FUNDING FOR K-12 EDUCATION AND VOLUNTARY UNIVERSAL PRESCHOOL PROGRAM. COMMERCIAL PROPERTY TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

FUNDING FOR K-12 EDUCATION AND VOLUNTARY UNIVERSAL PRESCHOOL PROGRAM. COMMERCIAL PROPERTY TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Provides additional funding for K-12 public education; establishes voluntary universal preschool program. Funds provided through additional taxes on commercial real property and commercial residential rental property that produces income. Creates state fund and allocates monies: 2/3 for kindergarten through 12th grade, including class size reduction, textbooks, teacher salaries, benefits and training; 113 for voluntary universal preschool. Prohibits using funds for administrative costs as specified. Requires annual audits. Provides small business personal property tax exemption; reimburses state/local government to offset revenue decrease. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Additional property taxes on income-producing property of approximately $6 billion annually (net), beginning in 2005-06. These revenues would be used for state-funded universal preschool and specified K-12 education purposes