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EQUITY IN STATE SCHOOL SUPPORT

A D issertatio n P resented to the F a c u lty of the School of E d u catio n U n iv e rs ity of Southern C a lif o rn ia

In P a r t i a l F u lf illm e n t o f th e R e q u irem en ts f o r th e D egree D octor of E d u c a tio n

by L i o n e l De S i l v a M a rch 1 9 4 2

UMI Number: DP25696

All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.

D is s e tta lo rt Ryfeiisteng

UMI DP25696 Published by ProQuest LLC (2014). Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code

ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346

,

This dissertation written under the direction of the Chairman of the candidate’s Guidance Committee and a pprov ed by all members of the Committeej has been presented to and accepted by the Faculty of the School of Education in partial fulfillment of the requirements for the degree of D octor of Education.

Dean Guidance Committee

Osman R. H ull Chairman

W.

a. Campbell

C. C. Crawford A. S . Raubenheimer M. M. Thompson

ACKNOWLEDGMENTS G r a t e f u l a c k n o w l e d g m e n t i s made t o t h e m an y who c o n ­ t r i b u t e d to w a rd s m aking t h i s s t u d y p o s s i b l e . Among t h e s e a r e o f f i c i a l s o f t h e S t a t e o f C a l i f o r n i a , who g e n e r o u s l y s u p p l i e d d a t a n o t o r d i n a r i l y o b t a i n a b l e , a n d who o f f e r e d v a l u e d a d v i c e and c r i t i c i s m s . P given by tistic s, a n d made retu rn s•

a r t i c u l a r m e n t i o n m u s t b e made o f t h e a s s i s t a n c e DeW itt K ru e g e r, C h i e f , D i v i s i o n o f R e s e a rc h and S t a ­ S t a t e B o a r d o f E q u a l i z a t i o n , who f u r n i s h e d much d a t a , v a l u a b l e s u g g e s ti o n s f o r m ethods o f e s t i m a t i n g t a x

O t h e r s who h e l p e d m a t e r i a l l y , w e r e W a l t e r E . M o r g a n , A s s i s t a n t S u p e r in te n d e n t, S t a te D epartm ent o f E d u c a tio n ; M a r g u e r i t e N. K e e l e r , A s s i s t a n t S t a t i s t i c i a n , F r a n c h i s e T a x C om m issioner; S. G u n d e lf in g e r , S ta te m e n t A n a l y s t , D i v i s i o n o f I n s u r a n c e ; J a m e s M. C a r t e r , D i r e c t o r , D i v i s i o n o f M o t o r V e h i ­ c l e s ; and Floyd C louse, C h ief A ccounting O f f i c e r , O ffic e of the C o n tr o lle r . A cknow ledgm ents w ould n o t be c o m p l e t e w i t h o u t r e c o g n i ­ t i o n o f t h e s t i m u l a t i o n a n d w i s e c o u n s e l o f D r , Osman R. H u l l , u n d e r w h o s e g u i d a n c e t h i s s t u d y wa s d o n e . W hatever c o n t r i b u ­ t i o n t h i s s t u d y m ak e s, c a n be a t t r i b u t e d to t h e wisdom o f t h i s go o d t e a c h e r , n o t o n l y d u r i n g t h e c o u r s e o f t h e i n v e s t i g a t i o n , but through years of g rad u ate stu d y . T h a n k s m u s t a l s o go t o D r . D. W e l t y L e f e v e r , w h o , w h i l e n o t a m em ber o f t h e C o m m i t t e e , c o n t r i b u t e d h e l p f u l a d v i c e a n d criticism . L a s t l y , c r e d i t m u s t go t o my w i f e , H e l e n , w i t h o u t w h o s e e n c o u r a g e m e n t t h i s s t u d y would n e v e r have b e g u n .

L i o n e l De S i l v a M a r c h 1942

TABLE OF CONTENTS CHAPTER I. II. III.

PAGE

THE PROBLEM........................... THE SUPPORT OF EDUCATION IN CALIFORNIA.......................

VI.

V II.

72

THE TAX-PAYING ABILITY OF CALIFORNIA COUNTIES.

V.

23

THE TAX BURDEN IMPOSED BY ALTERNATIVE PLANS OF SUPPORT..............................

IV.

1

...................................................................

104

FISCAL ADEQUACY OF SELECTED TAXES .................................

153

THE RELATIVE EQUITY OF ALTERNATIVE PLANS OF SUPPORT........................................................................

175

SUMMARY AND CONCLUSIONS..........................................................

199

/BIBLIOGRAPHY..............................................................................................................

213

APPENDIX A...................................................................................................................

218

APPENDIX B ...................................................................................................................

220

L IST OF TABLES

Taxes and L ic e n se Fees C o lle c te d f o r G e n e r a l Fund P u r p o s e s ,

1937-38

• • • • • • •

R e t a i l S a l e s a n d Use Tax C o l l e c t e d b y 1 9 3 7 - 3 8 ...................................................................

34

R a te S c h e d u le o f P e r s o n a l Income Tax • • • • .

36

C ounties,

P e r s o n a l Income Tax C o l l e c t e d b y C o u n ties,

1 9 3 7 - 3 8 ...................................................................

38

E s t i m a t e d Bank and C o r p o r a t i o n Income Tax C o l l e c t e d b y C o u n t i e s ,

1937-38

• • • . •

45

E s tim a te d A lc o h o lic Beverage Fees and Taxes C o lle c te d by C o u n tie s, R ate S c h e d u le o f I n h e r i t a n c e

1937-38 .

. .

.

Tax • • • • • • •

52 53

I n h e r i t a n c e Tax C o l l e c t e d b y C o u n ties,

1 9 3 7 - 3 8 ...................................................................

55

D is tr ib u tio n of C lasses of In su ran ce in C alifo rn ia,

1937.

• • • • • • • • • • • •

58

E s t i m a t e d I n s u r a n c e P r e m iu m Tax C o lle c te d by C ounties,

1937-38

• • • • • • •

60

E s t i m a t e d M o t o r V e h i c l e f,I n L i e u 1* T ax C o lle c te d by C o u n ties,

1 9 3 7 - 3 8 ...............................

62

E s t i m a t e d M o t o r T r a n s p o r t a t i o n Tax C o lle c te d by C o un ties,

1937-38

...............................

64

Amount a n d P e r c e n t a g e o f T o t a l T a x e s Paid by C o u n tie s,

1937-38.

.

.

...............................

67

V

L I S T OF TABLES ( c o n t i n u e d ) TABLE

PAGE

XIV. M e a s u r e s o f A v e r a g e C o s t o f E d u c a t i o n in C alifo rn ia XV.

........................................

Number o f E l e m e n t a r y S c h o o l s ,

75

D istricts

Average D a ily A tte n d a n c e by C o u n tie s , XVI.

Num ber o f H i g h S c h o o l D i s t r i c t s

X V III.

1937-38.

E s t i m a t e d C o s t o f Minimum P r o g r a m ,

• •

1937-38 •

..........................

XX I.

S t a t e A p p ortionm ents b y C o u n tie s ,

1937-38.

XXIV.

.

96

.

98

o f Minimum P r o g r a m u n d e r P l a n C..........................

101

A m o u n ts C o n t r i b u t e d b y C o u n t i e s f o r

A m o u n ts C o n t r i b u t e d b y C o u n t i e s f o r S u p p o r t

Summary o f E v a l u a t i o n o f T a x e s f o r 137

E s tim a te d R e tu rn s o f S e l e c te d Taxes by C ounties

XXVI.

92 95

A b i l i t y I n d e x ......................................................................... XXV.

88

.

S u p p o r t o f Minimum P r o g r a m u n d e r P l a n B. X X III.

85

P r o p e r t y Tax R a te s R e q u i r e d f o r P a r t i a l S u p p o r t o f Minimum P r o g r a m u n d e r P l a n B.

XX II.

81

A m o u n ts C o n t r i b u t e d b y C o u n t i e s f o r S u p p o r t o f Minimum P r o g r a m u n d e r P l a n A..........................

XX.

77

P r o p e r t y Tax R a t e s R e q u i r e d f o r S u p p o r t o f Minimum P r o g r a m u n d e r P l a n A

XIX .

1937-38

and A verage

D a ily A ttendance by C o u n tie s, XVII*

and

• • • • • . • • • • • • • • •

R eturns of C a li f o r n ia

14 0

I n h e r i t a n c e Tax,

1 9 3 4 - 3 5 t o 1 9 3 9 - 4 0 ...................................

144

L IST OP TABLES ( c o n t i n u e d )

T o ta l and P e r c e n ta g e o f E s tim a te d R e tu rn s o f S e l e c t e d Taxes by C o u n tie s

150

• • • • • • •

T o ta l E s tim a te d R e tu rn s o f S e l e c t e d Taxes

• .

157

E stim a te d R eturns o f Supplem entary S ta te

Taxes

166

. • • • • • • • • • • • • • • •

T o ta l E s tim a te d R e tu rn s o f S e l e c t e d and 171

S u p p le m e n ta ry Taxes . . • • • • • • • • • • E q d i t a b l e Tax B urdens o f C o u n tie s f o r S u p p o r t o f Minimum P r o g r a m .

17 7

• • • • • • • •

E q u ity R a tio s f o r C ounties u n d er A l t e r n a t i v e P l a n s o f S u p p o r t .....................................

179

Amount o f

Tax B u r d e n S h i f t e d ,

P l a n A. .

.

. .

181

Amount p f

TaxB u rd e n S h i f t e d ,

P l a n B. .

.

. .

1 84

Amount o f

Tax B urden S h i f t e d ,

P l a n C. • .

. .

186

D i s t r i b u t i o n o f E q u ity R a tio s , A ll C o u n ties

.

187

E q u i t y R a t i o s o f C o u n t i e s Ranked A ccording to T ax-P aying A b i l i t y D is tr ib u tio n of E q u ity R atio s C o u n ties.

. . . . . .

190

o f W ealthy

• • • • • • . • • • • • • • • • •

193

D i s t r i b u ti o n of E q u ity R a tio s o f Poor C o u n ties.

• • • • • • • • • • • • • • • • •

194

CHAPTER I THE PROBLEM The A m e r i c a n e d u c a t i o n a l s c e n e h a s w i t n e s s e d a l o n g s t r u g g l e t o make s c h o o l s u n i v e r s a l a n d f r e e . b a ttles

f o r the e sta b lis h m e n t of ta x

elim in a tio n of ra te b i l l s , e f f o r t to tr a n s la te p rin cip le

in to

th ere

re a lity

P ro m t h e f i r s t

su p p o rt and the

has b e e n a c o n tin u o u s th e fu n d a m e n ta l A m erican

of e q u a lity of o p p o rtu n ity ,

A dem o cratic s o c i e t y holds as e s s e n t i a l p e r p e t u a t i o n and e x t e n s i o n ,

the p r i n c i p l e

s h o u ld have e q u a l o p p o r t u n i t y to d e v e lo p f o r i n d i v i d u a l and s o c i a l p u r p o s e s . th is

id eal,

it

c o n trib u te

th at a ll

ch ild ren

th eir a b ilitie s

I n o r d e r to im plem ent

has been n e c e s s a r y to a c c e p t a c o r r e l a t i v e

p r i n c i p l e as e s s e n t i a l to o p p o rtu n ity *

to i t s

the

re a liz a tio n of e q u a lity of

T his b a s ic p r i n c i p l e

is

th a t each c itiz e n

sh all

to the su p p o rt of p u b lic e d u c a tio n i n p ro p o rtio n

to h is a b i l i t y

t o do s o ,

and w ith o u t r e g a r d

to d i r e c t m easu r­

a b l e b e n e f i t s w h i c h may o r may n o t a c c r u e t o h im b y so d o i n g * No l e s s e n te rp rise,

in ed u catio n th an in o th e r areas

of so c ia l,

has th e r e b een t h i s grow ing b e l i e f w hich has

flo w e re d from th e v i s i o n a r y c o n v i c ti o n o f e a r l y c o l o n i s t s * T o d a y , m o re t h a n e v e r , ta x w e a lth , w herever i t th ey a re .

we a c c e p t t h e p r i n c i p l e is,

to ed u cate c h ild r e n w herever

F o r once t h e p r i n c i p l e

r e s p o n s i b i l i t y was a c c e p t e d ,

t h a t we m u s t

th a t ed u catio n is a s o c ia l

p e o p le were c o n f r o n t e d w i t h t h e

2 rea lity

o f f i n d i n g m e a n s t o make i t

c o n tin u ed b o th in th e e f f o r t s the l e g i s l a t i v e

h a lls,

p o ssib le.

There has

of e d u catio n al th e o r is ts

thus

and i n

t h e s e a r c h f o r some f o r m u l a o f s c h o o l

s u p p o r t w hich would r e a l i z e

the g o a l o f e q u a l e d u c a t i o n a l

o p p o rtu n ity . As l o c a l

j u r i s d i c t i o n s began s e t t i n g

higher stan d ard s f o r e d u catio n ro se , c o rre lativ e to a b i l i t y req u ired

p ro g ressiv ely

the e d u c a tio n o f c h il d r e n ,

w ith the r e s u l t

p rin cip le

the c o sts

of

t h a t i n c r e a s i n g l y the

o f payment f o r e d u c a ti o n i n p r o p o r t i o n

t o p a y was v i o l a t e d .

Poor school d i s t r i c t s

w ere

to b e a r a r e l a t i v e l y heavy ta x burden in o rd e r to

f u r n i s h c h i l d r e n some m e a s u r e o f e q u a l i t y i n e d u c a t i o n a l o p p o rtu n ity w ith th e c h ild re n in w e a lth ie r d i s t r i c t s . As a r e s u l t o f g r o s s d i s p a r i t i e s posed upon th e v a rio u s

su b d iv isio n s

of

i n t h e b u r d e n im ­ the s t a t e ,

and w i t h

o n l y a m o d ic u m o f e q u a l i t y o f e d u c a t i o n a l o p p o r t u n i t y p r o ­ v ided,

th e re have been developed v a rio u s p a t t e r n s

fin an cin g ,

la rg e ly d efin in g

of school

th e p ro p o r tio n s o f the c o s t of

th e e d u c a t i o n a l p rogram w h ich s h o u ld be b o rn e b y the s t a t e and by th e l o c a l u n i t s .

An i m p e t u s

to s o lv in g

th e problem

w a s g i v e n b y t h e s t u d y o f New Y o r k S t a t e b y S t r a y e r a n d H a i g , who e s t a b l i s h e d

p rin cip le s fo r

the e q u a l i z a t i o n of e d u c a tio n a l

o p p o r tu n ity and sc h o o l s u p p o r t . I n

g en eral,

the v a rio u s

^ G e o r g e D. S t r a y e r , J r . , a n d R o b e r t M. H a i g , The F i ­ n a n c i n g o f E d u c a t i o n i n t h e S t a t e o f New Y o r k , R e p o r t o f t h e E d u c a t i o n a l F i n a n c e C o m m i s s i o n , (New Y o r k : The M a c M i l l a n Company, 1 9 2 3 ) . p . 174

3 p l a n s a r e b a s e d u p o n two f u n d a m e n t a l s p r o p o s e d b y S t r a y e r and H atg i n v o l v i n g

(1)

the d e te rm in a tio n of an a c c e p ta b le

m in im um p r o g r a m o f e d u c a t i o n w h i c h s h o u l d b e e q u a l l y a v a i l ­ a b le

to a l l

c h ild r e n in the s t a t e ,

and (2 )

the r a is in g

o f the

f u n d s f o r t h e s u p p o r t o f t h e p r o g r a m b y t h e u s e o f some com bination o f s t a t e

and l o c a l ta x

each s u b d iv is io n of the s t a t e its

a b ility

system s g e a re d to cause

to c o n t r i b u t e

in p r o p o r tio n to

to pay.

The sc h e m e w h i c h h a s b e e n m o s t f a v o r a b l y r e c e i v e d i n ed u catio n al theory,

i f no t in p r a c tic e ,

a d v a n c e d b y M o r t 2 f o r New Y o r k S t a t e each d i s t r i c t uniform r a t e .

In

th is p lan ,

The d i f f e r e n c e b e t w e e n t h e a m o u n t w h i c h s u c h in a g iv e n d i s t r i c t and the t o t a l c o s t i n

o f t h e minimum p r o g r a m a s d e f i n e d , w o u l d b e

s u p p li e d by th e s t a t e . the

i n 1926.

i n t h e s t a t e w ould l e v y a p r o p e r t y t a x a t a

a t a x w ould y i e l d that d is tr ic t

has b een t h a t f i r s t

T his p la n i s

g en erally refe rred

to as

tfs m a l l f u n d p l a n 1' . A t t h e o t h e r e x t r e m e o f t h e Ms m a l l f u n d p l a n 11 i a t h a t

known a s t h e D elaw are, tio n

P l a r g e f u n d p l a n 1*, s u c h a s i n e f f e c t

i n w hich th e s t a t e

in the s t a t e .

assum es the f u l l c o s t o f educa­

In th e c ase of D elaw are,

l i n k e d w i t h f u l l c o n t r o l and d i r e c t i o n . ach iev es

in

f u l l su p p o rt is.

Such a p l a n p r o b a b ly

t h e g r e a t e s t d e g r e e o f e q u a l i t y o f o p p o r t u n i t y and

S p a u l R . ~ M o r t , S t a t e S u p p o r t f o r P u b l i c S c h o o l s 3 (New Y o r k : B u r e a u o f Pub 1 i c a t i o r i s , T e a c 1 i e r s r 'OoTTege, C o l u m b i a U n iv e rs ity , 1926).

4 e q u ity of support p o ssib le alth o u g h p o ss ib ly a t

of r e a l i z a t i o n w ith in a given s t a t e ,

the s a c r i f i c e

o f the

t o make d e c i s i o n s a n d t h e r e s u l t i n g is

e sse n tia l

rig h t, of lo c a l u n its

l o s s o f v a r i a b i l i t y w hich

to p ro g re s s .

Betw een t h e

tw o e x t r e m e s ,

com prom ises d e v e l o p e d .

th e re have been a v a r i e t y of

A lth o u g h M ort b e l i e v e d

p l a n tf t o b e m o s t e q u i t a b l e ,

the

^ sm all fund

he r e c o g n i z e d t h a t some c o m p r o ­

m ise m ig h t be r e q u i r e d w i t h e x i s t i n g p a t t e r n s o f s u p p o r t , proposed th a t

and

t h e Sts m a l l f u n d p l a n ft b e s u p e r i m p o s e d u p o n t h e

t h e n e x i s t e n t p l a n o f s u p p o r t i n New Y o r k .

The e f f e c t o f t h i s

c o m p r o m i s e w o u l d b e t o e q u a l i z e t h a t p o r t i o n o f t h e minimum p ro g ram n o t a l r e a d y s u p p o r te d by s t a t e

funds.

T his p la n has

t h e a d v a n t a g e o f b e i n g p o l i t i c a l l y more f e a s i b l e w hich g r a n t s - i n - a i d

a re given lo c a l d i s t r i c t s

t h a t l e a d e r s i n many d i s t r i c t s sta te

b eliev e

th at

burden.

therefore

o b lig ed

C l o s e a n a l y s i s may n o t p r o v e

b u t in any event i t s

in

f o r the rea so n

th e fu nd s from th e

governm ent a r e p a id by o t h e r ta x p a y e r s

l o c a l d i s t r i c t who a r e

in sta te s

than those in the

to b e a r a l e s s e r t a x

th is

c la im to be t r u e ,

acceptance serv es as a pow erful fo rc e fo r

th e a d o p t i o n o f t h e com prom ise. O th e r fo rm s o f com prom ises have b e e n e f f e c t e d various

sta te s,

a l l o f them p e c u l i a r

to l o c a l

a t t h e same t i m e p r o p o u n d e d w i t h t h e v i e w t o burden of poor d i s t r i c t s s t a n d a r d min im um p r o g r a m .

in the

co n d itio n s, lessen in g

the

a n d e n a b l i n g t h e m t o p r o v i d e some

but

5 The e f f e c t i v e n e s s

o f the v a rio u s p lan s f o r e q u a liz in g

e d u c a ti o n a l o p p o r t u n it y and th e b u rd en o f su p p o rt by th e u se of s ta te

f u n d s was s t u d i e d b y E dw ards and R i c h e y 3 f o r t h e

A d v i s o r y C om m ittee on E d u c a t i o n .

The p u r p o s e o f t h e i n v e s t i ­

g a t i o n was t o d e t e r m i n e w h e t h e r t h e F e d e r a l g o v e r n m e n t , w e r e it

to g iv e a id

to s t a t e s ,

should leav e

manner o f d i s t r i b u t i n g F e d e r a l fu n d s ,

to the s t a t e s o r w hether i t

re q u ire a s a t i s f a c t o r y p lan f o r the d i s t r i b u t i o n a id .

Lack o f r e f i n e d

d ata lim ite d

in co u n ties

W hile r e c o g n i z i n g

should

of Federal

th e stu d y to r e l a t i v e l y

g r o s s m e a s u r e s , b u t w hich were a d e q u a te tren d s

the

to d e te rm in e g e n e r a l

in tw en ty -six s ta te s under in v e s tig a tio n . the lim ita tio n s

of the stu d y ,

the a u th o rs

h eld t h a t : C e r t a i n m e a s u r e s , n e v e r t h e l e s s , may b e e m p l o y e d t o in d ic a te w ith a f a i r degree o f p r e c is io n the e x te n t to w hich th e v a r io u s s t a t e s have s a t i s f a c t o r y program s o f eq u alizatio n . I f c o u n t i e s i n w hich th e number o f c h i l d r e n p e r 1 ,0 0 0 a d u l t s i s h ig h , i n w hich th e p la n e o f l i v i n g i s low, an d i n w hich th e a s s e s s e d v a l u a t i o n p e r c h i l d i s u n u s u a l l y s m a l l , do n o t r e c e i v e f r o m t h e s t a t e d i s t r i b u t i v e fu n d a c o n s i d e r a b l y l a r g e r amount p e r c h i l d to be e d u c a te d th a n c o u n t i e s h a v in g a s m a l l e r number o f c h i l d r e n p e r 1 ,0 0 0 a d u l t s , a h ig h p la n e o f l i v i n g , and a high a s s e s s e d v a lu a tio n p e r c h ild , i t is reaso n a b le to conclude t h a t th e system of d i s t r i b u t i o n of s t a t e funds is u n sa tisfa c to ry .4 Three ro u g h m ea su re s o f r e l a t i v e seg reg ate c o u n ties.

They w ere

n eed were u s e d t o

(1) a s s e s s e d v a l u a t i o n p e r

^ N e w t o n E d w a r d s a n d Herman G. R i c h e y , The E x t e n t o f E q u a l i z a t i o n S ecu red Through S t a t e S ch o o l F u n d s, S t a f f S tu d y No*6 , A d v i s o r y C o m m i t t e e o n E d u c a t i o n , ( W a s h i n g t o n : U . S . Government P r i n t i n g O f f i c e , 1 9 3 8 ). 4Ib id .,

p.

5

c h ild seven to t h i r t e e n

years of age,

(2) an index of the

p l a n e o f l i v i n g b a s e d on th e num ber o f F e d e r a l incom e t a x r e ­ tu rn s,

th e number o f r e s i d e n c e

f a m i l i e s owning r a d i o seven to t h i r t e e n

sets,

telephones,

and t h e num ber o f

and (3 ) th e number o f c h i l d r e n

y e a r s o f age p e r one th o u s a n d a d u l t s

to s ix ty - f o u r years

of age.

The d a t a r e v e a l e d t h a t

the v a rio u s s t a t e

p l a n s do n o t

provide e q u a lly w ell f o r e q u a liz a tio n of o p p o rtu n ity . some s t a t e s

tw enty

In

t h e am ount o f e q u a l i z a t i o n a c h i e v e d was r e l a ­

t i v e l y sm a ll, w hile in o th e r s t a t e s

r ic h e r co u n ties receiv e

p r a c t i c a l l y t h e same f u n d s a s p o o r e r c o u n t i e s .

The a u t h o r s

found t h a t : I n f e w e r t h a n o n e - t h i r d o f t h e s t a t e s e x a m i n e d do e q u a liz a tio n p lan s ap p ear to p ro v id e , e i t h e r through la r g e a p p r o p r ia tio n s to a l l , o r through a l l o c a t i n g l a r g e r s h a r e s to thew eaker s e c t i o n s , f o r what a p p e a rs to be a r e a s o n a b ly e q u i t a b l e d i s t r i b u t i o n o f a i d to th o s e a r e a s t h a t p r o b a b ly have th e g r e a t e s t n e ed and c e r t a i n l y have th e l e a s t a b i l i t y . . . . . . There i s re a s o n to b e l i e v e , m o reover, t h a t a s s e s s e d ' v a l u a t i o n Im putes to th e p o o r e r c o u n ti e s a b i l i t y w hich, on t h e b a s i s o f Incom e, t h e y do n o t p o s s e s s . If th is is t r u e , the a b i l i t y o f poor c o u n tie s to fin a n c e e d u c a tio n m ay b e e x a g g e r a t e d b y a m e a s u r e b a s e d on a u n i f o r m t a x r a t e and th e s t a t e d i s t r i b u t i v e f u n d .5 T he c o n c l u s i o n s

o f t h e s t u d y b y Edwards and R ic k e y , a r e

o f extrem e s i g n i f i c a n c e

to sc h o o l f in a n c e ,

t h a t a given p a tt e r n of s t a te

b e ca u se th e y im ply

s u p p o r t may o r m ay n o t a c h i e v e

e q u a l i z a t i o n of e d u c a ti o n a l o p p o r t u n i t y and b u rd en o f sup­ p o rt.

