May 19, 2009

1A

State Budget. Changes California Budget Process. Limits State Spending. Increases "Rainy Day" Budget Stabilization Fund

(S.C.A. 13)

Art. IV § 12; Art. XVI §§ 20 & 21

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.

1B

Education funding. Payment plan.

(A.C.A. 2)

Art. XVI § 8.3

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 inproportion to average daily attendance and may be used for classroom instruction, text books and other local educational programs.

1C

Lottery modernization act.

(S.C.A. 12)

Art. IV § 19; Gov. §§ 8880.1 et seq.

Allows the state lottery to be modernized to improve its performance with increased payouts, improved marketing, and effective management. Requires the state to maintain ownership of the lottery and authorizes additional accountability measures. Protects funding levels for schools currently provided by lottery revenues. Increased lottery revenues will be used to address current budget deficit and reduce the need for additional tax increases and cuts to state programs.

1D

Protects children's services funding. Helpsbalance state budget.

(A.B. 17, 3rd Extra. Sess.)

H&S § 130105; R&T §§30131.4 & 30131.45

Provides more than $600 million to protect children's programs in difficult economic times. Redirects existing tobacco tax money to protect health and human services for children, including services for at-risk families, services for children with disabilities, and services for foster children. Temporarily allows the edirection of existing money to fund health and human service programs for children 5 years old and under.Ensures counties retain funding for local priorities. Helps balance state budget.

1E

Mental health services funding. Temporary reallocation. Helps balance state budget.

(S.B. 10, 3rd Extra.Sess.)

W&I §§5891
& 5892

Amends Mental Health Services Act (Proposition 63 of 2004) to transfer funds, for a two-year period, from mental health programs under that act to pay for mental health services for children and young adults provided through the Early and Periodic Screening, Diagnosis, and Treatment Program. Provides more than $225 million in flexible funding for mental health programs. Helps balance state budget during this difficult economic time.

1F

Elected officials' salaries. Prevents pay increases during budget deficit years.

(S.C.A. 8)

Art. III §8

Encourages balanced state budgets by preventing elected Members of the Legislature and statewide constitutional officers, including the Governor, from receiving pay raises in years when the state is running a deficit. Directs the Director of Finance to determine whether a given year is a deficit year. Prevents the Citizens Compensation Commission from increasing elected officials’ salaries in years when the state Special Fund for Economic Uncertainties is in the negative by an amount equal to or greater than one percent of the General Fund.

JUNE 8, 2010

13

Limits on Property Tax Assessment. Seismic Retrofitting of Existing Buildings.

S. C. A. 4, 2007 - 2008

Art. XIIIA 2§ 2

Provides that construction to seismically retrofit buildings will not trigger reassessment of property tax value. Sets statewide standard for seismic retrofit improvements that qualify. Fiscal Impact: Minor reduction in local property tax revenues related to the assessment of earthquake upgrades.

14

Elections. Increases Right to Participate in Primary Elections.

S.C.A. 4, 2009-2010

Art. II § 5

Changes the primary election process for congressional, statewide, and legislative races. Allows all voters to choose any candidate regardless of the candidate's or voter's political party preference. Ensures that the two candidates receiving the greatest number of votes will appear on the general election ballot regardless of party preference. Fiscal Impact: No significant net change in state and local government costs to administer elections.

15

California Fair Elections Act.

A.B. 583

Elec. Code §§ 20600 et seq., Gov. Code §§ 85300 and 86102, and Gov.Code §§ 91015 et seq.

Repeals ban on public funding of political campaigns. Creates a voluntary system for candidates for Secretary of State to qualify for a public campaign grant if they agree to limitations on spending and private contributions. Each candidate demonstrating enough public support would receive same amount. Participating candidates would be prohibited from raising or spending money beyond the grant. There would be strict enforcement and accountability. Funded by voluntary contributions and a biennial fee on lobbyists, lobbying firms, and lobbyist employers. Fiscal Impact: Increased revenues (mostly from charges related to lobbyists) totaling over $6 million every four years. These funds would be spent on public financing for campaigns of Secretary of State candidates for the 2014 and 2018 elections

16

Imposes New Two-Thirds Voter Approval Requirement for Local Public Electricity Providers

Initiative

Art. XI §§ 9.5

Requires two-thirds voter approval before local governments provide electricity service to new customers or establish a community choice electricity program using public funds or bonds. Fiscal Impact: Unknown net impact on state and local government costs and revenues?unlikely to be significant in the short run?due to the measure's uncertain effects on public electricity providers and on electricity rates.

17

Allows Auto Insurance Companies to Base Their Prices in Part on a Driver?s History of Insurance Coverage.

