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Millionaires and mental health: Proposition 63 in California
Richard M Scheffler1, Neal Adams
1Nicholas C. Petris Center on Health Care Markets and Consumer Welfare, University of California, Berkeley, USA. rscheff@berkeley.edu
Abstract:
In November 2004 California passed Proposition 63, a landmark piece of mental health and fiscal legislation. This initiative places a 1 percent tax on adjusted gross income over dollar 1 million, affecting about 30,000 taxpayers and raising dollar 1.8 billion (a 31 percent increase) in new revenues over the first three years to support county-operated mental health systems. Our analysis suggests that Proposition 63 passed with strong support from Democrats, urban dwellers, and social workers and in counties with high rates of homelessness. Proposition 63 faces challenges in implementation and provides unprecedented opportunities for transformation and change.
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