They s e r v e to g e n e r a t e a d e g re e o f c a u t i o n tow ards 5I b i d . , pp.

17-18.

7 B lin d a ccep tan ce o f a p a r t i c u l a r p a tt e r n

o f f i n a n c e and

e m p h a s iz e £he n e e d f o r a f c r i t i c a l a n a l y s i s o f a g i v e n p l a n w ith re fe re n c e

to a g iv en s i t u a t i o n .

g e n eralizatio n s

regarding

sta te

They s u g g e s t t h a t

e q u a liz a tio n p lan s should

p r o b a b ly be a c c e p te d w i t h r e s e r v a t i o n s and be a c c e p te d o n ly when t e s t e d f o r a g i v e n s t a t e . THE PROBLEM In C a lifo rn ia , as s h ip has b e n t

its

in o th e r s ta te s ,

effo rts

tow ards

ed u catio n al le a d e r­

th e c o n t i n u a l im provem ent

o f th e p a t t e r n of sch o o l su p p o rt to

t h e end t h a t e d u c a t i o n a l

o p p o r t u n i t y a n d b u r d e n o f s u p p o r t be more e q u i t a b l y d i s t r i ­ b u t e d among t h e c h i l d r e n a n d c i t i z e n s now t h e

case.

been proposed,

To t h i s

end,

each o f w hich i s d e s ig n e d

ed u catio n al lea d ersh ip

propo sals

is

sta te

th an is

s e v e r a l p la n s of su p p o rt have

c l o s e r to th e g o a l of e q u a l i z a t i o n .

ap p ro p riate

of the

to b r in g

the s t a t e

B efore th e w eig h t o f

throw n b a c k o f an y p l a n ,

it

is

t h a t a c r i t i c a l a n a l y s i s b e made o f t h e v a r i o u s

to d eterm in e

the r e l a t i v e

ex ten t of e q u a liz a tio n

to

be s e c u re d th ro u g h th e v a r i o u s p r o p o s a l s . Purpose o f I n v e s t l g a t i o n *

The p u r p o s e o f t h i s

g a t i o n was t o d e t e r m i n e

the r e l a t i v e

im posed upon C a l i f o r n i a

co u n ties

program o f e d u c a tio n a c c o rd in g sup p o rt,

v iz .,

to

in v esti­

e q u ity of the ta x burden

f o r t h e s u p p o r t o f a m inim um th ree a lte r n a tiv e

(1) u n ifo rm p r o p e r t y ta x p la n ,

su b v en tio n - uniform p ro p e rty tax p la n ,

and

plans of

(2) s t a t e

(3) f u l l

sta te

8 su p p o rt. D e f i n i t i o n o f Term s.

For purposes o f t h i s

study,

term s

used a re d e fin e d as fo llo w s : (1)

By r e l a t i v e

e q u i t y o f t a x b urden i s meant th e d i s ­

t r i b u t i o n among t h e s u b d i v i s i o n s th e ir re la tiv e o f ed u catio n , in e ffe c t Is

a b ility

to pay,

acco rd in g

in C a lifo rn ia is

bf the s t a t e

of th e tax es

to th e s t a t e

in p ro p o rtio n to

f o r the s u p p o rt

and l o c a l ta x s t r u c t u r e

in 1937-38.

recognized a t the o u ts e t th a t e q u ity of ta x

b u r d e n i s a r e l a t i v e m a t t e r and n o t one o f a b s o l u t e s - . tio n ,

lik e

o th er areas

of so cial en te rp rise

can only fu n c tio n in r e l a t i o n c itize n s.

n e v e r t o b e a c h i e v e d a s new i n s i g h t s

to be u s e d . ^

of e q u ity th at

an e v e r-c h a n g in g g o a l

in to

th e m eaning o f

I t was e a r l y p o i n t e d o u t b y M ort t h a t

wwe n e e d o n l y t o d e t e r m i n e a b i l i t y actu ally

in a dem ocracy,

to the p r a c t i c a l v a lu e s o f i t s

F u l l and c o m p le te e q u i t y i s

e q u ity a re ach ieved.

to pay u n d e r th e ta x sy stem

T h u s , we n e e d o n l y c o n s i d e r t h e d e g r e e

c o u ld have b e en a c h ie v e d u n d e r th e ta x system

in C a lifo rn ia a c t u a l l y in e f f e c t a t a given

tim e.

c o n s i d e r a t i o n w ould be o n l y w i s h f u l t h i n k i n g . in e ffe c t in C alifo rn ia i t was t h e l a t e s t the

tim e t h i s

Educa­

in

Any o t h e r

The t a x s y s t e m

1 9 3 7 -3 8 was a c c e p t e d o n l y b e c a u s e

y e a r f o r w hich a l l

s t u d y was b e g u n .

6 p a u l R. M o r t , I b i d . , p . 1 6 .

d a t a were a v a i l a b l e a t

9 ( 2 ) By m in im um p r o g r a m o f e d u c a t i o n i s m e a n t a n a c c e p t ­ a b le program of e d u c a tio n a s d e te rm in e d by a v erag e p r a c t i c e . Since

it

i s n e c e s s a r y to d e li m it t h i s

m in im u m p r o g r a m i s d e l i m i t e d tran sp o rta tio n clu d in g 1937-38.

co sts)

in v estig atio n ,

to c u r r e n t ex p en se s

the

(less

o f e le m e n ta ry and se co n d a ry (n o t i n ­

ju n io r co lleg e)

e d u c a tio n as of the f i s c a l

The y e a r o f 1 9 3 7 - 3 8 i s

t a k e n so a s

year

to c o in c id e w ith

th e y e a r f o r w hich a l l d a ta w ere a v a i l a b l e f o r th e C a l i f o r n i a tax

system . ( 3 ) By u n i f o r m p r o p e r t y t a x p l a n i s m e a n t t h e p l a n i n

w hich e a c h d i s t r i c t r a t e ad eq uate

in the s t a t e

le v ie s a p ro p e rty tax a t a

t o s u p p o r t t h e m inim um p r o g r a m i n

county in th e s t a t e ,

the r i c h e s t

th e d i f f e r e n c e b e tw e e n th e amount r a i s e d

b y t h e p r o p e r t y t a x a n d t h e c o s t o f t h e minimum p r o g r a m b e i n g f u r n i s h e d from th e

s ta te g e n e ra l fund.

T his p l a n w i l l s u b s e ­

q u e n t l y b e c a l l e d P l a n A. T his p l a n i s No b r i e f

o ften re fe rre d

is h e ld f o r the t i t l e

as the t i t l e

t o a s t h e !,s m a l l f u n d p l a n ” .

giv en th is

o r th e o th e r plans

wa s b a s e d u p o n t h e d o m i n a n t f e a t u r e .

d e s i g n a t io n could as w e ll se rv e p la n w hich em braces p r i n c i p l e s

to

id en tify i t .

first

Any o t h e r It

is

the

p ro p o se d by M ort? f o r

New Y o r k a n d t h a t p r o p o s e d s p e c i f i c a l l y f o r C a l i f o r n i a b y 7 P a u l R. M o r t ,

I b i d .'

10 W aterm an.8 (4) m eant

By s t a t e

s u b v e n t i o n - •uniform p r o p e r t y t a x p l a n i s

the p la n in w hich th e

tric ts

of the

state

from i t s

s ta tu to ry p ro v isio n s d istric t

in

to support

the

state

sta te

a p p o rtio n s to sc h o o l d i s ­

g e n e r a l fund i n conform ance w i t h

in C a lifo rn ia lev ies

the d i f f e r e n c e

in e f f e c t in 1937-38.

a p r o p e r ty tax a t a r a t e ad eq u ate

betw een s t a t e

a p p o rtio n m e n ts and th e

c o s t o f t h e m inim um p r o g r a m i n t h e w e a l t h i e s t sta te .

The s t a t e

sum o f p r e s e n t s t a t e

a n d t h e -amount w h ic h c o u l d b e r a i s e d tax ,

and th e

w ill

s u b s e q u e n t l y b e c a l l e d P l a n B.

“sm a ll fund -

th e’

apportionm ents

from th e u n ifo rm p r o p e r t y

t o t a l c o s t of th e f o u n d a tio n program .

T his p la n

som etim es d e s i g n a t e d a s a c o m b in a tio n

l a r g e f u n d p l a n ff a n d i s u s u a l l y a d v a n c e d o n t h e

ground o f e x p e d ie n c y . rates

co u n ty in

th en f u r t h e r a p p o r tio n s to sc h o o l d i s t r i c t s

the d i f f e r e n c e betw een th e

T his p l a n i s

Each

I t pu rp o rts

to e q u a l iz e p r o p e r t y ta x

f o r t h a t p a r t o f a minim um p r o g r a m n o t a l r e a d y s u p p o r t e d

by the s t a t e

tax s t r u c t u r e .

W a t e r m a n who s u g g e s t e d t h a t

I t was p r o p o s e d f o r C a l i f o r n i a b y " i t m ig h t prove unw ise

to a tte m p t

t o a d m i n i s t e r an e q u a l i z a t i o n pro g ram i n w h ic h a n y c o u n ty were t o assume th e

e n t i r e burden of su p p o rtin g i t s

gram and i n w h ic h o t h e r c o u n t i e s w o u ld r e c e i v e

ed u catio n al p ro­ less

than is

® I v a n R. W a t e r m a n , E q u a l i z a t i o n o f t h e B u r d e n o f Support f o r E d u c a tio n , U n iv e rs ity of C a lif o r n ia P u b lic a tio n s i n E d u c a t i o r i , . Vo1 . VI ( B e r k e l e y : U n i v e r s i t y o f C a l i f o r n i a P re s s , 1932).

11 re c eiv e d under th e p re s e n t p la n o f apportionm ent o f s t a t e s c h o o l f u n d s 1* .^

It

b asis of p o litic a l less

is

t h e r e f o r e p r o p o s e d l a r g e l y on th e

expediency a lth o u g h c o n sid ere d r e l a t i v e l y

eq u itab le* (5)

e n tire sta te

By f u l l

cost of

source.

s u p p o rt i s ' m eant th e p l a n in w hich the

t h e m inim um p r o g r a m i s

tax s t r u c t u r e .

the s t a t e ,

sta te

f i n a n c e d by means o f th e

Since p r o p e r ty t a x a t i o n is n o t u sed by

i t w ould o b v i o u s l y p r e c l u d e

It

is g en erally referred

t a x a t i o n from t h i s

to as the

a n d w i l l s u b s e q u e n t l y b e c a l l e d P l a n C. p rin cip al featu res

It

ttl a r g e f u n d p l a n 1* em bodies th e

o f t h a t p r o p o s e d b y one g r o u p o f e d u c a ­

t io n a l le a d e rs f o r elem en tary e d u c a tio n in C a l i f o r n i a . ^ It d iffers o f the

s h o u ld be p o i n t e d o u t ,

from t h a t i n D elaw are h e r e t o f o r e *fl a r g e f u n d plan** i n a s t a t e .

e ff e c t a state-w id e large

how ever,

the p r e s e n t b a s is

P lan C a ls o

The D e l a w a r e p l a n i s

9Ib id .

in

the c a se In a

t o a minim um p r o g r a m g u a r a n t e e d d iffers

from m e re ly i n c r e a s i n g

o f C a l i f o r n i a s u p p o rt w hich a p p o r t i o n s

a t an a r b i t r a r y amount p e r p u p i l i n t h a t on th e b a s i s

plan

g i v e n a s a n exam ple

s c h o o l s y s t e m much a s i s

c i t y and h a s no r e l a t i o n

to a l l d i s t r i c t s .

th at th is

it

funds

a p p o rtio n s funds

o f a n a c c e p t a b l e m inim um p r o g r a m d e r i v e d

p. 346

•'•'•’C a l i f o r n i a E l e m e n t a r y S c h o o l P r i n c i p a l s A s s o c i a t i o n The P r o b l e m o f Mors A d e q u a t e S t a t e S u p p o r t f o r E l e m e n t a r y S c h o o ls ^ { U n p u b lis h e d r e p o r t , March 2 5 , 1 9 4 0 ) .

12 e m p iric ally . have

Under P la n C as d e f i n e d ,

the p r i v i l e g e

by the s t a t e ,

of exceeding

through

l o c a l u n i t s w ould

t h e m in im um p r o g r a m f i n a n c e d

the u se o f th e l o c a l

tax s tr u c tu r e .

V a l i d a t i o n o f s t u d y . As was i n d i c a t e d problem o f t h i s C a lifo rn ia .

in v estig atio n

of p ra c tic a l

W hile th e p l a n o f s t a t e

c re d ite d w ith b ein g in tio n a l

is

le a d e r s h ip has n e v e r th e le s s im provem ent t o

be a c h ie v e d .

As a r e s u l t ,

plans proposed, would d i s t r i b u t e

im portance

p lan s,

in

educa­

c o n s ta n tly been stud y in g

t h e e n d t h a t g r e a t e r e q u i t y may th e r e have b e e n a t l e a s t th r e e

th e proponents of each b e lie v in g the

the

sup p o rt in e f f e c t is

the vanguard o f s t a t e

means o f i t s

e a rlie r,

th at i t

c o s t o f e d u c a t i o n more e q u i t a b l y t h a n i s

now t h e c a s e . T here a r e th is

study.

trib u tes there

two p o s s i b l e

They a r e

conclu sio n s

(1 ) one o f t h e

th ree p lan s b e st d i s ­

the burden o f su p p o rt acc o rd in g

i s no s i g n i f i c a n t d i f f e r e n c e

th e degree

of e q u ity a ch iev e d .

t h e . f i r s t conclusion is

to be drawn fro m

to a b i l i t y ,

betw een th e

o r (2)

three p lan s in

The p r a c t i c a l i m p l i c a t i o n o f

o b viously th a t e d u c a tio n a l le a d e rs h ip

sh o u ld s u p p o r t th e p la n w hich m ost e q u i t a b l y d i s t r i b u t e s burden of su p p o rt a cco rd in g th e second p o s s ib le sh o u ld bend i t s would a c h i e v e

to a b i l i t y .

con clu sio n i s

e ffo rts

the

The i m p l i c a t i o n o f

th a t ed u catio n al lea d ersh ip

t o w a r d s d e v i s i n g some o t h e r p l a n w h i c h

the i n c r e a s e d e q u i t y d e s i r e d .

B asic assum ptions of stu d y .

C e r ta in assu m p tio n s a re

13 made i n t h i s

study.

They a r e a s f o l l o w s :

1. E d u c a tio n as a s o c i a l f u n c t i o n p ro m oting th e g e n e r a l w e l f a r e s h o u ld be s u p p o r t e d b y t h e p e o p le i n a c c o r d a n c e w i t h t h e i r r e l a t i v e a b i l i t y to pay and w ith o u t r e g a r d f o r d i r e c t , m easu rab le b e n e f i t s r e c e iv e d . The n e e d f o r e q u a l i t y o f e d u c a t i o n a l o p p o r t u n i t y i s assum ed i n a d e m o c ra tic s o c i e t y . tu n ity cannot e x is t u n less its

support.

It

th ro u g h the y e a r s ,

it

fo llo w s

a ta x p la n adequate f o r to a c h i e v e f i s c a l

of an in e q u ita b le

tax s tr u c tu r e .

dem ocracy has d e c id e d t h a t c i t i z e n s

in p ro p o rtio n

ed u catio n is

there is

is of course p o s s ib le

ad eq u acy on th e b a s i s

pay tax es

However, e q u a l i t y o f o p p o r­

to

th eir a b ility

to do s o .

But should

S ince

one a r e a o f s o c i a l e n t e r p r i s e

supported by ta x e s ,

t h a t i t m ust be su p p o rte d b y a l l

In p ro p o r tio n to

a b ility . 2 . The n e t m o n e y i n c o m e ' o f a c i t i z e n i s t h e b e s t o b j e c t i v e m easure o f h is a b i l i t y to pay t a x e s , p ro v id e d , how ever, t h a t In the i n t e r e s t of e q u i t y , the ta x e s used to tap th is a b i l i t y take p ro g re s s iv e ly la r g e r sh a res o f the n et incom e o f t h o s e i n h i g h e r t h a n t h o s e I n lo w e r incom e b r a c k e t s . I n o u r m odern economy, incom e o f a t a x p a y e r .

tax es are

p a i d o u t o f t h e money

I t m a t t e r s n o t w h eth er the r e a l

Income

o f some t a x p a y e r ,

i s p a r t l y i n goods he r e c e i v e s

fo r his

serv ices,

as does

receive

h i s d u e i n t h e c u r r e n t m ed iu m o f e x c h a n g e , w h i c h i s

money.

We h a v e d e m o c r a t i c a l l y d e c i d e d

the fa rm e r.

in exchange

The t a x c o l l e c t o r m u s t

th at each c itiz e n

s h a l l be exem pt fr o m t a x a t i o n on t h a t p a r t o f h i s incom e w h ic h i s n e c e s s a r y f o r l i v i n g and f o r e a r n in g a l i v i n g , a c tu a lly a v ailab le

f o r payment p f t a x e s .

and n o t

T his p a r t o f h is

14 incom e i s

d e fin e d as

cess of th is

th e n e t incom e, and a l l

amount r e p r e s e n t s

tax ab le a b i l i t y .

In the i n t e r e s t of f a i r n e s s , a ccep ted the f a c t

th at

income i n e x ­

how ever,

th e p e o p le have

tax ab le a b i l i t y r is e s

out of p ro p o rtio n

t o i n c o m e s i n c e a man w i t h a n i n c o m e o f $ 1 0 , 0 0 0 h a s m o r e t h a n te n tim es $ 1 ,0 0 0 .

the t a x a b l e a b i l i t y

t h a n a man w i t h a n i n c o m e o f

T his a c c e p ta n c e has r e s u l t e d

w hich ta k e

in c re a s in g ly la rg e r shares

the l e v e ls

of incom e.

a sta te

o r co u n ty ,

o f i n c o m e a s we a s c e n d

is

re p re se n te d by the

the c o s ts o f l i v i n g

and e a r n i n g a

l i v i n g have b e e n d e d u c te d from e a c h o f i t s th is

tax r a te s

Thus i n a g i v e n p o l i t i c a l u n i t s u c h a s

the ta x a b le a b i l i t y

incom e r e m a i n i n g a f t e r

in p ro g ressiv e

incom e w h ic h s h o u l d be t a p p e d i f

c itiz e n s.H

eq u ity is

it

is

to be a c h i e v e d .

4. The p l a n u s e d f o r t h e s u p p o r t o f a m in im um p r o g r a m o f e d u c a t i o n s h o u l d b e so d e v i s e d t h a t e a c h s u b d i v i s i o n o f t h e s t a t e s h a l l a s n e a r l y a s p o s s i b l e c o n t r i b u t e i n t a x e s t h e sa m e p r o p o r tio n o f th e t o t a l c o s t o f the program as i t s p r o p o r tio n o f the t o t a l ta x -p a y in g a b i l i t y o f th e s t a t e . I t h as b e en assum ed t h a t an e q u i t a b l e be so d e v i s e d

th at

i t w ill tap

i n a p r o g r e s s i v e m anner. sta te

a s a whole i s

it

p o ssib le

is

eq u itab le

*i *i

plan f o r the

th e n e t incom e o f t h e c i t i z e n s

Thus t h e t a x - p a y i n g a b i l i t y

rep resen ted

to r a i s e

ta x system sh o u ld

in

o f the

th e amount o f ta x e s w hich

through e q u ita b le

a b ility

taxes.

Any

s u p p o r t o f e d u c a t i o n sh o u ld be d e v is e d

'AAI t i s r e c o g n i z e d t h a t t h i s , a m o u n t i s n o t m e r e l y t h e a g g r e g a t e o v e r and above t h e n e t incom es o f a s t a t e b e c a u s e a u n i t w i t h a th o u s a n d t a x p a y e r s e a c h h a v in g a n e t incom e o f $ 1 ,0 0 0 i s c o n s i d e r a b ly l e s s th an one h av in g a s i n g l e ta x p a y e r h a v in g a n e t incom e o f $ 1 , 0 0 0 , 0 0 0 .

15 so t h a t each s u b d iv is io n w i l l c o n t r i b u t e o f the c o s t as p o ssib le

to

its

raise

p r o p o r tio n to th e through a b i l i t y

t o t a l amount w hich i t

taxes.

s u b d iv is io n has te n p e r c e n t of the sta te ,

t h e same p r o p o r t i o n is

Thus i f a g i v e n

tax -p ay in g a b i l i t y

th e p la n o f s u p p o rt should r e q u i r e . t h a t i t

o f the

c o n trib u te

te n p e r c e n t o f th e c o s t o f th e program . 5. C onclusions based upon d a ta c o n cern in g the c o u n tie s o f C a l i f o r n i a a re a l s o a p p l i c a b l e to the s c h o o l d i s t r i c t s o f the s t a t e . A v a ila b ility of d ata as

the u n i t o f s tu d y .

school d i s t r i c t s a v aila b le th a t the

req u ires

E d u c a tio n a l d a ta a re a v a i la b l e by

but in fo rm atio n r e la tin g

o n ly by c o u n t i e s .

It

tq

taxes are

seems r e a s o n a b l e

to assum e

c o n c l u s i o n s drawn f o r c o u n t i e s a r e a l s o a p p l i c a b l e

school d i s t r i c t s

w hich a r e

su b d iv isio n s

W hile t h e r e a r e f i f t y - e i g h t is

t h a t t h e c o u n ty be ta k e n

ad v isab le

to e li m in a te

to

of c o u n ties.

co u n ties

in C a lifo rn ia ,

one from c o n s i d e r a t i o n i n t h i s

I n 1937-38 A lp in e C ounty had o n ly f o r t y - e i g h t u n i t s

it stu d y .

o f elem en­

t a r y a v e r a g e d a i l y a t t e n d a n c e an d p a i d o n l y $515 i n p e r s o n a l income t a x e s . in

I t may t h e r e f o r e b e c o n s i d e r e d i n s i g n i f i c a n t

the t o t a l p i c t u r e

and can be e l i m i n a t e d from c o n s i d e r a t i o n .

6 . The d e g r e e o f e q u i t y a c h i e v e d b y t h e C a l i f o r n i a t a x s y s t e m i n 1 9 3 7 - 3 8 i s t h e same a s t h a t w h i c h w o u l d h a v e b e e n a c h i e v e d had a d d i t i o n a l s t a t e t a x e s b e e n r e q u i r e d f o r t h e s u p p o r t o f t h e minim um p r o g r a m . It

has b e e n i n d i c a t e d t h a t e q u i t y s h o u l d be d e t e r m i n e d

u n d e r the ta x

system In e f f e c t .

However,

it

is

probable

th at

t h e c o s t o f t h e minim um p r o g r a m m ay b e l a r g e r t h a n t h e a m o u n t

16 a p p o rtio n e d by the s t a t e 1937-38.

the s u p p o rt o f e d u c a tio n i n

T h i s w o u l d m ea n t h a t w e r e a l a r g e r a m o u n t n e c e s s a r y ,

a d d itio n al sta te d eterm in in g e x isted

for

ta x e s m ig h t have b e e n r e q u i r e d .

eq u ity in re la tio n

in 1937-38,

system a s i t

t h e y w ould have b e e n a p p r o x i m a t e l y a s

those in e f f e c t .

S tatem ent of p ro c e d u re . in

tax

i t m ust be assum ed t h a t had a d d i t i o n a l

tax es been re q u ire d eq u itab le as

to th e s t a t e

S i n c e we a r e

t h i s ri n v e s t i g a t i o n i s

The p r o c e d u r e

t o be f o llo w e d

as g iv e n below ;

1 . E s t a b l i s h t h e c o s t o f a m in im um p r o g r a m o f e d u c a t i o n f o r C a l i f o r n i a f o r 1937-38. A ll th in k in g re g a rd in g p ro v id in g e q u a lity of e d u c a tio n a l o p p o r tu n ity assum es

th at th ere

is

some m in im u m p r o g r a m o f

e d u c a ti o n w hich s h o u ld be p r o v id e d f o r a l l sta te .

c h i l d r e n in the

More t h a n t h i s min im um may b e a d e s i r a b l e

affairs,

but i t

w ith th is fo llo w in g ;

at

least

in v estig atio n What i s

is

a n ecessity .

sta te

of

In o r d e r to proceed

i t w i l l be n e c e s s a r y to an sw e r th e

t h e minim um p r o g r a m o f e d u c a t i o n t h a t

sho u ld be p ro v id e d a l l

c h ild re n in C a lifo rn ia

and what w i l l

s u c h a p r o g r a m c o s t 4? 2 . D e te rm in e t h e am ount o f t a x e s w h ic h c o u n t i e s w ould b e r e q u i r e d t o p a y f o r t h e e s t a b l i s h e d minim um p r o g r a m u n d e r each of the a l t e r n a t i v e p la n s o f s u p p o rt a c c o rd in g to s t a t e and l o c a l ta x sy stem s i n e f f e c t i n i§ 3 7 - 3 8 . In c o n fo rm ity w ith the p o i n t o f view e x p re s s e d e a r l i e r in

th is

study,

a g iv e n tax system e x t r a c t s

a g i v e n a m o u n t o f t h e i r money i n c o m e f o r so cial en terp rises.

