HomeMy WebLinkAboutMINUTES - 08122003 - D.5 F
In the Matter of Endorsing the Resolution No. 2003/463
Budget Accountability Act
WHEREAS the two-(thirds vote requirement to pass a state budget and related
taxes fails to keep spending in check, while at the same time promoting gridlock,
pork barrel legislation, and a lack of accountability that creates persistent late
budgets and large deficits; and,
WHEREAS partisan gridlock leads to huge deficits in weak economic times that
force the Governor and Legislature to make massive cuts in education, health
care, transportation, and other essential,public services and raise billions of
dollars in taxes; and,
WHEREAS the Budget Accountability Act will enact a comprehensive reform of
the State budget process that will hold the Governor and the Legislature more
accountable to the People of California;
NOW, THEREFORE BE IT RESOLVED that the Contra Costa County Board of
Supervisors hereby endorses the Budget Accountability Act.
PASSED by majority vote of the Board Members present on this 121h day of
August, 2003.
M
J�YI•Yt \i! III
MARK DeSAC.ILNIER
Chair
District IV Supervisor
Witness my hand and the Seal of the Board of Supervisors}
affixed on this 12er day ofAugust 2403.
JOHN SWEETEN, Clerk of the Board of Supervisors and
County A in,strator
t
By f Deputy
Introduced by Supervisors John Gioia and Marls DeSaudnier
ADDENDUM TO ITEM D.5
August 12, 2003
Can this day the Board of Supervisors considered endorsing the California Budget
Accountability Act. Supervisors Gioia and DeSaulnier gave an oral presentation in
the Matter of Endorsing the Budget Accountability Act.
The Beard requested comments from the public and the following people spoke:
Rose Lemberg, 831 Balra Drive, El Cerrito, (El Cerrito Democratic Club)
supporting the Budget Accountability Act;
Rollie Katz, (Local P.E.U. 1), P.O. Box 222, Martinez, urging the Board to
endorsing the California Budget Accountability Act,
Ian Arnold, (Local SEW 835), 355 Amesburg Drive, Dixon., in favor of the
Budget Accountability Act;
The Board discussed the matter, and Supervisor Gioia moved a support position for
the Budget Accountability Act for the version, which is both the 55% for the
budget and 55 for the taxes related to the Budget. The vote was as follows:
AYES: Supervisors Gioia, Glover and DeSaulnier
NOES: Supervisors Uilkema and Greenberg
Motion passed.
vQvsi, .
INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure:
STATE BUDGET, RELATED TAXES, AND RESERVE. VOTING REQUIREMENTS. PENALTIES.
INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Permits Legislature to enact budget and
budget-related tax and appropriation bills with 35%t, vote rather than 2/3 vote currently required. Requires that
Legislature,Governor permanently lose salary,expenses for each day budget is late.Requires that Legislature stay
in session until budget is passed. Requires budget summary in state ballot pamphlet and link to Internet website
with legislators' voting records on budget and related taxes. Requires 25% of certain state revenue increases be
deposited in reserve fund,which cannot be used to increase spending.Summary of estimate by Legislative Analyst
of fiscal impact on state and local governments: 'Varying state fiscal impacts from lowering the legislative vote
requirement for spending and tax increases related to the budget — including potentially significant increases in
state tax revenues and spending in some years. Fiscal impacts would depend on the composition and actions of
future Legislatures. NOTICE TO THE PUBLIC:
THIS PETITION MAY BE CIRCULATED BY A PAID}SIGNATURE GATHERER
OR A VOLUNTEER.YOU HAVE THE RIGHT TO ASK.
THE USE OF YOUR SIGNATURE FOR ANY PURPOSE OTHER THAN QUALIFICATION OF THIS
MEASURE FOR THE BALLOT IS A MISDEMEANOR. COMPLAINTS ABOUT THE MISUSE OF
YOUR SIGNATURE MAY BE MADE TO THE SECRETARY OF STATE'S OFFICE.
TN*coumbrill signors of this petition must be registered in County. oftW
U.or+ly.
1.Print Your Residence
Name: Address ONLY:
Sign As
R istered
To Vote: City: Zip:
/ 2.Print Your Residence
lit[ Name: Address ONLY:
Sign As
Re laterad
To vote: City: Zip:
3.Print Your Residence
r� Name. Address ONLY:
Sign An
ilf To Vsterod
ote City: Zip:
4,Print Your Residence
Name: Address ONLY: a
Sign As
Mcrag
e: City: Zip:
5.Print Your Residence
Name: Address ONLY:
Sign As
Aegis#eyed
To.Vote: City: 7j p:
e.Print Your Residence m
Name: Address ONLY:
Sign As
RMatered
To Vote: City: Zip:
7.Print Your Residence
Name: Address ONLY:
Sign As
Mstered
Vote: City: Zip;
t
S.Print Your Residence
Nettle: Address ONLY:
Sign As
R istered
To Vote: City: ZIP'--------
DECLARATION OF CIRCULATOR
completed to circulator's own hand atter above signatures have been obtained)
1, t,•'� - t be am registered to vote in the county(or City and County)of
nt n+tms
or quafifitecct to register to vote in California.My residence address is
I ci ted this Mian of the petition and witnessed each of the appended signatures being written. Each signature of
this.petition is, to the hest of my information and belief, the genuine si nature cif the arson whose name �t fur oris tb be.
All signatures on this document were obtained between the dates Of and
mai i. q
under the laws of State of California that the for i is true and correct.
declare under ens o er ur
the
Executed can ,+ s ,at
Eta MpI
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INITIATIVE MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
The Attorney General of California has prepared the following title and summary of the chief purpose and points of the proposed measure:
STATE BUDGET, RELATED TAXES, AND RESERVE. VOTING REQUIREMENTS. PENALTIES.
INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Permits Legislature to enact budget and
budget-related tax and appropriation bills with 55% vote rather than 2/3 vote currently required. Requires that
Legislature,Governor permanently lose salary,expenses for each day budget is late.Requires that Legislature stay
In session until budget is passed. Requires budget summary in state ballot pamphlet and link to Internet website
with legislators' voting records on budget and related taxes. Requires 25% of certain state revenue increases be
deposited in reserve fund,which cannot be used to increase spending.Summary of estimate by Legislative Analyst
of fiscal impact on state and local governments: Varying state fiscal impacts from lowering the legislative vote
requirement for spending and tax increases related.to the budget— including potentially significant increases in
state tax revenues and spending in some years. Fiscal impacts would depend on the composition and actions of
future Legislatures.
