Introduce yourself in 1 concise sentence. What’s your relationship to audience?
California is a state of deep contradictions ● We have the 5th Largest Economy in the World ● Nearly 900,000 millionaires live in California ● 26% of the billionaires in the US live here
● We have the highest poverty rate in the country when adjusted for cost of living and 1 in 5 children are living in poverty ● We rank 41st in per-pupil spending, behind Texas and Oklahoma ● We spend more on prisons than education
● Prop 13 caused major disinvestment in our public schools. This law was passed in 1978 and while it helped alleviate the tax burden on long-term homeowners, it completely wiped out thousands of valuable school programs and increased our classrooms ratios. Our schools have now suffered from underfunding for the past four decades. ● We dropped from 7th in per-pupil funding to 41st, behind Oklahoma and Texas
For more than four decades, big corporations have not been paying their fair share ….. leaving California’s school funding falling behind. And local services have been cut. California now has the most overcrowded classrooms in the U.S. and some of the worst ratios of counselors, librarians, and nurses per student. Schools & Communities First will reclaim $12B each year to ensure that our schools and communities come first – with the resources to educate all of our kids and the services to support all of our families.
SCF closes a 4-decade-old commercial property tax loophole which a handful of large corporations and wealthy investors have taken advantage of -- at the expense of our schools and communities.
SCF requires that commercial and industrial properties valued above $3M are reassessed every 3 years to determine fair market value, which means they’ll pay their fair share of property taxes, just like most businesses already do. ---- SCF does NOT affect homeowners, renters, or agricultural land. It’s ONLY designed to
SCF levels the playing field for small businesses that are being nickeled and dimed with fees and new taxes while the rich and powerful abuse the tax system to avoid paying their fair share to support our local schools and communities.
Owners of non-residential commercial and industrial property valued at $3 million or less, including the total value of properties in which they have a direct or indirect interest, ARE EXEMPT FROM REASSESSMENT: 88% of all California commercial and industrial properties have a market value of $3 million or less. 80% of the new revenue comes from 6% of commercial and industrial properties valued over $5 million.
ENSURES strict accountability so that money goes directly to our students and communities. Strict accountability and transparency requirements ensure funds designated for education go to classrooms.
Local control over school funding decisions; local school budgets identify how money is spent and subject to audits
Education money goes straight into a dedicated fund – the Legislature can’t touch it
For example, the funding formula requires a certain percentage of funding be spent on reducing class sizes.
Schools & Communities First presentation 9.8.2020
Schools and Communities (SCF) First?
SCF is a Statewide Initiative for the November 2020 ballot.
SCF will reclaim $12 billion annually for schools and
Assesses commercial and industrial properties at fair market
Maintains protections for homeowners, apartment buildings and
Provides protections for small businesses
Average California Family
Property Taxes Owed:
$ 0.40 per square
Walt Disney Corporation
Property Taxes Owed:
$0.05 per square foot
Example of Unfair Tax Payment
Fifth largest economy
Nearly 900,000 Millionaires
26% of all US billionaires live in
41st in per pupil spending
Spend more on prison
WHY SCHOOLS & COMMUNITIES FIRST?
every year for
schools and local
Wealthy investors and
big corporations have
to avoid paying their
fair share of property
As a result:
funding has been
falling behind, and
local services have
WHO IS IMPACTED BY PROP. 15
properties worth > $3M
(combined per owner)
not used for
every 3 years
> 75% is used for
40 % to Public Schools
60% Local Government
● Public Transportation
● Affordable housing/homeless
● Health Clinics, Trauma centers
● Firefighters and First
● Roads and Bridges
1. PROP 15 passage will make property tax paid by large
corporations and residential property owners more equitable.
2. PROP 15 will generate $12 billion in additional revenue from
only 6% of large property owners:
○ 40% for preK-12 and community colleges
○ 60% for local government and vital services
3. PROP 15 will make California even more attractive for people
WHAT WILL SCF DO FOR BUSINESS?
of all California commercial and industrial
properties have a market value of $3
million or less.
80% of the new revenue comes
from the 6% of commercial and
industrial properties valued over $5
WHAT’S THE ACCOUNTABILITY?
STRICT ACCOUNTABILITY and
LOCAL CONTROL over funding decisions:
both for schools and communities
DEDICATED EDUCATION FUND:
the legislature can’t touch it!