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California voters may find new measures too taxing ($43B more borrowing,$3B in annual tax increases)
Daily Bulletin ^ | 7/9/06 | Harrison Sheppard

Posted on 07/09/2006 9:05:02 AM PDT by NormsRevenge

Despite rising voter fatigue and the growing political risks for ballot initiatives, California voters in November once again will be faced with sifting through more than a dozen measures that would add up to $43 billion in state borrowing and $3 billion in annual tax increases.

Los Angeles voters also could face two extra measures as city officials weigh whether to tack on a $1 billion housing bond and a $1 billion street-paving bond.

And even though the deadline for placing measures on the statewide ballot has passed, some state lawmakers are considering whether to go ahead and add measures aimed at reforming term limits and redistricting.

The sheer dollar value of the 13 measures on the ballot so far and their potential effects on deep-pocketed special interests -- combined with a highly competitive governor's race -- also mean that once again airwaves and mailboxes will be inundated this fall.

‘‘Californians need to reinforce their mailboxes and get ready for the TV blitz,'' said Bob Stern, president of the Los Angeles-based Center for Governmental Studies.

Experts said the campaign efforts could be even more aggressive than in the past because California voters have indicated a weariness with political campaigns and there are so many expensive measures on the ballot they will have to work harder, and produce more advertising, to cut through the clutter.

Several of the statewide ballot measures also take aim at wealthy corporate interests, including taxes on the California oil industry, the tobacco industry and a hike in the overall corporate income-tax rate.

And that means businesses are expected to break out their checkbooks --in some cases on both sides of a measure.

California Chamber of Commerce President Alan Zaremberg said some of the tax measures pit different elements of the business community against each other.

Proposition 86, for example, calls for a $2.60-per-pack tax on cigarettes that would generate about $2.1 billion a year to benefit emergency care and health insurance for children.

That puts two wealthy sectors -- the health industry and Big Tobacco -- on opposite sides of the measure.

Proposition 87, which would tax California oil producers up to $380 million a year, is backed by venture capitalists and alternative-energy companies that would benefit from the alternative-energy research funded by the measure.

But the Chamber opposes those measures, as well as Proposition 89, which would increase the corporate income-tax rate by 0.2 percent to fund public financing of political campaigns.

‘‘I don't think, certainly, it is the appropriate use of the ballot box for one business to tax another,'' Zaremberg said.

While the Chamber supports the four infrastructure bond measures that were part of the agreement between lawmakers and Gov. Arnold Schwarzenegger, it has yet to take a position on a fourth tax measure, Proposition 88, which would place a tax of $50 on every property to generate up to $500 million a year for schools.

But other groups argue the tax measures that big business may not like could be good for average Californians.

Doug Heller, executive director of the Santa Monica-based Foundation for Consumer and Taxpayer Rights, said his group supports the public campaign financing and oil tax measures.

‘‘There are some opportunities for the little guy here that don't show up that often,'' Heller said. ‘‘The big guys, the well-heeled lobbying interests, always have their day in government. This ballot gives the regular citizens the chance to have their day.''

Analysts are reluctant to predict how expensive the campaign could get, but note that during last year's special election, one industry alone --pharmaceuticals -- spent more than $80 million to defeat a measure aimed at lowering the cost of prescription drugs.

At the same time, the education lobby, which has also proved the ability to raise and spend millions of dollars, is expected to get behind several measures that benefit schools, including a $10 billion bond for school facilities and a $500 million parcel tax for educational programs.

Other measures on the ballot include five bonds, totaling $43 billion: $19.9 billion for transportation; $2.85 billion for housing; $10.4 billion for school facilities; $4 billion for flood protection; and $5.4 billion for water quality and supply.

The measures that do not involve new spending include: Proposition 1A, to protect transportation funds from raids for other state budget purposes; Proposition 83, or Jessica's Law, which cracks down on sex offenders; Proposition 85, to require parental notification before a minor's abortion; and Proposition 90, restricting the government's ability to seize private property through eminent domain.

But supporters of the bond and tax measures may have received a bad omen last month when voters rejected Proposition 81, a $600 million library bond, and Proposition 82, a tax on the wealthy to fund universal preschool.

If voters rejected those two measures, they may not be in the mood to approve measures that are far more expensive, analysts said.

‘‘People like Schwarzenegger and supporters of these bonds should be concerned that the amount of spending is going to be problematic for voters,'' said Elizabeth Garrett, a law professor at University of Southern California and board member of USC's Initiative and Referendum Institute.

She noted that earlier in Schwarzenegger's term, voters showed a willingness to support bonds and a tax on millionaires to fund mental health services -- but that feeling may have faded.

Supporters of some of the November measures remain unfazed. Chuck Idelson, spokesman for the California Nurses Association, which authored the campaign finance measure, said his group isn't worried about the crowded ballot.

‘‘I think voters in California are able to pick and choose in an election the issues that are really important to them,'' Idelson said.

‘‘There is a lot of voter frustration with all the money that's spent in campaigns, with how the initiative process has in many cases been abused by some of the wealthiest interests. We're pretty confident that they are desirous of change.''

Jon Coupal, president of the Howard Jarvis Taxpayers Association, said he expects a lot of voter confusion because there are so many measures.

When that happens, frustrated voters are more likely to simply reject all the measures.

