League of Women Voters defines propositions
PROPOSITION LL
Retain and Spend State Tax Revenue Exceeding the Estimate for Proposition FF
SUMMARY
This ballot measure, a “retention measure” (TABOR override measure), asks voters to allow the state to retain $12.4 million in excess revenue collected under provisions of the 2022 Proposition FF (Healthy School Meals for All.) It allows the state to keep the caps on tax deductions where they are for taxpayers reporting annual income of $300,000 or more, without making any adjustment to eliminate future excess revenue. Tax deductions for taxpayers reporting income of $300,000 or more are currently capped at $12,000 for single filers and $16,000 for joint filers. Retained revenue and revenue collected in the future would be spent on the Healthy School Meals for All Program.
In 2022, voters approved Proposition FF, which created a revenue stream to fund school meals for all students, regardless of need, by capping tax deductions for higher-income taxpayers. The revenue collected during the 2023-2024 fiscal year surpassed the projection defined in the ballot measure that was approved. Therefore, according to TABOR, the excess must be returned to taxpayers unless voters authorize the override via a new ballot measure. Also, the limitations on tax deductions defined in Proposition FF must be adjusted to reduce future revenue to prevent excess collection, unless voters approve an override of this TABOR provision as well.
WHAT THE PROPOSITION DOES
Proposition LL allows the state to keep and spend $12.4 million in tax revenue, including interest, that has been collected under Proposition FF for the Healthy School Meals for All Program, rather than refunding it to households earning $300,000 or more annually.
It also maintains current tax deduction limits for households earning $300,000 or more annually, which are currently scheduled to change to lower the taxes paid by these households.
A YES VOTE MEANS
The state keeps and spends $12.4 million in tax revenue that has already been collected for the Healthy School Meals for All Program, and maintains current taxes on households earning $300,000 or more; local food purchasing, employee wages, and technical assistance, elements of the Healthy School Meals for All Program, will continue.
A NO VOTE MEANS
The state will refund $12.4 million to households earning $300,000 or more annually, deduction limits will change, as scheduled, under current law, and lower taxes will be paid by these households. Less money will be available for school meals.
PROPOSITION MM
Tax Deductions and Revenue for School Meals Measure
SUMMARY
This ballot measure, an “expansion measure,” will ask voters to permit the state to raise an additional $95 million annually to fully fund the Healthy School Meals for All Program by further reducing the limits on tax deductions for households reporting annual income of $300,000 or more. Currently, under provisions put in place by Proposition FF, those higher-income taxpayers have tax deductions capped at $12,000 for single filers and $16,000 for joint filers, increasing the amount they pay in income tax to fund the school meals program.
If successful, this provision will reduce the amount these taxpayers may deduct even further, resetting tax deduction caps at $1,000 for single filers and $2,000 for joint filers. Increased income tax revenue collected under this measure will go to the Healthy School Meals for All Cash Fund, and money will be allocated using conditional formulas based on amounts remaining in the Fund.
BACKGROUND
See Proposition FF under Proposition LL
WHAT THE PROPOSITION DOES
It increases state income taxes paid by households earning $300,000 or more annually. New tax revenue will provide funding for the Healthy School Meals for All Program, which offers free breakfast and lunch to all students at participating public schools, and the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance to low-income households.
A YES VOTE MEANS
State income taxes for households earning $300,000 or more annually will increase, which will be used to fully fund free school meals to all public school students, and implement previously approved local food purchasing, employee wages and technical assistance — elements of the Healthy School Meals for All Program. Any surplus will help to fund SNAP.
A NO VOTE MEANS
State income taxes for households earning $300,00 or more annually will not change, and the state will only be required to reimburse local school food authorities in school districts with the highest concentrations of poverty.
