According to the California Legislative Analyst's Office (LAO) and the California Assessor's Association, the initiative could potentially generate an additional $6-$10 billion of tax revenue per year, which would go towards additional funding of local governments (60%) and public schools (40%), after reimbursing the State for reductions in personal income tax and corporate tax revenue caused by the deductibility of the property tax under existing law and reimbursing counties for the hiring of up to 900 new assessors statewide at a total cost of $517-$639 million a year. This could therefore entail an additional $2.4-$4 billion a year for California public schools and $3.6-$6 billion a year for local governments. The LAO also noted that this new property tax revenue would be significantly more volatile than historical property tax revenues.