California Proposition 10, Early Childhood Cigarette Tax Initiative (1998)
| California Proposition 10 | |
|---|---|
 | |
| Election date November 3, 1998 | |
| Topic Tobacco and Taxes | |
Status Approved | |
| Type Amendment & Statute | Origin Citizens |
California Proposition 10 was on the ballot as a combined initiated constitutional amendment and state statute in California on November 3, 1998. It was approved.
A "yes" vote supported authorizing an additional $0.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products to fund early childhood programs. |
A "no" vote opposed authorizing an additional $0.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products to fund early childhood programs. |
Aftermath
Change proposed in 2009
In 2009, California voters decided California Proposition 1D (May 2009). Proposition 1D was defeated. If it had passed, it would have taken some of the funds that under Proposition 10 are devoted to early childhood education and put those funds into the state's unrestricted general fund.
Change proposed in 2011
In early March 2011, the California State Legislature was expected to vote on a budget that would take $1 billion from Proposition 10 funds and have the money go to Medi-Cal's healthcare programs for children aged 5 and under.[1]
Proposition 10 funds are divided between 58 county "First Five" commissions and a statewide commission. The 58 county commissions get 80% of the total revenue generated by the Proposition 10 tax, while the state commission receives 20% of the revenue.
The 2011 budget proposal to take $1 billion of Prop 10 funds for Medi-Cal would take $50 million from the state commission and $950 million from the 58 county commissions. The 20 smallest "First Five" county commissions would be excluded from the funding shift. However, under the budget proposal, each of the 38 larger "First Five" county commissions would have until June 30, 2012, to transfer 50% of their fund balances to the state government.
As of the end of 2010, the cumulative balance in the county commission funds stood at $1.9 billion.[1]
Election results
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California Proposition 10 |
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|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
4,044,126 | 50.50% | ||
| No | 3,964,008 | 49.50% | ||
Overview
Proposition 10 imposed additional tax on cigarettes of 50 cents/pack, as well as additional taxes on other tobacco products. With the revenue from those taxes, the state government created state and county commissions to establish early childhood development and smoking prevention programs. These are known as First 5 agencies.
As of 2009, Proposition 10 was generating about $500 million a year in taxes.[2]
Text of measure
Ballot title
The ballot title for Proposition 10 was as follows:
| “ | ” |
Ballot summary
The ballot summary for this measure was:
| “ |
-Creates state commission to provide information and materials and to formulate guidelines for establishment of comprehensive early childhood development and smoking prevention programs. -Creates county commissions to develop strategic plans with emphasis on new programs. -Creates trust fund for these programs. Funding for state and county commissions and programs raised by additional $.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products. -Funds exempt from Proposition 98 requirement that dedicates portion of general tax revenues to schools. | ” |
Full Text
The full text of this measure is available here.
Fiscal impact
The official estimate of net state and local government fiscal impact from the California Legislative Analyst's Office was:[3]
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Support
Supporters
- Rob Reiner, chairman of I Am Your Child Campaign[3]
- Dr. Alan Henderson, president American Cancer Society[3]
- John D'Amelio, president California School Boards Association[3]
Official arguments
The official arguments in support of Proposition 10 can be read here.
Opposotion
Opponents
- Jane Armstrong, state chairman, Alliance of California Taxpayers & Involved Voters[3]
- Helen Rutkowski, member of Westminster School Board[3]
- Dr. Ken Williams, family physician[3]
Official arguments
The official arguments in opposition to Proposition 10 can be read here.
Background
Other cigarette taxes
- California has had a 12-cent-per-pack tax on cigarettes for several decades. The income from this tax goes into the state's unrestricted general fund.
- California Proposition 99 (1988). This measure added a 25-cent-per-pack tax on cigarettes. The money collected from the Proposition 99 tax goes to fund tobacco-related health education and disease research, hospital care for the indigent, and park and wildlife restoration.
- The federal government taxes each pack of cigarettes sold in California at sixty cents, effective April 2009.
Path to the ballot
In California, the number of signatures required for a combined initiated constitutional amendment and state statute is equal to 8 percent of the votes cast at the preceding gubernatorial election. For initiated amendments filed in 1998, at least 693,230 valid signatures were required.
See also
External links
Footnotes
- ↑ 1.0 1.1 Yuba Net, "Legislature looks to take $1B from First 5, bypass voters," March 10, 2011
- ↑ Contra Costa Times, "Perata's cigarette tax measure finds First 5 foes," November 17, 2009
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 University of California, Voter Guide," accessed April 23, 2021
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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