California Proposition 10 (1998)
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California Proposition 10 was on the November 3, 1998 election ballot in California as an initiated constitutional amendment, where it was narrowly approved. Proposition 10 was known by its supporters as the California Children and Families First Act of 1998.
Proposition 10 imposed additional tax on cigarettes of 50 cents/pack, as well as additional taxes on other tobacco products. With the revenue from those taxes, the state government created state and county commissions to establish early childhood development and smoking prevention programs. These are known as First 5 agencies.
Proposition 10 won narrowly after a hard-fought campaign where its unsuccessful opponents spent about $30 million to defeat it versus the slightly less than $10 million spent by its supporters.
As of 2009, Proposition 10 was generating about $500 million a year in taxes.[1]
Change proposed in 2009
California state budget problems in 2009 led to the California State Legislature putting California Proposition 1D (May 2009) on the ballot. Proposition 1D failed, but if it had passed, it would have taken some of the funds that under Proposition 10 are devoted to early childhood education and put those funds into the state's unrestricted general fund.
Election results
| California Proposition 10 (1998) | ||||
|---|---|---|---|---|
| Votes | Percentage | |||
YES 
| 4,044,126 | 50.50% | ||
| No | 3,964,008 | 49.50% | ||
| Total votes | 8,008,134 | 100% | ||
Other cigarette taxes
- California has had a 12-cent-per-pack tax on cigarettes for several decades. The income from this tax goes into the state's unrestricted general fund.
- California Proposition 99 (1988). This measure added a 25-cent-per-pack tax on cigarettes. The money collected from the Proposition 99 tax goes to fund tobacco-related health education and disease research, hospital care for the indigent, and park and wildlife restoration.
- The federal government taxes each pack of cigarettes sold in California at sixty cents, effective April 2009.
- A California Tobacco Tax for Cancer Research Act (2010) is under consideration. This would tax cigarettes at $1.00-per-pack.
Ballot language
The ballot label was "State and County Early Childhood Development Programs. Additional Tobacco Surtax. Initiative Constitutional Amendment and Statute".
The ballot title was "Creates state and county commissions to establish early childhood development and smoking prevention programs. Imposes additional taxes on cigarettes and tobacco products."
The official summary was:
- Creates state commission to provide information and materials and to formulate guidelines for establishment of comprehensive early childhood development and smoking prevention programs.
- Creates county commissions to develop strategic plans with emphasis on new programs.
- Creates trust fund for these programs. Funding for state and county commissions and programs raised by additional $.50 per pack tax on cigarette distributors and equivalent increase in state tax on distributed tobacco products.
- Funds exempt from Proposition 98 requirement that dedicates portion of general tax revenues to schools.
The official estimate of net state and local government fiscal impact from the California Legislative Analyst's Office was:
- Raises new revenues of approximately $400 million in 1998-99 and $750 million annually thereafter for the California Children and Families First Program, to be allocated primarily to new state and county commissions for early childhood development programs.
- Results in reduced revenues for Proposition 99 health care and resources programs of about $18 million in 1998-99 and $7 million annually thereafter.
- Results in increased state General Fund revenues of about $2 million in 1998-99 and $4 million annually thereafter. Results in increased county General Fund revenues of about $3 million in 1998-99 and $6 million annually thereafter.
- Potential unknown long-term savings in state and local health, education, and other programs.
Campaign spending
Supporters
Supporters of Proposition 10 spent $9,046,683. The top contributors to the campaign to pass Proposition 10 were:
- Stephen Bing: $1,800,000.
- Rob Reiner: $1,447,500
- Ron Burkle: $1,035,000
- Estelle Reiner: $1,025,000
- Haim Saban: $500,000
- American Cancer Society: $544,330
- Jerry Perenchio: $350,000
- Forum for Early Childhood Development: $295,000
- Michael Huffington: $109,087
- National Center for Tobacco Free Kids: $100,000
- Steven Spielberg: $100,000
- Richard Scruggs: $100,000
Opponents
Opponents of Proposition 10 spent $29,783,512. Top contributors to the effort to defeat Proposition 10 were:
- Phillip Morris: $20,967,557
- Brown & Williamson: $5,039,056
- Lorillard Tobacco: $2,835,489
- R.J. Reynolds Tobacco: $738,024
- U.S. Tobacco Company: $294,485
- Tobacco Institute PAC: $236,600
- Brown & Williamson Employee PAC: $140,000
- RJR Nabisco: $50,000
External links
- Official California Voter Guide to Proposition 10
- Smart Voter on Proposition 10
- Full text of measure
- November 3 California proposition election results (Scroll to page 12.)
- Top Ten Contributors to the Proposition 10 campaign
