THE QUESTIONShould the surtax on cigarettes and tobacco products enacted by Proposition 10 of 1998 be repealed, and its funding for early childhood development and anti-smoking programs be eliminated? THE SITUATIONProposition 10, which was narrowly passed by the voters in 1998, established the California Children and Families First Trust Fund. This fund is financed by a surtax of 50 cents per pack of cigarettes and an equivalent increase in tax of other tobacco products. The total state surtax on a pack of cigarettes is now 87 cents. The California Children and Families First Commission, as well as commissions appointed in each county, govern the new programs established by Proposition 10. The state commission, which receives 20% of the tax revenues, is directed to spend their allocated funds on specific efforts that promote educational activities and support for childcare providers. The remaining funds are distributed to the local county commissions to devise strategic plans promoting early childhood development. THE PROPOSALProposition 28 would repeal the increased California surtax on tobacco products established by Proposition 10, decreasing the amount of state excise tax imposed on a pack of cigarettes to 37 cents. This would eliminate the funding of the California Children and Families First early childhood development and anti-smoking programs. The proposal would also prohibit any future increase of surtaxes on tobacco products unless passed by the state legislature. FISCAL EFFECTThe Legislative Analyst estimates that there would be an annual reduction of approximately $670 million in state tobacco surtax revenues to the California Children and Families First Trust Fund and its associated programs. With the reduction in the price of tobacco products, there would be some loss in local sales tax and state General fund revenues, which would be partially offset by a predicted increase in cigarette sales. Additionally, unknown long-term savings from the effects of Proposition 10 on health care costs and childhood development programs would not be realized, according to the Legislative Analyst. SUPPORTERS SAY· Proposition 10 duplicates existing programs for children and families, and has created unnecessary state and county commissions. · Proposition 28 repeals a fundamentally flawed program. There was not enough oversight built into Proposition 10, and the potential for wasting money is real. OPPONENTS SAY· Proposition 28 would eliminate millions of dollars in newly-planned programs that benefit the most needy young children and their families. · Tobacco sales have decreased by 30% in the state since Proposition 10, and what the tobacco companies fear most is lost revenues due to declining smoking rates. For more information: Supporters: (800) 243-2737, www.voteprop28.com (Analysis prepared by the League of Women Voters of California Education Fund  
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