Increase taxes for couples earning at least $580,000 annually; and
• Impose higher tax rates for "super-earner" couples that earn more than $2 million per year.

According to "Capitol Alert," the plan would generate an estimated $10 billion in revenue annually, with:

• 50% of the generated funds going to K-14 education; and
• 40% of the generated funds being used to increase provider reimbursements under Medi-Cal, California's Medicaid program.

The rest would go toward pre-kindergarten and early childhood development programs (Cadelago, "Capitol Alert," Sacramento Bee, 9/21). Some of the revenue also would be earmarked for a children's rainy day fund (AP/Sacramento Bee, 9/21).

According to "Capitol Alert," it is unclear whether Gov. Jerry Brown (D) will get involved with the proposal ("Capitol Alert," Sacramento Bee, 9/21). Brown, who championed Prop. 30, has said tax increases should not be permanent (AP/Sacramento Bee, 9/21).