May 19th 2009 Special Election Ballot Propositions Recommendations and Analysis
Assemblymember Bob Blumenfield
Recommendation: Support All (Props 1A – 1F)
Summary: The State is in dire financial shape. If these ballot measures do not pass, the Legislature will have to find at least $5.5 billion in additional cuts, or raise that amount in additional revenue. Given the current political dynamic in Sacramento (2/3 budget requirement and partisian budget history) that will likely mean cutting important services like education, and programs that protect our most vulnerable such as Calworks. These programs have already been cut to the bone and it is estimated that the poor State of our economy (lower revenue expectations) means that such a cut would be on top of $8 Billion or more that will be needed just to keep spending in line with current revenue predictions.
The bottom line is that we cannot afford to let these propositions fail.
Proposition 1A: state spending limit
Implements a spending cap based on the rate of growth from the last 10 years. It would extend the length of the taxes ($16 billion) approved by the Legislature. Would increase the amount of money set aside in the state’s “rainy-day fund” in budget boom years and restrict what this money could be used for.
Summary Prepared by the Attorney General:
Increases size of state "rainy-day" fund from 5% to 12.5% of the General Fund.
A portion of the annual deposits into that fund would be dedicated to savings for future economic downturns, and the remainder would be available to fund education, infrastructure, and debt repayment, or for use in a declared emergency.
Requires additional revenue above historic trends to be deposited into state "rainy-day" fund, limiting spending.
Fiscal Impact from the Legislative Analyst:
Higher state tax revenues of roughly $16 billion from 2010-11 through 2012-13 to help balance the state budget.
In many years, increased amounts of money in state "rainy-day" reserve fund.
Potentially less ups and downs in state spending over time.
Possible greater state spending on repaying budgetary borrowing and debt, infrastructure projects, and temporary tax relief. In some cases, this would mean less money available for ongoing spending.
Supporters:
The coalition formed to support all of the ballot measures is California Budget Reform Now. Organizations and elected officials in support of Prop. 1A include: CA State Sheriffs’ Assn., CA Fire Chiefs Assn., CA Police Chiefs Assn., CA State University Board of Trustees, University of CA Board of Regents, CA NAACP, State Building and Construction Trades Council, CA Chamber of Commerce, CA Taxpayers Association, Governor Arnold Schwarzenegger, Senate pro Tempore Darrell Steinberg, Assembly Speaker Karen Bass.
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 57% Yes: 37%
No: 21% No: 50%
Proposition 1B: education finance
Proposition 1B ensures that schools receive $9.3 billion over time, so that the billions in cuts which were made during this unprecedented fiscal crisis are not permanent. The payments to schools will come out of the newly created rainy day fund, but not until 2011-2012 when our fiscal outlook is expected to improve. Prop. 1B only takes effect if the voters also approve Prop. 1A.
Summary Prepared by the Attorney General:
Requires supplemental payments to local school districts and community colleges to address recent budget cuts.
Annual payments begin in 2011-12.
Payments are funded from the state's Budget Stabilization Fund until the total amount has been paid.
Payments to local school districts will be allocated in proportion to average daily attendance and may be used for classroom instruction, textbooks and other local educational programs.
Fiscal Impact from the Legislative Analyst:
Fiscal impact would depend on how current constitutional provisions would otherwise be interpreted.
Potential state savings of up to several billion dollars in 2009-10 and 2010-11.
Potential state costs of billions of dollars annually thereafter.
Supporters:
The coalition formed to support all of the ballot measures is California Budget Reform Now. Organizations and elected officials in support of Prop. 1A include: CA State Sheriffs’ Assn., CA Fire Chiefs Assn., CA Police Chiefs Assn., CA Teachers Assn., CA State PTA, CA State University Board of Trustees, CA NAACP, CA State Council of Laborers, CA Chamber of Commerce, Governor Arnold Schwarzenegger, Senate pro Tempore Darrell Steinberg, Assembly Speaker Karen Bass
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 53% Yes: 44%
No: 30% No: 41%
Proposition 1C:
Proposition 1C will bring in $5 billion immediately to the state, protecting us from further cuts and taxes. The State Lottery has not been changed since it was first put into place by voters in 1984, and as a result, is underperforming for the people of
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 47% Yes: 37%
No: 39% No: 50%
Proposition 1D: Children and Families Trust Fund
Proposition 1D will temporarily redirect a portion of existing funds from voter-approved tobacco tax (Proposition 10). These redirected funds will be used to pay for children’s health and social services and to prevent deep cuts to kids’ healthcare and other programs. Only a portion of the tobacco tax funds will be redirected, so existing programs currently funded by this revenue are protected. By temporarily redirecting these funds, Proposition 1D will also help immediately address the state’s unprecedented budget deficit and help us avoid further tax increases or draconian cuts to education, public safety, healthcare and other services.
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 54% Yes: 48%
No: 24% No: 36%
Proposition 1E: Mental Health Services Act
Proposition 1E will temporarily redirect a portion of funds from the Mental Health Services Act to fund children’s health programs that are at risk of elimination due to the budget crisis, including healthcare screening, diagnosis and treatment. By temporarily redirecting a portion of these funds, Proposition 1E will also help immediately address the state’s unprecedented budget deficit and help us avoid further tax increases or draconian cuts to education, public safety, healthcare and other services.
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 57% Yes: 47%
No: 23% No: 37%
Proposition 1F: State officer salaries
Proposition 1F will prohibit legislators, the Governor and other state politicians from getting pay raises whenever our state is running a budget deficit.
3.3.09 Field Poll: 3.25.09 PPIC Poll:
Yes: 77% Yes: 81%
No: 13% No: 13%
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