PROP 1B: NO EDUCATION FUNDING. This measure requires supplemental payments to local school districts and community colleges. There are annual payments beginning with the 2011-12 budget to be paid from the state’s Budget Stabilization “rainy day” Fund until the total amount has been paid. The Legislative Analyst estimates a potential savings of several billions of dollars in 2009-10 and 2011-12, but with the potential of state costs of billions of dollars thereafter. So much for the Rainy Day Fund.

PROP 1C: NO LOTTERY MODERNAZATION ACT. This measure does modernize the lottery, but also allows the state to borrow $5 billion from future lottery winnings. It is not in the best interest of the state to take on more debt in an attempt to “balance” the 2009-10 state budget while burdening the state with debt payments that will make it more difficult to balance state budgets in the future. This is bad fiscal policy.

PROP 1D: NO TEMPORARILY TRANSFERS PROP 10 FUNDS TO GENERAL FUND. This measure temporarily redirects existing tobacco tax money into the General Fund in theory to protect the very services that Prop 10 was supposed to cover. Money would be transferred ($608 million in 2009-10 and $268 million from 2010-11 through 2013-14) by temporarily redirecting a portion of funds from the California Children and Families Program in place of state General Fund support. CoCoTax concerns: 1) what will replace those funds in the future, and 2) the voters of California supported Prop 10 and the money should be used as the voters intended.

PROP 1E: NO TEMPORARILY TRANSFERS PROP 63 FUNDS TO GENERAL FUND. This measure amends the Mental Health Services Act (Prop 63 – passed in 2004) to transfer funds for a two-year period from mental health programs to the General Fund. The Legislative Analyst estimates that this will cause a reduction in funding available for Prop 63 community mental health programs. This is another “temporary” fix that takes money from Prop 63 leaving the state with another General Fund hole when this funding source expires.

PROP 1F: YES PREVENTS RAISES IN YEARS OF BUDGET DEFICITS. This measure encourages balanced state budgets by preventing legislators and constitutional officers from receiving pay increases in years when the state is running at a deficit and gives the Director of Finance the power to determine whether a given year is a deficit year. The Legislative Analyst estimates a “minor state savings” which is not the reason to vote for it. While a weak incentive, CoCoTax supports any issue that sends the message that encourages the state actually have a genuine balanced budget.

FOR ADDITIONAL INFORMATION: The nonpartisan Legislative Analyst’s Office has detailed financial analyses at http://www.lao.ca.gov/laoapp/ballot_source/Propositions.aspx