TO THE HONORABLE SECRETARY OF STATE OF CAUFORNiA:
We,the undersigned,registered,qualified voters of California,residents of `' County(or City and County),
hereby propose amendments to the California Constitution,the Elections Code and the Government Code relating to the State budget,
and petition the Secretary of State to submit the same to the voters of California for their adoption or rejection at the next succeeding
primary or general election or at any special statewide election held prior to that primary or general election or otherwise provided by
law.The proposed statutory amendments read as follows:
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Budget Accountability Act
Questions .& Answers
Q. What Is the Budget Accountability Act?
A:The Budget Accountability Act is a comprehensive budget reform initiative that gives
legislators the tools they need to and budget gridlock and allows voters to hold their legislators
accountable.
Q: What will the Budget Accountability Act do?
a Require the legislature to stay In session until the budget Is done. .
a Hold legislators and the Governer accountable by withholding their pay if the fail to meet
the constitutional deadline for passing the budget.
fff o require a 55%vete to adopt the budget and any related tax legislation.
o Create a"rainy day"reserve fund to protect services in bad times,
a Include a summary of budget expenditures in the voter's pamphlet.
Q: How will the Budget Accountability Act get legislators to finish the budget on
time?
A: If the state budget is not passed by the June 15, constitutional deadline, the Governor and
members of the Legislature will permanently forfeit their salary;per them expense allowance and
other payments for each day uno� the budget is adopted and signed into law.
In addition, the Legislature is required to remain In session and is.prohibited from acting on other
legislation until the budget is adopted. An exception is made for legislation in response to an
emergency declared by the Governor.
Q: How will the Budget Accountability Act an courage,fiscal responsibility?
j A: The Budget Accountability Act creates a reserve or"rainy day"fund of up to 5% of the general
fund by setting aside a portion of surplus revenues in good times. The state could only dip into
the fund when there is an economic downturn or for expenses related to a disaster declared by
the Governor.
a
a ; Gi: How will the Budget Accountability Act help voters hold politicians
accountable?
A: The Budget Accountability Act would require the Official Voter Information Guide that its
#; prepared by the Secretary of State and sent to,voters each election to contain a two-page
summary explaining how the state spends the funds It receives.The summary Is required to
1 include a website address where voters can see how their legislators voted on the budget and
related legislation.
Q; How will the Budget Accountability Act reduce partisanship In Sacramento?
A. The act gives the Legislative Ethics Committees of the Assembly.and Senate authority to
censure party leaders, members of party caucuses, or individual legislators who punish or
threaten to punish any legislator for casting a particular legislative vote. Legislators have been
punished for not towing the party fine.This provision will give legislators the freedom to make up
their own minds on the state budget.
I Q: How will the Budget Accountability Act enol California's budget crisis year after
year?
CALIFORNIANSfor
Endorsement List
American Federation of State, County & Municipal Employees, AFL-CIC?
Asian American Voter Education Fund
Asian and Pacific Islander American Health Forum
California ACORN
California Black Chamber of Commerce
California Budget Project
California Church Impact
California Citizens for Health Freedom
California Council of Community Mental Health Agencies
California Faculty Association
California Federation of Teachers
California Foundation for Independent Living Centers, Inc.
California Independent Public Employees Legislative Council (CIPELC)
California Labor Federation
Califorriia National Organization for Women
California Physicians Alliance
` California Professional Firefighters
California School Employees Association +
California.Speech-�Language-Hearing Association
California State Employees Association
California State Firefighters' Association, Inc.
California State PTA
California Tax Reform Association
California Teachers Association
Campaign for Long Term Care
Child Care Law Center
A L " C S for
IN SPIRIT
JERICHO
Justice Matters Institute
Kern Regional Center
Kids in Common
Korean Resource Center
Latina Issues Forum
La Maestra Family Clinic, Inc.
League of Women Voters of California
Las Angeles Alliance for a New Economy
Los Angeles Community College District
Los Angeles Family Housing
Mental Health Association in California
Mental Health Association in L.A. County
Mental Health Association of Orange County
Merced Mariposa Central Labor Council
Movement Strategy Center
Older Women's League of California
i Peace ,and Freedom Party of California
r
y Planned Parenthood Affiliates of-California.
Resources for Independent Living
San Diego-Imperiai Counties Labor Council
San Francisco Community College District Federation of Teachers, AFT 2121
San Mateo County Central Labor Council
SEIU California State Council
Small School Districts' Association
Social Justice Center of Marin
Solano Children's Alliance/Children's Network Council
State Building & Construction Trades Council
i ` t
A&LIFORNIANSfor
.A Permanent Solution for Ca4 fornia's Budget Crisis
The Budget Accountability Act will hold the Governor and Legislature
more accountable to taxpayers in order to produce more responsible and
timely Mate budgets. Here's how:
Hold Legislators accountable to pass a budget on time.
If the Mate Budget is not passed by the Constitutional deadline, the Governor and members of
the Legislature will permanently forfeit their salary,per diem:expense allowance, and car
allowance for each day until the budget is adopted and signed into law.
Currently the Governor and the Legislature have almost six months to adopt a budget. The
Legislature has not met the June 15 constitutional deadline since 1986. The Budget
Accountability Act will hold our elected representatives accountable. If they are not doing their
job then they shouldn't get paid.
Reform the budget process.
Tie vote required r"or the State Senate and Assembly to adopt the Mate budget and related tax
1 gislation is reduced from 2J3rds to 55%. Currently, Rhode Island and Arkansas are the only
other states to require a vote of two-thirds or more to pass a budget. The 55%vote required by
the Budget Accountability Act still requires broad consensus to pass the budget, but it will end
toe gridlock caused by our current system.
�,nd political gridlock.
e Budget Accountability Act also provides the Legislative Ethics Committees of the Assembly
d State Senate authority to censure party leaders, members of party caucuses, or individual
1 gislators who punish or threaten to punish any legislator for casting a particular legislative
viae,
In the current political atmosphere, legislators are threatened and punished if they do not follow
the party line. The Budget Accountability.Act allows legislators to vote their conscience. They
should�be accountable to their constituents for their votes on the budget,not their party
leadership.
