As the website of the official opposition group to Prop 39 (as of this morning) indicates, there is not much effective opposition. Go to the group’s Facebook page and you find the same thing. Prop 39 – as proponents put it – closes a corporate tax loophole that was opened up as part of a tax deal in the legislature in 2009. It favors out-of-state corporations by giving them a choice of tax computations. So in-state businesses are not happy with the idea of competitors from out-of-state getting a special deal. That fact means that elements of the local business community favor Prop 39.
Prop 39 would raise an estimated $500 million this fiscal year and then go to $1 billion. However, half of the money is earmarked for green energy projects. Most of the rest would end up – because of the Prop 98 guarantees for K-14 – in the Prop 98 world according to the Legislative Analyst. Would anything dribble into UC? Perhaps a little bit since the green earmark includes “energy efficiency retrofits and alternative energy projects in public schools, colleges, universities, and other public facilities.”
You can read the official Prop 39 summary at:
http://vig.cdn.sos.ca.gov/2012/general/pdf/39-title-summ-analysis.pdf
Readers of this blog will recall that there was an attempt in the state legislature last summer to close the loophole but earmark the money for tuition reduction. But the attempt failed.
Prop 39 seems to be largely forgotten in the contest between Prop 30 (the governor’s tax) and Prop 38 (the Molly Munger school tax). But there has been some pro-39 advertising. Below is a TV ad for Prop 39:
[youtube http://www.youtube.com/watch?v=0MjMAZFtZbw?feature=player_detailpage]
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