T his

from th e c i t i z e n s

the s u p p o rt of

s i t u a t i o n w ould have e x i s t e d

had

17 any of the a l t e r n a t i v e

p lan s f o r the su p p o rt of ed u catio n

been in e f f e c t

in C a lifo rn ia

in 1937-38.

sary th erefo re

to answ er the f o llo w in g :

I t w i l l be n e c e s ­ What a m o u n t o f

money w o u l d t h e t a x s y s t e m u n d e r e a c h p l a n o f s u p p o r t r e q u i r e t h a t each co u n ty in C a li f o r n ia

co n trib u te

tow ards

the su p p o rt

o f t h e m in im um p r o g r a m o f e d u c a t i o n ? Since sta te

the plans

o f s u p p o r t a s p r o p o s e d make u s e o f t h e

and l o c a l ta x system s e i t h e r

w i l l be n e c e s s a r y to d e t e r m i n e to

the s t a t e

sin g ly or to g eth er,

the c o n tr i b u t i o n o f c o u n tie s

ta x sy ste m i n 1937-38 and th e a d d i t i o n a l amount

o f l o c a l t a x e s w h i c h may h a v e b e e n r e q u i r e d . first

To do t h i s ,

a

r e q u i r e m e n t w i l l b e t o d e t e r m i n e how much was c o n t r i b ­

u te d by each cou n ty in ta x e s

i n 1937-38 to th e

fu n d from w hich e d u c a tio n i s

supported.

th at

it

e a c h c o u n ty w ould c o n t r i b u t e

s u p p o r t o f a m inim um p r o g r a m i n c o n trib u tes

to

g iv en cou nty to

p ercentage

in s ta te

general

c an be assum ed taxes

to th e

t h e same p r o p o r t i o n

th at i t

th e g e n e r a l fund from w hich a p p o rtio n m e n ts

c o u n t i e s w ould have b e e n m ade.

o f the s t a t e

It

sta te

Thus t h e

the c o s t o f th e program ,

tax s tr u c tu r e ,

of c o n trib u tio n s

to

co n trib u tio n of a e x t r a c t e d b y means

c an be d e te rm in e d by a p p ly in g i t s to th e g e n e r a l fund to th e t o t a l

amount a p p o r t i o n e d by th e s t a t e u n d e r a g iv e n p l a n . S eco n d ly , th at

i t w i l l be n e c e s s a r y

the l o c a l p r o p e r ty ta x s t r u c t u r e

q uired

to d e te rm in e

th e amount

w ould have b e e n r e ­

to c o n tr ib u te under a g iv en p la n of s u p p o rt.

req u ires

th at

T his

the u n ifo rm p r o p e r t y tax r a t e s u n d e r P la n A

18 and P la n B be d e te r m in e d and a p p l i e d p e r ty v a lu a tio n o f each co u n ty .

rep resen ts

the e q u a liz e d p r o ­

The sum o f

w ould have b e e n c o n t r i b u t e d i n s t a t e u nder a given p la n ,

to

th e am ounts w h ich

ta x e s and i n l o c a l

taxes

t h e t a x b u r d e n t h a t p l a n would

have im p o sed on a c o u n t y , 3, E s t a b l i s h a c r i t e r i o n o f what each co u n ty should p a y t o w a r d s t h e s u p p o r t o f t h e m in im um p r o g r a m i f s t a n d a r d s o f e q u i t y w ere to b e . m e t . P rocedure has

thus f a r b e en c o n ce rn e d w ith e s t a b l i s h i n g

t h e c o s t o f a m inim u m p r o g r a m o f e d u c a t i o n a n d t h e a m o u n t o f ta x e s w hich each o f th e each cou nty to pay. fo llo w in g :

I t w i l l n e x t be n e c e s s a r y to answ er th e

What s h o u l d e a c h c o u n t y c o n t r i b u t e

o f a minim um p r o g r a m i f u ted

so t h a t It

t h r e e p l a n s o f s u p p o r t would r e q u i r e

to

th e b u rd e n o f s u p p o r t were d i s t r i b ­

i t w ould c o n t r i b u t e a c c o r d i n g to

its

has b e e n assum ed t h a t e q u i t y r e q u i r e s

incom e r e m a i n ­

in g to an i n d i v i d u a l o v e r and above t h a t r e q u i r e d In o rd er f o r th is

a b ility ?

th a t a tax

system ta k e p r o g r e s s i v e l y l a r g e r s h a r e s o f th e

and e a rn in g a l i v i n g .

the su p p o rt

for liv in g

to be th e c a se f o r

a county ( o r any o th e r s u b d iv is io n o f the s t a t e )

the ta x

s y s t e m , m u s t do t h i s

to a re a s o n ­

a b le d eg ree. for

to th e

in d iv id u a ls w ith in

it

The a m o u n t o f m o n ey s o d e r i v e d i s

th at av ailab le

th e s u p p o r t o f e d u c a tio n and o f su c h o t h e r g o v e rn m e n ta l

s e r v i c e s as sh o u ld be s u p p o rte d in p r o p o r t io n T h is amount t h e r e f o r e c a n be u s e d a s ing a c r i t e r i o n program .

to a b i l i t y .

the b a s i s f o r e s t a b l i s h ­

o f what a c o u n ty sh o u ld pay f o r

t h e m in im u m

19 I t w i l l be n o t e d

t h a t no d i f f e r e n t i a t i o n

what a co u n ty should pay in s t a t e a s s u m p t i o n s made e a r l i e r fere n tia tio n

in

th is

and i n l o c a l

is

tax es.

study a re acc ep ted ,

sh o u ld o r need be m ade, f o r th e

th e manner d e s c r ib e d

i s made b e t w e e n If

the

no d i f ­

tax es d eriv ed

In

t h a t p a r t o f t h e incom e o f th e p e o p le

e q u itab ly a v a ila b le fo r" s o c ia l e n te rp ris e s , ta x e s a re used to g e t i t .

It

Is

no m a t t e r what

in any c a se a t h i n and a r b i ­

t r a r y l i n e w hich d i v i d e s a b i l i t y

to pay s t a t e

taxes

from t h a t

t o p a y l o c a l t a x e s when t h e c o n c e p t o f n e t incom e i s

co n sid er­

ed a s th e p o o l from w h ich t a x e s c a n be p a i d . As a m a t t e r o f f a c t , p ro p erty

tax I s l e v i e d ,

p a r t of the s t a t e

is

th e d e c is io n of w hether o r n o t

ta k e n away fro m l o c a l g o v e r n i n g ’

They w o u ld h a v e no more c h o i c e i n

w hether o r n o t

the m a tte r th an in

to pay th e p e r s o n a l incom e o r s a l e s

s m a ll m easure o f c h o ice sta te

th e p r o p e r t j r ta x v i r t u a l l y becomes a

tax sy stem as

th e ta x s h a l l be le v ie d boards.

u n d e r P la n A i n w hich a u n ifo rm

tax .

Some

c o u l d r e m a i n u n d e r P l a n B, wh en f l a t

a p p o r t i o n m e n t s a r e made, a s g o v e rn in g b o a r d s c o u ld have

th e o p tio n o f le v y in g a g iv en p r o p e r ty tax in exchange f o r fu rth er sta te

support.

more t h e o r e t i c a l l a t e r cause

In

th is

case

the e x te n t o f choice i s

t h a n r e a l a s s o c i a l p r e s s u r e s would s o o n e r o r

the p r o p e r ty tax

to be l e v i e d .

Based upon th e a s s u m p tio n s made, be e s t a b l is h e d sh o u ld pay i f c o n trib u te s

some c r i t e r i o n eq u ity is

th erefo re,

t h e r e must

o f what each county in the s t a t e

to be a c h i e v e d ,

in accordance w ith i t s

i.e .

a b ility

if

each county

t o do s o .

20 4 . C o m p are t h e a m o u n t s r e q u i r e d o f e a c h c o u n t y u n d e r ea c h p l a n o f s u p p o r t , w i t h th e amount i t sh o u ld p a y . G iven t h e amount a c o u n ty s h o u ld p a y to w ard s o f a min im um p r o g r a m ,

the su p p o rt

the degree o f e q u it y ach iev ed u n d e r a

p a r t i c u l a r p l a n o f s u p p o r t m ay b e d e t e r m i n e d b y c o m p a r i n g t h i s amount w ith t h a t w hich th e p l a n r e q u i r e s

it

p l a n o f s u p p o r t w h ic h more n e a r l y c a u s e s

th e v a rio u s

to pay t h e am ounts th e y s h o u ld p a y , w hich i s

re la tiv e ly

be answ ered by t h i s

s u p p o r t b e s t conform s t o t h e v ario u s

co u n ties?

Thus th e co u n ties

can be c o n s id e re d

th e most e q u i t a b l e . in v estig atio n

to pay.

is

the p la n

The l a s t q u e s t i o n t o

th erefo re;

W h ic h p l a n o f

c rite rio n e stab lish ed fo r

T h is i n e f f e c t

is

the

th e problem of t h i s

in*

v e stig a tio n . SECONDARY PROBLEMS There a re be sought i n rela tio n

two s e c o n d a r y p r o b l e m s

th is

in v estig atio n .

The f i r s t

of ed u catio n al le a d e rsh ip

w hich t h e r e a re

tw o c o n f l i c t i n g

to w hich answ ers w i l l

to ta x

p o in ts

p e rta in s

to th e

reform , reg a rd in g

o f view .

One p o i n t o f v i e w w a s e a r l y i m p l i e d b y M o r t i n d i s c u s s ­ ing

th eo re tic al a b ility

to pay ta x e s .

He s a i d :

The t h e o r e t i c a l a b i l i t y t o p a y t a x e s i s o f c o u r s e u s e ­ f u l i n im proving t a x system s . . . . But th e b u rd e n o fan e d u c a t i o n a l program c a n n o t be e q u a l i z e d th ro u g h o u t a s t a t e by im proving th e ta x sy stem . W hatever i s done, the e q u a l i ­ z a t i o n o f e d u c a t i o n a l o p p o r t u n i t y w i l l dem an d t h e f u r t h e r a d ju stm en t of burden th ro u g h the use of s t a t e su b v en tio n s fo r e d u catio n . ^

I S p a u l R. M o r t ,

Ib id .,

pp.

16-17.

21 W hile t h i s

s ta te m e n t has n o t d i r e c t l y s t a t e d

im plied

th a t any e f f o r t

ment i n

th e wrong d i r e c t i o n an d t h a t

ach iev in g

to im prove

e q u ity o f burden l i e s

so,

the ta x sy stem i s

it

has

a move ­

the r i g h t d i r e c t i o n f o r

i n Im proving th e m ech an ics o f

school su p p o rt. A second p o i n t o f view i s

e x p r e s s e d b y E e e r who s t a t e d

th at: S i n c e t a x s y s te m s a r e n o t means t o t h e m s e l v e s b u t a r e o n l y th e means o f f i n a n c i n g p u b l i c s e r v i c e s , a d v o c a t e s o f im proved m ethods o f t a x a t i o n a r e , o f c o u r s e , n o t j u s t i f i e d in tr e a tin g ed u ca tio n o r any o th e r p u b lic fu n c tio n , as a m ere v e h i c l e o f t a x r e f o r m . They h a v e , h o w e v er, t h e r i g h t t o demand t h a t m e t h o d s i n s c h o o l f i n a n c e b e c h o s e n w i t h a view to f a c i l i t a t i n g p r o g r e s s tow ards a b e t t e r t a x sy s te m , i n s o f a r a s t h i s aim i s n o t i n c o m p a t i b l e w i t h l e g i t i m a t e e d u c a t i o n a l o b j e c t i v e s .13 T his c o n te n tio n i n d i c a t e s in terested

in tax

th a t ed u cato rs

r e f o r m when a n d i f

o f s c h o o l s u p p o r t a r e m ade.

It

changes i n

sh o u ld be the m ech an ics

has profound im p lic a tio n s

to

e d u c a t i o n a l l e a d e r s h i p w hich has b een wont to occupy the rela tiv e ly

s a f e p o s i t i o n o f a c a d e m ic i s o l a t i o n f r o m t h e some­

tim es u n p l e a s a n t r e a l i t i e s

in v o lv ed in p a r t i c i p a t i o n

in

tax

reform m easures. Im p licatio n s t h r o w some l i g h t

from t h e f i n d i n g s

on t h i s

of th is

problem .

A f u r t h e r s e c o n d a ry problem r e l a t e s lie s

in

the r e l a t e d

field

stu d y should

of tax reform .

to

the f i r s t

and

As was i n d i c a t e d

C l a r e n c e H e e r , F e d e r a l Aid and t h e Tax P r o b l e m , S t a f f S t u d y No. 4 , A d v i s o r y C o m m i t t e e o n E d u c a t i o n , ( W a s h i n g t o n : U. S . G o v e r n m e n t P r i n t i n g O f f i c e , 1 9 3 9 ) p .

1

22 e a rlie r,

a c o n c l u s i o n o f E dw ards and R ic h e y was t h a t

ed v a l u a t i o n b asis

lra s s e s s -

im p u te s to p o o r e r c o u n t i e s a b i l i t y w h ic h on th e

o f n e t incom e,

t h e y d o n o t p o s s e s s . 11! ^

The a s s u m p t i o n s

o f t h i s ' s t u d y a r e b a s e d up o n th e n e t incom e c o n c e p t a s r e p r e ­ sen tin g g atio n

tax ab le a b i l i t y . co rro b o rate

have c e r t a i n

th is

If

th e fin d in g s

conclusion fo r C a lifo rn ia ,

im p lica tio n s fo r e d u catio n al fin an ce.

changes i n m ethods o f s c h o o l f i n a n c e tax reform , v alu atio n , are

of th is

and i f

in v est!* -' J \ i t w ill If

s h o u ld be accom panied by

the p ro p e rty ta x , b ased upon a s s e s s e d

im poses a n u n j u s t b u r d e n on p o o r e r c o u n t i e s ,

c e r ta in ly im p licatio n s

p lo red .

■^See S u p r a , p . 6 .

there

f o r a c t i o n w hich sh o u ld be e x ­

CHAPTER II THE SUPPORT OP EDUCATION IN CALIFORNIA P u b lic e le m e n ta r y and s e c o n d a r y e d u c a t i o n i n C a l i f o r n i a is

sup p o rted

j o i n t l y b y means o f t h e s t a t e

lo cal d i s t r ic t

tax sy stem s,

p ro p erty tax .

B efore an a n a l y s i s

i s begun,

ta x s t r u c t u r e and

th e b a s e o f w hich i s o f the s t a t e

a b r i e f overview o f th e b a s e s

c h ie f ly th e

tax

stru ctu re

of support as e sta b ­

l i s h e d b y th e C o n s t i t u t i o n o f C a l i f o r n i a and s u b s e q u e n t l e g i s ­ lativ e

e n a c tm e n ts w ould be a p p r o p r i a t e f o r a n u n d e r s t a n d i n g o f

t h e p u r p o s e and m ethod o f t h i s

in v estig atio n .

THE SUPPORT OP ELEMENTARY EDUCATION C o n stitu tio n a l p ro v isio n req u ires n u e s r e c e i v e d by th e funds

sta te ,

th ere

to be a p p lie d by th e s t a t e

The C o n s t i t u t i o n a l s o

e stab lish es

t h a t from a l l r e v e ­

s h a l l f i r s t be s e t a p a r t f o r the

support of e d u c a tio n .1

the S t a t e S ch o o l

F u n d I n t o w h i c h s h a l l b e p a i d a sum e q u a l each u n i t of average d a ily a tten d an ce grades in the p reced in g

school y e a r .3

^•C o n s t i t u t i o n o f t h e S e c tio n 16.

in

the

(elem entary)

to t h i r t y d o l l a r s

for

the e le m e n ta ry ^

in a d d itio n

to

th is

S ta te o f C a lifo rn ia ,A rtic le

^E xcluding k in d e r g a r te n a tte n d a n c e , w hich i s a l o c a l r e s p o n s i b i l i t y .

the

X III,

support fo r

^ C o n s titu tio n o f the S ta te of C a li f o r n ia ^ A r tic le S e c tio n 6.

IX ,

24 am ount,

leg islativ e

enactm ent p ro v id e s

f u r t h e r a d d e d to t h e S t a t e a r y to re -im b u rse

th at

t h e r e s h a l l be

S c h o o l F u n d s u c h sum a s i s n e c e s s ­

school d i s t r i c t s

f o r o n e -h a lf the excess

c o s t o f e d u c a tin g p h y s i c a l l y h andicapped c h i l d r e n , s u c h a sum d o e s n o t e x c e e d o n e h u n d r e d d o l l a r s average d a ily atten d an ce to

of such

p u p ils.4

provided

per u n it of

There i s a l s o added

th e S t a t e S c h o o l Fund a n am ount n e c e s s a r y to r e - i m b u r s e

c o u n ties

f o r o n e - h a l f th e amount a p p o r tio n e d to

school d i s t r i c t s

for

exceed s e v e n ty -fiv e

elem en tary

the e d u c a tio n of m ig ra n t p u p ils , d o lla rs

n o t to

p er u n i t of average d a i l y a tt e n d ­

ance. 5 P r i o r to 1953,

c o u n t i e s were a l s o

min im um o f s i m i l a r f u n d s . year,

the

sta te

co u n ties

From t h e S t a t e

the sc h o o l d i s t r i c t s

for

the S ta te

a n d S t a t e G e n e r a l Fund a r e d e t e r m i n e d on t h e b a s i s in

the p r i o r y e a r ,

^ S chool Code. S t a t e

paid to

by co u n ties

the su p p o rt o f e le m e n ta ry in to

t h e money i s

of C a lifo rn ia ,

^ S c h o o l Code, L o c . C i t . ^ S c h o o l Code. S e c . 4 .1 0

th at

th ir ty d o lla rs per

to be d i s t r i b u t e d

W hile t h e am ounts t o be p a i d

d a ily attendance

s e t up a

t o t a k e ov m r t h i s

G e n e r a l Fund i s

an amount a p p r o x im a te ly e q u a l t o

u n i t of average d a ily atten d a n ce to

to

By c o n s t i t u t i o n a l a m e n d m e n t i n

t a x s y s t e m was d e s i g n a t e d

burden of su p p o rt.

req u ired

sc h o o ls.6

S c h o o l Fund of average

apportioned

S e c tio n 4 .1

to

25 school d i s t r i c t s fin ed

l a r g e l y on t h e b a s i s

of teach er u n its ,

i n term s o f a v e ra g e d a i l y a tte n d a n c e *

de­

The b a l a n c e s

a v a i l a b l e a f t e r a p p o r t i o n m e n t s on th e b a s i s o f t e a c h e r u n i t s are

e stab lish ed ,

are

f u r t h e r a p p o r t io n e d on th e b a s i s

average d a ily atten d an ce The t o t a l

o f the

of school d i s t r i c t s ." 7

funds a p p o rtio n e d by th e s t a t e

f o r the sup­

p o rt of elem en tary e d u c a tio n equals ap p ro x im ately s ix ty d o lla rs

per p u p il in average d a ily

cess of ed u catio n p h y s ic a lly amount a p p o r t i o n e d

atten dan c© 8

p lu s

h andicapped p u p i l s .

to d i s t r i c t s

f o r the

the ex­

The t o t a l

support o f elem entary

e d u c a t i o n i n 1 9 3 7 - 3 8 was $ 4 1 , 1 9 0 , 5 3 6 . The f u n d s r e c e i v e d f r o m t h e s t a t e may b e s u p p l e m e n t e d b y l o c a l d i s t r i c t fu n d s d e riv e d from th e p r o p e r t y t a x . law p r o v i d e s d istric ts,

c e r t a i n maximum t a x r a t e s

The

f o r elem en tary school

b e in g e i g h t y c e n t s p e r one h u n d red d o l l a r s

of

a s s e s s e d v a lu a tio n f o r e lem e n tary sch o o l purposes only or n in e ty cents In u n ifie d

f o r com bined e l e m e n t a r y and k i n d e r g a r t e n p u r p o s e s .

d istric ts

u n d e r one g o v e r n i n g b o a r d ,

ra n g in g from $ 1 .5 0 to $ 1 .8 5 a r e s e t ,

v ario u s

lim its

depending upon th e

lev e ls

o f e d u c a tio n su p p o rte d from the k in d e r g a r te n th ro u g h j u n i o r

^ S c h o o l C ode, D i v i s i o n IV,

C h ap ter I I , A r t i c l e s

II,III,IV .

8B ecause th e m ethods o f r a i s i n g and a p p o r t i o n i n g fu n d s d i f f e r , a n d b e c a u s e c e r t a i n f u n d s a r e g i v e n !,u n a p p o r t i o n e d c o u n t y s c h o o l f u n d s 11, l a r g e r s c h o o l d i s t r i c t s r e c e i v e a t o t a l o f a few d o l l a r s l e s s t h a n s i x t y d o l l a r s p e r p u p i l , w h ile o t h e r s r e c e i v e more t h a n t h i s am ount.

26 c o lleg e .9 THE SUPPORT OP HIGH SCHOOL EDUCATION The S t a t e C o n s t i t u t i o n a l s o p r o v i d e s f o r t h e e s t a b l i s h ­ m en t o f a S t a t e H igh S c h o o l Fund i n a n amount n o t l e s s th irty

d o lla rs

th an

p e r p u p il i n a v erag e d a i l y a tte n d a n c e I n the

p u b lic high schools

in

t h e p r e c e d i n g y e a r . 10

The L e g i s l a t u r e

has a l s o p ro v id ed f o r th e ex cess c o s t o f e d u c a tin g p h y s ic a lly handicapped h ig h sch o o l p u p i l s , d o lla rs

per p u p il

n o t to exceed one hundred

in average d a ily a tte n d a n c e .H

As w a s t h e c a s e f o r e l e m e n t a r y e d u c a t i o n p r i o r t o 1 9 5 3 , c d u n t i e s w ere r e q u i r e d

to

amount however o f s i x t y atten d an ce.

supplem ent s t a t e

d o lla r s per p u p il in average d a ily

By c o n s t i t u t i o n a l a m e n d m e n t i n

b u r d e n o f s u p p o r t was t r a n s f e r r e d to t h a t o f

the s t a t e ,

a id b u t to th e

so t h a t

th at year,

th is

from th e c o u n ty ta x sy ste m

th is

a m o u n t i s now p a i d f r o m t h e

S t a t e G e n e ra l P u n d.12 The m a j o r p a r t o f t h e f u n d s p r o v i d e d b y t h e s t a t e th e su p p o rt o f h ig h school e d u c a tio n i s c o u n tie s and d i s t r i c t s

on th e b a s i s

ap p ortioned

for

to the

of average d a ily a tte n d ­

an ce, w ith a s m a lle r sh a re o f a b o u t te n p e r c e n t o f the funds

^Maximum r a t e s

defin ed

i n S c h o o l Code S e c t i o n 4 . 3 7 5

^ C o n s titu tio n o f the S ta te l l School Code, S e c tio n 4 .2 0 l ^ S ch o o l Code. S e c ti o n 4 .5 0

of C a lif o r n ia . S ectio n 6

27 b ein g d is tr ib u te d ap p o rtio n ed , The t o t a l

on s e v e r a l o t h e r b a s e s .

The f u n d s s o

amount to a p p r o x im a te ly n i n e t y d o l l a r s

sta te

funds a p p o rtio n ed

to d i s t r i c t s

per p u p il.

i n 1937-38,

w ere $ 2 9 ,9 1 0 ,8 2 3 . The l o c a l h i g h s c h o o l d i s t r i c t funds from l o c a l p r o p e r ty t a x e s . tio n are

p rescrib ed

by law ,

supplem ents th e s t a t e

The maximum r a t e s

b e in g f o r e a c h one h u n d re d d o l l a r s

of assessed v a lu a tio n of tax a b le p ro p erty , in high school d i s t r i c t s ,

d istric ts,

d istric ts

sev en ty -fiv e

cents

an d $ 1 . 0 0 f o r com bined h i g h s c h o o l

and j u n i o r c o l l e g e p u r p o s e s . ju n io r co lleg e

of t a x a ­

it

I n c o te rm in u s h ig h s c h o o l and s h a l l be $ 1 .0 0 , w h ile

in u n i f ie d ^

the p r o p o r tio n o f l o c a l rev en u es u se d f o r h ig h

school purposes,

is

a t the d i s c r e t i o n o f the g o v e rn in g b o a rd . THE STATE.TAX SYSTEM

The t a x

system o f C a l i f o r n i s

evolved o v e r a p e rio d m any s t a t e s ,

and i s

is

o f m any y e a r s , i n

one w hich has b e e n com p ariso n to t h a t i n

o n e w h i c h may b e c o n s i d e r e d p r o g r e s s i v e .

