In February 2009, the State Legislature narrowly passed the2008–2009 state budget during a special session, months after it was due. As part of the plan to lower the state's annual deficits, the State Legislature ordered a special election with various budget reform ballot propositions, among them Proposition 1D.[1]
The proposition was part of Assembly Bill 17 (Third Extraordinary Session), which was authored by AssemblywomanNoreen Evans, aDemocrat fromSanta Rosa.[2] The bill passed in theState Assembly by a vote of 75 to 3 and in theState Senate by a vote of 37 to 0.[2]
Proposition 1D, officially entitled "Budget Act of 2008. Children and Families Act: use of funds: services for children.", would have authorized a fund-shift of $268 million in annual tobacco tax revenue currently earmarked for First Five earlychildhood development programs under the terms ofProposition 10. That revenue, plus $340 million in unspent First Five tobacco tax money held in a reserve fund at the time, would have instead been used to pay for other state government health and human services programs that serve children, includingMedi-Cal,foster care, child care subsidies,preschool programs, and more. Money for these programs came from the state's General Fund at the time.[3]
At the time, 80% of First Five money was distributed tocounty governments for similar programs, including government "school readiness" programs for pre-schoolers, Medi-Cal health coverage to children whose family income is above the cap for that program, government parent-education training, food and clothing subsidies, and more. Under Proposition 1D, that revenue stream would have ceased for five years, essentially ending most First Five programs.[3]