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CSU Trustee Committee Endorses Propositions 1A Through 1E

 

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(March 24, 2009) -- The California State University Board of Trustees Committee on Governmental Relations today voted to endorse Propositions 1A through 1E, scheduled for the May 19 statewide special election. The measures were adopted by the Legislature with a two-thirds vote and supported by the Governor as part of the 2009-10 budget package.

The propositions were endorsed unanimously by the Committee and will be voted on by the full board tomorrow. Voting Trustees stated that given the fiscal crisis in the state, the measures were necessary to help solve a critical cash flow problem without precedent in California history.

Several of the measures redirect existing revenues dedicated to specific purposes to help balance the state General Fund budget. This directly impacts the CSU since two-thirds of its budget comes from state General Funds.

Proposition 1A extends for an additional year the sales and use tax, and the Vehicle License Fee. It would also extend for two additional years the personal income tax. The measure would increase the amount of money set aside in the state’s rainy day account and restrict the withdrawal of the funds. Also extends by 1 to 2 years several tax increases passed as part of budget package.

Proposition 1B requires the state – assuming 1A passes – to make a total of $9.3 billion in supplement payments to K-14 education, with annual installments starting in 2011-12.

Proposition 1C allows the state to borrow $5 billion in 2009-10 from future lottery profits.  The budget agreement relies on this “securitization” of future lottery revenues.

Proposition 1D would temporarily redirect a significant portion of funds raised by Proposition 10 for early childhood development programs, now known as First 5 program.  Also makes changes in allocation requirements for the state’s commission.

Proposition 1E would allow for the temporary redirection of some Proposition 64 funds that currently support mental health services. 

 

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The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 450,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. Its mission is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California.