July 2020

Proposition 98 Overview

Proposition 98 Key Inputs and Outcomes Under 2020-21 Budget Package

(Dollars in Millions)

  2018-19 Final 2019-20 Revised 2020-21 Estimated
Minimum Guarantee      
General Fund $54,746 $52,656 $45,066
Local property tax 23,776 25,022 25,824
   Totals $78,522 $77,678 $70,890
Change From Prior Year      
General Fund $1,794 -$2,090 -$7,590
   Percent change 3.4% -3.8% -14.4%
Local property tax $1,152 $1,246 $802
   Percent change 5.1% 5.2% 3.2%
Total funding $2,946 -$844 -$6,788
   Percent change 3.9% -1.1% -8.7%
General Fund Tax Revenuea $143,523 $138,685 $118,666
Growth Rates      
K-12 average daily attendance -0.6% -0.4% -0.6%
Per capita personal income (Test 2)b 3.7% 3.9% 3.7%
Per capita General Fund (Test 3)c 6.7% -3.1% -14.4%
Operative Test 1 1 1
       
Notes: No maintenance factor obligation is created or paid over the period. The Proposition 98 Reserve has a balance of zero throughout the period.
a Excludes nontax revenues and transfers, which do not affect the calculation of the guarantee.
b Reflects change in per capita income during the previous fiscal year.
c Reflects change in per capita General Fund plus 0.5 percent.