At our recent election, California voters overwhelmingly decided that there will be no pot smoking on the Chamber patio. In other news, an array of propositions received the judgment of the voters on a long and complicated ballot.
Based on review by the Government Affairs Committee and votes by the Board of Directors, the Chamber took positions on those ballot measures that had the potential to impact businesses, especially including those in Carlsbad. Many positions were based on the Chamber's Public Policy Guide, which was developed to streamline the legislation review process. Here is how those initiatives fared.
First, the good news. Votes agreed with the Chamber on the following measures
YES on Proposition 22:
Ban on State Borrowing from Local Governments.
The state will no longer be allowed to borrow or take revenue derived from locally imposed taxes, such as hotel taxes, parcel taxes, utility taxes, and sales taxes. Also the state will be precluded from borrowing local public transit and transportation funds, including funds from the Proposition 42 gas tax. Nearly 61 percent of voters agreed with this measure.
NO on Proposition 24: Repeal of Corporate Tax Breaks
The initiative would have stopped several corporate tax breaks that are slated to go into effect in 2010 and 2012. Proposition 24 would prevent corporations that are eligible for the tax breaks from receiving about $2.5 billion in tax breaks per year. Seen as a job killer, this measure was defeated by a margin of 59 percent to 41 percent.
YES on Proposition 26: Supermajority Vote to Pass New Taxes and Fees
This new law requires a two-thirds supermajority vote in the California State Legislature to pass many fees, levies, charges and tax revenue allocations that under existing rules can be enacted by a simple majority vote. Supporters of the initiative called it the Stop Hidden Taxes initiative, because they believe that these fees imposed by state government amount to taxes, and should therefore require the same treatment as other tax measures. Voters agreed by a margin of 53 percent to 47 percent.
NO on Proposition 27: Elimination of Citizen Redistricting Commission
This measure would have repealed California Proposition 11 (2008), which authorized the creation of the California Citizens Redistricting Commission. It would also have modified the provision in California law that says that proposed congressional districts can't be subjected to a veto referendum. Voters squashed this one with about 60 percent of the vote.
The Chamber supported Carlsbad's local Proposition G:
The Public Safety Employee Pensions measure asked Carlsbad voters to amend the city's charter to give residents control over safety employee pension benefits. By an overwhelming vote, now any future increases in the public safety employee pension benefits formula will be subject to voter approval. This measure was seen as essential pension reform to safeguard the future finances of the city.
The Chamber board took no position on Proposition 23:
The Suspension of AB32, the Global Warming Act of 2006, given the fact that there were compelling business arguments on both sides of the issue.
The goal of the Initiative is to freeze the provisions of Assembly Bill 32 until California's unemployment rate drops to 5.5 percent or below for four consecutive quarters. AB 32 requires that greenhouse emission levels in the state be cut to 1990 levels by 2020, in a gradual process of slated to begin in 2012.
This initiative was mounted because supporters believe that AB 32 could have devastating economic impacts during the current recession. Supporters believe that the state should move full speed ahead with global warming measures, which also aid in the development of alternative energy businesses, among other. Voters overwhelmingly rejected Prop. 23, by a 61 to 39 percent margin, meaning that AB 32 will take effect on schedule.
Finally, voters disagreed with the Chamber position of No on Proposition 25:
Majority Vote for Legislature to Pass the Budget. The successful initiative ends the current requirement in the state that two-thirds of the members of the California State Legislature must vote in favor of the state's budget in order for a budget to be enacted. Voters agreed with this approach by a margin of about 55 to 45 percent.
The measure also requires state legislators to forfeit their pay in years where they have failed to pass a budget in a timely fashion, an element that may have had strong voter appeal.
Based on review by the Government Affairs Committee and votes by the Board of Directors, the Chamber took positions on those ballot measures that had the potential to impact businesses, especially including those in Carlsbad. Many positions were based on the Chamber's Public Policy Guide, which was developed to streamline the legislation review process. Here is how those initiatives fared.
First, the good news. Votes agreed with the Chamber on the following measures
YES on Proposition 22:
Ban on State Borrowing from Local Governments.
The state will no longer be allowed to borrow or take revenue derived from locally imposed taxes, such as hotel taxes, parcel taxes, utility taxes, and sales taxes. Also the state will be precluded from borrowing local public transit and transportation funds, including funds from the Proposition 42 gas tax. Nearly 61 percent of voters agreed with this measure.
NO on Proposition 24: Repeal of Corporate Tax Breaks
The initiative would have stopped several corporate tax breaks that are slated to go into effect in 2010 and 2012. Proposition 24 would prevent corporations that are eligible for the tax breaks from receiving about $2.5 billion in tax breaks per year. Seen as a job killer, this measure was defeated by a margin of 59 percent to 41 percent.
YES on Proposition 26: Supermajority Vote to Pass New Taxes and Fees
This new law requires a two-thirds supermajority vote in the California State Legislature to pass many fees, levies, charges and tax revenue allocations that under existing rules can be enacted by a simple majority vote. Supporters of the initiative called it the Stop Hidden Taxes initiative, because they believe that these fees imposed by state government amount to taxes, and should therefore require the same treatment as other tax measures. Voters agreed by a margin of 53 percent to 47 percent.
NO on Proposition 27: Elimination of Citizen Redistricting Commission
This measure would have repealed California Proposition 11 (2008), which authorized the creation of the California Citizens Redistricting Commission. It would also have modified the provision in California law that says that proposed congressional districts can't be subjected to a veto referendum. Voters squashed this one with about 60 percent of the vote.
The Chamber supported Carlsbad's local Proposition G:
The Public Safety Employee Pensions measure asked Carlsbad voters to amend the city's charter to give residents control over safety employee pension benefits. By an overwhelming vote, now any future increases in the public safety employee pension benefits formula will be subject to voter approval. This measure was seen as essential pension reform to safeguard the future finances of the city.
The Chamber board took no position on Proposition 23:
The Suspension of AB32, the Global Warming Act of 2006, given the fact that there were compelling business arguments on both sides of the issue.
The goal of the Initiative is to freeze the provisions of Assembly Bill 32 until California's unemployment rate drops to 5.5 percent or below for four consecutive quarters. AB 32 requires that greenhouse emission levels in the state be cut to 1990 levels by 2020, in a gradual process of slated to begin in 2012.
This initiative was mounted because supporters believe that AB 32 could have devastating economic impacts during the current recession. Supporters believe that the state should move full speed ahead with global warming measures, which also aid in the development of alternative energy businesses, among other. Voters overwhelmingly rejected Prop. 23, by a 61 to 39 percent margin, meaning that AB 32 will take effect on schedule.
Finally, voters disagreed with the Chamber position of No on Proposition 25:
Majority Vote for Legislature to Pass the Budget. The successful initiative ends the current requirement in the state that two-thirds of the members of the California State Legislature must vote in favor of the state's budget in order for a budget to be enacted. Voters agreed with this approach by a margin of about 55 to 45 percent.
The measure also requires state legislators to forfeit their pay in years where they have failed to pass a budget in a timely fashion, an element that may have had strong voter appeal.