Why Schools and Communities First?

TALKING POINTS

BACKGROUND: In 1978 when Proposition 13 was passed, it was billed as a protection for homeowners from concern over rising property taxes. That was and is a very good thing. But it also contained a series of loopholes that enable commercial property owners – think companies like Chevron and some very wealthy individuals – to avoid reassessment on their property.

- For example, under-assessment of Chevron’s properties cost communities across California $100 million every year – funds that could go to rebuilding schools, fire protection and police forces, housing, road repairs and more.

When Prop. 13 went into effect, big businesses and wealthy commercial property owners were paying 45% of property taxes and residential homeowners were paying 55%. Today, residential homeowners and renters are shouldering 72% of the share of property taxes being paid and corporations and wealthy commercial owners only 28%. This underscores a basic trend we’re seeing across the country – the tax code is enabling the very rich to pay less and forcing everyone else to pay more.

Passage of Prop. 13 marked a watershed moment for California and the country. It launched a fierce anti-tax and anti-government movement. This disinvestment has caused a perpetual funding crisis for schools and local communities; reduced badly needed resources for education, housing and transportation; and led to regressive tax policies. It has had an effect on all communities, but a disproportionate impact on communities of color and low-income families and fueled racial and economic inequality in California.

KEY MESSAGE: Schools and Communities First provides a historic opportunity to right these wrongs and to ensure that big corporations pay their fair share. The $12 billion in new commercial property tax revenue will provide additional funding for schools and local governments to use for affordable housing, healthcare, homeless services, parks, libraries and public safety. $4.5 billion of that money would go to schools and colleges. The Prop. 13 impacts have been multi-generational. It has stood for 40 years as the third rail in California politics because of the powerful economic forces behind it. We now have the opportunity, coalition and movement to make significant changes for the next generation! It is up to us…and together, we can make it happen.

October 2019

Schools and local communities have suffered from 40 years of disinvestment, starving our schools, first responders, healthcare, and vital community services of funding. California’s loophole in corporate property taxes is a massive tax giveaway to a fraction of ultra-rich corporate landowners and investors at the expense of homeowners, renters and small businesses.

Over the past 40 years, disinvestment in public education has caused California to fall from one of the top states in per-pupil spending to one that ranks near the bottom. Despite being the 5th largest economy in the world, California’s schools rank in the bottom 10 nationally.

Prior to passage of Prop. 13, California’s schools were among the best in the country. For example, there were plenty of resources and supplies for all students. Teachers didn’t have to buy their own supplies. Imagine walking into a room full of supplies to choose from and not having to take from your own personal funds to make your class inviting and ready for your students?

Schools and Communities First will reclaim $12 billion overall, but $4.5 billion every year for schools and colleges, by closing the loophole of corporate property taxes that benefits a fraction of wealthy corporations and investors.

This important measure will restore funding for schools and community colleges, parks, roads and bridges, firefighters, first responders, affordable housing, homeless centers, libraries, public transportation, and health clinics and trauma centers.

SCF, as we say for short, does not raise taxes on homeowners or renters, while leveling the playing field for businesses. In fact, it helps small business by eliminating the burdensome business personal property tax.

We need to know that the funding is being spent on our schools and communities; therefore, this measure ensures transparency and accountability for all revenue restored to California’s schools and local communities.

Please join us by supporting the Schools and Communities first initiative. All Californians deserve world class schools and neighborhood services, not concentrated wealth in the hands of a few.

October 2019