California Proposition 63 (2004)
Encyclopedia
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
. It passed with 6,191,691 (53.8%) votes in favor and 5,337,216 (46.2%) against.
It was an initiative
statute that levied an additional 1 percent state tax on incomes
of $1 million or greater to fundamental health service programs beginning January 1, 2005. Approximately 25,000 to 30,000 taxpayers were to be directly affected by the tax, generating an estimated $750 million in revenue
during fiscal year 2005-06. At the time of the election, California income tax rates ranged from 1 percent to 9.3 percent, depending on a taxpayer's income level.
The initiative was written by then Assemblyman
Darrell Steinberg
(who later became a State Senator
) and mental health lobbyist Sherman "Rusty" Selix.
A later ballot measure, Proposition 1E
appeared on the May 19, 2009 special election
ballot. This measure would have authorized a fund-shift of approximately $230 million annually in income tax surcharge revenue currently earmarked for Proposition 63. However, the measure was defeated.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
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...
on the November 2, 2004 ballot. Its official name and title on the ballot was 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...
. It passed with 6,191,691 (53.8%) votes in favor and 5,337,216 (46.2%) against.
It was an initiative
Initiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
statute that levied an additional 1 percent state tax on incomes
State income tax
State and local income taxes are imposed in addition to Federal income tax. State income tax is allowed as a deduction in computing Federal income tax, subject to limitations for individuals. Some localities impose an income tax, often based on state income tax calculations. Forty-three states...
of $1 million or greater to fundamental health service programs beginning January 1, 2005. Approximately 25,000 to 30,000 taxpayers were to be directly affected by the tax, generating an estimated $750 million in revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
during fiscal year 2005-06. At the time of the election, California income tax rates ranged from 1 percent to 9.3 percent, depending on a taxpayer's income level.
The initiative was written by then Assemblyman
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...
Darrell Steinberg
Darrell Steinberg
Darrell Steven Steinberg is a Democratic politician from Sacramento, California. He is currently serving his second term in the California State Senate, representing the 6th District. He has been the Senate President Pro Tem since 2008...
(who later became a State Senator
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...
) and mental health lobbyist Sherman "Rusty" Selix.
A later ballot measure, Proposition 1E
California Proposition 1E (2009)
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...
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. This measure would have authorized a fund-shift of approximately $230 million annually in income tax surcharge revenue currently earmarked for Proposition 63. However, the measure was defeated.
Official summary
- Provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults and seniors.
- Requires state to develop mental health service programs including prevention, early intervention, education and training programs.
- Creates commission to approve certain county mental health programs and expenditures.
- Imposes additional 1% tax on taxpayers' taxable personal income above $1 million to provide dedicated funding for expansion of mental health services and programs.
- Prohibits state from decreasing funding levels for mental health services below current levels.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
- Additional state revenues of about $275 million in 2004-05 (partial year), $750 million in 2005-06, $800 million in 2006-07, and probably increasing amounts annually thereafter, with comparable annual increases in expenditures by the state and counties for the expansion of mental health programs.
- Unknown state and local savings from expanded county mental health services that partly offset the cost of this measure, potentially amounting to as much as the low hundreds of millions of dollars annually.
External links
- vote2004.sos.ca.gov/voterguide/ - 2004 Voter Information Guide (with text of Proposition 63)