reconvene regular meeting: 7:00 pm - Irvine Unified School District

Proposition 47
The Class Size Reduction Kindergarten - University Public Education Facilities Bond Act of 2002
(“Proposition 47”) appeared on the November 5, 2002 ballot as Proposition 47 and was approved by the
California voters. This measure authorizes the sale and issuance of $13.05 billion in general obligation
bonds for construction and renovation of K-12 school facilities ($11.4 billion) and higher education
facilities ($1.65 billion). Some or all of the Participants have or are expected to receive funding from
Proposition 47.
Proposition 55
On March 2, 2004, the voters of the State approved Proposition 55, the Kindergarten-University
Public Education Facilities Bond Act of 2004. The act provides for a bond issue of $12.3 billion to fund
education facilities and repair older schools in the State. Some or all of the Participants have or are
expected to receive funding from Proposition 55.
Article XIII C and Article XIII D
On November 5, 1996, the voters of the State approved Proposition 218, also known as the “Right
to Vote on Taxes Act.” Proposition 218 added Articles XIII C and XIII D to the State Constitution to
require majority voter approval for the imposition, extension or increase of general taxes and two-thirds
voter approval for the imposition, extension or increase of special taxes by a local government, which is
defined in Proposition 218 to include counties. Among other things, Article XIII C establishes that every
tax is either a “general tax” (imposed for general governmental purposes) or a “special tax” (imposed for
specific purposes); prohibits special purpose government agencies such as school districts from levying
general taxes except as allowed by Article XIII A; and prohibits any local agency from imposing,
extending or increasing any special tax beyond its maximum authorized rate without a two-thirds vote.
Article XIII D also provides that no tax may be assessed on property other than ad valorem property taxes
imposed in accordance with Articles XIII and XIII A of the California Constitution and special taxes
approved by a two-thirds vote under Article XIII A, Section 4.
Article XIII C also expressly extends the initiative power to give voters the power to reduce or
repeal local taxes, assessments, fees and charges, regardless of the date such taxes, assessments, fees or
charges were imposed, and reduces the number of signatures required for the initiative process. Generally,
the initiative process enables California voters to enact legislation upon obtaining requisite voter approval
at a general election. Proposition 218 extends the authority stated in Rossi v. Brown by expanding the
initiative power to include reducing or repealing local taxes, assessments, fees and charges, which had
previously been considered administrative rather than legislative matters and therefore beyond the initiative
power.
Proposition 1A
Proposition 1A (SCA 4) (“Proposition 1A”), proposed by the Legislature in connection with the
2004-05 Budget Act and approved by the voters in November 2004, provides that the State may not reduce
any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the
allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A generally prohibits the
State from shifting to schools or community colleges any share of property tax revenues allocated to local
governments for any fiscal year, as set forth under the laws in effect as of November 3, 2004. Any change
in the allocation of property tax revenues among local governments within a county must be approved by
two-thirds of both houses of the Legislature. Proposition 1A provides, however, that beginning in Fiscal
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