Big Drop Expected in Tax Revenue for Mental Health Care in California
Funding Proposition 63 channels to mental health services will drop sharply in the next two fiscal years, according to projections from the California Department of Finance, the Sacramento Bee's "Capitol Alert" reports.
In 2004, California voters approved Proposition 63, which increased the state income tax by 1% for residents whose annual incomes exceed $1 million.Â Revenue from the tax increase funds mental health care.
Proposition 63 generated $1.3 billion in fiscal year 2005-2006 and $1.5 billion in FY 2006-2007, according to the finance department.
However, finance department officials expect Proposition 63 revenue to drop to $981 million in FY 2008-2009 and $887 million in FY 2009-2010.Gov. Arnold Schwarzenegger (R) and Republican legislators have proposed tapping into Proposition 63 funds to help balance the state budget deficit (Goldmacher, "Capitol Alert," 1/27). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.