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CALIFO NIANS, off'
Language of the Initiative
Ballet Title and Summary
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Date: June 20,2003
File: SA2003RF0018
The Attorney.General of California has prepared the following title and summary of the chief
purpose and points of the proposed measure:
STATE BUDGET,RELATED TA)ES,AND RESERVE. VOTING REQUIREMENTS,
PENALITTES. TNITI TIVE CONSTITUTIONAL AMEN NIENT ANIS STATUTE. Permits
Legislature to enact budget and budget-related tax and appropriation bills with 55°lo vote rather
41 213 vote currently required. Requires that Legislature, Governor perumently lose salary,
expenses for each day budget is late. Requires that Legislature stay in session until budget is
passed. Requires budget summary in state ballot pamphlet and link to Internet website with
legislators'voting records on budget and related taxes. Requires 25%of certain state revenue
increases be deposited in reserve fund,which cannot be used to increase spending. Summary of
estimate.by Legislative Analyst of fiscal impact on state and localgovernments: Varying state
fiscal impacts from lowering the legislative vote requirement for spending and tax increases
related to the budget—including potentially significant increases in state tax revenues and
spending in some years. Fiscal impacts would depend on the composition and actions of future
Legislatures.
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h) Warty leaders threaten to punish state legislators if they refile to vote the party line on the
budget. Members of the Legislature should be accountable to their constituents,not to party leaders.
Our elected representatives must be free to vote their consciences.
i) California has faced large budget deficits and surpluses over the past ten years. Elected
officials from bath major parties have increased spending and cut taxes in good economic times,
leaving the State with inadequate reserves when the economy turns bad. Saving money in a rainy day
fund in good times provides a prudent reserve during economic downtums and states of emergency,
which is essential for responsible budget management. r
Section 3. Purpose and Intent
I. In order to.make elected officials more responsible for the consequences of their actions,to
keep voters more informed of the budget decisions being made by their legislators,to limit partisan
extremism and end gridlock in the budget process, and to.require a rainy day reserve fiend to balance
the budget in hard times and protect California taxpayers,the People of the State of California do
hereby enact the Budget Accountability Act. This measure is intended to accomplish its purpose by
amending the California Constitution and the statutes of California to:
a) Prohibit the Legislature and Governor f ra collecting their salary and expenses for every
day they miss the budget deadline setJby the Constitution and to force the Legislature to stay in session
and consider the budget until it is passed.
b) Plena voters hold their state representatives more accountable by providing voters with a
two-page summary of how the State is spending the funds it receives. The summary will be published
in the state ballot pamphlet mailed to voters before every statewide election,. The summary will
include a website address where voters can find the voting record of their representatives on all budget
and related legislation,including tax bills,that are subject to the 55 percent vote requirement.
c) Change the votes necessary to pass the budget and related tax and other legislation from'
t}vo-thirds{to 55 percent to improve accountability to voters,reduce budget gridlock, and encourage
legislators to work together to solve California's budget problems regardless of their party affiliation.
d) Allow legislators to vote their consciences on the budget instead ofbeing pressured into
opting the party line. A legislator who is threatened by another legislator because of a vote on the
budget will be able to Me a complaint with the Ethics Committees of the Senate or Assembly,which
will investigate the complaint and make public its report and recommendation for appropriate action to
e full Smote or the Assembly.
e) Ensure funds are set aside in a rainy day reserve fund in good economic times when
r enues exceed what is needed for eXist ng programs so that when,revenues fall short in times of
economic downturn the reserve fund can be used to reduce the need for drastic cuts in programs and ;
increasesin taxes. The reserve fund could also be used for a state of emergency declared by the
Governor. The reserve fund may only be used for these purposes and may not be used to increase . .
qxmding.
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(2' Tax and ether bills related to the budget bill shall consist only of bills identified as related
to the buget in the budget bill passed by the Legislature.
(3) Tax bills related to the budget bill shall include bills increasing taxes, whether by
increased rates or changes in methods of computation, identified in the budget bill as related to the,
budget, except that no new ad valorem taxes on real property, or sales or transaction taxes on the
sales of real property may be imposed
(g) No officer, committee, or member of either house o,f'the Legislature shall punish or
threaten to punish any ether member,for his or her vote ren the budget bill or tai and other bills related
to the budget. Any member may f
I
• Peter Bchrg. Budge reform
Harnessing the power of disgust
By Peter Schrag -- Sacramento Bee Columnist - (Published
March 39, 2003)
There are at least two theories of political reform: The first is that little of
significance can happen if there isn't plenty of money to grease the wheels
and make sure there are no losers, The other is that only when things get
desperate will the system be shaken enough, or voters frustrated enough, to
spur action.
The proposed Budget Accountability Act obviously belongs to the second
category. Its initial sponsors, including the Service Employees International
Union (SEIU), Health Access and the League of Women Voters, are betting
that voters are so fed up with the obfuscation and delay under the dome that
they'll approve radical reform of the state's.budget process.
At the end of this ugly budget cycle, whenever it comes, chances are good
that the voters will be even more disgusted.
The proposed initiative, which would ego on the primary ballot next March,
was submitted to the attorney general's office the other day for the
constitutionally required title and summary. It includes five major provisions:
* Reduce the legislative vote margin required to pass a state budget, and
raise taxes in connection with the budget, from the present two-thirds to 55
percent -- still a supermajority, but one more easily attainable than the
number that's helped block and.delay California budgets year alter year. It
i would set the same 55 percent margin for lowering taxes. Because that now
r takes only a simple majority, the resulting ratchet'effect has left the state
with ever more tax loopholes.
t * If a budget were not passed by the .dune 15 constitutional budget deadline,
prohibit the governor and members of the Legislature from being paid or Y
receiving any per them expenses until a budget is passed. No retroactive
payments would be allowed for that time.
* Create a mandatory rainy day budgetary reserve of 5 percent In good times
to be spent when revenues fall below the previous year's expenditures.
* Require the state to publish In every ballot pamphlet a summary of how the
state Is spending Its money and the voting records of all legislators on the
budget and tax bills related to the budget.
government groups and other organizations that they hope will drive this
campaign.'7he war could kill It, voter disgust could make it.
