A report from the California Debt and Investment Advisory Commission indicates that school districts' need for short-term borrowing declined in lock-step with the passage of Proposition 30, a measure passed in 2012 that raised incomes taxes on the wealthy and increased the sales tax rate.
In her report in the March issue of CDIAC's
"The results indicate that Prop 30 did impact the amount of Tax and Revenue Anticipation Notes issued," Walline writes.
TRANs issued by school districts peaked at $1.5 billion in 2012 and then fell to $352.8 million in 2014, according to the report.
General economic conditions could have contributed to the decline in the need for short-term borrowing, but "the increase in amount and timeliness of state funding to K-14 education agencies as a result of Proposition 30 coincides with the sharpest reductions in the use of TRANS by these entities," she wrote.
