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California Proposition 10, Early Childhood Cigarette Tax Initiative (1998)

From Ballotpedia


California Proposition 10
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Election date
November 3, 1998
Topic
Tobacco andTaxes
Status
ApprovedaApproved
Type
Amendment
& Statute
Origin
Citizens

California Proposition 10 was on theballot as acombined initiated constitutional amendment and state statute inCalifornia onNovember 3, 1998. It wasapproved.

A "yes" votesupported authorizing an additional $0.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products to fund early childhood programs.

A "no" voteopposed authorizing an additional $0.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products to fund early childhood programs.


Aftermath

Change proposed in 2009

In 2009, California voters decidedCalifornia Proposition 1D (May 2009). Proposition 1D was defeated. If it had passed, it would have taken some of the funds that under Proposition 10 are devoted to early childhood education and put those funds into the state's unrestricted general fund.

Change proposed in 2011

In early March 2011, theCalifornia State Legislature was expected to vote on a budget that would take $1 billion from Proposition 10 funds and have the money go to Medi-Cal's healthcare programs for children aged 5 and under.[1]

Proposition 10 funds are divided between 58 county "First Five" commissions and a statewide commission. The 58 county commissions get 80% of the total revenue generated by the Proposition 10 tax, while the state commission receives 20% of the revenue.

The 2011 budget proposal to take $1 billion of Prop 10 funds for Medi-Cal would take $50 million from the state commission and $950 million from the 58 county commissions. The 20 smallest "First Five" county commissions would be excluded from the funding shift. However, under the budget proposal, each of the 38 larger "First Five" county commissions would have until June 30, 2012, to transfer 50% of their fund balances to the state government.

As of the end of 2010, the cumulative balance in the county commission funds stood at $1.9 billion.[1]

Election results

California Proposition 10

ResultVotesPercentage

ApprovedYes

4,044,12650.50%
No3,964,00849.50%
Results are officially certified.
Source


Overview

Proposition 10 imposed additional tax on cigarettes of 50 cents/pack, as well as additional taxes on other tobacco products. With the revenue from those taxes, the state government created state and county commissions to establish early childhood development and smoking prevention programs. These are known asFirst 5 agencies.

As of 2009, Proposition 10 was generating about $500 million a year in taxes.[2]

Text of measure

Ballot title

The ballot title for Proposition 10 was as follows:

State and County Early Childhood Development Programs. Additional Tobacco Surtax. Initiative Constitutional Amendment and Statute.

Ballot summary

The ballot summary for this measure was:

-Creates state commission to provide information and materials and to formulate guidelines for establishment of comprehensive early childhood development and smoking prevention programs.

-Creates county commissions to develop strategic plans with emphasis on new programs.

-Creates trust fund for these programs. Funding for state and county commissions and programs raised by additional $.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products.

-Funds exempt from Proposition 98 requirement that dedicates portion of general tax revenues to schools.

Full Text

The full text of this measure is availablehere.


Fiscal impact

The official estimate of net state and local government fiscal impact from the California Legislative Analyst's Office was:[3]

  • Raises new revenues of approximately $400 million in 1998-99 and $750 million annually thereafter for the California Children and Families First Program, to be allocated primarily to new state and county commissions for early childhood development programs.
  • Results in reduced revenues for Proposition 99 health care and resources programs of about $18 million in 1998-99 and $7 million annually thereafter.
  • Results in increased state General Fund revenues of about $2 million in 1998-99 and $4 million annually thereafter. Results in increased county General Fund revenues of about $3 million in 1998-99 and $6 million annually thereafter.
  • Potential unknown long-term savings in state and local health, education, and other programs.[4]

Support

Supporters

  • Rob Reiner, chairman of I Am Your Child Campaign[3]
  • Dr. Alan Henderson, president American Cancer Society[3]
  • John D'Amelio, president California School Boards Association[3]

Official arguments

The official arguments in support of Proposition 10 can be readhere.

Opposotion

Opponents

  • Jane Armstrong, state chairman, Alliance of California Taxpayers & Involved Voters[3]
  • Helen Rutkowski, member of Westminster School Board[3]
  • Dr. Ken Williams, family physician[3]

Official arguments

The official arguments in opposition to Proposition 10 can be readhere.

Background

Other cigarette taxes

  • California has had a 12-cent-per-pack tax on cigarettes for several decades. The income from this tax goes into the state's unrestricted general fund.
  • California Proposition 99 (1988). This measure added a 25-cent-per-pack tax on cigarettes. The money collected from the Proposition 99 tax goes to fund tobacco-related health education and disease research, hospital care for the indigent, and park and wildlife restoration.
  • The federal government taxes each pack of cigarettes sold in California at sixty cents, effective April 2009.

Path to the ballot

In California, the number of signatures required for a combined initiated constitutional amendment and state statute is equal to 8 percent of the votes cast at the preceding gubernatorial election. For initiated amendments filed in 1998, at least 693,230 valid signatures were required.

See also


External links

Footnotes

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