The State Legislative Analyst’s Office is calling into question the legality of Gov. Brown’s proposal to count new revenue from Proposition 39 toward funding for education. In a report released Thursday, the LAO warns that the governor’s plan for the initiative, the California Clean Energy Jobs Act, violates the intent of the law.
Proposition 39, which won with 61 percent vote last November, is projected to raise up to half a billion dollars in revenue this fiscal year and as much as a billion per year starting next year for clean energy projects. It does this by changing the tax formula for multistate corporations doing business in California to one used by most other states.