Jarrell Cook

LAO releases analysis of the split roll ballot initiative

By Jarrell Cook, Associate Policy Director

Capitol Update, Feb. 14, 2018 Share this on FacebookTweet thisEmail this to a friend

On February 5, the Legislative Analyst’s Office released its fiscal impact estimate of the proposed ballot initiative, “The California Schools and Local Communities Funding Act of 2018” (A.G. File No 17-0055, Amendment No. 1), which would raise taxes on commercial and industrial properties.

The LAO notes that the proposal would likely increase state tax revenue by $6.5-10 billion dollars annually, which would be used to decrease personal and corporate income tax revenue by several hundred million dollars and then allocated to local governments and schools.

The LAO identifies that the measure has an uncertain effect on the health of the state’s economy; acknowledging that the proposal would likely increase the costs of operating in California for many businesses and, thus, influence their decisions to invest in the state or move elsewhere.

The LAO’s full analysis may be found here.

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