Proposition 30 Background
Proposition 30 is Governor Jerry Brown’s initiative that would increase state revenues for public education. If passed by the voters this November, the state budget will maintain the current level of state support for the CSU, and avoid further direct cuts. However, the state budget includes a mid-year “trigger cut” of $250 million to the CSU if the tax initiative fails.
Prop 30 would temporarily increase personal income tax rates for seven years on individuals who make more than $250,000, and sales and use tax by ¼ cent for four years. The income and sales/use tax increases will annually raise between $6.8 billion and $9 billion in 2012-13 and $5.4 billion to $7.6 billion, respectively, through 2018. The measure would also guarantee funds for public safety services shifted from the state to local governments.
Proposition 30 Impact on the California State University (CSU)
If Proposition 30 fails, the immediate impact to the CSU would be an additional budget cut of $250 million at a minimum, as specified in the signed 2012-13 state budget. This additional cut would mean a total
If Proposition 30 passes, the additional revenue for K-12 schools and community colleges would help the state meet its obligations to these entities, as well as help the state address its on-going structural deficit. By addressing the state’s budget gap, it is possible the CSU budget would be less likely to be cut. If Prop 30 passes, There may also be an opportunity for the CSU budget to be increased in future years.*
CSU Board of Trustees Endorsement
On July 17, the CSU Board of Trustees voted to endorse Proposition 30 due to its direct relationship to the system's fiscal stability and funding levels in 2012-2013 and beyond.
* The Legislative Analyst’s Office and the California Department of Finance calculated these estimates.