California Proposition 1E (2009)
Encyclopedia
Proposition 1E was a defeated California
ballot proposition
that appeared on the May 19, 2009 special election
ballot. The measure was legislatively-referred
by the State Legislature
. If passed Proposition 1E would have authorized a one-time reallocation of income tax revenue to help balance the 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 1E.
The proposition was part of Senate Bill 10 (Third Extraordinary Session), which was authored by Senator Denise Ducheny
, a Democrat
from San Diego. The bill passed in the State Senate
by a vote of 36 to 2 and in the State Assembly
by a vote of 76 to 4.
surcharge revenue currently earmarked for specified mental health programs under the terms of Proposition 63
, also known as the Mental Health Services Act
. For two years that revenue would have instead be used to pay for the state's share of the Early and Periodic Screening, Diagnostic and Treatment Program, a federally mandated Medicaid
program for low income persons under age 21. At the time, revenue for this program came from the state's General Fund.
The earmarked Proposition 63 revenue that would be diverted comes from a 1% state income tax surcharge imposed on the portion of a taxpayer’s taxable income in excess of $1 million. In the past, this surcharge has taken in between $900 million and $1.5 billion annually.
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
ballot proposition
California ballot proposition
In California, a ballot proposition is a proposed law that is submitted to the electorate for approval in a direct vote . It may take the form of a constitutional amendment or an ordinary statute. A ballot proposition may be proposed by the State Legislature or by a petition signed by members of...
that appeared on the May 19, 2009 special election
California state special elections, 2009
The California state special elections, 2009 were held on May 19, 2009 throughout the state of California. The elections were authorized by the State Legislature and Governor Arnold Schwarzenegger as a part of a budget signed into law on February 19, 2009...
ballot. The measure was legislatively-referred
Legislative referral
A Legislative referral is a form of referendum in which a legislature puts proposed legislation up for popular vote , rather than through the initiative or referendum process...
by the State Legislature
California State Legislature
The California State Legislature is the state legislature of the U.S. state of California. It is a bicameral body consisting of the lower house, the California State Assembly, with 80 members, and the upper house, the California State Senate, with 40 members...
. If passed Proposition 1E would have authorized a one-time reallocation of income tax revenue to help balance the state budget.
Background
In February 2009, the State Legislature narrowly passed the 2008–2009 state budget2008–2009 California budget crisis
The U.S. state of California had, and still currently does have, a budget crisis in which it faced a shortfall of at least $11.2 billion, projected to top $40 billion over the 2009–2010 fiscal years.-2008:...
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 1E.
The proposition was part of Senate Bill 10 (Third Extraordinary Session), which was authored by Senator Denise Ducheny
Denise Moreno Ducheny
Denise Moreno Ducheny is a California State Senator who represents Senate District 40, which includes southern San Diego County, part of Riverside County, and all of Imperial County. Ducheny is a Democrat. She lives with her husband, Al, in San Diego, California.-Background:Ducheny was born in...
, a Democrat
California Democratic Party
The California Democratic Party is the state branch of the Democratic Party in the state of California, headquartered in Sacramento. It is chaired by veteran Democratic politician and former United States Representative John L. Burton, who succeeded Art Torres in April 2009. It is the majority...
from San Diego. The bill passed in the State Senate
California State Senate
The California State Senate is the upper house of the California State Legislature. There are 40 state senators. The state legislature meets in the California State Capitol in Sacramento. The Lieutenant Governor is the ex officio President of the Senate and may break a tied vote...
by a vote of 36 to 2 and in the State Assembly
California State Assembly
The California State Assembly is the lower house of the California State Legislature. There are 80 members in the Assembly, representing an approximately equal number of constituents, with each district having a population of at least 420,000...
by a vote of 76 to 4.
Proposal
Proposition 1E would have authorized a fund-shift of approximately $230 million annually in income taxIncome tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
surcharge revenue currently earmarked for specified mental health programs under the terms of Proposition 63
California Proposition 63 (2004)
Proposition 63 was a California ballot proposition on the November 2, 2004 ballot. Its official name and title on the ballot was the Mental Health Services Act...
, also known as the Mental Health Services Act
California Mental Health Services Act
In November 2004, voters in the U.S. state of California passed Proposition 63, the Mental Health Services Act , which has been designed to expand and transform California’s county mental health service systems by increasing the taxes of high income individuals...
. For two years that revenue would have instead be used to pay for the state's share of the Early and Periodic Screening, Diagnostic and Treatment Program, a federally mandated Medicaid
Medicaid
Medicaid is the United States health program for certain people and families with low incomes and resources. It is a means-tested program that is jointly funded by the state and federal governments, and is managed by the states. People served by Medicaid are U.S. citizens or legal permanent...
program for low income persons under age 21. At the time, revenue for this program came from the state's General Fund.
The earmarked Proposition 63 revenue that would be diverted comes from a 1% state income tax surcharge imposed on the portion of a taxpayer’s taxable income in excess of $1 million. In the past, this surcharge has taken in between $900 million and $1.5 billion annually.