Much o f t h e l e g i s l a t i o n e s t a b l i s h i n g a c te d w ith in the p a st econom ic d i s t u r b a n c e

ten y ears, of th a t

th e

t a x s t r u c t u r e was e n ­

p a r t i c u l a r l y sin c e 1933.

tim e,

c a s t upon th e

The

s t a t e many

n ew o b l i g a t i o n s w h i c h h a d b e e n u n k n o w n a q u a r t e r o f a c e n t u r y

^ D istric ts governing b o ard .

in clu d in g a l l

l^Law g o v e r n i n g r a t e s

lev els

o f e d u c a t i o n u n d e r one

i n S c h o o l Code, S e c t i o n 4 .

375

28 before.

T h e s e new d e m a n d s f o r s t a t e

to ry a re v ise d tax

s t r u c t u r e w hich could i n

the c o s ts o f g overn m ental s e r v ic e s reflect

the tren d

the s tr e s s e s

f u n c t i o n s made o b l i g a ­

of lib e ra lism

some m e a s u r e m e e t

in stitu ted .

The t a x e s a l s o

in the n a tio n a l l i f e

caused by

o f econom ic d i s l o c a t i o n s and t h e a t t e m p t s

o f.a

d e m o c r a t i c p e o p l e t o s o l v e t h e new p r o b l e m s w h i c h a m o d e r n economy had t h r u s t u p o n them . Most o f t h e o f the

tax es

c h i e f o f w hich i s

the tax es

however a r e

fu n ctio n s

and a r e

stu d y .

ra ise d are fo r g en eral purposes, the su p p o rt of e d u c a tio n ,

C hief of th e s e s p e c i a l purpose

V e h ic le F u e l Taxes and L ic e n s e s ,

v o ted to th e en fo rcem en t.

tax es

is

M utuel Fees a t h o rse r a c i n g , $ 2,5 2 7 ,8 0 2 1 ? in 1937-38,

t o highw ay u s e .

th e M otor V e h i c l e F e e s and

$ 1 3 ,4 4 6 ,3 7 0 1 5

tax of th is

t h e M otor

w hich i n 1937-38 produced

s u p p o r t o f m o to r v e h i c l e A th ird

the scope o f t h is

c o n s titu tio n a lly lim ited

A nother s p e c ia l s e t o f ta x e s a re L ic e n s e s w hich r a i s e d

A few o f

lte a r - m a r k e d ft f o r s p e c i a l g o v e r n m e n t a l

th e re fo re not w ith in

$ 4 7 , 1 2 2 , 5 2 8 1 5 an(3

one

1 9 3 7 -3 8 and were de­

s u p e r v i s i o n and law

n atu re

is

t h a t on P a r i -

w hich w i t h l i c e n s e f e e s

produced

and w hich a r e u se d l a r g e l y f o r

the

l ^ H a r r y B. R i l e y , B i e n n i a l R e p o r t o f S t a t e C o n t r o l l e r , 1937-38. (S a c ra m e n to : C a l i f o r n i a S t a t e P r i n t i n g House, 1938) p. 39. ^ 6L o c . c i t . l?L o c.

c it.

29 b e n efit of a g ric u ltu re

th ro u g h s u b s id ie s

to f a i r s

and ex p o ­

s i t i o n s .3-8 In a d d itio n tain

to th e above s p e c i a l p u rpose

o th e r revenues accrue

n o t be c o n s id e r e d i n t h i s

such as

stu d y .

They a r e m in o r r e v e n u e s d e ­

o n d e l i n q u e n t t a x e s now a b o l ­

the p r o p e r ty ta x .

The C d n s t i t u t i o n p r o v i d e s

t h a t a p r o p e r t y t a x may b e l e v i e d , b u t t h i s since

1914.

sta te

t r e a s u r y from t h i s

true

However, m in o r r e v e n u e s s t i l l

in 1929.

the s t a t e

treasu ry

include s t a te

has n o t been done tric k le

in

p o u r e e on d e l i n q u e n c i e s .

f o r t h e G ro s s R e c e i p t s Tax on p u b l i c

rep ealed

cer­

to 'g e n e r a l fu n d p u rp o s e s w hich w i l l

r i v e d p r i n c i p a l l y from r e t u r n s ish ed ,

tax es,

The t a x e s a n d l i c e n s e

serv ice

to th e

T h e sa m e i s c o rp o ra tio n s,

f e e s w hich a c c ru e d

to

i n 1937-38 f o r g e n e r a l fund p u rp o s e s w hich

su pport of ed u catio n ,

1* The r e t a i l

sales

a r e g iv e n i n T able I .

a n d u s e t a x . The r e t a i l

came i n t o b e i n g i n C a l i f o r n i a

i n 1933 when t h e

sales

tax

s t a t e was i n

d e s p e r a t e n e e d o f new r e v e n u e s a n d w he n e c o n o m i c c o n d i t i o n s caused heavy d e lin q u e n c ie s fu n ctio n s.

in p ro p e rty tax es su p p o rtin g

lo cal

As a r e s u l t o f a c o n s t i t u t i o n a l a m e n d m e n t a p p r o v e d

by th e e l e c t o r a t e

in th a t year,

the s t a t e

took over the

p o r t o f e d u c a t i o n f o r m e r l y b o r n e b y t h e c o u n t i e s . 19

sup­

The

^ C e r t a i n fu n d s from t h i s ta x a r e p a r t l y e ar-m ark e d f o r e d u c a tio n in t h a t th ey su p p o rt in p a rt a g r i c u l t u r a l e d u c a tio n a t th e U n i v e r s i t y o f C a l i f o r n i a and th e C a l i f o r n i a P o l y t e c h n i c S chool. The t o t a l a p p r o p r i a t i o n s f o r t h e tw o i n s t i t u t i o n s i n t h a t y e a r were $ 7 0 8 ,7 3 0 ( I b i d . p . 242) 19Supra. p. 24.

30

TABLE I TAXES AND LICENSE FEES COLLECTED FOE GENERAL FUND PURPOSES 1937-38#

Tax R e t a i l S a l e s a n d Use F ra n c h is e and C o r p o r a t i o n Income P e r s o n a l Income A lc o h o lic B everage L ic en ses $ 2 ,1 0 3 ,9 1 5 B eer and W ine 1 ,9 3 1 ,0 5 7 D istille d S p irits 8 ,1 6 5 ,8 2 6

Am ount $ 8 6 ,658,195 1 8 ,8 4 1 ,4 8 0 2 0 ,1 3 8 ,4 1 6

1 1 .4 12.2

1 2,2 0 0 ,8 0 0 1 0 ,4 7 9 ,5 2 4

7 .4 6 .3

7 ,0 7 3 ,9 2 1 7 ,4 5 9 ,5 2 1

4 .3 4 .5

2 ,3 3 6 ,5 9 2

1 .4

16S ,1 8 & ,i4 9

100 0

In h eritan ce M otor V e h ic le L ic e n s e a n d T ax G r o s s Prem ium s I n s u r a n c e M otor T r a n s p o r t a t i o n and L icen se T o tal

#For sources of d a ta ,

Percent of T o tal 52.2

s e e A p p e n d i x A.

.

31 g e n e r a l t a x r e v i s i o n e n v is a g e d by th e

^ R i l e y - S t e w a r t Plan*1

u p o n w h i c h t h e c o n s t i t u t i o n a l a m e n d m e n t was b a s e d , a p o ssib le

sales

t a x a s w e l l as an incom e tax^O to m a i n t a i n

the added c o s t of e d u c a tio n as w e ll as o th e r s t a t e A lthough p r e lim in a r y th in k in g selectiv e sales the gas,

sales

tax ,

the L e g is la tu r e

t a x o f 2-J- p e r c e n t .

e le c tric ity , lin e s

tates,

and th e

needs.

had b e e n c e n t e r e d on a fin a lly

en acted a g ro ss

The o n l y e x e m p t i o n s w e r e t h o s e w h i c h

F ederal C o n stitu tio n fo rb id s

m ains,

in clu d ed

sta te s

to ta x ,

the s a le s

o r w a t e r when d e l i v e r e d .to c o n s u m e r s

or pip es, sales

the s a l e s

thro u g h

o f g o ld b u l l i o n and p r e c i p i ­

from p e rs o n a l p r o p e r t y

p u b l i c works c o n t r a c t s .

of

to be u s e d i n

The t a x q u i c k l y p r o v e d t o b e a g o o d

re v e n u e p r o d u c e r and even exceeded e x p e c t a t i o n s . F u rth e r needs f o r revenue caused f o r an in c r e a s e the

increased

in- t h e r a t e

costs

to 3 p e r c e n t i n 1933.

o f assum ing th e

c a t i o n was f 3 9 , 1 5 3 , 9 0 5 o r l e s s duced by th e s a l e s

co u n ties

A lthough

supp o rt of edu­

than h a lf o f the revenue p ro ­

t a x ,21 a n e f f o r t

th e p eo p le in a s t a t e

the G overnor to a sk

t o make i t

accep tab le

to

who s t r o n g l y b e l i e v e d i n e d u c a t i o n was

made b y t h e

Governor in h is m essage

posing t h a t

i t be c a l l e d

the

to th e L e g i s l a t u r e by p r o ­

ffs c h o o l t a x 11.

I n t h e same

2C>The i n c o m e t a x w a s p a s s e d b y t h e L e g i s l a t u r e i n 1 9 3 3 b u t was v e t o e d b y t h e G o v e r n o r . I t was s u b s e q u e n t l y e n a c t e d i n t o law by t h e 1935 L e g i s l a t u r e and a p p r o v e d b y t h e G o v e r n o r . 2 1 n a r r y B. R i l e y Ojd. c i t . p .

1 29

32 m e s s a g e he g a v e a s the f a c t

th at

the reaso n f o r in c re a s in g

i t did n o t cover a l l

C e r ta in elem en ts re g re ssiv e n atu re

of the

m ise by a d d in g th e rate

in

the c o s ts

the L e g is la tu r e ,

tax ,

the ta x r a t e , of ed u catio n * * ^ sen sitiv e

to

the

s u c c e e d e d i n e f f e c t i n g a compro­

c o s t o f food to

the l i s t

of ex em p tio n s,

the

r e m a in in g a t 3 p e r c e n t a s recommended by th e G o v e rn o r.

C e r t a i n amendments c a l l e d made b y f i r m s

o utside

the

"Use Tax A c t " a l s o

C a lifo rn ia ,

taxed s a le s

th e t a x b e in g p a id by th e

purchaser in C a lifo rn ia . The r e t a i l

sales

l e c t e d by the S t a t e reta ile rs

th at

Board o f E q u a l i z a t i o n w h ic h s u p e r v i s e s

tax to

a re req uired

and can n o t

the t a x .

Board o f E q u a l i z a t i o n m a i n t a i n s o f f i c e s

th irte e n a d m in istrativ e o f the

A ll r e t a i l e r s

the c o s t o f p u rc h a se s

they absorb

The S t a t e

co u n ties

ta x i s a d m i n i s t e r e d and c o l ­

by a s y s te m o f l i c e n s e s .

by law to add t h e ad v ertise

and use

sta te

d istric ts

are d iv id e d .

in

i n t o w hich th e f i f t y - e i g h t The t a x

is

e ffe c ie n tly

2 2 $ /ja rv el M. S t o c k w e l l , S t u d i e s i n C a l i f o r n i a S t a t e T a x a t i o n , 3-935. ( B e r k e l e y : U n i v e r s i t y 1 o f ( C a l i f o r n i a P r e s s , 1§S9) p. £65. The t a x c a n n o t r i g h t l y b e c a l l e d a " s c h o o l t a x " more t h a n a n y o t h e r t a x , as ed u catio n c o n s titu ­ t i o n a l l y h a s f i r s t c l a i m on s t a t e f u n d s . ( S u p r a . p . 23) Even s t a t e e d u c a t i o n a l l e a d e r s i n a n e f f o r t t o make t h e t a x p a l a t ­ a b le have en co u rag ed th e m is in f o r m a tio n r e g a r d in g i t s b e in g a "school tax ". I n 1937-38 th e added c o s t s to th e s t a t e o f th e c o u n t i e s 1 b u r d e n f o r e d u c a t i o n was $ 4 0 , 4 4 1 , 9 2 8 . ( H a r r y B. R i l e y , 0£ . c i t . p . 3 0 0 , 2 6 0 , 2 4 6 ) w h i l e t h e s a l e s t a x r a i s e d more tH an t w i c e t h a t a m o u n t.

33 a d m in iste re d a t a c o s t of 2 ,1 1 p er c e n t o f revenues c o l l e c t ­ e d , 23

although i t

r e q u ir e s an e x p e n d itu re of n e a r ly a m illio n

d o lla rs. That the r e t a i l

sales

and use

t a x was an e x c e l l e n t

s o u r c e o f r e v e n u e i n 1 9 3 7 - 3 8 c a n be s e e n fro m T a b l e I . a lso

the

“ b a c k b o n e 1* o f t h e s t a t e

th an o n e -h a lf o f th e

to ta l

tax s t r u c t u r e ,

ta x and l i c e n s e

It

is

p r o d u c i n g m ore

revenue a c c ru in g

to

g e n e r a l fund purposes* The r e t u r n s a r e

r e p o r t e d by c o u n t i e s and a re g iv e n i n

T able I I . 2.

The p e r s o n a l i n c o m e t a x *

p o te n tia lity

o f t h e p e r s o n a l incom e t a x f o r C a l i f o r n i a g o e s

a s f a r b a c k a s 1 9 1 4 , when t h e S t a t e a tax study,

F i r s t r e c o g n i t i o n o f the

Board o f E q u a l i z a t i o n i n

a f t e r re v ie w in g W isconsin*s s u c c e s s w ith th e

suggested th a t

th e i n a u g u r a t i o n o f a n incom e t a x m ig h t be r e ­

g ard ed as an im p o rta n t s t e p fo rw a rd s o u n d e r s y s t e m o f t a x a t i o n . 24 t a x com m ission r e p o r t e d

in the d i r e c ti o n of a

Then a g a i n i n

th a t i t b eliev ed

m ent o f a p e r s o n a l incom e

1929 a s p e c i a l

“th a t

the e s t a b l i s h ­

tax In G a lif o m ia w i l l p ro b ab ly

u l t i m a t e l y be re c o g n iz e d as e s s e n t i a l tio n

tax ,

to a s a t i s f a c t o r y s o l u ­

o f t h e p r o b l e m o f t a x a t i o n i n C a l i f o r n i a . “ 25

^ B ie n n ia l R e p o rt o f th e S t a t e Board o f E q u a l i z a t i o n , E i g h t y - e i g h t h and E i g h t y - n i n t h F i s c a l Y e a r s , ( S a c r a m e n t o : C a l i f o r n i a S t a t e P r i n t i n g House) p . 2. 2‘% a r v e l M. S t o c k w e ll,o p . c i t . , p . 2 2 9 . 25I b id ., p. 230.

TABLE I I RETAIL SALES AND USE TAX GOLLECTED BY COUNTIES

County Alameda Amador B u tte C alaveras Colusa Contra Costa D el Norte E l Dorado Fresno Glenn Humboldt Im p eria l Inyo Kern Kings Lake L assen Los A n geles Madera Marin Mariposa Mendocino Merced Modoc Mono Monterey Napa Nevada

Amount $ 6 ,4 0 7 ,9 6 8 8 6 ,1 6 8 411,245 6 1 ,1 6 7 125,4 9 8 7 96,5 6 4 4 8 ,0 9 2 118,1 8 0 2 ,0 5 0 ,5 0 5 1 02,906 4 5 7 ,0 8 4 6 21,963 9 4 ,7 1 9 1 ,4 6 8 ,1 2 9 3 3 4 ,9 1 8 6 7 ,3 1 8 120,033 3 7 ,5 3 6 ,2 5 8 139,904 3 2 8 ,8 3 8 7 2 ,5 9 6 177,0 4 1 3 9 4 ,2 9 6 53 ,7 7 8 1 7 ,7 0 8 732,582 233 ,1 1 4 200,577

County Orange P la c e r Plumas R iv e r sid e Sacramento San B en ito San Bernardino San Diego San F ra n cisco San Joaquin San Luis Obispo San Mateo Santa Barbara Santa Clara Santa Cruz Shasta S ie r r a S isk iy o u Solano Sonoma S ta n is la u s S u tte r Tehama T r in ity Tulare Tuolumne Ventura Yolo Yuba

Amount $ 1 ,3 0 6 ,6 3 1 2 6 7 ,4 5 6 7 3 ,6 2 1 9 1 1,777 2 ,1 9 7 ,9 7 1 9 1 ,264 1 ,4 4 9 ,0 9 7 2 ,9 2 8 ,0 9 6 1 3 ,4 5 2 ,4 3 6 1 ,5 1 9 ,1 4 5 311,372 8 9 2 ,3 0 0 985,859 1 ,8 9 2 ,4 1 4 530,487 192,538 2 6 ,9 6 8 2 49,741 385 ,6 6 7 665,456 7 71,519 7 9 ,2 6 0 134,267 2 3 ,8 6 0 8 2 0,212 11 5 ,7 4 9 622,874 23 0 ,1 7 4 2 6 7 ,1 1 0

T o ta l

8 6 ,6 5 5 ,8 1 0

35 As a r e s u l t by the e l e c t o r a t e

o f C o n s t i t u t i o n a l Am endment 3 0 ,

i n 1933,. m e a s u r e s p r o p o s i n g b o t h t h e s a l e s

a n d incom e t a x e s w e re i n t r o d u c e d income

tax m easure,

in

the L e g i s l a t u r e ,

h o w e v e r, was v e t o e d by t h e

1934 e l e c t i o n s

stre n g th e n e d th e group in

ad v o catin g th e

incom e t a x and t h i s ,

n ew r e v e n u e s ,

led

o f 1935 and i t s

approved

to

the passage

The

G o v e r n o r * The

the L e g is la tu r e ,

to g e th e r w ith the need f o r

o f t h e P e r s o n a l I n c o m e T ax A c t

a p p r o v a l by t h e G o v e r n o r .

The P e r s o n a l I n c o m e Tax A c t f o l l o w s w ell-know n F e d e ra l ta x

i n many w a y s.

th e p a t t e r n o f the

The la w p r o v i d e s

th at

the

t a x s h a l l be l e v i e d u p o n t h e n e t incom e o f e v e r y ' r e s i d e n t and u p o n th e n e t incom e o f e v e r y n o n - r e s i d e n t w hich i s from so u rc e s w i t h in The t a x allo w a b le

the s t a t e .

i s upon n e t incom e r e m a in in g a f t e r c e r t a i n

d ed u ctio n s s im ila r

to t h e F e d e r a l t a x a r e made.

e a r n e d i n c o m e c r e d i t i s made a s i s act.

the

E xem ptions o f $ 1 ,0 0 0 f o r a s i n g l e

p e rs o n and $ 2 ,5 0 0 f o r

co u p le,

allo w ed .

Husband and w if e a r e a l s o p e r m i t t e d

if

w ith $400 c r e d i t f o r each d e p e n d e n t,

thus e n a b lin g

No

case w ith the F e d e ra l

a m arried

retu rn s,

d eriv ed

to f i l e

them t o e s c a p e h i g h e r r a t e s

are jo in t

effectiv e

th e incom es w ere com bined. The s t a t u t e

s e t s up r a t e s u s u a l l y d e s c r ib e d as b e in g

o n e-fo u rth of F ederal r a t e s . .T able. X I I i s v e r y m o d e r a t e , tax a tio n

is

co n sid ered ,

The r a t e

stru c tu re ,

as given in

p a r t i c u l a r l y wh en t h e r e a l r a t e

and p ro v id e s

of

fo r a gradual p ro g ressio n .

36

TABLE I I I HATE SCHEDULE OP PERSONAL INCOME TAX 1937 N et Income B asic Rate*! A v erag e H ate o f Groups (P e rce n t) Taxi T a x a b l e N e t Income — ----------1 .0 0 U nder $ 5 . 000 1 # 5 ,0 0 0 u n d e r # 1 0 ,0 0 0 50 2 1 .0 9 tt 1 5 ,0 0 0 10,0 0 0 150 3 1 .58 tt 15,000 300 4 20 ,0 0 0 2 .0 7 tt 2 0 ,0 0 0 5 2 5,000 500 2 .5 4 rt 2 5 ,0 0 0 3 0 ,0 0 0 750 -6 3 .0 6 tt 30 ,000 40,000 1 ,0 5 0 7 3 .7 2 ft 4 0 ,0 0 0 5 0 ,0 0 0 1,750 8 4 .5 8 tt 60,000 2 ,5 5 0 9 5 0 ,0 0 0 5 .2 8 tt 70 ,0 0 0 3 ,4 5 0 10 6 0 ,0 0 0 5 .9 3 tt 4 ,4 5 0 7 0 ,0 0 0 8 0 ,0 0 0 11 6 .4 8 tt 12 8 0,000 100 ,0 0 0 5 ,550 7.3 7 tt 100 ,0 0 0 1 50,000 7 ,9 5 0 13 8 .6 1 tt 14 150 ,0 0 0 250,000 14 ,4 5 0 10.2 8 15 2 8 ,4 5 0 10.72 250,000 and over

3-Flat r a t e p a i d on l o w e r i n c o m e o f n e t i n c o m e g r o u p . ^ R a te on incom e i n e x c e s s

o f l o w e r incom e o f n e t incom e

group. ^ A v e r a g e s c o m p u t e d f r o m d a t a i n F r a n c h i s e Tax C o m m i s s i o n e r S t a t i s t i c s o f 1937 R e t u r n s , P e r s o n a l Income T ax , S t a t e o f C a l i fo rn ia.

37 T he r a t e s exam ple,

a r e p a r t i c u l a r l y low on t h e l o w e r l e v e l s . the t a x

For

on n e t i n c o m e s o f $ 5 ,0 00 i n o n l y $50, i n

c o m p a r i s o n t o a t a x o f $245 i n O r e g o n , $210 i n New Y o r k ,

and

$139 i n M i n n e s o t a a n d Iowa,26 The a d m i n i s t r a t i o n o f t h e p e r s o n a l i n c o m e t a x l a w i s v ested

in the o f f ic e

the S ta te

Board o f E q u a l i z a t i o n a s a b o a rd o f a p p e a l .

C om m issioner i s and i s

o f t h e F r a n c h i s e Tax C o m m is sio n e r, w i t h

empowered t o d i v i d e

the s t a t e

Into

The

d istric ts

g i v e n pow ers o f ex am in in g books and r e c o r d s com m ensurate

w ith e f f i c i e n t a d m in is tra tio n o f the a d m in is te re d w ith an absence

tax .

of p o litic a l

It

is

e ffic ie n tly

c o n tro l a t a cost of

ap p ro x im ately 4 .9 p er c e n t. The r e t u r n s

f o r t h e p e r s o n a l incom e t a x a r e

t h e c o u n t i e s a n d a r e a s g i v e n i n T a b l e IV f o r 3• Bank a n d c o r p o r a t i o n f r a n c h i s e C o rp o ratio n F ranchise

used,

1929 v a r i o u s b a s e s

inclu d in g p ro p erty ,

ceip ts.

the y e a rs

1927-38.

t a x . The B a n k a n d

Tax w a s e n a c t e d b y t h e L e g i s l a t u r e

1929 and s u b s e q u e n t l y amended i n 1 9 3 1 , P r i o r to

r e p o r te d by

of tax atio n

1933,

In

1935 and 1937.

o f c o r p o r a t i o n s were

p a r v alu e of s to c k ,

and g r o s s

S t u d i e s w h i c h had b e e n c o n t i n u a l l y c a r r i e d

re­

on t o

a c h ie v e e q u i t y In t a x a t i o n b etw een th e n a t i o n a l and s t a t e banks on t h e o n e h a n d a n d o t h e r c o r p o r a t i o n s o n t h e o t h e r ,

at

the

2 6 c u l b e r t L . O l s o n , G o v e r n o r 1s M e s s a g e t o L e g i s l a t o r s , J a n u a r y 2 9 , 1940, (S a c ra m e n to : C a l i f o r n i a S t a t e P r i n t i n g House)

p , 7.

