Propositions

Proposition 1: AUTHORIZES BONDS FOR HOUSING AFFORDABILITY PROGRAMS. LEGISLATIVE STATUTE.

—> Housing affordability program, requiring $11.25 billion

—> Fiscal Impact:

• Increased state cost from $500 million to $600 million annually for about 25 years to repay the housing bond

—> Benefits:

• Veterans, individuals with disabilities, low/middle income working families

• Essential workers

• Vulnerable Californians

• No new taxes

—> Drawbacks:

• May strain future Californians’ budgets due to the use of bonds

• California taxpayers will be obligated to pay it back in the near future

• May reduce the budget for public services (i.e., education, infrastructure, & healthcare)

Proposition 2: INCREASES THE STATE’S RAINY DAY FUND. LEGISLATIVE CONSTITUTIONAL AMENDMENT.

—> Increasing the California Rainy Day Fund (BSA)

This is a safety net for healthcare, public education, and programs vulnerable to budget cuts

—> Fiscal Impact:

• State budget reserves would be higher.

—> Benefits:

• Protects vulnerable institutions in place from budget cuts.

• Saves budget surpluses when the state collects more money than necessary

—> Drawbacks:

• Less cash is available for public use when economy is booming

• Tax rebates may be less

Proposition 3: PROVIDES PERMANENT FUNDING FOR SCHOOLS AND HEALTH CARE BY EXTENDING THE EXISTING TAX ON HIGH INCOMES. INITIATIVE CONSTITUTIONAL AMENDMENT

—> Will provide California with a permanent $15 billion, instead of $5 billion a year, which would expire in 2031

—> Fiscal Impacts:

• Maintains $5 billion to $15 billion of annual state income tax revenue by making a temporary tax increase on high-income earners permanent instead of letting it expire in 2031

—> Benefits:

• Provides permanent funding for public education, infrastructure, and healthcare.

—> Drawbacks:

• Higher income for the top 2% of California (those who make 371k or more).

Proposition 4: REPEALS PROHIBITION AGAINST PUBLIC FUNDING OF ELECTION CAMPAIGNS. LEGISLATIVE STATUTE.

—> State and local governments could create public campaign financing programs for public office candidates

—> Fiscal Impacts:

• Ongoing costs to the state of a few hundred thousand dollars each year for the Fair Political Practices Commission to answer questions from state and local governments about public campaign finance programs

—> Benefits:

• Can help localized, personable candidates compete for office

• Local communities can have a voice

• CA is the only state that bans public funding of campaigns

—> Drawbacks:

• Taxpayer money will be used to fund candidates’ campaigns

• No limit on how much taxpayer money candidates can receive

• No specifics on what will have budget cuts from this decision

Proposition 5: CHANGES THE RECALL ELECTION PROCESS FOR STATEWIDE OFFICERS. LEGISLATIVE CONSTITUTIONAL AMENDMENT.

—> Recall vacancies in office would be filled through special elections and appointments, depending on the office and the timing of when this would occur

—> Fiscal Impacts: N/A

—> Benefits:

• New elections take place at the time of vacancies

—> Drawbacks:

• Recall elections will no longer ask a question about filling the vacancy

Proposition 37: CREATES A LOAN PROGRAM FOR MIDDLE-INCOME BUYERS OF QUALIFIED NEW HOMES. INITIATIVE STATUTE.

—> A new homebuying assistance program for eligible buyers. A fixed mortgage rate for up to 17% of the purchase price of a newly constructed home priced below about $1.5 million

—> Fiscal Impacts: N/A

—> Benefits:

• Homeownership would be more affordable for lower- and middle-class families in CA

• Low-interest mortgages are funded by private bond investors

• Expands the housing supply

—> Drawbacks:

• Buyers not able to use Prop 37 would pay higher prices

Proposition 38: AUTHORIZES BONDS FOR IMMUNOLOGY MEDICAL RESEARCH. INITIATIVE STATUTE.

