CNA strongly supports Proposition 30 to generate critical resources for education, healthcare and public safety mainly through increased taxes on wealthy Californians. 

What Prop. 30 does:

• Raises tax rates on upper-income Californians– 1% for individuals with annual incomes of over $250,000 or $500,000 for joint filers, 2% for incomes over $300,000 or $600,000 for joint filers, and 3% for incomes over $500,000 or $1 million for joint filers – for seven years.
• Increases the state sales tax rate, one-quarter cent, from 7.25% to 7.5% for four years.
• None of the higher rates can be extended without voter approval.

How much is raised:

• Approximately $6 billion annually over the next four years, and smaller amounts in other years as the taxes are phased in and out.

Where the revenue goes:

• First to public schools. After meeting the minimum levels for schools and community colleges set by Prop. 98, additional revenue would help close the budget gap, provide funds for public safety, health and human services, and avoid deeper reductions.
• Prop. 30 also modifies the state Constitution to assure that counties receive ongoing funding for public safety, health and human service programs.

Why we need Prop. 30:

• California has fallen to 47^th in the U.S. in per pupil funding for education. Prop. 30 begins to restore the billions in cuts that have been made to our schools, libraries, health programs, and other essential services. If Prop. 30 loses, the state is almost certain to cut another $5 million in critical programs.
• Healthcare services, especially those that serve the most vulnerable in our population, have been a frequent target of budget cuts, thus a reminder that we need to stabilize our state budget and stop the cuts to healthcare.
• Prop 30 brings fairness to our tax code. One-third of income gains in California the past two decades went to the richest 1%, and three-fourths to the top 10%.  The increase for upper income Californians is equal to just 1.1% of their income.
• Our families can’t succeed unless our schools have teachers, colleges are affordable, health care is obtainable, libraries stay open, and neighborhoods stay safe. This initiative puts the state’s priority back on what matters: our future, our families, our neighborhoods.
• Prop 30 is called the Local Schools and Public Safety Protection Act because it will protect California’s schools, colleges and local public safety from billions in devastating budget cuts.  Prop. 30 is supported by Police and Firefighters because it guarantees funding for local public safety and saves billions of dollars in prison costs.  Prop 30 is supported by teachers because it will prevent billions in devastating school cuts this school year and provide billions in new funding for schools.   
• If this initiative does not pass, public schools and higher education will be automatically cut by $6 billion which will mean the loss of 3 weeks of the next school year and sharp increases in college tuition.  Prop. 30 is the only initiative that will stop these cuts.   
• The California dream was based on a system of public schools and colleges that gave every Californian a hold on the economic ladder.  We can’t go on cutting our schools and keep the California dream alive and keep our economy strong for the next generation.  Prop 30 says no more cuts. Prop 30 will protect our schools from billions in devastating cuts, prevent steep tuition hikes for families already struggling in a tough economy and provide billions more to get our schools back on track.
• In 1969, California was one of the nation’s leaders in public education.  We ranked among the top 10 states in per-pupil spending, and our students ranked in the top five among the states in achievement.  Today California sits near the bottom on all these important measures.  We are 46th in per pupil spending and we are dead last in the ratio of teachers to students. This didn’t happen overnight.  We’ve endured decades of budget gimmicks and bad decisions that have made our financial situation so dire that when the national recession hit, we found ourselves facing an immediate budget deficit of over twenty six billion dollars.  And now we find ourselves facing even deeper cuts in public education funding. That’s why we must pass Prop. 30.   

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California Labor Federation's position.