2 7 c o m p u t e d fro m d a t a i n H a r r y B. R i l e y ,

70.

op. c i t . ,

pp.,3 9 ,

TABLE IV PERSONAL INCOME TAX COLLECTED BY COUNTIES 1937-38

County Alameda Amador B utte C alaveras Colusa Contra Costa Del Norte E l Dorado Fresno Glenn Humboldt Im p erial Inyo Kern Kings Lake L assen Los A n geles Madera Marin Mariposa Mendocino Merced Modoc Mono Monterey Napa Nevada

Amount f9 6 6 ,2 8 2 4 ,3 6 8 2 1 ,2 9 0 8 ,7 4 9 14,107 8 1 ,1 3 3 952 4 ,4 6 5 1 5 8 ,8 3 4 6 ,5 4 4 2 5 ,9 4 6 4 5 ,4 0 4 3 ,6 7 8 1 5 6 ,6 6 8 3 9 ,8 4 2 3 ,2 7 0 8 ,1 7 8 1 0 ,4 3 4 ,1 1 3 1 2 ,4 1 1 1 0 9 ,1 4 1 4 ,3 0 7 1 0 ,2 1 4 2 7 ,5 8 8 1 ,6 7 1 531 1 2 7 ,1 2 5 2 1 ,4 8 1 2 7 ,1 4 6

County Orange P la c e r Plumas R iv er sid e Sacramento San B en ito San Bernardino San D iego San F ra n cisco San Joaquin San Luis Obispo San Mateo Santa Barbara Santa Clara Santa Cruz Shasta S ie r r a S isk iy o u Solano Sonoma S ta n is la u s S u tte r Tehama T r in ity Tulare Tuolumne Ventura Yolo Yuba T o ta l

Amount $155,701 2 1 ,3 3 7 4 ,2 2 2 112,926 2 0 9 ,5 3 6 1 0 ,2 5 3 9 5 ,3 9 6 457,779 4 ,8 9 9 ,1 3 5 140 ,5 2 6 2 0 ,1 2 2 297 ,2 5 3 6 3 1 ,0 1 1 2 87,852 3 4 ,4 2 3 6 ,1 0 5 1 ,6 8 5 1 1 ,0 1 7 2 9 ,9 8 3 3 3 ,4 2 3 5 5 ,3 8 6 2 3 ,2 1 4 4 ,4 8 0 1 ,0 7 6 5 2,1 3 6 5 ,3 3 9 16 9 ,9 5 2 3 3 ,6 3 6 t 8 ,6 5 2 2 0 ,1 4 8 ,9 9 4

sam e t i m e c o n s i d e r i n g

the f e d e r a l

sta tu te

w hich p r o h i b i t e d

sta te s

from t a x in g n a t i o n a l banks a t a r a t e

lev ied

on o t h e r c o r p o r a t i o n s w i t h i n

su lted

i n a c o n s t i t u t i o n a l amendment a p p r o v e d b y th e p e o p l e

in

1928 and t h e p a s s a g e

co rp o ratio n s

fin a n c ia l co rp o ra tio n s,

and b u s in e s s

c o rp o ra tio n s.

pro p erty tax es,

of bu sin ess

In p ra c tic e

incom e i s

d eterm in ed

these r a t i o s

taxes

The a c t u a l r a t e

t h e 8 p e r c e n t maximum.

tax ab le

v iz,

m an u factu rin g

an d incom e

co rp o ratio n s,

s o n a l and r e a l p r o p e r t y ta x e s p lu s net

th ree groups;

in an

t o t a l more t h a n 8 p e r c e n t o f

o f the p re c e d in g y e a r .

n o t exceed

in to

and m e r c a n t i l e ,

b u t do p a y r e a l e s t a t e

e n t upon th e r a t e

fin ally re­

B a n k s do n o t p a y l o c a l p e r s o n a l

amount w hich c a n n o t ex ce ed i n net p ro fits

borders,

than th a t

o f th e 1929 l e g i s l a t i o n .

The l a w c l a s s i f i e s banks,

its

h igher

provided i t

The r a t i o

the f r a n c h i s e

to be

have been o v e r

the

is depend­

of

the p e r ­

tax

tax r a te

.08 so t h a t

does

to

the

fo r banks. the r a t e

o n b a n k s h a s b e e n t h e maximum p e r m i t t e d b y l a w . F i n a n c i a l c o r p o r a t i o n s d e f i n e d b y t h e F r a n c h i s e Tax C om m issioner a s a b u s i n e s s taxed

sim ila rly ,

u sing

in co m p etitio n w ith banks,

the 8 p e r c e n t r a t e

are

except th a t th ey

p ay p e r s o n a l p r o p e r t y t a x e s f o r w hich th e y a r e a llo w e d an o f f ­ s e t on s t a t e the

sta te

tax es.

Of t h i s

o ffse t,

8 per cent

i s added to

tax .

B u s in e s s , m a n u fa c tu rin g and m e r c a n t i le c o r p o r a tio n s w h i c h make u p t h e b u l k o f t a x a b l e

c o rp o ra tio n s pay a ta x a t

40 the f l a t r a t e lo ca l,

o f 4 p e r c e n t o f n e t Incom e.

p e r s o n a l and r e a l p r o p e r t y

n o t a l l o w e d c r e d i t on s t a t e three

They a l s o p a y

ta x e s f o r w hich th ey a r e

tax es.

They, as w e ll as a l l

c o r p o r a tio n groups p ay a nom inal f r a n c h is e

m in im um o f $ 2 5 ,

irresp ectiv e

o f w hether o r n o t

tax of a

t h e y had an y

n e t incom e o r p r o f i t . N e t income i n a l l w ith in

the

sta te

is

defin ed as

incom e e a r n e d

and c e r t a i n m eth o d s f o r d e f i n i n g

come a r e p r e s c r i b e d th e F ran ch ise

cases

i n the law .

The t a x

is

th is

in ­

a d m in is te r e d by

Tax C o m m i s s i o n e r , w h o s e f u n c t i o n i t

is

to d e te r ­

m ine w h e t h e r th e p r o p o r t i o n o f b u s i n e s s o f a g i v e n c o r p o r a t i o n is

earned w ith in

the s t a t e .

The m o d e r n c o r p o r a t i o n reaching

scope o f i t s

i s w ell-know n f o r

the f a r -

o p e r a t i o n s w hich re a c h e s beyond th e

b o u n d aries o f co u n ties

and even s t a t e s .

For th is

reason,

d ata

on t h e p ay m en t o f c o r p o r a t i o n Income t a x e s c a n n o t be g a t h e r e d and r e p o r t e d by c o u n t i e s . m ate

the p r o p o r tio n a te

sta te

It

o f e ach c o u n ty to th e

t o t a l o f c o r p o r a t i o n incom e t a x e s . s t u d y b e made o f t h e

tax es.

If

given.

th e re fo re n ecessary to e s t i ­

co n trib u tio n

careful

c atio n

is

it

in cid en ce

of co rp o ratio n

c a n b e d e t e r m i n e d who p a y s

o f how b e s t

to e s t i m a t e

To d e t e r m i n e

th is,

T his r e q u i r e s

the

tax ,

In the

Income

some i n d i ­

the r e tu r n s by c o u n tie s

a u th o ritie s

th at

c an be

f i e l d m u s t be

co n su lted f u lly . A fte r an a n a ly s is

o f the d i s t r i b u t i o n

of to ta l

incom e

41 f r o m d i v i d e n d s among t h e v a r i o u s , i n c o m e g f o u p s , A n d e r s o n c o n ­ clu d es i I t a p p e a r s , t h e r e f o r e , t h a t i f t h e n e t incom e t a x on c o r p o r a t i o n s u l t i m a t e l y com es o u t o f t h e s t o c k h o l d e r s i n m a j o r p a r t , i t i s a t a x on w e a l t h y o r w e l l - t o - d o p e r s o n s . L e s s t h a n 9 p e r c e n t o f g a i n f u l l y e m p l o y e d p e o p l e own a p p r o x i m a t e l y 90 p e r c e n t o f t h e s t o c k .2 8 A c a r e f u l a n a l y s i s o f the in c id e n c e tax es

i s made b y H e e r ,

an o u tsta n d in g

of co rp o ratio n

tax a u th o r ity .

He s a y s

in p a rt: I t i s n o t p o s s ib le to g e n e r a liz e about th e in c id e n c e o f b u sin ess tax es. As a g r o u p , c o r p o r a t i o n i n c o m e t a x e s a r e c o m m o n l y s u p p o s e d t o f a l l u p o n t h e s t o c k h o l d e r s who have a r e s i d u a l c la im upon th e c o r p o r a tio n e a r n in g s . T h e r e a r e , o f c o u r s e , many i n d i v i d u a l s o f m o d e s t m eans who d e r i v e t h e i r s u p p o r t w h o l l y o r i n l a r g e p a r t f r o m c o rp o ra tio n d iv id en d s. The b u l k o f i n d i v i d u a l d i v i d e n d p a y m e n t s , h o w e v e r , i s made t o p e r s o n s i n t h e h i g h e r i n ­ come r e a c h e s . Of t h e 30 b i l l i o n d o l l a r s o f d i v i d e n d s p a i d o u t I n 1935, a b o u t t w o - t h i r d s w a s r e c e i v e d b y i n d i ­ v i d u a l s h a v i n g t o t a l i n c o m e s o f $ 5 ,0 00 o r m o r e p e r a n n u m . D ividends c o n s t i t u t e a l a r g e r p r o p o r tio n o f the a g g re g a te g r o u p incom e o f i n d i v i d u a l s a t t h e u p p e r end o f t h e 'i n ­ come s c a l e t h a n t h e y do o f t h e a g g r e g a t e g r o u p o f i n c o m e : a t th e lo w e r end o f th e s c a l e . I n 1935, f o r i n s t a n c e , d i v i d e n d s r e p r e s e n t e d n e a r l y 83 p e r c e n t o f t h e t o t a l o f a l l incom e r e p o r t e d i n t h e b r a c k e t o f $ 1 , 0 0 0 , 0 0 0 o r m ore p e r a n n u m , a s c o m p a r e d w i t h a r a t i o o f a b o u t 12 p e r c e n t f o r t h e $5,000 t o $10,000 p e r a n n u m b r a c k e t . To t h e e x t e n t t h a t t h e c o r p o r a t i o n i n c o m e t a x i s b o r n e b y th e s t o c k h o l d e r s , i t would a p p e a r to o p e r a t e p r o g r e s ­ s i v e l y am ong i n c o m e g r o u p s b u t n o t n e c e s s a r i l y a s among i n d i v i d u a l s .29 G roves r e p o r t s

th at

2 8 h . Dewey A n d e r s o n , (S tan fo rd U n iv e rsity P re ss,

t h e t a x a s a member o f t h e n e t

Our C a l i f o r n i a 193*7) p . £40

S ta te Taxes, — —

^ C l a r e n c e H e e r , F e d e r a l A id a n d t h e Tax P r o b l e m , S t a f f S t u d y No. 4 , A d v i s o r y C o m m i t t e e o n E d u c a t i o n , ( W a s h i n g t o n ; U n i t e d S t a t e s G o v e r n m e n t P r i n t i n g O f f i c e , 1939) p p . 59-60.

42 incom e f a m i l y i s g e n e r a l l y a c c e p t e d a s o f f e r i n g resistan ce

to

sh iftin g .

He r e p o r t s

co n sid erab le

th at:

A s t u d y b y t h e N a t i o n a l I n d u s t r i a l C o n fe re n ce Board a f f o r d s some i n d u c t i v e e v i d e n c e t o s u p p o r t t h e p r o p o s i t i o n t h a t e v e n c o r p o r a t i o n incom e t a x e s a r e n o t u s u a l l y s h i f t e d . The C o lw y n C o m m i t t e e o f E n g l a n d a r r i v e d a t t h e sa m e c o n ­ c l u s i o n . So H eerfs co n clu sio n

th at

th e c o r p o r a t i o n incom e ta x

s h o u l d o p e r a t e p r o g r e s s i v e l y among g r o u p s , c o r r o b o r a t i o n from d a ta come o f w h i c h i s

reg ard ing

receiv e

the p erc en ta g e o f t o t a l

In the n e t

in ­

1937

incom e g r o u p u n d e r

ap p ro x im ately 6 p e r cent of t o t a l

r e c e i v e d from d i v id e n d s .

incom e r e p o r t e d was

The p e r c e n t a g e b ecom es p r o g r e s -

s i v e l y S l h i g h e r f o r l a r g e r incom e g r o u p s , for

to

incom e fro m d i v i d e n d s f o r C a l i f o r n i a

p e r s o n a l incom e t a x p a y e e s . $ 5 ,0 0 0 ,

appears

th e $ 1 0,000 - $15,000 g ro u p ,

b e i n g 22 p e r c e n t

32 p e r c e n t f o r t h e $ 2 5 , 0 0 0 -

$ 5 0 ,0 0 0 g r o u p and 43 p e r c e n t f o r t h e $ 2 5 0 ,0 0 0 a n d o v e r i n ­ come g r o u p . 32 It

appears

th erefo re

incom e fro m d i v i d e n d s a tio n earn in g s

to be a l o g i c a l c o n c l u s i o n t h a t

(w hich i n a l a r g e

d istrib u te d

to

If

p a rt rep re se n t corpor­

sto ck h o ld ers)

com prise an

30Ha r o x d M. G r o v e s , F i n a n c i n g G o v e r n m e n t , ( N e w Y o r k : H e n r y H o l t a n d Co m p an y, 1 9 3 $ ) p . 1 4 5 . 3 l T h e t e r m p r o g r e s s i v e 1* i n t h i s c o n n e c t i o n i s n o t u s e d i n t h e same s t r i c t s e n s e a s when a p p l i e d t o t a x r a t e s . Such u s a g e w o u l d b e i n c o r r e c t a s t h e t e r m " d e g r e s s i v e 1* w o u l d b e a p p lic a b le , as the a c c e le r a tio n o f In c re a se in p ercen tag es be­ comes l e s s a n d l e s s a s t h e i n c o m e g r o u p s b e c o m e h i g h e r . See H a r o l d M. G r o v e s , I b i d . p . 43 f o r a n e l a b o r a t i o n o f t h i s p o i n t . 32pe r c e n t a g e s d e r i v e d b y i n v e s t i g a t o r from d a ta su p ­ p l i e d b y C a l i f o r n i a F r a n c h is e Tax C o m m issio n er.

43 in cre asin g ly groups,

l a r g e r s h a r e o f incom e o f t h e v a r i o u s

and s in c e

h igher r a te s ,

th at

incom e g r o u p s a r e

incom e

taxed a t p r o g r e s s iv e ly

the burden of the

co rp o ratio n

s h o u l d b e p r o g r e s s i v e l y g r e a t e r a s we a s c e n d

incom e t a x

the

sc a le of i n ­

come l e v e l s . The n a t u r e

of th is

term in ed , alth o u g h i t

p ro g ressio n

appears

t o b e g r a d u a l ’."

e s t i m a t e w ould be h a z a rd o u s a s its

r e l i a b i l i t y m ay b e

c a n n o t o f c o u rs e be d e ­

t h e r e a r e no d a t a a g a i n s t w h i c h

checked.

Under the

c o n d itio n s,

o n l y t e n a b l e a s s u m p t i o n w h i c h c a n b e m ad e i s g r e s s io n as re p re s e n te d by the C a lif o r n ia co m es a s of the

clo se

However, any

th at

incom e t a x

the p ro ­

p e r s o n a l incom e t a x

to d e t e r m i n i n g t h e d i s t r i b u t i o n

co rp o ratio n

the

among t h e v a r i o u s

of

the burden

incom e g ro u p s

a s any d a ta w hich a r e a v a i l a b l e . However,

even th is

a ssu m p tio n has i t s

w hich sh o u ld be i n d i c a t e d .

lim ita tio n s

I t m ust be rem em bered

th at

th e

ow nership o f s to c k o f c o rp o r a tio n s

o p eratin g

scattered

and e v e n i n f o r e i g n c o u n ­

trie s.

among t h e v a r i o u s

A nderson p o in ts

o u t,

sta te s

f o r exam ple,

in C alifo rn ia

is

th at:

Not a s i n g l e i n d i v i d u a l owner i n - C a l i f o r n i a a p p e a r s i n t h e l i s t o f t h e t w e n t y h e a v i e s t common s t o c k h o l d e r s o f t h e P a c i f i c Gas a n d E l e c t r i c Company who own a p p r o x i m a t e l y one* h a lf of i t s v o tin g sto ck . I n f a c t , t h e Sun L i f e I n s u r a n c e Company o f C a n a d a i s o n e o f i t s h e a v i e s t s t o c k h o l d e r s . The sa m e f o r e i g n c o r p o r a t i o n h o l d s o n e o f t h e l a r g e s t s i n g l e b l o c k s o f s t o c k i n t h e S o u t h e r n C a l i f o r n i a E d i s o n Com pan y a s w e l l . 33

33|)0We y m. A n d e r s o n , o £ . c i t . ,

p. 241.

44

It scrib es

appears th a t

e x ists

If

the

same s i t u a t i o n

among o t h e r c o r p o r a t i o n ,

u l t i m a t e l y p a id by th e s t o c k h o ld e r i n d iv id en d s,

th at

the C a lif o r n ia

u a l l y p a id by s to c k h o ld e rs some f o r e i g n it

still

c o u n tries.

and i f

the

assum ption

can b e s t be e s t i m a t e d by u s i n g

4.

t a x amon g t h e c o u n t i e s o f th e p e r ­

co u n ties.

the e stim a te d r e tu r n s of

incom e t a x b y c o u n t i e s A lco h o lic beverage

are

a s g i v e n i n T a b l e V.

ta x e s and lic e n s e

tro l

fees.

The

C o n t r o l A c t was a d o p t e d s u b s e q u e n t

th e r e p e a l o f t h e p r o h i b i t i o n amendment i n 1933.

was r e v i s e d

of

incom e g r o u p s and t h a t

the d i s t r i b u t i o n

assu m p tio n ,

C a li f o r n ia A lcohol Beverage to

how ever,

th a t w hatever p a r t

s o n a l i n c o m e t a x b u r d e n a m o n g _t h e v a r i o u s

th e c o rp o ra tio n

fact,

is borne by C a li f o r n ia s to c k h o ld e r s ,

o f the burden of t h is

th is

a ct­

o v e r th e n a t i o n and i n

i s b o rn e p r o g r e s s i v e l y by th e v a r i o u s

A ccep tin g

tax is

form of low ered

N o tw ith stan d in g th is

t h e c o r p o r a t i o n incom e ta x

the

c o r p o r a t i o n incom e ta x i s

scattered

appears a reasonable

the d is tr ib u tio n

as A nderson d e­

i n 1935 an d a g a i n

th e l i q u o r i n d u s t r y and

i n 1937 an d i s to d e r iv e

designed

The A c t to co n ­

revenues f o r the sup­

p o r t o f c o n t r o l and f o r g e n e r a l p u r p o s e s . The t a x e s a r e d e r i v e d f r o m liq u o r licen ses

and f e e s ,

and l i g h t w in e ,

and an e x c is e

The l i c e n s e liq u o r b u sin ess,

fees

three p r in c ip a l

a m a n u fa c tu re rs1 ex cise t a x on d i s t i l l e d

are upon the p r i v il e g e

w ith a sc a le of fees

sources;

v iz,

t a x on b e e r

sp irits. on c o n d u c tin g a

v a r y i n g fro m $10 f o r an

TABLE V ESTIMATED BANK AND CORPORATION INCOME TAX COLLECTED BY COUNTIES 1937-38

County Alameda Amador B u tte C alaveras Colusa Contra Costa D el Norte E l Dorado Fresno Glenn Humboldt Im p eria l Inyo Kern Kings Lake L assen Los A ngeles Madera Marin Mariposa Mendocino Merced Modoc Mono M onterey Napa Nevada

P ercen t o f Income Tax 4 .8 0 .0 2 .1 1 . 04 .0 7 .4 0 .0 0 5 .0 2 .7 8 .0 3 .1 3 .2 3 .0 2 .7 8 .2 0 .0 2 .0 4 5 1 .8 1 .0 6 .5 4 .02 .0 5 .1 4 .0 1 .6 3 .1 1 .1 3

Amount $904,391 3 ,7 6 8 2 0 ,7 2 5 7 ,5 3 6 1 3 ,1 8 9 7 5 ,3 6 5 942 3 ,7 6 8 1 4 6 ,9 6 3 5 ,6 5 2 2 4 ,4 9 3 4 3 ,3 3 5 3 ,7 6 8 1 4 6 ,9 6 3 3 7 ,6 8 2 3 ,7 6 8 7 ,5 3 6 9 ,7 6 1 ,7 7 0 1 1 ,3 0 4 101,7 4 3 3 ,7 6 8 9 ,4 2 0 26 ,3 7 8 1 ,8 8 4 '

1 1 8 ,7 0 1 2 0 ,7 2 5 2 4 ,4 9 3

P ercen t o f County Income Tax Orange ....7 ? ------------P la c e r .1 1 .0 2 Plumas .5 6 R iv er sid e 1 .0 4 Sacramento .0 5 San B en ito .4 7 San Bernardino 2 .2 8 San D iego San F ra n cisco 2 4 .3 3 .7 0 San Joaquin San Luis Obispo .1 0 1 .4 8 San Mateo Santa Barbara 3 .1 3 1 .4 3 Santa Clara .17 Santa Cruz Shasta .0 3 S ie r r a .0 1 .0 5 S isk iy o u .1 5 Solano .1 7 Sonoma .2 8 S ta n is la u s S u tte r .1 2 Tehama .0 2 T r in ity .0 0 5 .2 6 Tulare .0 3 Tuolumne .8 4 Ventura .1 7 Yolo Yuba .0 9 T o ta l

1 0 0 .0 6

Amount $145,079 2 0 ,7 2 5 3 ,7 6 8 1 0 5 ,5 1 2 195,951 9 ,4 2 0 8 8 ,5 5 4 4 2 9 ,5 8 5 4 ,5 8 4 ,1 3 2 1 31,890 1 8 ,8 4 1 2 78,853 58 9 ,7 3 8 2 69,433 3 2 ,0 3 0 5,652 1 ,8 8 4 9 ,4 2 0 2 8 ,2 6 2 3 2 ,0 3 0 5 2 ,7 5 6 22^ 609 3 ,7 6 8 942 4 8 ,9 8 7 5,6 5 2 158,268 3 2 ,0 3 0 16.957 1 8 ,8 5 2 ,7 5 8

46 o ff-sa le

r e t a i l beer licen se

fac tu rer^ retu rn ed

lic en se.

to c i t i e s

from e a c h .

to a $750 fe e

O ne-half of and c o u n ti e s

The s t a t e

reta in s

f o r a b e e r manu­

the lic e n s e

fees

in p ro p o rtio n to

c o llec ted

is

co llec tio n s

th e o t h e r h a l f from w hich i s

p aid

th e e x p e n se s o f a d m i n i s t r a t i o n and e n fo rc e m e n t by th e B oard o f E q u alizatio n .

These e x p en se s a re

th e m ajor p a r t of

the s t a t e ' s

c o s t o f e n fo rc em e n t a l t h o u g h th e D epartm ent o f P u b lic H e a lth f o r p u r e fo o d law e n f o r c e m e n t,

th e C o n tro lle r f o r c o ll e c t io n

and th e D ep artm en t o f F in a n ce f o r a u d i t , - r e c e i v e

co m p arativ ely

s m a ll am ounts o f money. The e x c i s e cents w ine

t a x on b e e r i s

at

the r a t e

per b a rre l of th irty -o n e g a llo n s. is a t

two c e n t s a g a l l o n ,

of six ty -tw o

The r a t e

fo r o rd in ary

d r y w ine a t one c e n t a g a l l o n ,

and champagne and s p a r k l i n g w in e s a t fro m one and o n e - h a l f cen ts are

per h a lf-p in t

to

ta x e d -a t the b a sic

six

cen ts

rate

per q u art.

d e r i v e d from l i q u o r re v e n u e s

to

the

liq u o r lic en se

sta te

e d f o r e n f o r c e m e n t a n d a d m i n i s t r a t i o n . 34

2 .4

p e r c e n t . 35

sales

are ad m in istered a t

treasu ry

is

The e x c i s e

fees expend­

ta x e s on

the r e a s o n a b le r a t e

fees

is

the c o s ts high.

f o r c o l l e c t i o n and e n f o r c e ­

T his c o s t ,

how ever,

is

probably

34B i e n n i a l R e p o rt o f th e S t a t e B oard o f E q u a l i z a t i o n , o p . c i t . , p.V S. 35-goc.

of

j n com parison to th e c o s t o f c o l l e c t i o n f o r

a n d incom e t a x e s ,

m ent o f l i c e n s e

sp irits

of e ig h ty cen ts a g a llo n .

A p p r o x i m a t e l y 13 p e r c e n t o f t h e

a lc o h o lic beverages

D istille d

c it.

47 n e c e ssa ry to

the p u b lic w e lf a r e ^ 6 and r e p r e s e n ts

a m in i m u m

under p resen t c o n d itio n s. The c o n t r i b u t i o n s c o l l e c t e d by the tio n

are a v a ila b le ,

is ra th e r d e fin ite .

excise view s

ta x e s w hich a r e them a s

sum er a s

is

co sts

How ever,

to s h i f t m o st o f

in o rd e r to

y e t even th e s e f i g u r e s

b rokers are

of co llec ­

is not tru e

on t o

In g e n e ra l, to

f o r the who

the

pro­

th e consum er.

