Attorney General No.

SA80RF0010

Secretary of State No.

246

Description

EDUCATIONAL EXPENSES CREDIT. INCOME TAX. INITIATIVE CONSTITUTIONAL AMENDMENT. Provides state income tax credit for taxpayers who pay educational expenses on behalf of California residents attending full time: (1) public or private schools, enrollment at which complies with the Compulsory Education Law; (2) institutions of higher learning where admission is conditioned upon a high school degree or equivalent. Limits credit to $1,200 per student for tax year ending December 31, 1981, with provisions for annual increases thereafter. Prohibits state from imposing on educational institutions more restrictive requirements under Compulsory Education Law than those in effect January 1, 1980. Fiscal impact on state or local governments: Allowance of the credit for individuals attending postsecondary educational institutions would reduce state income tax revenue approximately $400 million annually beginning in 1981-82. Depending on the extent the credit is applied to primary and secondary insitutions, the increase in enrollment of full time students, and the possible shift in enrollment from public to private schools, further unknown, but substantial, changes could occur in state and local revenues and costs. Reductions in state revenues would result in corresponding reductions in state payments to schools and other local governments during 1981-82.

Proponents

Mr. Manuel S. Klausner, Twenty-Sixth Floor, South Tower Atlantic Richfield Plaza, Los Angeles, Ca 90071

Date

3-4-1980

Document Type

Initiative

Qualified

Failed to Qualify

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