Tax Increase on Incomes Over $400,000

Proposed Initiative Enters Circulation

Public Preschool Education. Tax Increase on Incomes Over $400,000 for Individuals; $800,000 for Couples. Initiative Constitutional Amendment and Statute.

SACRAMENTO, CA --- Secretary of State Bruce McPherson announced today that the proponents of a new initiative may begin collecting petition signatures.

The Attorney General’s official title and summary is as follows:

PUBLIC PRESCHOOL EDUCATION. TAX INCREASE ON INCOMES OVER $400,000 FOR INDIVIDUALS; $800,000 FOR COUPLES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

Establishes right to voluntary public preschool for all four-year old children, administered by state Superintendent of Public Instruction and county school superintendents. Funded by 1.7% tax on individual income above $400,000 annually; $800,000 for couples. Directs counties to prepare five-year assessments and annual reports regarding voluntary preschool curriculum, outreach, facilities, childcare coordination, teacher recruitment/pay, and budgeting. Limits administrative expenses, and requires audits of county programs. Requires state Superintendent to develop preschool teaching credential with financial aid for teachers.

Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Increased personal income taxes on high-income earners beginning in 2007, with revenues reaching approximately $2.4 billion annually in 2010-11. Revenues would support an entitlement to one year of preschool for four-year olds beginning in 2010-11. Revenues in the early years of the program could be used for facilities, teacher training, student financial aid, and early implementation of preschool services.

The Secretary of State’s tracking number for this measure is 1151 and the Attorney General’s tracking number is SA2005RF0088.

The proponents, James C. Harrison and Roberta B. Johansen, of Remcho, Johansen and Purcell, must collect 598,105 signatures of registered voters, equal to eight percent of the total votes cast for governor in the 2002 gubernatorial election, in order to qualify the measure. The 150-day deadline to circulate petitions for this measure is January 12, 2006. The initiative proponents can be reached at 510-346-6200.