About the:Writer
---------------------------
Peter Sehrag can be reached at Box 1.5779, Sacramento, CA 9$852-0779 or at
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California State Association of Counties
July 31, 2003
.. 1100 K SkW To: Members, CSAC Executive Committee
5ulte 101
Wh* From: Steve Szalay
95814
how Re: Draft Initiative: "Budget Accountablilty Act"
916.321.1500 Staff Rocommendatione Non*
W
916.441.5501
The Service Employees International Union (SEIU) Is the sponsor of the "Budget
Accountability Act," a measure that seeks to change the vote requirement for
passage of a budget and all budget-related legislation, including taxes, from 213
to 55 percent approval. This would change the vote requirement In the Assembly
from 54 to 44 and from 27 to 22 in the Senate. Only three states have such a
requirement: Gellfornia, Rhode Island, and Arkansas.
In addition to the vote requirements, the measure also makes the following
changes:
• Prohibits the Governor and Legislature from collecting their salary and
expenses for every day they miss the budget deadline set by the Constitution
and force the Legislature to stay In session and consider the budget until it Is
passed.
s Provides voters with a two-page summary of how the state is spending the
funds it receives, published in the state ballot pamphlet mailed to voters prior
to each statewide election. A website will be available to fist the voting record
of legislators on all budget and related legislation, including tax measures,
that are subject to the 55 percent vote requirement.
d a Outlines a complaint procedure for legislators who are threatened by other
r legislators because of a vote on the budget.
f Provides that, for any fiscal year In which there Is a General Fund surplus, the
Legislature must set aside at least 25 percent of the surplus revenues into a
Prudent State Reserve Fund. Appropriations from this fund can only be made
In deficit years.
There are two versions of this draft. The second version authorizes a 55 percent
vote to adopt temporary taxes and proposals to place taxes before the voters that
are related to the budget. These temporary taxes are restricted to three years.
CSAC's policies do not speak to the Issues contained In this measure; thus, staff
has not provided a recommended position on this measure.
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Section l: Title
This measure shall be known and may be cited as the"Budget Accountability Act."
Section 2: Findings and Declaration of Purpose
The People of the State of California find and declare that:
The Budget Accountability Act is designed to and the budget delays that have created a fiscal
crisis in our state. The purpose of this measure is to enact a comprehensive reform of the State budget
process designed to hold the Governor and Legislature more accountable to the People of California by
producing more responsible and timely state budgets.
a) After the Governor introduces the budget,the State Legislature and Governor have almost
six months to complete the budget on time, however,the State Legislature has not passed a budget on
time since 1986.
b) The State Legislature and the Governor face no consequences when they fail to Moet the
budget deadline imposed by the State Constitution. They can continue to collect their salary and
expense allowances. They are not required to continue to work on the budget. In fact,they can even
goo on vacation.
c) In order to hold elected officials accountable,voters are entitled to knew how their tax
dollars are spent each year and how their state representatives vete on the budget and taxes. Currently
voters do not have easy access to this information.
d) The two-thirds vote requirement to pass a state budget and related taxes has contributed to
persistent late budgets and large deficits. Political party leaders ruse to compromiae to solve the
state's budget problem and have used the two-thirds vote requirement to hold up the budget.
e) California,Rhode Island,and Arkansas aro the only states in the country t, at require a vote
of two-d*ds or more of the legislature to pass a budget.
d f) After researching California's two-thirds vote requirement,the non-partisan California
Citizens Budget Commission concluded that`#lie current supermajority requirement fails to achieve its
aft stated goal of keeping budgetary spending in chock,while at the same time it promotes gridlock„
pork barrel legislation and lack of accountability."
•
' g}When the economy weakens,the State budget goes into deficit, These deficits arc increased
by the gridlock caused by the two-thirds vote requirement. Thoe deficits increase year after year until
'they equal may billions ofdollam Paced with these huge deficits,the Governor and Legislature
:maWve outs to education,health care,and transportation ad raise billions of dollars in taxes.
deep cuts and larges tax increases would not have been necessary if responsible budget solutions
been possible instead of year after year of gridlock.
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h) party leaders threaten to punish state legislators if they refuse to vote the party lin on the
budget. Mairibers of the Legislature should be accountable to their constitueents,not to party leaders.
Our elected representatives must be free to vote their consciences.
i) California has faced large budget deficits and surpluses over the past ten years. Elected
officials ffrom bothrn�y'or parties have increased spending and out taxes in good economic times,
j leaving the State with inadequato reserves when the economy turns bad. Saving money in a rainy day
' hind in good time provides a prudent reserve during economic downturns and states of emergency,
which is essential for responsible budget management.
,
Section 3. Purpose and Intent
I.In order to make elected officials more rekponsible for the consequences of their.,actions,to
artisan
� keep voters more informed of the budget decisions being.made=by them legislators,to limit p
f w emism and and gridlock in the budget process, and to require a rainy day reserve fund to balance
the budget mi hard tunes and protect California taxpayers,the People of the State of California do
hereby enact the Budget Accountability Act. This measure is intended to accomplish its purpose by
amending the California Constitution and the statutes of California to:
+� I a) Prohibit the Legislature and Governor from collecting their salary and expenses for every
i day they miss the budget deadline set by the Constitution and to force:the Legislature to stay in session
( and consider the budget until it is passed.
'! b) Help voters hold their state representatives more accountable by providing voters with a
I; two-page summary of how the State is spending the funds it receives. The summary will be published
!' in'the state ballot pamphlet mailed to voters before every statewide election. The summary will
i
include a website address where-voters can find the voting mord of their representatives on all budget
�! and related legislation,including tax bills,that are subject to the 55 percent vote requirement.
E
f
c) Change the votes necessary to pass the budget and related Laic and other legislation from
+�y two-thirds to 55 percent to improve accountability to voters,reduce budget gridlock., and oncouragee
'logislators to work together to solve California's budget problens regardless of their party affiliation.
d) Allow legislators to vote their consciences on the budget instead of being pressured into
t voting the party line. A legislator who is threatened by another legislator because of a vote on the
budget will be able to file a complaint with the Ethics Committees of the Senate or Assembly,which
will investigate the complaint and make public its report and recommendation for appropriate action to
the full Senate or the Assembly.
a) Ensure funds are seat aside in a rainy day reserve fund ingood economic times when
t revenues exceed .what is needed for existing programs so that when revenues fall short in times of
! economic downturn the reserve fund can be used to reduc=e the need for drastic cuts in programs and
increases is taxes. The reserve fund could also be used for a state of emergency declared by the
Governor. The reserve fund may only be used for these purposes and may not be used to increase
spending.,
2. The Budget Accountability Act wilt not change proposition 13's property tax limitations in
any way. 7be Budget Accountability Act ebanges the legislative vete requirement for takes to
55 percent only for the purpose of increasing takes as part of the proem of adopting-the budget.