As

the

a n d a b l e t o a b s o r b som e o r

com pete. p a id by c o u n tie s a re

rep o rted ,

do n o t e n t i r e l y r e p r e s e n t t a x e s

them .

con­

he i s

how ever, p a r t i c u l a r l y

T his I s

of p ro d u ctio n .

p a id by

so b ecause fe e s a re a ls o p aid

b y m a n u f a c t u r e r s who a g a i n a r e p r o b a b l y a b l e consum ers as c o s ts

the liq u o r fe e s

the s i t u s

the t a x a t i o n

W hile l i q u o r l i c e n s e s

the p eo p le w ith in

th is

ab le.

a co m p etitiv e b u s in e s s ,

o f the ta x

as

o f p r o d u c tio n and p a s s e s

s m a l l m a n u f a c t u r e r may b e w i l l i n g a ll

to

le v ie d upon the m a n u fa c tu re r,

l a r g e a p a r t a s he i s

b a b ly a b le th is

sta te

o f the c o u n tie s

to

sh ift

th ese

Pees charged r e t a i l e r s

to

and

l a r g e l y p a id f i n a l l y by the consum ers w i t h i n a

g iv en county. The a m o u n t s i n l i q u o r l i c e n s e c o u n ties

to

the

sta te

fees

c o n t r i b u t e d by

g e n e r a l fu n d c an be d e te r m in e d from i n ­

f o r m a t i o n on th e am ounts d i s t r i b u t e d

to c o u n tie s .

The r e p o r t

■ ^ A n d erso n b e l i e v e s t h a t e v e n a h i g h e r r a t e w ould be r e q u i r e d to a d e q u a t e l y c o n t r o l th e l i q u o r b u s i n e s s ev en up to a h a l f o f t h e t o t a l f i e l d o f l i q u o r r e v e n u e . 0£ . c i t . , p . 2 6 .

48 of

th e S t a t e Board o f E q u a l i z a t i o n g iv e s

lic en se

fees d is trib u te d

to c i t i e s

y e a r p e r io d from Ja n u a ry 1,

1936 t o D ecem ber 3 1 ,

amount can r e a s o n a b l y be

trib u ted

for

the

in clu d ed

in

sta te

fees,

th e amount d i s ­

o f w h ic h s i x m onths i s S ince

50 p e r c e n t o f th e am ounts c o l l e c t e d

th e amount r e c e i v e d by c o u n t i e s

The e s t i m a t e purposes

1 9 3 7 .3 7 One-

f is c a l year under in v estig atio n #

amount r e t a i n e d f o r s t a t e

sta te

taken a s

c a le n d a r y e a r o f 1937,

d istrib u te s

lic en se

to ta l liq u o r

and c o u n t i e s f o r a tw o-

h a lf of th is

the

the

the in

should e q u a l th e

purposes*

o f t h e am ounts c o n t r i b u t e d by c o u n t i e s

therefore

in clu d e

t h e am ounts c o n t r i b u t e d

for

to ­

w ards th e a d m i n i s t r a t i o n and e n fo rc e m e n t o f th e l i q u o r a c t# seems a r e a s o n a b l e a s s u m p t i o n t h a t t h e

in c lu sio n of th ese

am ounts w ould n o t d i s t u r b

c o n trib u tio n s

tie s

inasm uch as

the v a rio u s

t h e a m o u n t s e x p e n d e d f o r e n f o r c e m e n t among

of lic en ses

The u s e o f d a t a f o r

fact,

of

should in c r e a s e

does n o t seem u n r e a s o n a b l e #

the r e l i a b i l i t y

estim ates#

T his

the d i s t i l l e d

a v a ila b le by co u n ties tax

is

is

of In

done

of the estim ates#

Th e r e t u r n s b y c o u n t i e s f o r

tia l

the

t h e c a l e n d a r y e a r o f 1937 i n s t e a d

the a v erag e o f a tw o -y e a r p e rio d as

only p a r t i a l l y

to

in force#

y e a r o f 1937-38 a ls o

the use

tax are

of coun­

c o u n t i e s w ould n o r m a l l y v a r y i n p r o p o r t i o n

number and k in d s

the f i s c a l

the r e l a t i v e

It

c o llec ted

liq u o r ex cise

and r e q u i r e p a r ­

through th e

th irtee n

S^ B i e n n i a l R e p o rt o f S t a t e Board o f E q u a l i z a t i o n , o p , c i t . pp* 1 2 2 - 1 3 0 # A p p o r t i o n m e n t s a l s o i n c l u d e a d j u s t m e n t s f o r p r i o r years•

49 ad m in istrativ e and i s

d istric ts

of th e S t a t e Board o f E q u a l i z a t i o n

re p o rte d as such,

tan areas

The l a r g e r c o u n t i e s w i t h m e t r o p o l i ­

com prise a d m i n i s t r a t i v e

d istric ts

in th em selv es o r

i n c o m b i n a t i o n w i t h o n e o r tw o c o u n t i e s .

The t a x e s

each a d m in istra tiv e

s e p a r a t e l y .3 8

G iven th e d istrib u te

d istric t

are

reported

r e tu r n s by d i s t r i c t s ,

it

is n ecessary

t h e a m o u n ts b e t w e e n two o r m ore c o u n t i e s

a g i v e n d i s t r i c t b y means o f o t h e r d a t a . ex cise

p aid in

If

t a x e s on l i q u o r a r e p a i d i n l a r g e

it

is

use of liq u o r sa le s

d ata.

com prising tru e

p a r t by the

t h e b e s t a v a i l a b l e m ethod o f m aking s u c h e s t i m a t e s These a re a v a i l a b l e

to

th at

consum er,

i s by the

i n TJ. 8 .

Census

o f R e t a i l T ra d e rs w hich r e p o r t s

the s a l e s

of liq u o r sto res

(packaged goods)

co u n ties.

I n some o f t h e

sm aller c o u n tie s, order

to co n ceal

it

p o ssib le

is

in

the v a rio u s

how ever, the

sa m e r e p o r t ,

b asis.

The b a l a n c e

the d a ta

o f the

those p ro p o rtio n s

to

tax p ay ers.

on t o t a l

and d i s t r i b u t e

f o r w h ic h no l i q u o r t r a d e in

d ata a re not re p o rte d in

i d e n t i t y o f the

to u se

in the

these

the

re ta il tax to

In such cases trad e a v a ila b le

co u n ties

on t h a t

tax es a f t e r th o se p a id by c o u n tie s d a t a see a v a i l a b l e ,

the

co u n ties

c an be d i s t r i b u t e d

w ith in a d i s t r i c t fo r

w hich su c h d a ta a r e a v a i l a b l e .

'^ B i e n n i a l

p.

132.

R e p o rt o f S t a t e Board o f E q u a l i z a t i o n , "

3 9 u . S. D e p a r t m e n t o f Commerce, B u r e a u o f t h e R e t a i l T rade - C a l i f o r n i a , 1939.

op. c i t .

C ensus,

50 T h is m ethod s h o u ld pro v e r e a s o n a b l y a c c u r a t e , la rly

s i n c e f o r 82 p e r c e n t o f t h e

d is tr ib u tio n according

to ta l

tax es

c o lle c te d ^

the

to l i q u o r s a l e s m u st be done b e tw e e n

o n l y tw o c o u n t i e s w i t h i n a n a d m i n i s t r a t i v e d i s t r i c t . i n c l u d i n g a s many a s

p articu ­

e i g h t c o u n ti e s w ere

the

D istricts

sm a ller co u n ties

b o th in ta x e s p a id and p o p u l a t i o n . The r e s u l t s tille d

sp irits

of th e e x cise

p a id by e ac h co u n ty a r e

The e x c i s e d iffic u lty

o f the e s tim a te s

taxes

t a x on d i s ­

g iv e n i n T a b le VI.

on b e e r a n d w i n e s

present a g re a te r

in se c u rin g e s tim a te s by c o u n tie s

inasm uch as

a re n e i t h e r c o l l e c t e d n o r r e p o r te d by a d m i n i s t r a t iv e The m a j o r p a r t

of th is

tax

a b o u t 75 p e r c e n t o f t h e is

a less

is

t o t a l amount c o l l e c t e d S i n c e

l o w e r on t h e incom e s c a l e ,

g ressiv e

in n a tu re

th an

census d ata a v a ila b le f o r use

it

is

on l i q u o r s a l e s

in estim atin g

are

p ro b ab ly depends re fle c te d as

co n su m p tion

p r o b a b l y more r e ­

th eitax o n d i s t il l e d

sp irits.

The

th e re fo re n o t as r e ­

a s w ould b e d e s i r e d .

sum ption o f a l c o h o l i c b e v e ra g e s depends

S tate

beer

e x p e n s i v e b e v e r a g e a n d s h o u l d t h e r e b y make u p a

of those

is

d istric ts.

t h a t on b e e r w h ich r e p r e s e n t s

l a r g e r p r o p o r tio n of the t o t a l a lc o h o lic b ev erag e

lia b le

th ese

W hile co n ­

in p a rt upon d e s ir e ,

it

i n g e n e r a l a s m u ch u p o n e c o n o m i c a b i l i t y w h i c h a c ro ss-sec tio n

in

the

re ta il

^ E s t i m a t e made f r o m d a t a a v a i l a b l e Board o f E q u a l i z a t i o n , op. c i t . , p . ^ E s t i m a t e made f r o m I b i d . ,

p.

131.

sales

of a given

in B ie n n ia l R eport of 132.

51 area. are

D ata on g e n e r a l r e t a i l

t h e r e f o r e more r e p r e s e n t a t i v e

th an a re

the

d a t a on p a c k a g e

w h ich w ould be d i s t i l l e d ly

sales

f o r th e v a rio u s

o f th e co n su m p tion o f b e e r

liq u o r sa le s ,

sp irits

c o u n ties

the m ajo r p a r t o f

because o f t h e i r

com parative­

h ig h er p ric e . For th is

reason,

t h e b e e r and wine

among t h e v a r i o u s

co u n ties

sales

by the U n ite d S t a t e s

as

rep o rted

on th e b a s i s

Census o f R e t a i l T rade f o r 1939. f o r th e b e e r and w ine

tax

is

d istrib u te d

of th e ir to ta l r e t a i l B ureau o f Census -

The e s t i m a t e s b y c o u n t i e s

t a x a s made u p o n t h i s b a s i s ,

a re giv en

i n T a b l e VI. 5.

The i n h e r i t a n c e

d istin c tio n sta te

o f b ein g

ta x sy stem .

th e

tax .

o ld e s t tax

in

rev ised

the L e g is la tu r e

several

tax holds

the p r e s e n t C a l i f o r n i a

I t was f i r s t u s e d I n 1 8 93 a n d h a s

In e f f e c t f o r n e a rly h a lf a c e n tu ry . sta n tia lly

The I n h e r i t a n c e

thus been

The t a x h a s b e e n s u b ­

tim es and a lm o st e v e r y s e s s i o n of

h a s made c e r t a i n

am endm ents to

the a c t .

The

m o s t r e c e n t a d j u s t m e n t s w e r e made i n 1 9 3 9 w h e n s e v e r a l i n ­ c r e a s e s w e r e m ade i n

the v a rio u s b ra c k e ts .

In conform ance w i t h F e d e r a l la w , paym ents u n d e r th e C alifo rn ia

a c t are

death tax es.

c r e d i t e d up to 80 p e r c e n t o f F e d e r a l

The r a t e s

v a ry depending upon the s iz e

b e q u e s t and th e d e g re e o f r e l a t i o n s h i p w ith such a ta x . although

The r a t e s

as

is u su a lly

in e f f e c t are g iven in

o f the the case

T able V II,

t h e y w e re i n c r e a s e d b y t h e 1939 L e g i s l a t u r e .

the

Liquor County P ees $ 1 9 8 ,6 1 3 Alameda 9 ,0 0 6 Amador 1 4 ,9 5 0 B utte 5 ,9 2 8 C alaveras 6 ,0 6 9 C olusa Contra Costa. 4 8 ,1 4 1 3 ,0 7 7 Del N orte 8 ,3 6 3 E l Dorado 6 7 ,1 2 5 Fresno Olenn 4 ,5 8 1 Humboldt 2 7 ,1 7 1 1 8 ,6 2 8 Im p erial 5 ,1 1 7 Inyo 4 9 ,8 0 0 Kern 6 ,6 5 4 Kings 6 ,6 7 9 Lake 7 ,0 3 4 L assen Los A ngeles 7 4 7 ,4 8 9 6 ,2 5 9 Madera 2 6 ,4 6 4 Marin 2 ,8 2 7 Mariposa 16,334 Mendocino 18,154 Merced 6 ,4 8 4 Modoc 3 ,0 7 8 Mono 3 6 ,0 1 7 M onterey Napa 15j59& 14,807 Nevada

TABLE VI ESTIMATED ALCOHOLIC BEVERAGE PEES AND TAXES COLLECTED BY COUNTIES 1937-38 Beer and D is tille d Liquor S p ir it s Tax Wine Tax County Pees “ f5 8 9 ,4 1 7 $151,781 Orange $ 2 7 ,8 5 0 2 ,1 2 4 19,052 1 5,458 P la c e r 5 ,1 6 2 10,305 1 1 ,2 0 0 Plumas 3 ,4 6 6 1 ,7 3 7 28 ,1 6 8 R iv er sid e 2 ,5 1 0 92 ,0 1 1 1 ,6 9 6 Sacramento 2 0 ,8 5 5 3 7 ,9 1 5 5 ,9 1 4 San B en ito 880 1 ,1 5 8 San Bernardino 53,173 13 ,8 2 6 2 ,7 0 3 San D iego 8 4 ,7 0 3 4 7 ,5 0 4 7 8 ,4 4 3 San F ra n cisco 5 10,109 2 ,0 2 7 3 ,0 8 9 San Joaquin 7 4 ,5 0 1 11,972 7 ,0 9 8 San L uis 0 b isp o l9 ,0 7 9 1 5 ,6 9 7 55,914 14 ,2 8 9 San Mateo 2 ,5 1 0 Santa Barbara 2 8 ,968 5 ,5 9 1 1 2 3 ,6 0 8 35,724Santa Clara 6 5 ,2 8 9 Santa Cruz 2 6 ,6 4 4 14,073 8 ,3 0 3 1 ,7 3 7 1 ,363 Shasta 1 3 ,450 3 ,4 7 5 3 ,4 0 0 S ie r r a 2 ,6 4 9 3 ,3 0 4 ,5 8 7 106,367 18,626 S isk iy o u 1 0 ,2 1 0 2 4 ,6 6 9 4 ,2 4 8 Solano 1 1 ,2 0 0 4 6 ,2 1 6 , 7 ,6 6 6 Sonoma 965 S ta n is la u s 2 ,0 4 9 2 1 ,866 5 ,6 0 0 4 ,1 2 2 3 ,0 9 6 S u tte r 6 ,0 1 1 2 1 ,3 2 0 1 0 ,8 1 3 Tehama 1 ,5 4 4 T r in ity 1 ,1 3 4 2 ,3 5 9 22,957 1 ,1 0 7 579 Tulare 2 1 ,0 4 8 2 6 ,6 7 3 1 0 ,7 1 3 Tuolumne 6 ,9 5 1 Ventura 5 ,1 3 7 1 4,7 1 1 1 1 ,0 6 2 5 ,4 0 6 ' Yolo 4 ,8 7 4 1 1 ,2 3 4 Yuba T o ta l

2 , 694,389

D is tille d Beer and S p ir it s Tax Wine Tax $ 6 1 ,815 $ 3 0 ,3 1 7 6 ,5 9 5 6 ,7 5 8 1 ,8 4 4 2 ,3 1 7 30 ,6 2 4 2 3 ,5 5 8 259,955 5 5 ,6 1 4 1 ,4 0 3 2 ,3 1 7 5 5 ,683 3 6 ,1 1 0 2 2 7 ,6 7 4 7 3 ,1 8 7 2 ,2 7 9 ,3 7 9 2 3 2 ,2 0 6 7 2 ,3 7 4 3 3 ,4 0 7 1 6 ,486 8 ,8 8 2 2 04,146 2 6 ,2 6 2 2 2 ,0 1 4 6 3 ,101 4 8 ,2 7 6 5 2 ,6 3 8 15,082 13,1 3 1 6 ,4 5 7 8 ,3 0 3 370 579 5,337 6 ,9 5 1 14,847 1 1 ,586 17,432 2 1 ,6 2 7 4 4 ,9 2 7 2 1 ,0 4 8 1 ,5 3 2 2 ,3 1 7 2 ,7 9 2 3 ,6 6 9 376 579 4 3 ,7 0 5 2 1 ,2 4 1 6 ,5 7 0 3 ,0 8 9 2 9 ,8 0 3 1 5 ,8 3 4 4 7 ,9 6 1 5 ,9 8 6 4 ,2 0 5 6 .9 5 1 7 ,7 1 3 ,3 3 5

1 ,9 3 1 ,5 0 8

TABLE VII RATE SCHEDULE OF INHERITANCE TAX 1937-38# C la s s i f ic a t i o n of R e la tio n sh ip s Husband, Wife l i n e a l is s u e or a n c e s to r , c h ild

$25,0 0 0 $ 5 0 ,0 0 0 P rop erty Under to to Exemption $25,000 # 5 0 ,0 0 0 1 0 0 ,0 0 0 Widow # 2 4 ,0 0 0 Minor 4 c h ild 2 3 $ 1 2 ,0 0 0 Others $ 5 ,0 0 0

B r o t h e r ,s is t e r or d escen dent o f e i t h e r ,w i f e $ 2 ,0 0 0 or widow o f son } husband o f a daughter U n c le,a u n t or t h e ir d escen d an ts

$500

Other r e l a t i v e s 9 n o n - r e la t i v e s , $50 body corp o ra te ’ or p o l i t i c

$ 1 0 0 ,0 0 0 to 2 0 0 ,0 0 0

$200 ,0 0 0 $300,000 to Over to 30 0 ,0 0 0 50 0 ,0 0 0 $500 ,0 0 0

7

9

9

10

5

7

10

12

12

14

15

6

9

12

12

12

15

15

7

10

12

12

12

15

16

^Adapted from ta b le In the Budget Revenue Program (Department o f F in an ce, S ta te o f C a lifo r n ia ) 1939.

Ol d

54 The t a x i s a d m i n i s t e r e d b y t h e S t a t e C o n t r o l l e r and co llec ted

by c o u n ty t r e a s u r e r s

co lle c tio n .

a t a stip u la ted

allow ance f o r

The C o n t r o l l e r m a i n t a i n s a n I n h e r i t a n c e

Tax

D i v i s i o n w h i c h i n c l u d e s a s s e s s o r s who a r e

jo in tly

to

th e S u p e r i o r C ourt i n w hich th e

i s a d j u d i c a t e d and

to

the C o n t r o l l e r . Because o f

courts

th eir

by c o u n tie s .

c o llec t

sta te

because

flu ctu ate

retu rn s a lso

th ey a ls o r e f l e c t

b asis

vary because

of gross

the r e tu r n s to y e a r.

The

same f a c t o r a n d

g e n e r a l econom ic c o n d i t i o n s .

prem iums p a i d .

f o r th e f i s c a l

y e a r 1937-38

prem iums t a x .

The r a t e

prem iums r e c e i v e d .

at

o f the

by c o n s t i t u t i o n a l amendment i n 1933, was p l a c e d i n t h e C o n s t i t u t i o n ^

1 9 1 1 on t h e

The r a t e was i n c r e a s e d th at

h a v e b e e n made t o

the g e n e r a l r e v i s io n s

I n s u r a n c e com panies

t h a t t i m e was l |r

1921 a n d h a s r e m a i n e d a t

tim e a lth o u g h a tte m p ts In

o f the

in C a l i f o r n i a have b een ta x e d s in c e

to 2 .6 p e r cen t in

rate.

re tu rn s are

c o n s i d e r a b l y from y e a r

Insurance gross

per cent of gross

th at

tax ,

in co u n ty

T able V I I I .

6. o p e ra tin g

the

se ttled

th an o th e r p e o p le ,

The r e t u r n s b y c o u n t i e s are g iv en in

are

S ince w e alth y p eo p le cannot c o n tr o l

tim e o f d e a t h a n y more

among c o u n t i e s to ta l

the f a c t t h a t e s t a t e s

and co unty t r e a s u r e r s

a v aila b le

estate

resp o n sib le

tax

increase

stru c tu re

th e r a te

w ith the

fig u re

since the

ad opted

of 2 .6 p e r cent

p ro v iso

th at i t

4 2 o a l i f o m i a C o n s t it u t io n Am endment 3 0 , S e c . 1 4 .

TABLE V III INHERITANCE TAX COLLECTED BY COUNTIES 1937-38

County Alameda Amador B u tte C alaveras Colusa Contra Costa D el N orte E l Dorado Fresno Glenn Humboldt Im p eria l Inyo Kern Kings Lake L assen Los A ngeles Madera Marin Mariposa Mendocino Merced Modoc Mono M onterey Napa Nevada

Amount $449,041 3 ,9 3 9 1 5 ,4 4 4 1 ,0 2 9 3 4 ,4 4 8 2 0 ,2 6 7 2 ,1 1 8 2 ,0 0 6 3 5 ,9 8 1 7 ,5 6 5 3 4 ,0 4 8 1 ,0 2 7 207 3 2 ,0 0 1 5 ,1 0 2 4 ,2 8 7 463 4 ,7 5 9 ,2 4 5 698 7 4 ,6 3 2 2 ,6 5 8 1 5 ,9 8 8 1 1 ,8 1 8 109 ------

90 ,1 0 8 1 7 ,2 3 4 7 ,2 5 5

County Orange P la c e r Plumas R iv e r sid e Sacramento San B en ito San Bernardino San. D iego San F ra n cisco San Jnaquin San L uis Obispo San Mateo Santa Barbara Santa Clara Santa Cruz Shasta S ie r r a S isk iy o u Solano Sonoma S ta n is la u s S u tte r Tehama T r in ity Tulare Tuolumne Ventura Y olo Yuba

Amount $121,265 32,5 4 8 777 118,024 60,588 1 0 ,1 0 8 32,8 8 3 30 5 ,0 5 2 913,768 1 17,944 1 1 ,7 2 5 5 97,094 2 ,0 7 0 ,0 4 9 185,054 3 3 ,3 5 1 1 ,0 9 9 3 ,1 9 2 4 ,0 0 3 2 1 ,0 0 2 6 0 ,543 2 1 ,9 1 6 6 ,9 3 2 3 2 ,6 4 1 1 ,3 8 7 1 9 ,338 2 ,5 7 9 5 9 ,6 5 4 5 ,7 1 5 596

Total

10,479,524

56 co u ld be I n c re a s e d

only by a tw o -th ird s v o te o f b o th houses

of the L e g is la tu r e ,

P r o v i s i o n i s m ad e i n t h e

sa m e a r t i c l e

c re d its

tax f o r

ju risd ic tio n s

on th e

sta te

p r o p e r t y owned b y i n s u r a n c e

taxes

p aid l o c a l

co m panies.

In

1937,

th ese

for on

c re d its

am ounted to $ 1 ,7 0 1 ,2 2 9 .4 3 An e x c e p t i o n t o g r o s s m arine in s u ra n c e

prem ium t a x a t i o n

com panies w h ic h a re

incom e a t a 5 p e r c e n t r a t e .

T his

i s made f o r o c e a n

t a x e d on th e b a s e s

tax,

of net

how ever, r e a l i z e d

only

$ 8 , 2 0 3 o u t o f $ 7 , 3 4 0 , 6 4 8 c o l l e c t e d . 44 The a s s e s s m e n t o f t h e

tax i s

p la c e d u n d e r the

t i o n o f th e S t a t e Board o f E q u a l i z a t i o n . one o f th e m ost i n e x p e n s iv e a t a cost of

ested

i n t h e t o t a l prem ium s p a i d i n th a t in su ran ce

b u sin ess

cu ts

across

m ust t h e r e f o r e

ta x by c o u n tie s

Since

the s t a t e

the

sta te ,

com panies r e p o r t

c o u n t i e s when t h i s w o u ld b e c o s t l y

tie s

to a d m i n i s t e r as

of th is

f o r obvious r e a s o n s .

w ell re q u ire

h a s p r o v e d t o be I t was d o n e

.07 o f 1 p e r c e n t,45 a c o s t w h ich i s n o m i n a l .

D a t a on t h e r e t u r n s av aila b le

taxes

It

ju risd ic ­

cou nty l i n e s .

to

is it

are n o t only i n t e r ­ cannot very

t h e i r prem ium s by

th e co m panies a s

th eir

The c o n t r i b u t i o n s o f c o u n ­

be d e te rm in e d by e s t i m a t e s .

