I have another Proposition for you...

This one is Proposition 38.  It's being sold as new funding for classrooms.  It's not exactly what it seems.

First of all, you have to remember that this is a tax increase.  An income tax increase.  On all Californians who pay any income tax already.  It will increase your state income tax bill by between 0.4% and 2.2%, depending on your income.  Doesn't sound so bad.  If you pay $2,000 a year and your tax bill goes up by 1%, that's only $20.  And it's temporary.  It will only last for 12 years, unless the voters re-authorize it.

This tax increase will generate roughly $10 billion in new revenues.  But 30% of the money won't see a classroom.  It will go toward paying off state debt already incurred.  10% goes to early childhood development programs.  60% will go to schools and into the classrooms.

Let's not forget one important fact.  Governor Brown is so worried about Prop 38 undermining support for his own pet proposition, Prop 30 that he's engaged in a variety of unethical behaviors.  He got certain counties to count petitions with the required signatures to get his prop on the ballot first, even though those for Prop 38 were turned in before those for Prop 30.  That's actually illegal.  He pushed through a change in the state law on how ballot propositions are numbered so that his proposition would be above Prop 38 on the ballot.  That's because Prop 30 is a "constitutional amendment" and those have ballot priority over "proposed state statutes", which is what Prop 38 is.  Dirty politics at best.

Prop 38 is supported by Molly Munger.  Once again, a child of Charles Munger, vice-chairman of Berkshire-Hathaway, the Warren Buffett company is trying to influence CA politics.  She's donated millions to the Prop 38 campaign. 

Both the California Republican Party and the California Democratic Party oppose Prop 38.  That ought to be a good reason to actually support it, just because of their opposition.

Ultimately, we need to recognize that California doesn't have a problem with revenues.  California has a problem with spending.  State employees can take retirement at age 55 with 20 years service at a reduced rate and that's seven years earlier than anyone can take early social security.  Some state employees with 30 years service can take retirement at age 55 and get the full retirement benefit.  I won't get into all of the waste in state government spending except to say it exists.

In actuality, California has spent less money in each of the last two years than the year before, but that's a byproduct of the struggling economy reducing revenue rather than dramatic cuts in spending.  Yes, some programs have been cut but the fact is that the state was spending like drunken sailors and only began to reign in spending when the growth in it became unsustainable.

The real problem here in California is a subject for another blog entry.  I'll get to that in a bit.  Meanwihle, I'm voting NO on Prop 38.  Same for Prop 30 and Prop 32.  I merely ask that you do your best to get fully informed on these issues and then make the best choice, in your mind.