Section 4: Article TV,section 12 of the California Constitution is hereby amended to read as follows:
Sec. 12. (a) Within the first 10 days of each calendar year,the Governor shall submit to the
Legislature,with an explanatory message,a budget for the ensuing fiscal year containing itemized
statements for recommended state expenditures and estimated state revenues. If recommended
wgxudituress exceed estimated revenues,the Governor shall recommend the sources from which the
additional revenues should be provided.
(b) The Governor and the Governor-elect may r6quire a state agency,officer or employee to
fiunish whatever information is deemed necessary to prepares the budget.
(c) The budget shall be accompanied by a budget bill itemizing recommended expenditures.
The bill shall be introduced immediately in each house by the persons chairing the committees that
consider appropriations. The Legislature shall pass the budget bill by midnight on June 15 of each
year. Until the budget bill has been enacted,the Legislature shall not send to the Governor for
consideration any bill appropriating funds for expeandituro during the fiscal year for which the budget
bill is to be enacted,except emergency bills reeominanded by the Governor. or appreptiafiew far tbe
ewmiof ad W06068 of in
(d) If the budget bill has not been passed and sent to the Governor by June 15, the Legislature
shall remain in session and may not bonsider orpass any other bills until the budget and bills related
to the budget are adopted, except for emergency bills recommended by the Governor. Nelther the .
Governor nor any member of the Legislature shall be entitled to any salary,per diem, or other expense
allowance for any day after the June 15 deadline until a budget bill has been passed and sent to the
Governor. No,forfeited salary,per diem, or mpense allowance shall be paid retroactively. 1n the
event the Governor vetoes the budget bill, the prohibitions of this subdivision shall remain in effect
until a budget is passed and signed by the Governor.
(d) (o) No bill except the budget bill may remain more than out iteszn of appropriation,and that
for one certain,c quessod purpose. Appropriations from the General Fund of the Mate,except
appropriations in the budget bill and in other bills related to the budget bill and appropriations for the
public schools,are void unless passed in each house by rollcall vote entered in the journal,two thirds
of the membership concurring.
0)(1) MoMthstanding Section 3 of Article XM or any other provision of law.or of this
Constitution, the budget bill and tax and other bills related to the budget bill may be passed in each
n house by rollcall vote entered in the,fournal,fif fly-,five percent cifthe membership concurring, to take
effect immediutabi upon being signed by the governor or upon a date sped,fled in the legislation.
Nothing in this subdivision shall affect the vote requirement for appropriations for the public schools
contained insubdivision(e)of this Section and in subdivision(b)of Section 8 of this Article,
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() Tax and other bills related to the budget bill shall consist only of bills identified as rotated
to the budget in the budget bill passed by the Legislature.
(3) Tax bills related to the budget bill shall include bills increasing taxes, whether by
increased rates or changes in methods of computation,ideated in the budget bill as related to the
budget,except that no new ad valorem taxes on real property, or sales or transaction taxes on the
sales of realproperty may be imposed.
(g) No oft er, committee, or member of either house of the Legislature shall punish or
threaten to punish any other member for his or her vote on the budget bill or tax and other Bills related
to the budget. Any member may file a complaint regarding violations of this section with the
appropriate ethics committee of the house in which the alleged violation occurred. The ethics
committee shall investigate the complaint and make recbmmendations to the full house regarding
appropriate action, including censure, to be taken on the complaint. The ethics committee'sfindings
shall be made public.
(h)For any fiscal year for which General Fund revenues exceed the amount needed to fund
current General Fund service levels, the Legislature shall deposit at least ZS percent of the excess
revem w into the Prudent State Reserve Fund established pursuant to Section 5.5 ofArticle AM,
unless'the Reserve Fund equals S percent or more of general,Fund expenditures for the f fiscal year
immediately preceding that fiscal year.Appropriations from the fund may be made only in years in
which revenues are not sufficient to fund current General Fund service levels or in response to a state
of emergency declared by the Governor. Appropriations from the fund may only be used for these
purposes and may not be used to increase expenditures. Notwithstanding Section S ofArticleXM,
contributions to the fund shall not cdAstitute appropriations subject ect to limitation until they are
appropriated for expenditure from the fund.
(0 The Legislature may control the submission,approval,and enforcement of budgets and the
filing of claims for all state agencies.
Section 5: Section 9082.8 is hereby added to the Elections Code to read as follows:
.9082.8 no State Controller, in consultation with the Department of.F'inance and the Legislative
Analyst's Office, shall prepare a budget summary explaining how state funds are spent, not to
exceed two printed pages, which shall be published in the state ballot pamphlet sent to voters in
every statewide election. The budget summary shall include directions to a state website,
prepared and maintained by the Joint)Wes Committee of the Legislature, that includes voting
records of legislators on the budget and tax and other bills related to the budget.
Section 6: Suction 9518 is hereby added to the Government Cade to read as follows:
9SI8. For the purposes of Article Il, section 12, subdivision (h) of the CaWornia Constitution,
"current General Fund service levels"shall mean levels ofservice as of June 30 of the prior
,fiscal year necessary to meet the constitutional,statutory, and contractual obligations of the
state adfusted for population and cost of living as provided in Article X71IB, Section 8 of the
Constitution as of the e„ffective data of this measure,
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{ Section 7: Severobilfty
f •
If any of the provisions of this measure or the applicability of any provision of this measure to
any person or circumstances shall be found to be unconstitutional or otherwise invalid,such finding
shall not affect the remaining provision or applications of this measure to other persons or
circumstances,and to that extent the provisions of this measure are deemed to be severable.
I
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Section 8: Amendment
By rolicall vote entered in the journal of each house,fifty-five percent of the membership
concurring the Legislature may amend Section 9082.8 of the Elections Code and Section.9518 of the
1
Governnient Code to fbrthezr the purposes of this Act.
