Patch Breaks Down the Propositions

The fate of nine proposition measures will soon be in the hands of California voters. Ranging from the legalization and taxation of marijuana to issues surrounding the state budget, their full breakdown is listed below.

Proposition 19

Also known as the Regulate, Control and Tax Cannabis Act of 2010, Proposition 19, if passed, would go into effect the day after the election. The measure would allow adults age 21 and older to grow, transport and possess marijuana for personal use. It would also permit local governments to regulate and tax its commercial production and sale. Possessing marijuana on school grounds, using it in public, smoking it while minors are present, and providing it to anyone under the legal age would be prohibited.

According to language within the measure: "There is an estimated $15 billion in illegal cannabis transactions in California each year. Taxing and regulating cannabis, like we do with alcohol and cigarettes, will generate billions of dollars in annual revenues for California to fund what matters most to Californians: jobs, health care, schools and libraries, roads and more. California wastes millions of dollars a year targeting, arresting, trying, convicting and imprisoning non-violent citizens for cannabis-related offenses. This money would be better used to combat violent crimes and gangs. Establishing legal, regulated sales outlets would put dangerous street dealers out of business."

What this means for Coronado: Should the measure pass, local government would be permitted to implement general, specific or excise, transfer or transaction taxes, business license fees, and other costs related to the sale of marijuana, which could mean an increase to the city's bottom line.

Proposition 20

Also known as the California Congressional Redistricting Initiative, Proposition 20, if passed, would remove elected representatives from the process of establishing congressional districts and would transfer the authority to a recently authorized 14-member redistricting commission. If it fails, the governor and members of the Legislature will remain in charge of drawing the lines for U.S. congressional districts in California.

Proposition 27, which is in direct opposition to Proposition 20 and moves to dissolve the Citizen Redistricting Commission, is also up for a vote.  If each pass with a majority vote, the measure that passes with the highest majority will go into effect.

What this means for Coronado: In terms of a fiscal impact, there really isn't one to speak of. But considering that between 2000 and 2010 a number of Californians have shifted from coastal to more inland living, the state's congressional district boundaries stand to be shifted, significantly. The voters will decide who should have control over redrawing those lines.

Proposition 21

Also known as the Vehicle License Fee for Parks Act, Proposition 21, if passed, would increase vehicle license fees by $18 per year in an effort to raise approximately $500 million a year toward the funding of state parks. The revenue would be required to be deposited in a new trust fund that must be used solely to operate, maintain and repair state parks. Commercial vehicles, trailers and trailer coaches would be exempt. It would also transfer the $130 million currently allocated to state park funding back into the general fund.

What this means for Coronado: A potentially higher vehicle registration renewal fee.

Proposition 22

Also known as the Local Taxpayer, Public Safety and Transportation Act, Proposition 22, if passed, would protect existing funds allocated to local governments and would prevent the state from redirecting money from local governments to plug holes within its budget. Specifically, the state would be prohibited from taking monies derived from hotel taxes, parcel taxes, utility taxes and sales taxes. The measure would further prohibit the taking of local public transportation and transit funds, including the gas tax. This proposition has received resounding support from local municipalities throughout California.

What this means for Coronado: Local elected officials will have a better grasp on the monies available for Coronado's fiscal budget, and redevelopment projects will have a better chance of moving forward as planned, rather than being put on hold due to an unanticipated and sudden loss of funds that have been allocated to those projects.

Proposition 23

Also known as the Suspend AB 32 (the Global Warming Act of 2006), Proposition 23, if passed, would halt provisions within AB 32, which places restrictions on greenhouse gas emissions within the state.

The suspension would remain in effect until the state's unemployment rate, currently at 12 percent, drops to 5.5 percent or lower for four consecutive quarters.  Opponents of Proposition 23 point out that this has happened just three times in the past 30 years.

AB 32 requires that greenhouse gas emissions be reduced to 1990 levels by 2020.  It is slated to go into effect in 2012.

What this means for Coronado: Not too much, in terms of fiscal impact. Proposition 23 will have the greatest effect on potential state revenue from power plants and oil refineries.

Proposition 24

Also known as the Repeal of Corporate Tax Breaks Act, Proposition 24, if passed, would stop several corporate tax breaks previously approved by Gov. Schwarzenegger. These breaks are scheduled to go into effect in 2010 and 2012. It is anticipated that, if passed, the measure would increase state revenues by approximately $1.3 billion each year due to higher taxes paid by the estimated 120,000 California businesses that would be affected.

What this means for Coronado: If passed, the increase in state revenue would trickle its way into education funding, which could be good news for local schools. Over the last two years, the state has cut more than $17 billion from the K–12 school system. Schools have laid off more than 20,000 classroom teachers and education support staff. Elementary class sizes have grown from 20 students to more than 30 kids in each class. Middle and high school class sizes of 40 are common, with some as large as 60. Increased education funding could help reverse this trend.  

Proposition 25

Also known as the Majority Vote for Legislature to Pass the Budget Act, Proposition 25, if passed, would end the current requirement that a two-thirds majority vote be obtained within the state Legislature in order to pass the state budget, changing it to a simple majority. It would also require that the budget be passed by June 15, and if that deadline is not met, all members of the Legislature would be required to to forfeit their daily salaries and expenses until it does. Currently, California, Arkansas and Rhode Island are the only states in the country that require a two-thirds vote requirement to pass their state budgets.

What this means for Coronado: Residents will know the state budget will be passed on time every year.

Proposition 26

Also known as the Supermajority Vote to Pass New Taxes and Fees Act, Proposition 26, if passed, would require the state Legislature to reach a two-thirds majority vote in order to implement fees, levies, charges and tax revenue, which can currently be enacted by a simple majority vote.

Since the people overwhelmingly approved Proposition 13 in 1978, the California Constitution has required increases in state taxes to be adopted by no less than two-thirds of the members elected to each house of the Legislature. Since the enactment of Proposition 218 in 1996, the California Constitution has required increases in local taxes to be approved by voters.

Despite these limitations, California taxes have continued to escalate. Rates for state personal income taxes, state and local sales and use taxes, and a myriad of state and local business taxes are at all-time highs. Californians are taxed at one of the highest levels of any state in the nation. Recently, the Legislature added another $12 billion in new taxes to be paid by drivers, shoppers and anyone who earns an income.

What this means for Coronado: An increased knowledge that tax rates cannot be implemented unless a supermajority of the Legislature backs the measure.

Proposition 27

Also known as the Elimination of the Citizen Redistricting Commission measure, Proposition 27, if passed, would repeal the 2008 passage of Proposition 11, which authorized the Commission's creation. Supporters of the measure point out that under current law three randomly selected accountants will decide who can be one of the 14 unelected commissioners. Supporters also say the reform will ensure that those who make the decisions are accountable to the voters and that all of their decisions are subject to approval by the voters.

Proposition 20, which is in direct opposition to Proposition 27 and moves to remove elected representatives from the process of establishing congressional districts, is also up for a vote. If both propositions pass with a majority vote, the measure that passes with the highest majority will go into effect.

What this means for Coronado: In terms of a fiscal impact, there really isn't one to speak of. But considering that between 2000 and 2010 a number of Californians have shifted from coastal to more inland living, the state's congressional district boundaries stand to be shifted significantly. The voters will decide who should have control over redrawing those lines.