POL 104 - SG # 6 - Study Guide Lec 6 PDF

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Study Guide Lec 6...

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Lecture #6 Revenue Expenditure Shares ● Proposition 30 provides wiggle room. ○ Proposition 30, officially titled Temporary Taxes to Fund Education, was a California ballot measure that was decided by California voters at the state-wide election on November 6, 2012. The initiative is a measure to increase taxes to prevent $6 billion cuts to the education budget for California state schools. The measure was approved by California voters by a margin of 55 to 45 percent. ○ Proposition 30 provides for personal income tax increase over seven years for California residents with an annual income over US$250,000, to be implemented retroactively starting January 1, 2012 through the end of 2018. The measure also provides for an increase in the state sales tax by 0.25 percent over four years (from January 1, 2013 through December 31, 2016). ○ The sales tax expired in 2018, but the income tax was extended by Proposition 55 in 2016 to last through 2030. ● Key Elements of the Process: ○ The Governor submits a budget to the legislature by Jan. 10. ○ The Legislature passes a budget bill or bills that require the Governor’s signature. ○ The Governor has a “line item veto” that allows him/her to reduce or eliminate budget expenditure items without vetoing the entire bill. ○ The Legislature can override any line item with a 2/3 majority vote. ○ Proposition 25 (2010) reduced the vote necessary to passing the budget to a majority (from two-thirds). ○ Proposition 25 also specifies that legislators forfeit their pay if the budget is not passed on time. ○ Important dates. ■ January 10: Constitutional deadline for Governor’s budget recommendation, delivered by his Department of Finance. ■ April 15: Tax returns are due. ■ May 14: Statutory deadline for Governor to submit May revise. ■ June 15: Constitutional deadline for legislature to pass budget. ■ July 1. Fiscal year begins. ○ Due to Proposition 13, Local finance has become State finance....