Section 9: Con lkdng InWzdM
In the event that this measure and another measure or measures relating to the legislative votes
required to pass the state budget,increase taxes,or est or increase fees shall appear on the same
statewide election ballot,the provisions of the other measure or mouures shall be deaned to be in
conflict with this measure. In the event that this measure receives a greater number of aifirmativc
votes,the provisions of this measure shall prevail in their entirety,and the other measure shall be null
and void.
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Section 1; Title
This measure shall be known and may be cited as the"Budget Accountability Act."
Section 2: Findings and Declaration of Purpose
no People of the State of California find and declare that:
The Budget Accountability Act is designed to and the budget delays that have created a fiscal
crisis in our state. The purpose of this measure is to enact a comprehensive reform of the Stato budget
process'de pad to hold the governor and Legislature more accountable to the People of California by
producing more responsible and timely state budgets.
a) After the Governor introduces the budget,the State Legislature and Governor have almost
six months to complete the budget on time. However,the State Legislature has not passed a budget on
time since 1986.
b) The State Legislature and the Governor face no consequences when they,fail to meet the
budget deadline imposed by the State Constitution. They can continue to collect their salary and
expenso allowances.'They are not required to continue to work on the budget. In fact,they can eve
go on vacation.
c) In order to hold elected officials accountable,voters are entitled to know how their tax
dollars are spent each your and how their state representatives vote on the budget and taxes. Currently
voters do not have easy access to this information.
d) The two-thirds vote requirement to pass a state budget and related taxes has contributed to
porsistmt Tate budgets and large deficits. Political party leaders refuse to compromise to solve the
state's budget problem and have used the two-thirds vote requirement to hold up the budget.
e) California,Rhode Island,and Arkansas are the only states in the country that require a vote
of two-thirds or more of the legislature to pass a budget.
f) After researching California's two-thirds vote requirement,the non-partisan California
Oitizens Budget Commission concluded that"the current suparmajority requirement fails to achieve its
bft-staled goal of keeping budgetary spending in check,while at the same time it promotes gridlock,
Oork barrel legislation and lack of accountability."
g)When the economy weakens„the State budget goes into deficit. These deficits are increased
by the gridlock caused by the two-thirds vote requirement, These deficits increase,year after year until
they eq many billions of dollars. Faced with these huge deficits,the Governor and Legislature
e massive cots to education,health care,and transportation ind raise billions of dollars in taxes.
o de op cuts and large tax increases would not have been necessary if responsible budget solutions
been possible instead of year after year of gridlock.
-14-
h) Party leaden threaten to punish state legislators.if they refuse to vote the party lino on the
buds. Members of the Legislature should be accountable to their constituents,not to party leaders.
Our elected representatives must be free to vote their oonscimoea.
i) California has faced large budget deficits and surpluses over they past ten years. Elected
officials from.both major parties have increased spending and cut taxes in good economic tirnes,
leaving the State with inadequate reserves when the economy tins bad. Saving money in a rainy day
fund',in good times provides a prudent reserve during economic downturns and states of emergency,
which is essential for responsible budget management.
Section 3. Puurpose and Intent
1.In order to make elected officials more responsible for the consequences of their action,to
keep vote=more informed of the budget decisions being'made by thesis legislators,m limit partisan
enc and and gridlock in the budget process,and to require a rainy day reserve find to balance
the budget in hard times and protect California taxpayers,the People of the State of California do
hereby enact the Budget Accountability Act. This measure is intended to accomplish its purpose by
amending the California Constitution and the statutes of California to:
a) Prohibit the Legislature and Governor from collecting their salary and expenses for every
day they missy the budget deadline se#by the Constitution and to force the Legislature to stay in session
and consider the budget until it is passed.
b) Help voters hold their state representatives more accountable by providing voters with,a
two-pages summary ofhow the State is spending the hands it receives. 7U summary will be Published
d
in the state ballot pamphlet mailed to voters before every statewide election. The summary will
include a website address where voters can find the voting record of their representatives on all budget
and relaters legislation,including tax bills,that ares sul j act to the 55 percent vote requirement.
c) Change the votes necessary to pass the budget and related legislation from two-thirds to
55 percent, and authorize a 55 percent vote to adopt temporary taxes and proposals to place taxes
-before the voters that arc related to the budget,to improve accountability to voters,reduce budget
gridlook,and encourage legislators to workk together to solve California's budget problems regardless
of their party affiliation.
r d) Allow legislators to vote thesis consciences on the budget instead of being pressured into
voting the party line. A legislator who is threatened by another legislator because of a vote on the
budget will be ablei to file a complaint with the Ethics Committees of the Senate or Assembly,which
will investigate the c6niplaint and make public its report and recommendation for appropriate action to'
the fall Senate or the Assembly.
a) Ensure funds are set aside in a rainy day reserve fund in good economic times when
revenues exceed what is needed for wdstiang programs so that when revenues fall short in times of
economic downturn the reserve fund can be used to reduce the need for drastic cats in programs and
inch In taxes. The reserve fund could also be used for a state of emergency declared by the
+15p
Governor. The reserve fund may only be used for these purposes and may not be used to increase
spending.
2. The Budget Accountability Act.will not change Proposition 13's properly tear limitations in
any way. The Budget Accountability Act changes the legislative vote requirement for taxes to
55 percent only for the purpose of permitting temporary tax increases that remain in effect no longer
than three years or placing a measure proposing to increase taxes on the ballot for voter approval as
part of the budget process.
Section 4: Article IV,section 12 of the California Constitution is hereby amended to read as follows:
Sec. 12. (a) Within the first 10 days of each calendar year,the Governor shall submit to the
Legislature,with an explanatory message, a budget for the ensuing fiscAl year containing itemized
statements for recommended state expenditures and estimated state revenues. If recommended
expenditures exceed estimated revenues,the Governor shall recommend the sources from which the
additional revenues should be provided.
(b) The Governor and the Governor-elect may require a state agency,officer or employee to
finish whatever information is deemed necessary to prepare the budget.
(c) The budget shall be accompanied by a budget bill itemizing recommended expenditures.