—> More funds available ($8.4 billion) for immunology and immunotherapy research, where half goes to UC institutions and the other half goes to private institutions

—> Fiscal Impacts:

• Increased state cost of $500 million to $600 million annually for about 20 years to repay the research bond, with some or all of the cost offset if the funded research generates revenue

—> Benefits:

• Advancements in medical research for cancer, heart disease, Alzheimer’s

• Closer to a potential cure for these diseases

—> Drawbacks:

• More debt for CA residents in the future to take on

Proposition 39: PROHIBITS CITIZENS FROM VOTING UNLESS THEY PRESENT GOVERNMENT-ISSUED IDENTIFICATION. INITIATIVE CONSTITUTIONAL AMENDMENT

—> Prohibits individuals from voting unless they have a government-issued ID

—> Fiscal Impacts:

• Costs millions of dollars each year to implement new voting requirements.

—> Benefits:

• Can prevent voter fraud

—> Drawbacks

• Puts personal information at risk, as mail in voting must include specific voter information

• Costs more taxpayer money

Proposition 40: IMPOSES A ONE-TIME TAX ON CERTAIN TAXPAYERS. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE.

—> A 5% one-time tax will be placed on individuals who make more than $1 billion, and the revenue goes directly to healthcare

—> Fiscal Impact:

• Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires

• Potential decrease of less than $1 billion per year in income tax revenue from billionaires.

—> Benefits:

• Could provide more funding for education, which has been facing budget cuts

—> Drawbacks:

• May draw wealthier indiviauls and business out of CA

Proposition 41: PROHIBITS NEW STATE TAXES THAT EXCLUDE REVENUES FROM STATE SPENDING LIMIT. REQUIRES AUDITS FOR NEW STATE SPECIAL TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT.

—> Will nullify Prop. 40

—> Requires mandatory audits and pre- election audits for programs funded by new special taxes

—> Fiscal Impact: Unknown

—> Benefits:

• Provides billionaires with no additional taxes

—> Drawbacks:

• Meant to counteract Prop. 40 by allowing billionaires to keep their 5%

• Less money for public education, infrastructure, and healthcare

Proposition 42: PROHIBITS NEW STATE PERSONAL PROPERTY TAXES AND CERTAIN RETROACTIVE STATE TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT.

—> Prohibits the development of any new state taxes on any personal property (other than real estate)

—> Fiscal Impacts:

• Possibility that tax revenues will not go up as much in the future

—> Benefits:

• No new taxes could be developed

• Counteracts Prop. 40, as it prevents a wealth tax

—> Drawbacks:

• Less money for education, infrastructure, and healthcare in the near future

• No taxes could be in place for the ultra-rich

Proposition 43: LIMITS VOTERS’ ABILITY TO RAISE REVENUE FOR LOCAL GOVERNMENT SERVICES. LEGISLATIVE CONSTITUTIONAL AMENDMENT.

—> Requires a 2/3 vote for specialized taxes to be put in place, rather than over 50%

—> Fiscal Impact:

• Possibility that local government tax revenues will not go up as much

• There will be a higher vote threshold for certain taxes.

—> Benefits:

• Protects taxpayers and homeowners from the potential of new future taxes

—> Drawbacks:

• Will create difficulties in funding localized emergency responders and education

Proposition 44: REQUIRES COMMUNITY HEALTH CLINICS TO SPEND 90% OF REVENUE ON PROGRAM SERVICES. INITIATIVE STATUTE.

—> Non-profit Federally Qualified Health Centers will have to spend at least 90% of revenue on providing healthcare services; if not, they will be penalized

—> Fiscal Impacts:

• Increased state costs in the low tens of millions of dollars per year, covered by fees

—> Benefits:

• Funds will directly be input into patient care

—> Drawbacks:

• Will shut down health clinics statewide

Proposition 45: MODIFIES ENVIRONMENTAL REVIEW FOR CERTAIN PROJECTS. INITIATIVE STATUTE.

—> The California Environmental Quality Act (CEQA) will be able to expedite environmental review for certain projects by setting deadlines to complete environmental review and resolve lawsuits challenging project approvals

—> Fiscal Impacts:

• Will cost state and local governments $100’s of millions of dollars to implement

—> Benefits:

• Public and private projects can be eligible for project review more quickly

• Accelerates vital infrastructure

—> Drawbacks:

• Can put health at risk due to the expedited process

• Would roll back the clean air, water, and public health protections polluting CA