Let’s clear something up…

Before you close this window, I want to point out that if you’re voting, this info is important. I know, it gets a little boring with all these election related posts these days, but I want to clarify something about Proposition 30 (tax increase for education funding) from a budget point of view. Now, I’m not coming out in support of, or against, this measure. I just want to clarify the concept behind it.

Ok, here goes: there is no guarantee that this tax will mean more money for education.

I know, on the measure it says that the money goes to fund education. Technically, yes. Let me illustrate (fictional numbers):

Basically, education is funded by a few different areas, including the General Fund of the California budget. In this example, assuming Prop 30 revenues of $50m, it will go to education, as it is earmarked for education, but that doesn't mean education spending will go up by $50m. All it means is that that particular $50m will go to education. General Funds can go to anything, so it opens up the $50m from the General Fund to go somewhere else. So, while on the face of it, Prop 30 may help increase much needed education funding, it might not actually do that. No guarantees.

Does that mean we should all come out against Prop 30? Well, not necessarily. That’s a decision you’re going to have to make on your own. Would California be better off getting more tax revenue to fund spending or would it be better off trimming here and there to get in line with spending? That’s a call you, as the voter, gets to make. I just want to clarify the budget murkiness surrounding this measure.