Voters also have already proven this year -- in polls and voting trends --that they are frustrated with politicians and not in any mood to authorize more spending.

‘‘I think the voter rejection of props. 81 and 82 probably sent shivers down the spines of all the proponents of the measures appearing on the November ballot,'' Coupal said.

‘‘We are certainly sensing a lot of voter cynicism, frustration and residual anger.''


TOPICS: Business/Economy; Government; Politics/Elections; US: California
KEYWORDS: borrowing; calgov2006; california; calinitiatives; directdemocracy; measures; taxincreases; taxing; voters

1 posted on 07/09/2006 9:05:05 AM PDT by NormsRevenge
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To: NormsRevenge

Get your hands out of my pocketbook ping


2 posted on 07/09/2006 9:13:59 AM PDT by GOP Poet
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Red ink rising: Reform falters as California's new budget slights governor's original agenda
3 posted on 07/09/2006 9:16:05 AM PDT by NormsRevenge (Semper Fi --- Help the "Pendleton 8' and families -- http://www.freerepublic.com/~normsrevenge/)
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To: NormsRevenge

Calif. just isn't spending enough !


4 posted on 07/09/2006 9:17:50 AM PDT by TheOracleAtLilac
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To: NormsRevenge

Arnold and the political class all act like passage of the bonds is a done deal.
Is it? Might California voters actually kill these bonds in November?


5 posted on 07/09/2006 9:18:57 AM PDT by Lancey Howard
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To: NormsRevenge

not according to "Circus Man" Angelides.. in fact he is running on taxing californians even more..


6 posted on 07/09/2006 9:19:41 AM PDT by Cinnamon
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To: NormsRevenge

Government by the ignorant, greedy masses. Guaranteed to screw up a state even better than the politicians can.


7 posted on 07/09/2006 9:20:18 AM PDT by paul51 (11 September 2001 - Never forget)
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To: Lancey Howard

There are enough issues on the ballot and enough numbskulls who vote in this state that something is bound to slip through.


8 posted on 07/09/2006 9:20:40 AM PDT by A message (We who care, Can Not Fail)
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To: Lancey Howard

Good question.

My gut read is a few may but not all.. Folks are already overtaxed, underrepresented, and tired of a runaway gubamint addicted to more more more of your hard earned dollars.

They may hate long commutes and bumpy roads and buses every hour rather than every 15 minutes, they may hate some schools in shambles, crowded classrooms, old teaching materials, they may hate the thought of getting flooded out or having been flooded out, but maybe most is they hate the gambles some folks want to take with the long term future of this state for their children and future generations by taking on even more debt, efectively doubling it in one single election, while doing nothing to restrain spending in the mean time.

If a gubamint can not or will not learn how to spend within its means, then it is time to rein it in or chnage out those lected officials whoi fail to do their duty in a responsible way.

The bond measures are like a relief valve in a sense and also a barometer of public comfort of where they are at or what they are experiencing financially or siocially.

These bond measures may seem to be just what the doctor ordered but what of the debt behind them and already on the books?

To continue to spend as much as is being spent without much forethought of future disasters and their ramifications economically on an already stressed taxbase only invites potential chaos.


9 posted on 07/09/2006 9:31:54 AM PDT by NormsRevenge (Semper Fi --- Help the "Pendleton 8' and families -- http://www.freerepublic.com/~normsrevenge/)
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To: NormsRevenge
Proposition 86, for example, calls for a $2.60-per-pack tax on cigarettes

If this passes, I'm going into business selling black market cigs in California.

10 posted on 07/09/2006 9:35:34 AM PDT by D-Chivas
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To: D-Chivas
If this passes, I'm going into business selling black market cigs in California.

When your business is up and running please add me to your customer list.

11 posted on 07/09/2006 9:43:19 AM PDT by DumpsterDiver
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To: NormsRevenge

---Proposition 86, for example, calls for a $2.60-per-pack tax on cigarettes that would generate about $2.1 billion a year to benefit emergency care and health insurance for children.---

Heh, it's for the children!

What does Arnold say about this? When someone speaks to me of smokers' rights I reach for my Glock?


12 posted on 07/09/2006 10:21:03 AM PDT by claudiustg (¡En español, por favor!)
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To: claudiustg

Although I sit on a committee funded by a tax on cigarettes, I am appalled at the trend for the majority to select some minority to tax to provide an unrealted program that the whole of society should be funding. It is just wrong.


13 posted on 07/09/2006 10:28:25 AM PDT by marsh2
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To: marsh2

What are the chances that this proposition will be defeated? My guess is that the voters don't have any problem with taking money from one group to use for another group.


14 posted on 07/09/2006 10:52:56 AM PDT by claudiustg (¡En español, por favor!)
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To: NormsRevenge
‘‘We are certainly sensing a lot of voter cynicism, frustration and residual anger.''

There's lots more where that came from.

15 posted on 07/09/2006 11:12:02 AM PDT by calcowgirl ("Liberalism is just Communism sold by the drink." P. J. O'Rourke)
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To: calcowgirl

CA: 13 ballot measures could be bad luck - Bond, tax initiatives dicey for candidates

http://www.freerepublic.com/focus/news/1662959/posts


16 posted on 07/09/2006 8:34:13 PM PDT by NormsRevenge (Semper Fi --- Help the "Pendleton 8' and families -- http://www.freerepublic.com/~normsrevenge/)
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