Initiative

Ins. Code §§ 1861.024 & 1861.02

Permits companies to reduce or increase cost of insurance depending on whether driver has a history of continuous insurance coverage. Fiscal Impact: Probably no significant fiscal effect on state insurance premium tax revenues.

NOVEMBER 2, 2010

18

On August 10, 2010, the State Legislature and Governor removed Proposition 18 from the ballot.

19

Legalizes Marijuana under California but not Federal Law. Permits Local Governments to Regulate and tax Commercial Production, Distribution, and Sale of Marijuana.

Initiative Statute

H&S Code $sect;§ 11,300 et seq.

Allows people 21 years old or older to possess, cultivate, or transport marijuana for personal use. Fiscal Impact: Depending on federal, state, and local government actions, potential increased tax and fee revenues in the hundreds of millions of dollars annually and potential correctional savings of several tens of millions of dollars annually.

20

Redistricting of Congressional Districts.

Initiative Constitutional Amendment

Art. XXI §§ 1 - 3

Removes elected representatives from process of establishing congressional districts and transfers that authority to recently-authorized 14-member redistricting commission comprised of Democrats, Republicans, and representatives of neither party. Fiscal Impact: No significant net change in state redistricting costs.

21

Establishes $18 Annual Vehicle License Surcharge to Help Fund State Parks and Wildlife Programs. Grants Surcharged Vehicles Free Admission to All State Parks.

Initiative Statute

Pub. Resources Code §§ 5081 et seq., Rev. & Tax Code § 10751.5

Exempts commercial vehicles, trailers and trailer coaches from the surcharge. Fiscal Impact: Annual increase to state revenues of $500 million from surcharge on vehicle registrations. After offsetting some existing funding sources, these revenues would provide at least $250 million more annually for state parks and wildlife conservation.

22

Prohibits the State From Borrowing or Taking Funds Used for Transportation, Redevelopment, or Local Government Projects and Services.

Initiative Constitutional Amendment

Art. XIII §&setc; 24, 25.5, Art. XIX §§ 1 ? 9, Art. XIXA §§ 1, 2, Art. XIXB § 1, Art. XIXC

Prohibits State, even during severe fiscal hardship, from delaying distribution of tax revenues for these purposes. Fiscal Impact: Decreased state General Fund spending and/or increased state revenues, probably in the range of $1 billion to several billions of dollars annually. Comparable increases in funding for state and local transportation programs and local redevelopment.

23

Suspends Implementation of Air Pollution Control Law (AB 32) Requiring Major Sources of Emissions to Report and Reduce Greenhouse Gas Emissions That Cause Global Warming, Until Unemployment Drops to 5.5 Percent or Less for Full Year.

Initiative Statute

H&S Code § 38600

Fiscal Impact: Likely modest net increase in overall economic activity in the state from suspension of greenhouse gases regulatory activity, resulting in a potentially significant net increase in state and local revenues.

24

Repeals Recent Legislation That Would Allow Businesses to Lower Their Tax Liability.

Initiative Statute

Rev. & Tax Code §§ 17276, 17276.9, 17276.10, 23663, 24416, 24416.9, 24416.10

Fiscal Impact: Increased state revenues of about $1.3 billion each year by 2012?13 from higher taxes paid by some businesses. Smaller increases in 2010?11 and 2011?12.

25

Changes Legislative Vote Requirement to Pass Budget and Budget-Related Legislation from Two-Thirds to a Simple Majority. Retains Two-Thirds Vote Requirement for Taxes.

Initiative Constitutional Amendment

Art. IV § 12

Legislature permanently forfeits daily salary and expenses until budget bill passes. Fiscal Impact: In some years, the contents of the state budget could be changed due to the lower legislative vote requirement in this measure. The extent of changes would depend on the Legislature?s future actions.

26

Requires That Certain State and Local Fees Be Approved by Two-Thirds Vote. Fees Include Those That Address Adverse Impacts on Society or the Environment Caused by the Fee-Payer's Business.

Initiative Constitutional Amendment

Art. XIIIA § 3, Art. XIIIC § 1

Fiscal Impact: Depending on decisions by governing bodies and voters, decreased state and local government revenues and spending (up to billions of dollars annually). Increased transportation spending and state General Fund costs ($1 billion annually).

27

Eliminates State Commission on Redistricting. Consolidates Authority for Redistricting with Elected Representatives.

Initiative Constitutional Amendment and Statute

Art. II § 9, Art. XXI §§ 1-3, Gov. Code §§ 8251 et seq.

Eliminates 14-member redistricting commission. Consolidates authority for establishing state Assembly, Senate, and Board of Equalization districts with elected representatives who draw congressional districts. Fiscal Impact: Possible reduction of state redistricting costs of around $1 million over the next year. Likely reduction of these costs of a few million dollars once every ten years beginning in 2020.