Ballot propositions 22, 23, and 24
Editor’s note: Following is part 2 of a three part series on upcoming ballot measures to be voted on in November.)
Proposition 22: Protection of City Funds
It seems that every two years another ballot measure appears purporting to protect city funds from raids by the State. Each time it wins and the Legislature spends the next two years trying to figure out ways around it. Then, when they succeed, city supporters return to the ballot to close that loophole.
So, here we are at “Protect City Funds, version 4.0.”
This time, it “prohibits the State from shifting, taking, borrowing, or restricting the use of tax revenues dedicated by law to fund local government services, community redevelopment projects, or transportation projects and services.” It also “prohibits the State from delaying the distribution of tax revenues for these purposes even when the Governor deems it necessary due to a severe state fiscal hardship.”
If you thought this is what we did the last time, you win the civics prize. Now you know why cities and counties don’t trust Sacramento.
Proposition 23: Suspension of Greenhouse Gas emission legislation
This one wins the disingenuous prize. It sounds so benign.
Prop 23 would “suspend State laws requiring reduced greenhouse gas emissions that cause global warming, until California’s unemployment rate drops to 5.5 percent or less for four consecutive quarters. Requires State to abandon implementation of comprehensive greenhouse-gas-reduction program that includes increased renewable energy and cleaner fuel requirements, and mandatory emission reporting and fee requirements for major polluters such as power plants and oil refineries, until suspension is lifted.”
5.5 percent is an unemployment level achieved only four times in the last 35 years, and two of those were at 5.4%. Thus, this level will likely never be reached, effectively killing this extremely important program.
The primary supporters of this initiative are the oil and gas industry. What a surprise.
Proposition 24: Repeals recent Legislation that would allow businesses to carry back losses, share tax credits, and use a sales-based income calculation to lower taxable income
While this sounds like an initiative only an accountant would love…and understand, the important number is $1.7 billion. That’s the amount of revenue the State would gain by closing loopholes that “allow businesses to shift operating losses to prior tax years and that would extend the period permitted to shift operating losses to future tax years.” It also “repeals recent legislation that would allow corporations to share tax credits with affiliated corporations”…along with “recent legislation that would allow multistate businesses to use a sales-based income calculation, rather than a combination property-, payroll- and sales-based income calculation.”
Eyes glazed over yet?
After the lawyers, let’s get rid of the accountants next. ER