S u c h e s t i m a t e s may b e m o r e a c c u r a t e l y made i f we know

43& C a m i n e t t i J r . , S e v e n t i e t h A n n u a l R e p o r t o f t h e I n s u ra n c e C om m issioner, 1937, p . X I I I . 4=4:8^e n n i a l o p . c i t . , p. 39." 4 5 ib id .,

R e p o rt o f th e S t a t e B oard o f E q u a l i z a t i o n , ~

p. 2.

57 the

in cid en ce

receip ts

o f i n s u r a n c e g r o s s prem ium s t a x a t i o n .

taxes

G ross

are g e n e r a lly b e lie v e d by a u t h o r i t i e s

p a s s e d on t o t h e

consum er i n

view e x p r e s s e d b y Heer i s

in creased p ric e s .

to be

The p o i n t o f

ty p ical.

A lth o u g h th e c o r p o r a t i o n incom e ta x i s p r o b a b l y b o rn e f o r th e m ost p a r t by th e w e l l - t o - d o , c e r t a i n s p e c i a l c o r ­ p o ra tio n le v ie s are n o t. G r o s s prem ium t a x e s on i n s u r ­ a n ce c o m p an ies and t a x e s on r e g u l a t e d p u b l i c s e r v i c e c o r ­ p o r a t i o n s w hich a r e l i m i t e d t o a f a i r r e t u r n a f t e r payment of ta x e s a re m a in ly borne by th e p a tro n s o f th o se c o rp o r­ atio n s. Such t a x e s o r d i n a r i l y r e d u c e th e in co m es o f i n d i ­ v i d u a l s i n th e lo w e r and m id d le b r a c k e t s by a l a r g e r p e r ­ c e n t a g e t h a n t h e y r e d u c e t h e in c o m e s o f t h e v e r y r i c h . 46 The C a l i f o r n i a p o lic y h o lders surance

to be b o rn e by th e

th e form o f i n c r e a s e d prem ium s.

p rices

L ife

and to r e n t e r s

in su ran ce

who c a n n o t p a s s

the

is

o f h o m es i n

in ­

be seen from T able

the form o f h i g h e r

p ro b a b ly b o rn e by the p o l i c y h o ld e r

t a x on t o an y o n e e l s e .

Th e d i s t r i b u t i o n o f C a l i f o r n i a IX .

47

L ife

in su ran ce b u sin ess

in su ran ce

^o o t h e r

o f p o l i c y h o l d e r s p a y s more t h a n 9 p e r c e n t o f t h e

in su ran ce

can

p o lic y h o ld ers appear

t o p a y more "th an h a l f o f t h e g r o s s prem ium s t a x . cla ss

F ire

i s p r o b a b l y p a s s e d on t o c o n su m e rs i n t h e fo rm o f

in creased ren ts.

in

ta x w ould a p p e a r

to ta l

taxes.

If fire

insurance

i t m ig h t be w o rth w h ile

46 eiaren ce

H eer,

com prised a la r g e

to e s t i m a t e

op.

c it.,

47x>ata a r r a n g e d f r o m A.

the

p.

p a r t o f the

to ta l,

tax es p aid by c o u n tie s

60.

C am inetti J r . ,

o£.

c i t . 5 p. X II.

TABLE IX DISTRIBUTION OF CLASSES OF INSURANCE IN CALIFORNIA ... _____ 1937 ______ Amount o f P e r c e n ta g e Premiums C la ss o f In su ra n ce

F ir e

3 5 ,0 7 1

L ia b ility

3 3 ,0 6 9

8 .5

A u tom ob ile

3 4 ,8 5 9

Workmen1s C om pensation

3 3 ,7 0 4

A l l o th e r

3 9 ,3 4 3

1 0 .0

$ 3 9 4 ,9 3 3

1 0 0 .0

# In th o u sa n d s o f d o l l a r s

00 5 2 ADA 55-64 ADA 55-96 ADA 97-158 ADA Number Number Number Number of of of of ADA ADA ADA ADA S ch ools County Sch ools S ch ools S ch ools 3 360 2 f6 240 Alameda 14 3 137 3 — — 75 18 246 3 Amador 124 1 — -57 7 236 517 380 3 B u tte 2 24 321 66 221 C alaveras 189 1 ... 2 13 100 76 Colusa 119 1 14 8 6 447 3 344 Contra Costa 219 370 — 2 9 99 129 48 1 Del Norte ——— -42 5 320 4 477 250 E l Dorado 16 1 ,7 4 8 37 34 2 ,6 7 7 1 ,5 4 1 28 399 Fresno — 2 22 7 317 176 . 298 Glenn 4 64 472 22 329 896 904 6 Humboldt 5 474 557 4 87 7 Im p erial 528 11 2 117 10 2 100 169 133 1 Inyo 5 439 472 896 9 428 28 Kern 11 2 5 393 239 475 8 169 11 Kings -----127 73 8 3 68 Lake 1 90 25 269 37 1 1 L assen 471 4 597 10 23 414 526 8 Los A ngeles 2 21 215 297 4 141 310 3 Madera ... -92 217 5 28 429 Marin 1 ----77 21 154 3 1 299 Mariposa 2 213 5 420 5 215 44 511 Mendocino 3 341 676 22 8 1 ,0 8 6 182 11 Merced --------— -5 336 27 231 Modoc ... --—5 2 91 71 Mono — 320 6 25 10 432 291 Monterey 104 121. 2 158 1 23 287 3 Napa ----75 2 107 24 303 1 Nevada 415 252 4 82 315 4 6 3 Orange 77

TABLE" XV (C ontinued) NUMBER OF ELEMENTARY SCHOOLS, DISTRICTS, AND AVERAGE DAILY ATTENDANCE BY COUNTIES 1937-38 Number o f S chools and Average B ally A ttendance in D i s t r i c t s With L ess Than 129 U n its o f ADA T= SSTTB t------------- Z Z - S T '- m ------- — E Z = W I ES-------5 7 - lS r iD l Number Number Number Number of of of of ADA ADA ADA ADA S ch ools S ch ools County S ch ools S ch ools 2 236 6 246 24 70 P la c e r 369 1 2 107 5 72 196 Plumas 16 205 1 2 7 467 446 253 15 252 9 R iv er sid e 432 9 1 ,0 6 0 215 367 10 3 Sacramento 23 102 247 5 199 80 1 19 1 San B e n ito 2 225 536 12 805 290 19 San Bernardino 11 ------472 12 573 6 37 524 San D iego ------------- - - San F ra n cisco 1 ,0 0 8 525 875 9 22 1 ,0 2 9 28 San Joaquin 11 2 353 264 172 3 51 567 6 San L uis Obispo 2 121 87 252 274 8 9 San Mateo 1 ------4 268 235 16 541 Santa Barbara 12 684 6 241 453 3 14 Santa Clara 179 9 250 106 347 359 3 1 26 Santa Cruz 9 115 340 71 823 8 1 S hasta — 2 107 5 119 78 3 S ie r r a — 5 --390 586 340 46 7 S isk iy o u 117 169 323 7 1 24 Solano 311 1 682 6 72 5 388 Sonoma 1 ,1 1 0 797 19 2 227 22 1 ,0 6 5 6 476 S ta n is la u s 7 118 287 3 242 5 5 398 15 222 S u tte r 327 118 32 72 1 Tehama 382 8 1 — ------106 2 103 1 20 176 T r in ity 7 777 27 22 1 ,6 3 4 19 309 1 ,3 3 3 Tulare 5 169 246 3 253 18 Tuolumne -------422 5 227 223 Ventura 6 13 242 2 174 4 22 379 69 Y olo 1 232 104 2 Yuba 127 69 1 19 3 mmmm m

mm-mm

.

T o ta l

1 ,3 0 3

18 ,1 2 2

460

"

2 0 ,8 3 8

2 4 2 '18p95

mm mm

mmmm mm

123

1 3 ,4 7 0

TABLE XV ( a ) NUMBER OF ELEMENTARY SCHOOLS, DISTRICTS AND AVERAGE DAILY ATTENDANCE BY COUNTIES 1 9 3 7 -3 8 D i s t r i c t s . w ith 129 or More U n its o f ADA Number Number o f of T ea ch ers ADA D is tr ic ts County A llow ed 19 Alameda 1 ,2 9 4 4 5 ,0 9 9 3 Amador 3 536 6 3 ,8 9 0 B u tte 96 . . . ------— C a la v er a s 4 887 C olu sa 10 15 C ontra C osta 255 1 0 ,3 4 8 5 305 D el N orte 1 E l Dorado 7 360 1 33 F resn o 1 6 ,7 9 8 377 2 875 Glenn 19 6 Humboldt 64 2 ,9 1 0 15 8 ,2 9 0 Im p e r ia l 189 1 5 294 Inyo 26 Kern 365 1 5 ,4 2 7 9 K ings 82 3 ,9 2 6 3 Lake 5 603 2 L assen 1 ,5 1 3 38 7 ,7 1 7 2 5 6 ,9 6 1 69 Los A n g e le s 3 ,0 1 4 9 Madera 53 8 54 2 ,8 9 8 Marin ------. . . — M ariposa 3 1 ,4 3 8 31 M endocino 12 4 ,4 3 1 85 Merced 280 4 Modoc 1 --. ------- — Mono 7 ,1 3 9 15 155 M onterey 3 1 ,4 4 0 Napa 31 2 1 ,2 2 7 Nevada 29 26 1 5 ,3 6 2 363 Orange 7 P la c e r 54 2 ,6 2 5 2 Plumas 378 3 17 1 2 ,0 8 7 R iv e r s id e 299 18 1 4 ,9 6 8 386 Sacram ento 2 17 San B e n ito 848 19 494 San B ern ard in o 1 8 ,5 3 9 19 739 2 6 ,4 1 8 San D ieg o 1 ,2 6 0 San F r a n c is c o 4 0 ,4 7 0 1 277 1 0 ,5 1 0 San Joaq u in 11 6 San L u is O bispo 45 2 ,3 5 3 13 San Mateo 235 9 ,3 8 6 S a n ta Barbara 9 184 7 ,1 5 0 20 S a n ta C lara 414 1 6 ,1 9 2

80

TABLE XV ( a ) C o n tin u ed ) NUMBER OP ELEMENTARY SCHOOLS, DISTRICTS AND AVERAGE DAILY ATTENDANCE BY COUNTIES 1937-38 D i s t r i c t s W i t h 1 2 9 o r More U n i t s o f ADA Number o f Number ■ Teachers of , ADA C ounty D istricts A llow ed S a n t a Cruz 5 ,87 3 , 5v>3 2 21 S h asta 944 • • ----------------S ierra 3 8 2 , 2 38 7 S isk iy o u 6 84 3,5 5 4 Solano 73 Sonoma 3 ,883 11 14 S tan islau s 175 7 ,6 5 2 S u tter 20 3 1 ,1 0 1 15 Tehama 3 932 — — T rin ity 26 239 T u lare 1 1 ,1 7 0 2 9 Tuolum ne * 586 V entura 16 185 8,2 48 7 39 2 ,2 4 4 Y olo 4 19 Y ub a 1,1 72 T o tal

545

16,177

615 ,5 8 8

81 TABL3jS X V I

NUMBER OF HIGH SCHOOL DISTRICTS AND AVERAGE DAILY ATTENDANCE BY COUNTIES 1957-58 1 - 1 5 8 ADA 1 5 6 - 3 9 5 ADA 596~An'd O v e r Number N um be r " • Num ber of ADA of ADA of * ADA D i s t r i c t s _________ D i s t r i c t s ____________ C o u n t y _________D i s t r i c t s ----— 567 7 2 7 ,7 2 8 A lameda 3 . . . —. — 2 221 160 Amador 1 2 2 307 B u tte 241 1,594 1 2 302 C alav eras .. .. 4 360 218 C olusa 1 2 575 5 C ontra C osta 131 4 ,4 0 4 1 ... . . . —— — Del N o rte 231 1 . — — ---E l D orado 1 428 774 3 6 Fresno 679 9 ,2 3 0 9 —---— 2 G lenn 644 81 1 4 1,0 2 5 1,1 8 1 Hum boldt 17 3 3 1 3 2 Im p erial 379 613 2 1 ,5 1 3 .. ------170 138 Inyo 3 1 6 ,5 1 0 Kern 385 3 243 3 1 ... — K ings 158 2 1 ,310 1 5 438 Lake ... -275 1 473 Lassen 1 ----—L o s A n g e l e s . — 1 ,132 4 21 1 27,575 50 M adera 6 81 245 1 1 1 .. --M arin 119 2 1 ,9 5 7 1 --- «iW. ... — -175 M ariposa 1 5 392 2 567 M endocino 1 426 4 84 M erced 1 893 1 ,266 1 2 ------Modoc 200 226 1 Mono 3 36 ----.. 2 ,3 7 0 2 M onterey 498 3 ... .. 2 Napa 270 750 1 Nevada 34 223 1 464 1 1 2 285 4 Orange 1,157 6 5 ,9 9 3 ... — P lacer 228 2 1 ,5 9 0 1 . — — ------.. Plum as 1 322 1 R iv ersid e 136 7 1 ,648 2 2 ,7 4 7 Sacram ento 106 2 408 4 7 ,7 8 5 1 .. ... .. ... San B e n ito ; 623 1 ----San B e r n a r d in o — 3 733 5 6 ,893 4 413 2 San D iego 5 12,264 520 -. ... -----San F r a n c is c o 2 5 ,3 9 1 1 San Jo a q u in 130 2 1 417 4 6 ,3 3 1 223 San L u isO b isp o 3 3 847 786 1 .. --2 162 S an M ateo 4 4,5 8 5 ... — 796 S an ta B arbara 3 2 3 ,040 . .. — 2 647 S anta C lara 7 8 ,4 7 6

82 TABLE XVI ( C o n t i n u e (3 ) NUMBER OP HIGH SCHOOL, DISTRICTS AND AVERAGE DAILY ATTENDANCE BY COUNTIES 1937-38

C ounty S a n t a Cruz S h asta S ierra S isk iy o u Solano Sonom a S tan islau s S u tter T eha m a T rin ity T u lare Tuolum ne V entura Y olo Yuba T o tal

1 - 1 5 8 ADA N um ber of D istricts 1 1 1 1 2 2 1 1 1

ADA 38 116 116 101 265 135 60 144 9



— -

1 1 2 4 1

31 95 184 567 62

86

8 ,1 0 7

1 6 9 - 3 9 8 ADA Num b e r of ADA D istricts - -

-------

1 3 1 4 1 1 1 5

171 —271 760 235 973 265 394 162 1 ,2 8 1



-------

1 —

2

546



-------

——

———

88

2 2 ,6 8 4

3 9 9 And O v e r "Number of ADA D istricts 2 2 ,2 6 9 587 1 —

------------

1 1 4 3 1 1

1 ,2 2 6 1 ,3 2 3 3,0 8 4 2 ,9 0 5 598 482

mm mm

- — —

4 1 3 1 1

3 ,9 2 5 512 2,732 763 601

132

2 9 7 ,8 71

83 a ll o w a n c e m ust be com puted f o r e a c h s c h o o l I n if

t h e r e w ere more

than one.

E lem en tary d i s t r i c t s d a ily atten d an ce are

allo w ed ,

average d a ily a tte n d a n c e ,

allo tm e n t,

In

or fra c tio n

th is

average d a ily a tten d a n ce , T h ere a r e 40 u n i t s

th ereo f,

the r a te

o f one p l u s ,

o f # 2 0 6 8 .5 0 each ,

is.m ad e.

plus

a n amount

a d istric t

in excess

A fin al

of

# 9 3 4 0 .5 0 .

in excess of allo w ed ” a t

a ll o w a n c e o f #14

of average d a ily a tte n d a n c e ,

The t o t a l

of

o f 200 u n i t s

o r two " t e a c h e r s

or #4137.

of

of average

w ould f i r s t be a l l o t t e d

f o r each o f th e 200 u n i t s #2800,

m anner,

o f average d a ily atten d a n ce

m aking a r a t i o

of average

b a s e d o n e a c h 32 u n i t s

p l u s a n a d d i t i o n a l a l l o t m e n t on t h e b a s i s

d a ily atten d an ce.

160,

w i t h 129 o r m ore u n i t s

allo w ed a f l a t

f o r a num ber o f t e a c h e r s

160,

the d i s t r i c t ,

c o s t o f the program in

or

such a d i s ­

t r i c t w ould be # 1 6 ,2 7 7 .5 0 . For high sc h o o l e d u c a tio n , each d i s t r i c t

according

to

fo r each u n i t o f average t r i c t w i t h 150 u n i t s

its

size,

of average

plus

d a ily atten d an ce.

d a ily a tten d a n ce ,

The a p p l i c a t i o n

atten d an ce

of

A high school d i s ­

o r # 3 1 ,1 2 5 .

w ould be # 3 6 ,7 6 0 .

and t h e i r a v e ra g e d a i l y

i n T a b l e s XV a n d X V I, r e s u l t s

o f t h e m in im u m p r o g r a m .

The t o t a l

t h e a m o u n t s g i v e n i n T a b l e XVI t o

s c h o o ls and d i s t r i c t s , as g iv e n

th e a d d i t i o n a l amount

p lu s # 2 0 7 .5 0 f o r each o f the

c o s t o f th e program i n such a d i s t r i c t

the v a rio u s

allow ed f o r

o f a v e r a g e d a i l y a t t e n d a n c e w ould he a l ­

l o w e d # 5 6 3 5 on a d i s t r i c t b a s i s , 150 u n i t s

a h amount i s

The c o s t o f

in the

co sts

t h e m in im u m p r o g r a m f o r

84

each of the C a lif o r n ia

c o u n ties

in 1937-38 i s

g iv e n in T able

X V II. THE TAX BURDEN IMPOSED BY PLAN A G iven th e is

c o s t o f t h e m in i m u m p r o g r a m o f e d u c a t i o n ,

next necessary

of support w ill It

to d e te rm in e

burden t h a t

im pose upon t h e v a r i o u s

is

p la n i n w hich e ach d i s t r i c t tax .

the f i r s t

of the

tra d itio n a l e q u alizatio n

o f the

sta te

lev ies

a uniform

The d i f f e r e n c e b e t w e e n t h e a m o u n t v / h i c h s u c h a

tax w ill ra is e program i n

the

the p la n s

c o u n ties.

w i l l b e r e m e m b e r e d t h a t P l a n A,

plans under in v e s tig a tio n ,

p ro p erty

the tax

it

in a given

th a t co u n ty ,

and the

co u n tjr

is

cost of

t h e m in im u m

s u p p l i e d by means o f t h e

sta te

tax

sy stem . The f i r s t by P lan A is

step

in d eterm in in g

to e s t a b l is h

to

p rac tise

the

su p p o rt the th e

to d e te rm in e

T his i s

th e

In the

sa m e a s

th a t req u ired iest

lev y .

com plete c o s t o f

school u n its

ta x b u rd e n im posed

the p r o p e r ty tax

c o u n ty w ould be r e q u i r e d is

the

sta te

rate

w hich each

The m o s t comm only a c c e p t e d

r a t e w h ic h w ould be r e q u i r e d

to

t h e m in i m u m p r o g r a m i n e a c h o f and to a c c e p t t h e lo w e s t r a t e .

saying t h a t

the a c c e p te d r a t e

sh o u ld be

t o s u p p o r t t h e m in im u m p r o g r a m I n t h e w e a l t h ­

cou n ty or d i s t r i c t .

W aterm an^ i n e s t a b l i s h i n g

5 I v a n R. W a t e r m a n ,

S u c h was t h e p r o c e d u r e a c c e p t e d b y a p ro p o sed e q u a l i z a t i o n program f o r

op. c i t .

TABLE X V I I ESTIMATED COST OF MINIMUM PROGRAM BY COUNTIES 1937-38 C o u n t y ___________E l e m e n t a r y ________ H i g h S c h o o l __________ T otal A lam eda $ 5 , 3 2 5 805 $ 8 ,8 9 2 744 $ 3 , 5 6 6 939 95 900 187 715 Amador 91 815 422 209 432 2 4 0 854 449 B utte C alaveras 155 141 81 206 73 935 145 901 Colusa 107 112 233 013 C ontra Costa 999 589 1 , 9 3 1 222 931 633 50 878 106 402 55 524 Del N orte 84 232 457 147 528 929 E l Dorado 3 , 9 7 4 017 2 , 1 0 5 815 1 , 8 6 8 202 Fresno 155 229 304 975 149 746 Glenn 492 664 989 476 496 812 Humboldt 1 , 2 9 7 760 782 515 561 109 Im perial 70 645 86 017 155 662 Inyo 1 , 3 7 1 2 86 2,7.79 828 Kern 1 , 4 0 8 542 292 272 707 266 414 994 Kings 197 616 119 060 556 78 Lake 151 679 324 026 Lassen 172 347 2 4 , 0 7 9 665 4 4 , 4 4 9 983 Los A n g e l e s 2 0 , 3 7 0 318 201 262 527 952 M adera 326 69 0 470 404 972 708 303 498 M arin 41 3 3 0 97 174 55 844 M ariposa 570 786 313 730 257 056 M e n d o c in o 462 087 532 5 25 994 612 Merced 82 5 102 795 191 89 030 Modoc 24 375 41 216 16 841 Mono 657 676 1 , 3 3 7 268 M onterey 679 592 212 116 397 377 185 261 Napa 152 591 153 829 Nevada 306 4 20 Orange 1 , 2 9 1 813 1 , 4 6 0 269 2 , 7 5 2 082 P lacer 303 516 356 74 8 6 60 264 Plum as 97 645 66 393 164 038 R iv ersid e 1 ,0 6 9 714 916 867 1 , 9 8 6 581 Sacram ento 1 , 3 5 1 298 1 , 5 8 9 472 , 2 , 9 4 0 77 0

TABLE XVII ( c o n t i n u e d ) ESTIMATED COST OF MINIMUM PROGRAM BY COUNTIES 1937-38 County San B e n ito San B e rn a rd in o S a n Diego San F r a n c i s c o San J o a q u in San L u is Obispo S a n Mateo Santa B arbara Santa C lara S a n ta Cruz S hasta S ierra S iskiyou Solano Sonoma S tan islau s S u tter Tehama T rin ity T u lare Tuolumne V entura Y olo Yuba

E lem entary $ 133,200 1,628,139 2 ,2 27,255 3,182,231 1,104,527 332,853 810,980 665,299 1 ,399,590 384,389 239,749 34,829 315,822 364,363 593,452 760,874 186,813 174,216 50,641 1,227,701 115,590 726,028 256,577 ,.1 5 7 ,9 7 8

H ig h S c h o o l $ 121,199 1,468,156 2,527,591 4,7 2 8 ,0 4 7 1,325,543 393,585 918,979 746,276 1,747,081 446,196 184,856 29,705 317,648 481,713 685,751 786,243 208,739 181,145 39,113 1,039,273 125,900 689,642 287,341 135,607

T o tal

55,002,789

63,157,673

T otal | 254,399 3,0 9 6 ,2 9 5 4,7 5 4 ,8 4 6 7,910,278 2 ,4 3 0 ,0 7 0 726,438 1,72 9 ,9 5 9 1,411 ,5 7 5 3,146 ,6 7 1 830,585 424,605 64,534 633,470 846,076 1 ,2 79,203 1,547,117 395,552 355,361 89,754 2,266,974 241,490 1 ,415,670 543,918 293,585 1 18,160,462

C a lifo rn ia . It v alu e

is

a ls o g e n e r a lly n e c e s s a ry to e s t a b l i s h

o f p ro p e rty in each o f the

was i n d i c a t e d necessary

in

in the

e a rlie r

pages of

the assessm en t r a t i o

the

program

tax r a te s

in each o f th e

fiv e

tim es a s l a r g e ,

retic a lly , rate

v a ry from $ .6 9 7

the

fo r use

e s t co u n ties the

rate

the

years

eq u alized

c o u n ties

a g en cies

can t h e r e ­

th e p ro p e rty tax r a te . to

s u p p o r t t h e m in i m u m

a re g iv e n i n T able X V III.

p e r one h u n d re d d o l l a r s

in I m p e r i a l C ounty.

n early Theo­

i n Plum as C o u n ty s h o u l d be t a k e n a s How ever, Plum as

sta te ,

is

one o f

It

of assessed

i n Plum as C o u n ty to a r a t e

o r $ 3 ,4 0 3 ,

i n P l a n A. in

is not

o f p ro p e rty in each of

sta te

req u ired

co u n ties

can be s e e n t h a t t h e r a t e s v alu a tio n

th is

as

inasm uch as th e S t a t e

v alu atio n

c o u n tie s as r e p o r te d by o f f i c i a l

tru e

However,

o f p r o p e r t y am o ng t h e v a r i o u s

The a s s e s s e d

The p r o p e r t y

stud y ,

the p a s t s e v e r a l

f o r e be a c c e p te d in e s t a b l i s h i n g

in

th is

case of C a lifo rn ia

Board o f E q u a l i z a t i o n h a s f o r

in C a lifo rn ia .

school u n its .

the

the

the s m a ll­

h av in g an a v e ra g e d a i l y a tte n d a n c e

e le m e n ta r y g ra d e s o f o n ly a p p r o x im a te ly one th o u sa n d

and i n h ig h s c h o o l s e lim in a te

o f o n ly s ix te e n .

