This measure adds a new section to the Constitution permanently increasing the statewide SUT rate by one cent—from 7.25 percent to 8.25 percent—starting January 1, 2010. The revenues generated by the one-cent increase in the statewide SUT would be deposited into a new, constitutionally established Public School Investment and Accountability Fund. Under the measure, the special fund monies received by K-12 school districts must supplement, not substitute for, existing state funding and be used exclusively to support “instructional improvement and accountability” activities. Similarly, CCC districts must use the new special fund monies to supplement existing state funding and may not use funds to cover administrative costs. The measure directs the State Controller to distribute funds on a monthly basis and requires school and CCC districts to conduct an annual independent audit showing how they spent their special fund monies.