Preschool Education. Tax on Incomes Over $400,000 for Individuals; $800,000 for Couples.

Preschool Education. Tax on Incomes Over $400,000 for Individuals; $800,000 for Couples. Initiative Constitutional Amendment and Statute. • Establishes a right to voluntary preschool for all four-year old children. • Funded by a 1.7% tax on individual incomes above $400,000; $800,000 for couples. • Administered by the state Superintendent of Public Instruction and county school superintendents. • Directs counties to prepare reports on curricula, outreach, facilities, childcare coordination, budgeting, teacher recruitment and pay. • Limits administrative expenses; requires program audits. • Requires state Superintendent to develop a preschool teaching credential with financial aid for credential students. • Excludes revenue from appropriation limits, Proposition 98 calculations. Summary of Legislative Analyst’s Estimate of Net State and Local Government Fiscal Impact: • Increased state revenues of about $2.1 billion in 2007–08, growing annually with the economy to around $2.6 billion in 2010–11, when the preschool program would be open to all 4-year olds in the state. • Revenues would be used solely for new state preschool program and would be spent to run the program, pay for facilities, train teachers, and provide an operating reserv