It

Plum as C o u n ty i n d e t e r m i n i n g

The same c o n s i d e r a t i o n s p resen ta tiv e

co unty

is

t h e r e f o r e w ise

the ta x r a t e

a p p l y t o Mono C o u n t y ,

th a n P lum as,

to be u se d .

an even l e s s

and f o r w hich th e

rate

is

$ .7 6 4 . T h e n e x t c o u n t y w h i c h may b e w hich a ta x r a t e

co n sid ered

o f $ .8 4 9 would be r e q u i r e d

to

to

I s K ings, support

in

the

re­

County Alam eda Amador B utte C alaveras Colusa C ontra C osta Del N o rte E l D o ra d o Fresno G lenn Humboldt Im perial Inyo Kern Kings Lake Lassen Los A n g e l e s M a d era M arin M ariposa Mendocino M e rce d Modoc Mono M onterey Napa N e v ad a

TABLE 'XVIII PROPERTY TAX RATES REQUIRED FOR SUPPORT OF MINIMUM PROGRAM UNDER PLAN "A" BY COUNTIES . . 1937-38 Tax A ssessed A ssessed V aluation# County V aluation# R ate $438,045 $ 2 .030 $189,675 Ora n ge 1.166 16,089 P lacer 37,911 44,662 Plumas 1.913 23,523 1.520 10,203 R iv ersid e 85,988 20,762 1.2 1 8 139,514 Sacram ento 117,415 1.644 14,649 Sa n B e n i t o 138,031 9,382 1.134 San B e rn a rd in o 15,311 207,019 . 1.5 1 8 San Diego 247,320 823,179 1.606 Sa n F r a n c i s c o 119,630 1.454 20,964 Sa n J o a q u i n 1.994 40,801 Sa n L u i s O b i s p o 49,603 38,127 3.403 111,425 Sa n Mateo 1.104 110,001 14,187 Santa B arbara 149,523 252,854 1.099 Santa C lara S a n t a Cruz 35,598 83,253 .849 2.243 Shasta 8,8 0 9 34,811 15,736 '2 .0 5 9 S ierra 2,840 2 ,4 37,901 1.823 26,927 Sisk iyo u 28,436 1.856 41,440 Solano 1.528 46,363 Sonoma 62,922 S tan islau s 62,170 4,923 1.973 25,292 S u tter 24,361 2.256 1.864 20,065 Tehama 53,336 1.520 3,661 12,618 T rin ity 5,390 .764 T ulare 84,496 87,564 1.527 Tuolumne 15,143 1.724 23,047 Ventura 95,918 34,884 16,515 1.855 Yolo Yuba 19,361

# In Thousands o f D o l l a r s .

Tax Rate $1,450 1.741 .697 2.3 1 0 2.107 1.736 2.2 4 3 2.296 .960 2.0 3 1 1.780 1.552 1.283 2.104 2.333 1.219 2.272 2.352 2.041 2.032 2.488 1.623 1.771 2.451 2.6 8 2 1.594 1.475 1.559 1.516

89 m in i m u m p r o g r a m .

A l t h o u g h K i n g s C o u n t y m ay b y n o m e a n s b e

co n sid ered a ty p ic a l

situ atio n ,

it

is

pro b ab le

th at

s a f e l y be a c c e p te d a s

th e key county f o r d e te rm in in g

rate

is n o t n e c e s s a ry to e s t a b l i s h

to be

u se d .

refin em en t of one hu n d red b asic

rate

6

it

the ta x

d o llars

rate,

so t h a t

th e r a t e

rate

The d i f f e r e n c e

w ould have r a i s e d

to ta l

cost of

sta te

at

in each co u n ty in

tax r a te

sta te

tax

a p p lied

sy stem .

sy ste m s w ould be r e q u i r e d cost of

th e program ,

w ould b e a r th e r e m a in in g cent of th e s ta te 38.

o f $ .8 5 f o r each

the next s te p

re­

to

the

sta te

trea su ry .

th e v a rio u s c o u n tie s

le a v in g $5 9 ,5 1 4 ,3 8 2 It

can be se e n t h a t

to be lo cal

to b e a r ap p ro x im ate ly o n e -h a lf

w hile

h a lf,

the

sta te

tax s tr u c tu r e

an am ount w hich i s

apportionm ents

The p l a n w o u ld r e s u l t

1 9 3 7 -3 8 and th e

th e c o u n ty w ould be b o rn e by th e

a t o t a l of $ 5 8 ,6 4 7 ,3 3 7 ,

fin a n c e d by the

o f th e

such a

b etw een th e amount w hich the u n ifo rm

from th e g e n e r a l fund of

The u n i f o r m

tax

tax

to th e a s s e s s e d v a lu a tio n o f each

the program in

larg e

w ould r a i s e

the

f o r P l a n A.

t h a t i t be a p p lie d

co u n ty .

m ay

o f a s s e s s e d v a l u a t i o n may b e u s e d a s t h e

G iven t h e u n i f o r m p r o p e r t y t a x r a t e , q u ires

it

in the

8 4 .8 p e r

o f $ 7 0 , 1 2 4 , 5 8 8 made i n 1 9 3 7 tran sferen ce

o f $ 1 0 ,6 1 0 ,2 0 6

6 p a u l R. M o r t a n d W a l t e r C. R e u s s e r h a v e d e m o n s t r a t e d t h a t t h e r a t e may b e l o w e r b u t n o t h i g h e r t h a n I n t h e r i c h e s t l a r g e d i s t r i c t . ( P u b l i c S c h o o l F i n a n c e , New Y o r k : M c G r a w - H i l l B o ok C o m p a n y , 1 9 4 1 . p p . 4 4 5 - 4 ) . S ince th e r a t e o f $ .9 6 in San F r a n c i s c o , t h e r i c h e s t l a r g e d i s t r i c t i s h i g h e r th a n th e r a t e a c c e p t e d , i t w ould a p p e a r to be s a t i s f a c t o r y .

90 o f t h e c o s t o f t h e m in im u m p r o g r a m f r o m t h e s t a t e to

lo c a l tax

th esis

made e a r l i e r

tax burden is n o t n e c e s s a r il y l i f t e d

in

th is

it

is borne by th e p eo p le

p o litic a l

su b d iv isio n s,

by those o u ts id e g iven

th e

the

sta te .

Thus,

sa m e p r o p o r t i o n

g e n e r a l fund o f

the

la r g e r th an the

sta te

o th er cases

it

the

ex clu d in g ,

c o u n ty w ould c o n t r i b u t e

v e n tio n in

in

in

sta te .

In

sta te

tow ards th at

as

of course, th e

stu d y,

from th e s h o u ld e rs

o f th e p eo p le w ith in a g iv e n c o u n ty and t r a n s f e r r e d as

sy stem

sy stem s.

C o n sis te n t w ith the th is

tax

to o th e r s

a w hole and i t s t h a t p a r t borne

taxpayers w ith in a the

it

to ta l

sta te

co n trib u te s

some c a s e s

the

th e amount w ould be

su b v en tio n re c e iv e d

w ould be s m a l l e r th a n

to

sub­

fo r ed u catio n ,

it

receiv es

and

from th e

sta te . A ccep tin g t h i s co u n ty sta te

to th e tax

as

support of

tru e,

the p r o p e r ty ta x ,

the p e rc e n ta g e

w hich a g iv e n c o u n ty c o n t r i b u t e d amount o f $ 5 9 ,5 1 4 ,3 8 2 T h is amount o f t a x e s from a p p l i c a t i o n p ro p erty , co u n ty

g iv es

tow ards

co n trib u tio n of

req u ired

in

1937-38,

from th e

so d e r i v e d ,

the

to ta l

added

sta te to

to

the

tax

to ta l

system .

th e amount d e r i v e d of $ .8 5

amount c o n t r i b u t e d

support of

c a n be d e ­

o f g e n e r a l fund ta x e s

o f t h e u n i f o r m jbax r a t e the

each

t h e m in im u m p r o g r a m b y m e a n s o f t h e

system and e x c lu d in g

te rm in e d by a p p ly in g

the

lev ied

on

by a g i v e n

t h e m in im u m p r o g r a m .

The a m o u n t s c o n t r i b u t e d b y e a c h c o u n t y t o w a r d s t h e s u p p o r t o f t h e m in im u m p r o g r a m u n d e r P l a n A d e t e r m i n e d b y

91 th e above m ethod

a re giv en

THE

i n T a b le X IX .^

TAX BURDEN IMPOSED

I t w i l l be rem em bered t h a t support under in v e s tig a tio n

BY PLAN B

th e second p la n of school

in v o lv ed r e t a in i n g

e x i s t i n g m ethods o f a p p o r t i o n i n g s t a t e

th e use of

sch o o l fu n d s, upon

w h ic h t h e p r o p e r t y t a x e q u a l i z a t i o n p l a n w ould be s u p e r ­ im posed. to

In

th is

p lan

lo cal d is tr ic ts

the s t a t e

w ould c o n t i n u e

on t h e e x i s t i n g

bases.

w ould t h e n l e v y a u n i f o r m p r o p e r t y t a x , t h e vd i f f e r e n c e b e t w e e n t h e

to ta l

as

and th e amount th e s t a t e

the

the p ro p e rty

from s t a t e

from funds.

T his

Each d i s t r i c t i n P l a n A, w i t h

c o s t o f t h e m inim u m p r o g r a m

in a given u n i t , retu rn s

to a p p o rtio n

tax ,

a p p o rtio n s , plus

b ein g f u r t h e r a p p o rtio n e d

p l a n i s g e n e r a l l y a d v a n c e d a s a com­

p r o m i s e f o r P l a n A, a n d

is

d esirab le

p o l i t i c a l l y more f e a s i b l e .

because

A gain, p ro p erty T his

it

it is

is

first

s o m e tim e s a c c e p t e d a s b e i n g more

n e c e s s a ry to d eterm in e

ta x w hich a l l d i s t r i c t s

req u ires

w ould be r e q u i r e d

t h a t th e d i f f e r e n c e betw een s t a t e

i n 1937-38 and th e

cost of

the u n ifo rm to

lev y .

ap p o rtio n m en ts

t h e m in im u m p r o g r a m b e d e t e r m i n e d

V i t may b e n o t e d t h a t t h e u s e o f t h e a b o v e m e t h o d o f e s t i m a t i n g ta x r e t u r n s a r r i v e s a t an amount r a i s e d w hich does n o t e x a c t l y c o i n c i d e w i t h t h e c o s t o f t h e m in i m u m p r o g r a m . T h i s i s due to t h e use. o f t h e e v e n p r o p e r t y t a x r a t e o f $ . 8 5 a n d t h e f a c t t h a t t h e p e r c e n t a g e o f e a c h c o u n t y Ts c o n t r i b u ­ t i o n to s t a t e ta x e s c a r r i e d to o n ly th r e e p l a c e s . H ow ever, t h e d i f f e r e n c e o f $1259 b e t w e e n t h e two a m o u n ts i s n e g l i g i b l e , b e in g a b o u t .001 o f one p e r c e n t i n e r r o r .

TABLE XIX AMOUNTS CONTRIBUTED FOR SUPPORT OF MINIMUM PROGRAM UNDER PLAN !tAu BY COUNTIES 1937-38 C o u n t y _______________ Alameda Amador B utte C alaveras Colusa C ontra Costa D el N o r t e E l D o ra d o Fresno G le n n Humboldt Im perial Inyo K e rn Kings Lake Lassen Los A n g e l e s M adera M arin M ariposa Mendocino M e rce d Modoc Mono M onterey Napa Nevada

P r o p e r t y Tax_______ S t a t e $ 3 , 7 2 3 390 $3,861 52 136 7 6 0 224 379 630 40 86 733 176 482 83 464 998 032 26 79 747 130 146 67 1,115 2 , 1 0 2 224 61 178 199 257 421 631 344 324 083 120 592 51 851 2 , 1 4 9 260 707 655 196 40 74 883 70 133 757 2 0 , 7 2 2 166 26,592 87 241 706 394 085 274 41 846 36 214 9 82 110 228 453 3 5 ? 107 259 31 10 45 817 745 064 488 195 902 139 140 383 121

Taxes 806 966 959 468 913 202 7 80 8 44 275 983 691 5 80 181 037 393 468 820 844 484 355 898 694 5 30 541 117 007 855 406

T otal $ 7 , 5 8 5 196 189 726 604 589 127 201 2 6 0 395 1 , 4 6 2 23 4 106 527 197 990 3 , 2 1 7 499 240 092 679 322 • 668 663 171 773 3 , 0 0 0 297 904 048 45 351 204 577 4 7 , 3 1 5 010 329 190 668 4 4 0 78 744 325 676 681 887 139 992 55 934 1 , 2 3 3 071 335 757 261 789

TABLE XIX ( C o n t i n u e d ) AMOUNTS CONTRIBUTED FOR SUPPORT OF MINIMUM PROGRAM UNDER PLAN ttA" BI COUNTIES 1937-38 County O ra nge P lacer P lum as R iv erside Sacram ento San B e n i t o San B e r n a r d in o S a n D ie g o Sa n F r a n c i s c o San J o a q u i n Sa n L u i s O b i s p o Sa n Mateo S anta Barbara Santa C lara S a n t a Cruz Shasta S ierra S iskiyou Solano Sonoma S tan islau s S u tter Tehama T rin ity T ulare T uolumne V entura Yolo Yuba

P r o p e r t y Tax $1,612,237 322,246 199,950 7 30,900 1,185,875 124,524 1,173,269 1,759,668 6,9 9 7 ,0 2 4 1,016,85 7 346,812 947,112 935,014 1,270,947 302,587 295,895 24,140 228,882 352,247 534,844 528,450 207,074 170,556 31,119 718,216 128,719 815,309 296,522 164,571

T o tal

58,64 7 ,3 3 7

S t a t e Taxes 785,573 161,875 45,825 570,730 1 ,2 63,4 63 58,322 791,524 1,842 ,5 2 6 10,195,788 874,842 183,895 928,999 1,657,440 1,171,218 294,589 110,099 16,663 136,880 226,149 387,430 436,231 66,654 83,913 14,283 466,582 64,869 445,158 161,280 137,475

$

59,514,382

T otal $2,3 9 7 ,8 1 0 484,121 245,775 1,301,630 2 ,4 49,338 182,846 1 ,964,793 3 ,6 0 2 ,1 9 4 1 7,19 2 ,8 1 2 1,891 ,6 9 9 530,707 1,876,111 2 ,5 92,454 2,442,165 597,176 405,994 40,803 365,762 578,396 922,274 965,871 273,728' 254,469 45,402 1,1 8 4 ,7 9 8 193,588 1,260,467 457,802 302,046 118,161,719

94 in order

to e s t a b l i s h

w ould be r e q u i r e d to

raise

tax r a t e

th is

to

th e amount t h a t th e l o c a l support.

The l o w e s t

rate

amount w ould th e n be a c c e p t e d a s

for a ll

req u ired

the u n ifo rm

d istric ts.

The a p p o r t i o n m e n t s m ad e t o f o r e le m e n ta ry and h ig h s c h o o ls XX.

tax

ta x system s

T hese am ounts

m in im u m p r o g r a m i n

the

c o u n ties

in 1937-38 a re g iv e n in T able

have b e e n s u b t r a c t e d the v a rio u s

by the s t a t e

from th e c o s t o f

co u n ties,

the

l e a v i n g th e am ounts

w h ic h w ould have to be f i n a n c e d by m eans o f a p r o p e r t y t a x lev y .

The r a t e s

th e v a rio u s

necessary

to r a i s e

th e re q u ire d

c o u n t i e s a r e g i v e n i n T a b l e XXI.

from $ .1 3 5

i n Plum as C o unty t o $ 1 ,2 2 8

m aking th e

h ig h est ra te

n in e

tim es

am ounts i n

The r a t e s

vary

i n Im p e ria l C o u n ty ,8

the

lo w est r a t e .

How ever,

P lu m a s C o u n ty may a g a i n b e

e lim in a te d as n o t b ein g r e p re s e n ta ­

tiv e ,

the r a te

w ith

the

resu lt

may b e a c c e p t e d a s

th at

the u n ifo rm

The a p p l i c a t i o n o f atio n

o f each co u n ty r e s u l t s

w ould be th e port

th is

c o n trib u tio n

o f $ .2 9

f o r K ings

rate

f o r P l a n B.

rate

to th e a s s e s s e d

in a t o ta l

valu*--

of $ 2 0 ,0 0 8 ,0 8 3 ,

o f th e l o c a l ta x system s

o f t h e m in im u m p r o g r a m .

C ounty

to

w hich

the

sup­

T here rem a in s $ 9 8 ,1 5 2 ,3 7 9 w hich

m ust be f in a n c e d from th e s t a t e

general

fund to be a p p o r tio n e d

b o t h by p r e s e n t m ethods and by s u p p le m e n ta r y a p p o r tio n m e n ts .

^No p r o p e r t y t a x r a t e w o u l d b e r e q u i r e d i n S i e r r a C ounty. T h is i s no d o u b t due to t h e f a c t t h a t t h e p r e s e n t m ethod o f a p p o r t i o n i n g s t a t e fu n d s w ould m ore t h a n s u p p o r t m in im u m p r o g r a m a s d e f i n e d i n t h i s s t u d y .

the

TABLE1 XX STATE APPORTIONMENT'S TO COUNTIES 1937-38 C o u n t y ___________________ Amount______ C o u n t y _______________________ Amount A lam ed a $ 5 , 0 5 1 783 Orange ~|>i, 652 877 Amador 123 805 P lacer 403 322 B utte 531 029 Plumas 132 046 C alav eras 107 577 R iv ersid e 1 , 2 3 6 377 Colusa 171 402 Sacram ento 1 , 7 3 2 594 C o n tra Costa 1 , 1 3 7 20 8 San B e n it o 166 374 D el N o r t e 73 398 San B ern ard in o 1 , 8 6 4 142 E l D o ra d o 163 948 San Diego 2 , 8 9 3 063 Fresno 2 , 3 9 3 606 San F r a n c is c o 4 , 5 0 3 184 Glenn 207 7 7 5 San J o a q u i n 1 , 4 4 7 057 Hum boldt 618 70 3 San L u is Obispo 493 962 Im perial 829 4 60 San Mateo 1 , 0 1 8 667 Inyo 111 73 8 Santa Barbara 8 5 0 88 4 Kern 1 , 6 5 6 061 Santa C lara 1 , 8 7 4 658 Kings 464 005 S a n t a Cruz 520 017 Lake 143 39 5 Shasta 278 328 Lassen 215 652 Si&rra* 67 137 Los A n g e l e s 2 6 , 2 2 2 8 38 S iskiyou 481 758 M adera 34 3 11 3 Solano 519 30 3 M arin 4 1 5 644 Sonoma 805 188 M ariposa 72 2 8 0 S tan islau s 94 3 80 5 M endocino 428 505 S u tter 258 638 Merced 649 577 Tehama 2 45 124 Modoc 150 788 T rin ity 74 796 Mono 22 4 53 T ulare 1 , 4 6 1 713 M onterey 8 70 31 5 Tuolumne 162 272 Napa 253 858 V entura 86 5 74 8 N ev ad a 193 9 31 Yolo 328 594 Yuba l J L 8 84 T otal

71,101,359 to 01

TABLE XXI PROPERTY TAX RATES REQUIRED FOR PARTIAL SUPPORT OP MINIMUM PROGRAM UNDER PLAN !tB!* BY COUNTIES 1957-58 Amount Tax Amount ___________ Re q u i r e d _______ R a t e _______ C o u n t y _______ R e q u i r e d County $ 3 , 8 4 0 961 Alameda $ .876 Orang e $ 1 , 0 9 9 205 Amador 63 9 10 .397 256 942 P lacer B utte 323 4 2 0 .724 Plum as ■ 31 992 C alaveras 47 564 .466 75 0 20 4 R iv ersid e C olusa 81 611 .393 1 , 2 0 8 176 Sacram ento C ontra Costa 794 014 .676 San B e n ito 88 025 San B e r n a r d i n o 1 , 2 3 2 153 Del N orte 33 004 .351 E l Dorado 68 509 .447 1 , 8 6 1 7 83 San D i e g o 3 , 4 0 7 094 Fresno .639 1 , 5 8 0 41 1 San D ra n c isc o 97 200 Glenn .463 983 013 San J o a q u in 3 7 0 77 3 Hum boldt 232 47 6 .747 San L u is Obispo Im perial 468 3 00 1.228 Sa n M ateo 711 292 44 924 .316 Inyo 560 691 Santa B arbara Kern 1 , 2 7 2 013 .444 Santa C lara 1 , 1 2 3 767 Kings 3 1 0 568 243 261 S a n t a Cruz .292 54 221 .615 146 277 Shasta Lake - - 108 374 Lassen .688 S ierra 18 , 2 2 7 145 Los A n g eles .7 4 7 151 712 S iskiyou 184 839 .650 M adera 326 77 3 Solano 292 826 M arin .631 474 015 Sonoma 24 894 .505 M ariposa S tan islau s 603 312 142 281 .562 S u tter M endocino 136 914 345 035 110 237 M e rce d .646 Tehama Modoc 41 037 14 958 .325 T rin ity 18 763 Mono 805 261 .348 T ulare 466 953 .532 M onterey 79 218 Tuolumne Napa 143 519 .622 V entura 549 922 122 489 Nevada 215 324 .681 Y o lo Yuba 97 7 0 1

Tax R ate $ .579 .677 .135 .872 .865 .600 .892 .899 .413 .821 .569 .638 .509 .850 .872 .420 ------------

.563 .788 .753 .970 .562 .549 .408 .953 .523 .573 .617 .504

97 A c c o r d i n g t o P l a n B, trib u te

th erefo re,

lo cal

tax

sy s te m s w ould co n ­

a p p r o x i m a t e l y 17 p e r c e n t o f t h e c o s t

p r o g r a m , w i t h 83 p e r c e n t b e i n g f i n a n c e d

o f t h e m in i m u m

through the

sta te

tax s t r u c t u r e • S ince

sta te

apportionm ents

a p p ro x im a te ly $ 7 1 ,0 0 0 ,0 0 0 , tax

stru c tu re

P la n B w ould r e s u l t

in

tran sferred

from the

1937-38.

can be seen th a t

to

sta te

co n trib u te

to

the s t a t e

support

tax s tr u c tu r e

the p e rc e n ta g e in

1937-38 to

fu rn ish ed

thro u g h

in

the v a rio u s the

th at

the

tax

trib u tio n s

The c o n t r i b u t i o n

th e amount o f $ 9 8 ,1 5 2 ,3 7 9 r e q u i r e d the s t a t e

tax

p lu s

sy stem r e s u l t s

co u n ty to

th at

o f g e n e r a l fund revenues w hich i t

th e u n ifo rm p ro p e rty ta x sta te

c o u n t i e s w ould

the su p p o rt o f

o f th e v ario u s

th ey of

be d e te r m in e d by th e a p p l i c a t i o n

t o be

i n a g iv e n c o u n ty by

th e amount c o n tr i b u te d in

co n trib u ­

stru c tu re .

The a m o u n t w h i c h w o u l d b e r a i s e d

th at

to

sa m e p r o p o r t i o n

g e n e ra l fund.

each co u n ty can t h e r e f o r e ,

the

tim es

sta te

T h e sum o f $ 2 8 , 0 2 7 , 7 9 1 w o u l d b e

lo c a l p ro p erty

co n trib u te

ted

the

ta x sy stem . A gain i t

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TABLE .XXII AMOUNTS CONTRIBUTED FOR SUPPORT OF MINIMUM PROGRAM UNDER P U N "B* BY COUNTIES ______________ 1937-38 County Alam eda Amador B utte C alaveras Colusa C ontra Costa Del N orte E l D o ra d o Fresno Glenn Hum boldt Im perial Inyo K e rn Kings L ak e Lassen Los A n g e l e s M adera Marin M ariposa Mendocino M e rce d Modoc Mono M onterey Napa Nevada

P r o p e r t y Tax $1,270,333 46,659 129,520 29,591 60,211 340,505 27,207 44,202 717,229 60,797 143,850 110,569 41,143 733,277 241,435 25,548 45,635 7,069,915 82,464 134,452 14,277 73,347 154,674 36,594 15,631 254,198 66,837 47,895

S t a t e Taxes $ 6,369,061 87,354 371,013 66,743 138,393 765,582 44,168 111,892 1,839,362 102,077 424,996 568,298 84,410 1,403,568 323,900 66,743 116,800 43,858,087 144,282 452,479 60,854 1 8 2 , 5§2 376,902 52,020 16,685 804,843 230,656 200,229

T otal $7,693,394 134,013 500,533 96,334 198,604 1,106,087 71,375 156,094 2,556 ,5 9 1 162,874 568,846 678,867 125,553 2 ,1 36,845 565,335 92,291 162,435 50,928,002 226,746 586,931 75,131 255,909 531,576 88,614 32,316 1 ,0 5 9 ,0 4 1 297,493 248,124