Somewhat dueling ballot initiatives for November

Various propositions will be on the November ballot with implications for the state budget – and, therefore, the UC budget. One would eliminate the 2/3 super-majority vote required to pass the budget and change it to a simple majority. It would not change the 2/3 requirement for raising taxes. (The 2/3 vote on budgets goes back to the Great Depression; the 2/3 vote on taxes was part of Prop 13 of 1978.) But another initiative would impose the 2/3 requirement on raising “fees.” The fee vs. tax distinction is not always clear and has provided some wiggle room for the legislature to get around the 2/3 tax requirement.

Detailed information on the November ballot propositions can be found on the California Secretary of State’s website:
http://www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures.htm

Also on the ballot will be a repeal of certain business tax breaks that were part of an earlier budget deal but which have not yet gone into effect. If passed, they would not go into effect.

There is a marijuana legalization proposition which would allow marijuana sales to be taxed. Some wild claims have been bandied about that taxing marijuana would solve the state budget problem. Please! There are three big taxes that really matter for the state: income, sales, and corporate profits. No one knows what the size of the marijuana market would be if it were totally legalized, but it ain’t going to solve the state budget crisis.

Another proposition would apply a fee or tax (doesn’t matter if it is done by initiative) to car licenses with the revenue to go to state parks. California cars would enter state parks for free. Out of state cars would pay.

But wait! There is more! One proposition would suspend AB32 (greenhouse gas law) until the state unemployment rate falls to 5.5% (which will be a long time from now). Another would kill the complicated redistricting panel passed by voters in 2008 and put redistricting back in the hands of the legislature. One would restrict the state’s ability to “raid” local government and transportation funds. Finally, there is a big water bond (which is not an “initiative” – since it was put on the ballot by the legislature rather than by a voter petition).

In short, two industries that will not be suffering in the near term are TV broadcasters and political consultants.