California Proposition 98 requires a minimum percentage of the state budget to be spent on

K-12 education K-1 is a professional kickboxing promotion established in 1993, well known worldwide mainly for its heavyweight division fights and Grand Prix tournaments. In January 2012, K-1 Global Holdings Limited, a company registered in Hong Kong, acquired ...

. Prop 98 guarantees an annual increase in education in the

California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...

budget. Prop 98, also called the "Classroom Instructional Improvement and Accountability Act," amended the

California Constitution The Constitution of California ( es, Constitución de California) is the primary organizing law for the U.S. state of California, describing the duties, powers, structures and functions of the government of California. California's original c ...

to mandate a minimum level of education spending based on three tests. Test one, used only for 1988 to 1989, requires spending on education to make up 39% of the state budget. Test 2, used in years of strong economic growth, requires spending on education to equal the previous years spending plus per capita growth and student enrollment adjustment. Test 3, used in years of weak economic growth guarantees prior years spending plus adjustment for enrollment growth, increases for any changes in per capita general fund revenues, and an increase by 0.5 percent in state general funds. This is accomplished by shifting specified amounts of property tax revenues from cities, counties and special districts to "educational revenue augmentation funds" (ERAF) to support schools statewide. Proposition 98 can be suspended only by a two-thirds vote of the

California Legislature The California State Legislature is a bicameral state legislature consisting of a lower house, the California State Assembly, with 80 members; and an upper house, the California State Senate, with 40 members. Both houses of the Legislatu ...

. The initiative was a result of 1978's

Proposition 13 Proposition 13 (officially named the People's Initiative to Limit Property Taxation) is an amendment of the Constitution of California enacted during 1978, by means of the initiative process. The initiative was approved by California voters on J ...

, which limited assessed property taxes to one percent of a home's value in California and thus limited the amount of local funds that could be spent on school districts. Proposition 98 has been attacked by some groups because it mandates "auto-pilot spending" and reduces the Legislature's budgetary flexibility.PE.com , Opinion , Agenda 2006
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References

External links

* https://web.archive.org/web/20070814013250/http://www.edsource.org/pub_edfct_prop98.cfm * https://web.archive.org/web/20070927082442/http://www.edsource.org/pdf/prop98_06.pdf * http://www.pe.com/localnews/opinion/2006/education/stories/PE_OpEd_Opinion_D_op_1119_kuhn_prop98_qa_edu_loc.6204c5c.html 98

1988 File:1988 Events Collage.png, From left, clockwise: The oil platform Piper Alpha explodes and collapses in the North Sea, killing 165 workers; The USS Vincennes (CG-49) mistakenly shoots down Iran Air Flight 655; Australia celebrates its Bicenten ...

Initiatives in the United States {{Statute-stub