The bill shall be introduced immediately in each house by the persons chairing the committees that
consider appropriations. The Legislature shall pass the budget bill by midnight on June 15 of each
year. 'Until the budget bill has been enacted„the Legislature shalt not send to the Governor for
cousidendon any bill appropriating funds for expenditure during the fiscal year for which the budget
bill is to be enacted,except emergency bills recommended by the Governor.or appmpriefiefte f0f the
(d) If the budget bill has not been passed and sent to the Governor by June 15, the Legislature
shall remain in session and may not consider or pass any other bills until the budget and bills related
to the budget are adopted, eccept for emergency bills recommended by the Governor. Neither the
Governor nor any member of the Legislature shall be entitled to any salary,per diem, or other expense
allowancefor any day after the June 1.5 deadline until a budget bill has been passed and sent to the
Governor. No forfeited salary,per diem,or expense allowance shall be paid retroactively. In the
r event the Governor vetoes the budget bill, th#prohibitions a,f this subdivision shall remain in effect
until a budget is passed and signed by the Governor.
(d)(e) No bill except the budget bill may contain more than one item of appropriation,and that
for one certain,expressed purpose. Appropriations from the General Fund of the State,except `
appropriations in the budget bill and in other bills related to the budget bill and appropriations for the
public schools,are void unless passed in each house by mlicalll vote entered in they journal,two thirds
of the m+embersb p concurring.
(f)(1) Notwithstandi
by the Governor or upon a date spee fZ'ed in the legisWon,Nothing in this subdivision shall affectthe
vote requtrament for appropriattotrs fore the public schools contained in subdivision ("e)of this Section
and in subdtv#sion(b)ofSection Section 8 of this Articla
(2) Notwithstanding Section 3 of Article AM or any other provision of law or of this
Constitution, the Legislature may pass temporary taxes related to the budget bill by rollcall vote
entered in the journal,f)b;-ftve percent of the membership concurring, to take eect immediately upon
being signed by the Governor or upon a date spec#,f led in the legislation. Any increase in taxes
pursuant to this paragraph shall remain in e,f�ect for°no more than thrse,iscal years, unless it has
been approved by a mg1ority of the voters voting at a statewide election, and no new ad valorem taxes
on real property, or sales or transaction taxes on the sales of real property may be imposed
(3) The Legislature by concurrent resolution, fifty-,five percent of the membership concurring,
may propose at any statewide election that one or more taxes related to the budget bill be enacted,
amender or continued for a specifiedperiod,provided,however, that no new ad valorem tees on real
property, or sales or transaction taxes on the sales of real property maybe proposed.
(4) Tax and other bills related to the budget bill passed pursuant to this Section shall consist
only of bills identffled as related to the budget in the budget bill passed by the Legislature.
(g) No oficer, committee, or member of either house of the Legislature shall punish or
threaten to punish any other member for his or her vote on the budget bill or tax and other Trills related
to the budget. Any member mayfile ile a complaint regarding violations of this section with the
appropriate ethics committee of the house in which the alleged violation occurred The ethics
committee shall investigate the complaint and make recommendations to the full house regarding
appropriate action, including censure, to be taken on the complaint. the ethics committee's,findings
shall be made public
(h) For any,f fiscal year for which General Fund revenues exceed the amount needed to fund
currentGeneral Fund service levels, the legislature shall appropriate at least 2S percent of the excess
revenumfor deposit into the.Prudent,Mate.deserve Fund established pursuant to Section 5.5 of
ArticleMB, unless the Reserve Fund equals S percent or more of General Fund expenditures for the
fiscal year immediately preying thatfiscal year.Appropriationsfrom the fund may be made only in
years in which revenues are not sufficient to fund current General Fund service levels or in response
to a state of emergency declared by the Governor. Appropriations from the fund may 'only be used for
r these purposes and may not be used to increase expenditures. Notwithstanding Section 3 of
Article XM, contributions to the funic shall not constitute appropriations subject to limitation until
they are appropriated for expenditure from the f and
(i) fine Legislatures may control the submission,approval,and enforcemen�of budgets and the
fifing of olaims for an state agawie s.
Section 5: Section 9082.8 is hmby added to the Llerctions Code to read as follows:
9082.8 The State Controller, in consultation with the Department of Finance and the Legislative
Analyst's Office,shall prepare a budget summary explaining how state funds are spent, not to ;
bF
17-
ccceed two printed pages, which shalt be published in the state ballot pamphlet seat to voters in
every statetivide election.' 774 budget summary shall include directions to a state website,
prepared and maintained by the Joint Mules Committee of the legislature, that includes voting
records of legislatom on the budget,and tax and ether bills related to the budget.
Section 6: Section 9518 is hereby added to the government Code to read as fellows.
9313. For the purposes ofArticle l'Y,section X 2,subdivision(0,paragraph (2)and subdivision(h)of
the California Constitution, "current General Fund service levels"shall mean levels of service
ars of June 30 of the prior,f kcal year necessary to meet the constitutional, statutory,and
contractual obligations of the state adjustedfor population and cost of living as provided to
Article XW, Section 8 of the Constitution ars of the effective date of this measure.
Section 7: Serverabitfty
If any of the provisions of this measure or the applicability of any provision of this measure to
any person or circumstances shall be.found to be unconstitutional or otha rwise invalid,such funding
strait not'affect the remaining provision or applications of this measure to other persons or
circumstances,and to that extent the provisions of this measure are deemed to be severable.
Section 8': Amendment
By rolleali vote entered in the journal of each house,fifty--five percent of the membership
concurring, the Lagislatue may mond Section 9082.8 of the Elections Code.and Section 9518 of the
Government Code to huther the purposes of this Act.
Section 9: Conflicting Initiatives
In the event that this measure and another measure or measures relating to the legislative votes
required to pass the state budget,increase taxes,or enact or increase fees shall appear on the same
statewide election ballot,the provisions of the other measure or measures shall be deemed to be in
conflict with this measure. In the event that this measure receives a greater number of affirmative
votes,the provisions of this measure shall prevail in their entirety,and the other measure shall be mull
f
and vain in its entirety.
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Caiitornia State Association of tounties
July 31, 2003
11�l street To: Members, CSAC Executive Committee
sulfa 101
�eato
ullw� From: Steve Szalay
45814
kkow Re: Draft initlativet "Budget Accountabllity Act"
916.327.7500 Staff Recom mondationz Nona
?16.441.5501
The Service Employees international Union (SEIU) is the sponsor of the "Budget
Accountability Act,,' a measure that seeks to change the vote requirement for
passage of a budget and all budget-related legislation, including taxes, from 2/3
to 55 percent approval. This would change the vote requirement in the Assembly
from 54 to 44 and from 27 to 22 In the Serrate. Only three states have such a
requirement: California, Rhode Island, and Arkansas.
