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May 2020

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under May Revision

(Dollars in Millions)

  2018-19 2019-20 2020-21
Minimum Guarantee      
General Fund $54,746 $52,352 $44,872
Local property tax 23,994 25,022 25,618
   Totals $78,740 $77,374 $70,490
       
Change From Prior Year      
General Fund $1,794 -$2,394 -$7,480
   Percent change 3.4% -4.4% -14.3%
Local property tax $1,369 $1,028 $596
   Percent change 6.1% 4.3% 2.4%
Total guarantee $3,164 -$1,366 -$6,884
   Percent change 4.2% -1.7% -8.9%
       
Inputs      
General Fund taxesa $143,523 $137,892 $118,158
K-12 average daily attendance 5,922,164 5,895,591 5,858,752
       
Growth Factors      
Per capita personal income 3.7% 3.9% 3.7%
Per capita General Fundb 6.7% -3.6% -14.3%
K-12 average daily attendance -0.6% -0.5% -0.6%
       
Outcomes      
Proposition 98 operative "test" 1 1 1
Maintenance factor:      
   Amount created/paid (+/-) $0 $0 $0
   Amount outstanding 0 0 0
Proposition 98 Reserve:      
   Deposit/withdrawal (+/-) $0 $0 $0
   Balance 0 0 0
Supplemental obligation createdc - $3,710 $9,273
       
a Reflects General Fund revenue that affects the calculation of the minimum guarantee.
b Reflects per capita General Fund plus 0.5 percent (one of the Test 3 factors).
c The May Revision proposes to create a supplemental funding obligation equal to the difference between the Test 1 and Test 2 funding levels in 2019-20 and 2020-21. The state would pay off this obligation in installments beginning in 2021-22.