California Proposition 63 (2004)

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Proposition 63 was a proposition in the state of California on the November 2, 2004 ballot. The ballot measure was officially known as the Mental Health Services Act. It passed with 6,191,691 (53.8%) votes in favor and 5,337,216 (46.2%) against.

It was an initiative statute that levied an additional 1% tax on incomes of $1,000,000 or greater to fundamental health service programs beginning January 1, 2005. Approximately 25,000 to 30,000 taxpayers were to be directly affected by the tax, generating an estimated $750 million in revenue during fiscal year 2005-06. At the time of the election, California income tax rates ranged from 1% to 9.3%, depending on a taxpayer's income level.

[edit] Official summary

Provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults and seniors.
Requires state to develop mental health service programs including prevention, early intervention, education and training programs.
Creates commission to approve certain county mental health programs and expenditures.
Imposes additional 1% tax on taxpayers' taxable personal income above $1 million to provide dedicated funding for expansion of mental health services and programs.
Prohibits state from decreasing funding levels for mental health services below current levels.

Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:

Additional state revenues of about $275 million in 2004-05 (partial year), $750 million in 2005-06, $800 million in 2006-07, and probably increasing amounts annually thereafter, with comparable annual increases in expenditures by the state and counties for the expansion of mental health programs.
Unknown state and local savings from expanded county mental health services that partly offset the cost of this measure, potentially amounting to as much as the low hundreds of millions of dollars annually.