AirTalk for May 13, 2009

Props 1D and 1E

Proposition 1D would authorize a fund-shift of $268 million in annual tobacco tax revenue currently earmarked for "First Five" early childhood development programs to pay for other state government health and human services programs that serve children, including Medicaid, foster care, child care subsidies, and preschool programs. Money for these programs currently comes from the state general fund. Proposition 1E is basically the same strategy, but it would authorize a shift of $230 million annually in income tax surcharge revenue currently earmarked for mental health programs under the terms of California Proposition 63, approved in 2004, also known as the Mental Health Services Act. Both are attempts to make up for the huge projected deficit in the state budget by diverting earmarked funds into the general fund. Larry gets the details on both.


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