CA SB227

Establishes the Local Schools and Colleges Voluntary Contribution Fund in county treasuries to receive voluntary individual contributions to school districts, charter schools, child care centers, and community college districts, effective until January 1, 2023.

Creates two subaccounts within the fund: the Baseline Schools and Colleges Subaccount (85% of first $54.5 billion deposited annually) transfers funds to the State Treasury to meet constitutional minimum funding requirements, and the Supplemental Schools and Colleges Subaccount allocates remaining funds to educational agencies based on average daily attendance or full-time equivalent enrollment.

Allows a personal income tax credit equal to 85% of contributions made to the fund for taxable years beginning January 1, 2018 through December 31, 2022, with a $45 billion aggregate annual credit limit.

Permits the tax credit to reduce regular tax below the tentative minimum tax for purposes of the alternative minimum tax.

Becomes operative only if Senate Constitutional Amendment 23 is approved by voters at the November 6, 2018 statewide general election.