The Schools and Communities First (SCF) initiative could mean another $4.5 billion annually for public education — $11 billion in total for public services — if California voters approve the tax fairness proposition in 2020. But first, CTA and other supporters need to qualify it for the ballot by gathering about 1.4 million signatures, starting at the end of October.

“SCF CLOSES A LOOPHOLE IN PROPOSITION 13 TO ENSURE THAT BIG CORPORATIONS PAY THEIR FAIR SHARE OF PROPERTY TAXES TO SUPPORT PUBLIC EDUCATION AND LOCAL COMMUNITY SERVICES.”

—CTA President E. Toby Boyd

SCF, officially known as the California Schools and Local Communities Funding Act of 2020, is a vital initiative that will help California students, workers and businesses meet today’s challenges while strengthening protections for homeowners and residential property. It addresses the impact of Proposition 13, passed in 1978, which saw California’s approach to taxing commercial and industrial property starve funding for schools and local communities, disadvantage small and startup businesses, and exacerbate the state’s housing crisis.

As the state reduced property taxes, California’s national ranking Put Schools and Communities First in per-pupil spending dropped from near the top to near the bottom. Over time, homeowners’ share of state property taxes has risen to more than 70 percent, while businesses continue to pay low property taxes based on their original assessment.

“SCF closes a loophole in Proposition 13 to ensure that big corporations pay their fair share of property taxes to support public education and local community services,” says CTA President E. Toby Boyd. “It raises up to $11 billion for schools and communities every year and doesn’t impact homeowners or renters.”

The initiative previously qualified for the 2018 ballot, but supporters opted to wait until the November 2020 general election. This meant some revisions needed to be made to the implementation timeline language as well as some other technical adjustments. None of the adjustments change the intent of the initiative. The revised SCF has already gathered more than 400 endorsements.

SCF will restore more than $11 billion every year for public schools and local communities by assessing commercial and industrial property at fair-market value. It will not raise taxes on homeowners or renters. Agricultural land will continue to be assessed the way it is now. The initiative also helps small businesses by eliminating the burdensome personal property tax. Knowing that our public funds need to be used responsibly, SCF has transparency and accountability safeguards to ensure the resources get to the public schools and communities that need them.

“Investing in public education, dollar for dollar, grows the economy more than tax cuts and corporate subsidies,” says Boyd. “The Schools and Communities First initiative is the next step in bringing much-needed funding to our schools, colleges and communities.”

The passage of Prop. 13 marked a watershed moment for California and the country, launching a fierce anti-tax and anti-government movement. This disinvestment has caused a perpetual funding crisis for schools and local communities, starved much-needed resources for education, housing and transportation, and led to regressive tax policies, making a disproportionate impact on communities of color and low-income families, and fueling racial and economic inequality in California.

“The Prop. 13 impacts have been multigenerational,” says Boyd. “We now have the opportunity, coalition and movement to make significant changes for the next generation. It is up to us — and together, we can make it happen.”

Find out more about the SCF initiative and CTA Tax Fairness.