Updated at 11 p.m. Wednesday, Oct. 24
Passage of Proposition 38 "would be a great thing'' for schools in the Santa Monica-Malibu Unified School District, the president of the Santa Monica-Malibu PTA Council said.
Supporters say the income tax increase on the November ballot would bring more than $10 million to district schools in the 2013-2014 school year and more than $24 million in the 2023-24 school year.
"Proposition 38 is a visionary and transformative solution,'' Patti Braun said at a rally at Clover Park. "We want a brand new funding stream that will guarantee every school will get what it needs and prohibit Sacramento from touching the money.''
Proposition 38 would increase personal income tax rates for 12 years for annual earnings over $7,316 using a sliding scale from 0.4 percent for the lowest individual earners to 2.2 percent for individuals earning more than $2.5 million.
During the first four years, 60 percent of revenues would go to schools from kindergarten through 12th grade, 30 percent to repaying state debt and 10 percent to early childhood programs. Thereafter, 85 percent of revenues would go to schools from kindergarten through 12th grade and 15 percent to early childhood programs.
The increase would be roughly $5 billion in the 2012-13 fiscal year, $10 billion in the 2013-2014 fiscal year and tending to increase over time, according to an estimate from the Legislative Analyst's Office and Director of Finance Ana J. Matosantos.
Opponents of Proposition 38 call it a "flawed, costly and misleading initiative'' that would hurt small businesses, as many small business owners pay personal income taxes rather than corporate taxes. The rival measure backed by Gov. Jerry Brown, Proposition 30, would increase the sales tax by a quarter-cent on the dollar for four years and raise the income tax on annual earnings over $250,000 for seven years.
The increased revenues would result in an increase to the minimum guarantee for schools and community colleges under terms of Proposition 98, approved by voters in 1988. Revenue generated by Proposition 30 would be deposited into a newly created state account, the Education Protection Account.
Of the funds in the account, 89 percent would be devoted to schools from kindergarten through 12th grade and the other 11 percent to community colleges. Each school district would receive at least $200 per student in funds from the account and each community college district at least $100 per full-time student.
The measure also would guarantee funding for public safety services realigned from state to local governments. Proposition 30 would generate an additional $6 billion in state tax revenues from the 2012-2013 through 2016-17 fiscal years, according to an estimate from the state's Legislative Analyst's Office and Matosantos. Smaller amounts would be generated in the 2017-18 and 2018-19 fiscal years. Brown has called Proposition 30 "modest, fair and temporary.''
Opponents of Proposition 30 say its passage would hurt small business and job creation, and the Legislature should first enact meaningful changes to the public employee pension systems and cut wasteful spending before raising taxes.
If both measures are approved by voters, the one getting the most yes votes will prevail.