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California Primary Election
Title and Summary Analysis   Arguments and Rebuttals   Text of Proposed Law



Prepared by the Attorney General

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

• Establishes a right to voluntary preschool for all four-year old children.
• Funded by a 1.7% tax on individual incomes above $400,000; $800,000 for couples.
• Administered by the state Superintendent of Public Instruction and county school superintendents.
• Directs counties to prepare reports on curricula, outreach, facilities, childcare coordination,
  budgeting, teacher recruitment and pay.
• Limits administrative expenses; requires program audits.
• Requires state Superintendent to develop a preschool teaching credential with financial aid
  for credential students.
• Excludes revenue from appropriation limits, Proposition 98 calculations.

Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact:

• Increased state revenues of about $2.1 billion in 2007–08, growing annually with the economy
   to around $2.6 billion in 2010–11, when the preschool program would be open to all 4-year olds in
• Revenues would be used solely for new state preschool program and would be spent to run
   the program, pay for facilities, train teachers, and provide an operating reserve.


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