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Aug 13 2012

California 2012 Propositions: Democrats Vs. Republicans – Part 1

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With the recent California Republican Party Convention over the past weekend in Southern California, endorsements are now complete for both California political parties.

I will summarize a few of the propositions in this post and highlight the contrast between the Democrats and GOP.

Proposition 30: Temporary Taxes to Fund Education. Guaranteed Local Public Safety Funding. Initiative Constitutional Amendment

Increases personal income tax on annual earnings over $250,000 for seven years. Increases sales and use tax by ¼ cent for four years. Allocates temporary tax revenues 89 percent to K-12 schools and 11 percent to community colleges. Bars use of funds for administrative costs, but provides local school governing boards discretion to decide, in open meetings and subject to annual audit, how funds are to be spent. Guarantees funding for public safety services realigned from state to local governments. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state revenues over the next seven fiscal years. Estimates of the revenue increases vary—from $6.8 billion to $9 billion for 2012-13 and from $5.4 billion to $7.6 billion, on average, in the following five fiscal years, with lesser amounts in 2018-19. These revenues would be available to (1) pay for the state’s school and community college funding requirements, as increased by this measure, and (2) address the state’s budgetary problem by paying for other spending commitments. Limitation on the state’s ability to make changes to the programs and revenues shifted to local governments in 2011, resulting in a more stable fiscal situation for local governments. (12-0009)

Democrats: Yes

Republicans: No

Proposition 31: State Budget. State and Local Government. Initiative Constitutional Amendment and Statute.

Establishes two-year state budget cycle. Prohibits Legislature from creating expenditures of more than $25 million unless offsetting revenues or spending cuts are identified. Permits Governor to cut budget unilaterally during declared fiscal emergencies if Legislature fails to act. Requires performance reviews of all state programs. Requires performance goals in state and local budgets. Requires publication of all bills at least three days prior to legislative vote. Gives counties power to alter state statutes or regulations related to spending unless Legislature or state agency vetoes changes within 60 days. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Decreased state revenues and commensurate increased local revenues, probably in the range of about $200 million annually, beginning in 2013-14. Potential decreased state program costs or increased state revenues resulting from changes in the fiscal authority of the Legislature and Governor. Increased state and local costs of tens of millions of dollars annually to implement new budgeting practices. Over time, these costs would moderate and potentially be offset by savings from improved program efficiencies.

Democrats: No

Republicans: Yes

Proposition 32: Prohibits Political Contributions by Payroll Deduction. Prohibitions on Contributions to Candidates. Initiative Statute.

Restricts union political fundraising by prohibiting use of payroll-deducted funds for political purposes. Same use restriction would apply to payroll deductions, if any, by corporations or government contractors. Permits voluntary employee contributions to employer or union committees if authorized yearly, in writing. Prohibits unions and corporations from contributing directly or indirectly to candidates and candidate-controlled committees. Other political expenditures remain unrestricted, including corporate expenditures from available resources not limited by payroll deduction prohibition. Limits government contractor contributions to elected officers or officer-controlled committees. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Increased state implementation and enforcement costs of up to hundreds of thousands of dollars annually, potentially offset in part by revenues from fines.

Democrats: No

Republicans: Yes

As you can see, with the first three propositions, the Democrats and Republicans are exactly opposite.

Californians need to read these ballot measures closely, since they deal with the issues that the Governor and Legislature deem too hot to handle.

The POLS prefer to allow either the Capitol special interests or their special interest surrogates to carry the political ball.

I will deal with the remainder of the California Propositions in subsequent posts.

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  • http://twitter.com/SoquelCreek Soquel by the Creek

    Proposition 30 is bad public policy, horrible tax policy, and an abuse of the democratic initiative process. It was specifically “electioneered” to circumvent the 2/3rds majority requirement in the California Legislatures–a key taxpayer protection mechanism.

    Proposition 30 is the WRONG MEDICINE for what ails California. It raises taxes without addressing any of the structural and spending issues that have damaged our private-sector economy.

    VOTE NO on PROPOSITION 30. The more people learn about it, the less they like it.
    http://soquelbythecreek.blogspot.com/2012/07/california-proposition-30-governor.html

  • http://flapsblog.com Gregory Flap Cole

    Proposition 30 is California Governor Jerry Brown’s sponsored initiative and it is a massive sales tax increase with a thrown in upper bracket income tax increase.
    And, for what?

    More wasteful State of California spending from welfare, to higher education to high-speed rail bond interest.

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