Calif. Cuts Property Taxes, Changes School Funding

1978

Proposition 13 is a state constitutional amendment that reduces property tax rates by 57 percent. Because a considerable portion of school budgets are funded with local property taxes, the state of California responds by increasing state funds for schools. The change in funding results in a reduction of overall education spending of between 9 percent and 15 percent. The state’s education spending goes from among the top 10 states to the bottom 10. This change sparks a nationwide debate concerning the benefits of local vs. state funding of schools.