The California State University Board of Trustees has voted to endorse Propositions 1A through 1E, scheduled for the May 19 statewide special election. The measures were adopted by the Legislature with a two-thirds vote and supported by the Governor as part of the 2009-10 budget package. Lt. Governor John Garamendi, an ex officio member of the Board of Trustees, cast the only vote against the motion.
Voting trustees said that given the fiscal crisis in the state, the measures were necessary to help solve a critical cash flow problem without precedent in California history.
“These measures are designed to bring much needed cash revenue to the state and will serve the CSU system well,” Trustee Bill Hauck said. “They avoid making a bad situation even worse.”
Several of the measures redirect existing revenues dedicated to specific purposes to help balance the state General Fund budget. This directly impacts the CSU since two-thirds of its budget comes from state general funds.
Speaker Karen Bass, an ex officio member of the Board, thanked the trustees for endorsing the propositions.
Proposition 1A increases the amount of money set aside in the state's rainy day account and restricts the withdrawal of the funds. In addition, the measure extends for an additional year the sales and use tax, and the Vehicle License Fee, and also extends for two additional years the personal income tax.
Proposition 1B requires the state — assuming 1A passes — to make a total of $9.3 billion in supplement payments to K-14 education, with annual installments starting in 2011-12.
Proposition 1C allows the state to borrow $5 billion in 2009-10 from future lottery profits. The budget agreement relies on this “securitization” of future lottery revenues.
Proposition 1D would temporarily redirect a significant portion of funds raised by Proposition 10 for early childhood development programs, now known as the First 5 Program. The ballot measure would make changes in allocation requirements for the state's commission.
Proposition 1E would allow for the temporary redirection of some Proposition 64 funds that currently support mental health services.