This ballot issue asks voters whether the state can retain and spend revenue that exceeds the estimate in Proposition FF rather than refunding it.
If voters reject the measure:
The state must refund $26,265,621 to individuals with a federal taxable income of $300,000 or more who claimed itemized or standard state deductions above:
$12,000 for single filers
$16,000 for joint filers
The state must adjust the limit on itemized deductions to ensure income tax revenue is reduced by $26,265,621.
If voters approve the measure:
The state will not issue the refund of $26,265,621.
The increases in federal taxable income under Proposition FF remain unchanged.
Ballot Issue 2 (Section 3): Tax Increase for School Meals Program
This ballot issue asks voters whether the state can increase taxes by $95 million annually by adjusting state taxable income to fund the Healthy School Meals for All program.
If voters approve the measure:
Income tax deductions for individuals with federal taxable income of $300,000 or more are reduced to:
$1,000 for single filers
$2,000 for joint filers
The additional revenue generated from the reduction in deductions will be allocated to the Healthy School Meals for All program.
If voters reject the measure:
Income tax deductions will remain at their current levels.
Additional Changes Based on Ballot Outcomes
The bill also modifies the Healthy School Meals for All program based on the results of these ballot issues.
If Ballot Issue 2 is approved and Ballot Issue 3 is rejected:
$1 million is transferred annually from the Healthy School Meals fund to local school food purchasing programs.
If Ballot Issue 3 is approved (regardless of Ballot Issue 2 outcome):
Local food purchasing grants will have modified distribution rules.
School food authorities may collaborate to form advisory committees.
The roles and responsibilities of advisory committees will be clarified.
The way funds are distributed for:
Increasing wages for school food service workers.
Providing stipends for workers who prepare and serve school meals.
Local food purchasing technical assistance and education grants—will be modified based on fund availability.
Summary
The bill refers 2 ballot issues to the voters at the November 2025
statewide election concerning funding for the healthy school meals for all program. Section 2 of the bill refers a ballot issue to the voters at the
November 2025 statewide election to allow the state to retain and spend state revenue that would otherwise need to be refunded for exceeding the estimate in the ballot information booklet analysis for Proposition FF and to allow the state to maintain the increases in state taxable income established in Proposition FF that would otherwise need to be decreased. If voters reject the ballot issue, the state will both:
•
Refund $26,265,621 to individuals who have a federal taxable income of $300,000 or more and claimed itemized or standard state income tax deductions greater than $12,000 for single tax return filers and $16,000 for joint tax return filers; and
•
Adjust the limit on itemized deductions established in Proposition FF to a level that would have reduced the amount of income tax revenue attributable to these itemized deductions by $26,265,621.
If voters approve the ballot measure:
•
The state will not refund $26,265,621 to individuals who have a federal taxable income of $300,000 or more and claimed itemized or standard state income tax deductions greater than $12,000 for single tax return filers and $16,000 for joint tax return filers; and
•
The increases in federal taxable income as a result of Proposition FF will stay at the levels established by Proposition FF. Section 3 refers a ballot issue to the voters at the November 2025
statewide election to allow the state to increase taxes by $95 million annually by increasing state taxable income to support the healthy school meals for all program. If voters approve the ballot issue:
•
Income tax deductions for individuals who have a federal taxable income of $300,000 or more will be reduced from current levels to $1,000 for single filers and $2,000 for joint filers; and
•
The state will allocate the additional revenue generated by the reduction in income tax deductions to the healthy school meals for all program.
If voters reject the ballot issue, income tax deductions will not be reduced.
In addition to the income tax changes and potential refunds that
may result from voters approving or rejecting the ballot issues described in sections 2 and 3, the bill also changes the healthy school meals for all program cash fund (fund) and healthy school meals for all programs. If voters approve the ballot issue submitted pursuant to section 2 and reject the ballot issue submitted pursuant to section 3, $1 million is transferred annually from the fund to local school food purchasing programs. If voters approve the ballot issue submitted pursuant to section 3, regardless of whether the voters approve the ballot issue submitted pursuant to section 2:
•
The permissible distribution of local food purchasing grants is modified; •
Certain school food authorities are allowed to collaborate to implement advisory committees;
•
The duties of an advisory committee are clarified; and
•
The distribution of funds from the fund is changed so that the amounts distributed through local food purchasing grants for increasing wages or providing stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals and through the local school food purchasing technical assistance and education grant program are modified based on the amount of money in the fund.
