Attorney General No.


Secretary of State No.



EDUCATIONAL TAX CREDIT. INITIATIVE STATUTE. Grants state income tax credit for specified educational expenses including costs of instruction, textbooks or transportation on behalf of students attending grades kindergarten through twelve in public and most private schools in California. Provides tax credit for contributions to qualifying schools on students' behalf. Tax credit varies depending upon whether payment is for expenses or contributions, or on behalf of dependents or non-dependents. Maximum credit for payment of expenses on behalf of each dependent is $100 in 1988, increasing $200 each year until equals 25% of average annual cost per student in public schools. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: If adopted in November 1988, would result in unknown loss of state revenue, probably in excess of $100 million in 1988-89. This revenue loss would increase to several hundred million dollars in subsequent years as the maximum tax credit increases under the measure from $100 per student to an estimated $1,000 per student. The Franchise Tax Board will incur unknown administrative costs which are estimated to be in the range of $500,000 in 1988-89, including start-up expenses. However, annual ongoing administrative costs probably would be less than $150,000, depending on taxpayer participation. Unknown state cost savings may result if the tax incentives result in fewer K-12 students attending public schools.


Manuel S. Klausner Californians For Quality Education, 1020 Second Street Suite B, Encinitas, California 92024 (619) 753-9192 (619) 753-8359



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