In addition to Propositions 1A and 1B which we highlighted in our last report, voters will also be asked to consider Propositions 1C through 1E. Together these three propositions would provide over $7 billion in the next five years to the General Fund to deal with the state’s fiscal condition, or put another way, reduce the amount of cuts that may be implemented as a result of dwindling state resources this summer.

We urge everyone to go out and vote on May 19th as the fate of Proposition 1A – 1E will have an impact on the CSU system and its students.

Proposition 1C – Lottery Modernization Act
The measure makes major changes to the 1984 voter initiative that created the California Lottery. These changes could increase lottery ticket sales and allow the state to borrow $5 billion in the 2009-10 fiscal year and from future lottery profits.

Under the measure, lottery profits now dedicated to schools and colleges would be used to pay back the borrowing. The measure would increase state payments to education from the state General Fund to make up for the loss of these lottery payments. There is no risk to taxpayers in Proposition 1C, and other states have enacted the same reforms with success.

Proposition 1D – Protection of Children’s Service Funding
Proposition 1D will temporarily redirect a portion of existing funds from a voter-approved tobacco tax. These redirected funds will be used to pay for children’s health and social services and to prevent deep cuts to kids’ healthcare and other programs. Only a portion of the tobacco tax funds will be redirected, so existing programs currently funded by this revenue are protected.

By temporarily redirecting these funds, Proposition 1D will also help immediately address the state’s unprecedented budget deficit and help us avoid further tax increases or draconian cuts to education, public safety, healthcare and other services.

Proposition 1E – Funding for Children’s Mental Health Services
Proposition 1E will temporarily redirect a portion of funds from the Mental Health Services Act to fund children’s health programs that are at risk of elimination due to the budget crisis, including healthcare screening, diagnosis and treatment. This measure allows for the temporary redirection of some Proposition 63 funds—specifically, $226.7 million in 2009 10, and between $226.7 million and $234 million in 2010 11.

By temporarily redirecting a portion of these funds, Proposition 1E will also help immediately address the state’s unprecedented budget deficit and help us avoid further tax increases or draconian cuts to education, public safety, healthcare and other services.

For more information on all the propositions please visit the campaign websites below:

Legislative Analysts Office Report

Proposition 1C – 1E Support:
California Budget Reform Now
California Chamber of Commerce

Proposition 1C – 1E Opposed:
Howard Jarvis Taxpayer Association