| Proposition 55 | |
| Tax Extension for Education and Healthcare | |
| Yes: | 8594273 |
| No: | 4988329 |
| Total: | 14610509 |
| Electorate: | 19411771 |
| Map: | 2016 California Proposition 55 results map by county.svg |
| Notes: | Source: California Secretary of State[1] |
Proposition 55 is a California ballot proposition that passed on the November 8, 2016 ballot, regarding extending by twelve years the temporary personal income tax increases enacted in 2012 on earnings over $250,000, with revenues allocated to K–12 schools, California Community Colleges, and, in certain years, healthcare.[2] Proposition 55 will raise tax revenue by between $4 billion and $9 billion a year.[3] Half of funds will go to schools and community colleges, up to $2 billion a year would go to Medi-Cal, and up to $1.5 billion will be saved and applied to debt.[3]
California voters passed temporary sales and income tax increases with Proposition 30 in 2012.[4] During the temporary tax, California's top 1% of earners paid half of the state's income-taxes and contributed one third of its budget.[4] Since the 2012 tax increase, California's tax revenues have grown by nearly 30%, with roughly two thirds of the money going to schools.[4]
Proposition 55 allowed the sales tax increase to expire as planned, while maintaining the increased income tax rates and extended them through 2030.[4] Governor Jerry Brown, who was the primary proponent of the tax increase in 2012, remained neutral on Proposition 55.[5]
Proponents spent $58.6 million fighting for the measure, with the top donor being $25 million from a hospital trade association.[3] An additional $20 million was donated by the California Teachers Association, with other top donors including the Service Employees International Union, and the California School Employees Association.[3] The measure was supported by the editorial boards of The Sacramento Bee[6] and The Mercury News.[7]
Opponents spent $3,000 fighting against the measure.[3] The California Chamber of Commerce, who were neutral on the 2012 tax increase, opposed Proposition 55.[5] The measure was opposed by the editorial boards of the Los Angeles Times,[8] the San Francisco Chronicle,[9] and The Wall Street Journal.[4]
A September 2016 poll by the Public Policy Institute of California showed that 54% of likely voters supported Proposition 55, 38% opposed it, and 8% did not know how they would vote.[10]
Proposition 55 was approved by voters in the November general election, with 63% voting yes.[11]