Proposition 1E was a defeated

California California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...

ballot proposition that appeared on the May 19, 2009

special election A by-election, also known as a special election in the United States and the Philippines, or a bypoll in India, is an election used to fill an office that has become vacant between general elections. A vacancy may arise as a result of an incumben ...

ballot. The measure was legislatively referred by the

State Legislature A state legislature is a Legislature, legislative branch or body of a State (country subdivision), political subdivision in a Federalism, federal system. Two federations literally use the term "state legislature": * The legislative branches of ...

. 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 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 Democrat, Democrats, or Democratic may refer to: Politics *A proponent of democracy, or democratic government; a form of government involving rule by the people. *A member of a Democratic Party: **Democratic Party (Cyprus) (DCY) **Democratic Part ...

from

San Diego San Diego ( , ) is a city on the Pacific coast of Southern California, adjacent to the Mexico–United States border. With a population of over 1.4 million, it is the List of United States cities by population, eighth-most populous city in t ...

. The bill passed in the

State Senate In the United States, the state legislature is the legislative branch in each of the 50 U.S. states. A legislature generally performs state duties for a state in the same way that the United States Congress performs national duties at ...

by a vote of 36 to 2 and in the State Assembly by a vote of 76 to 4.

Proposal

Proposition 1E would have authorized a fund-shift of approximately $230 million annually in

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

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 Medicaid is a government program in the United States that provides health insurance for adults and children with limited income and resources. The program is partially funded and primarily managed by U.S. state, state governments, which also h ...

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.

Results

References

External links

Text of Proposition 1E
{{CA2009elections 1E