In addition to the vote requirements, the measure also makes the following
changes:
■ Prohibits the Governor and Legislature from collecting their salary and
expenses for every day they miss the budget deadline set by the Constitution
and force the Legislature to stay in session and consider the budget until it is
passed.
• Provides voters with a two-page summary of how the state Is spending the
funds it receives, published in the state ballot pamphlet mailed to voters prior
to each statewide election. A website will be available to list the voting record
of legislators on all budget and related legislation, including tax measures,
that are subject to the 55 percent vote requirement.
■ Outlines a complaint procedure for legislators who are threatened by other
legislators because of a vote on the budget.
• Provides that, for any fiscal year in which there is a General Fund surplus, the
Legislature must set aside at least 25 percent of the surplus revenues into a
Prudent State Reserve Fund. Appropriations from this fund can only be made
In deficit years.
There are two versions of this draft. The second version authorizes a 55 percent
vote to adopt temporary taxes and proposals to place taxes before the voters that
are related to the budget. These temporary taxes are restricted to three years.
CSAC's policies do not speak to the issues contained in this measure; thus, staff
has not provided a recommended position on this measure.
-6-
Yersion 1
-7-
Section l: Title
This measure be known and may be cited as the"Budget Accountability Act."
Section 2: F ndingi and Declaration of Purpose
The People of the State of California find and declare that:
The Budget Accountability,Act is designed to and the budget delays that have created a fiscal
crisis in our state. The purpose of this measure is to enact a comprehensive reform of the State budget
process designed to hold the Govemor and Legislature more accountable to the People of CaUfornia by
producing more responsible and timely state budgets.
a) After the Governor introduces the budget,the State Legislature and governor have almost
six months to complete the budget on time, however,the State Legislature hes not passed a budget on
time since 1986.
b) The State Legislature and the Governor face no consequences when they fail to meet the
budget deadline imposed by the State Constitution. They can continue to collect their salary and
expense allowances. They are not required to continue to work on the budget. In fact,they can even
go on vacation.
c) In order to.bold elected officials accountable,voters are entitled to know how their tax
dollars are spent each year and how their state representatives vote on the budget and taxes. Currently
voters do not have easy access to this information.
d) The two-thirds vote requirement to pass a state budget and related taxes has contributed to
persistent late budgets and large deficits. Political party leaders refuse to compromise to solve the
state's budget problem and have used the two-thirds vote requirement to hold up the budget.
e} California,Rhode Island,and.Arkansas are the only states in the country that require a vote
of two-thirds or more of the legislature to pass a budget.
f) After researching California's two-thirds vote requirement,the non-partisan California:.
CitizensBudget Commission concluded that"the current supermajority requirement fails to achieve its
oft-stated goal of keeping budgetary spending in check,while at the same time it promotes gridlock,
pork barrel legislation and lack of accountability."
g)When the economy weakens,the State budget goes into deficit. These deficits are increased
by the gridlock caused by the two-this vote requirement. These deficits increase pear after year until
(bey equal many billions of dollars. Faced with these huge deficits,the Governor and Legislature
t
:massive cuts to education,health care,and transportation MA raise bilUons of dollars in taxes.
e deep cuts and large tax increases would not hive been necessary if responsible budiet solutions
had been possible instead of year after year of gridlock.
_g_
h) Party leaden threaten to punish state legislators if they ref#nse to vote the party Lke on the
budget. Ma nbers of the Legislature should be accountable to their coustitmmts,not to party leaders.
fE Our elected representatives must be free to vote their consciences.
I€
i) California has faced large budget deficits and surpluses over the past ton years. Elected,
officials from both major parties have htcrcas+sc€spending and cut taxes in good ecowmic timers,
leaving the State with inadequate reserves when the economy tins bad. Saving money in a rainy day
fund in,goad times provides a prudent reserve during economic downturns and states of emergency,
!
which ss essential for responsible budget management
Section 3. purpose and Intent
I.In order to make elected officials more responsible for the consequences of theiractions, to
keep voters more informed of the budget decisions being made by their legislators,to limit.partisan
e UMUilm and end gridlock in the budget process,and to require a rainy day reserve fund to balance
&a budget in hard times and protect California taxpayers,the People of the State of California do
hereby enact the Budget Accountability Act. This measure is intended to accomplish its purpose by
amending the California Constitution and the statutes of California to:
a) Prohibit the Legislature and Governor from collecting their salary and expenses for every
day theyy miss the budget deme sat by the Constitution and to force the Legislature to stay in session
and consider the budget until it is passed.
I`
b) .Delp voters hold their state representatives more accountable by providing voters with a
two-page summary of how theState is spending the fiends it resceivea. The summary will be published
in-the state ballot pamphlet mailed to voters before every statewide elections. The summaary will
include a wabsite address where voters can find the voting record of their rep esemtstives on all budget
and related legislation,including tax bills,that am subject to the 55 percent vote requirement.
J,jo) Change the votes necessary to pass the budget and related tax and other legislation ftom
}Ij; two-thirds to 55 percent to improve accountability to voters,reduce budget gridlock,and encourage
legislators to work together to solve California's budget problems regardless of their party affiliation.
d) Allow legislators to vote their consciences on the budget instead of being pressured into
I! voting the party line. A legislator who is threatened by another legislator because of a vote on the
budget will be able to file a complaint with the Ethics Committees of the Senate or Assembly,which
will investigate the complaint and make public:its report and recommendations for appropriate action to
the full Senate or the Assembly.
e) Enure funds are set aside in a rainy day reserve fund in good ecouprnnic times when
revenues exceed what is needed for existing programa so that when revenues fall short in times of
economic downturn the reserve fund can be used to reduce the need for drastic cuts in programa and
roc es in taxes. The reserve Band could also be used for a state,of emergency declared by the
Governor. The reserve fund may only be used for these purposes and may not be used to increase
spending..
!
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i
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2. 'The Budget Accountability Act will not change proposition 13's property tax limitations in
any way. The Budged Amuntability Act changers the legislative vote requirement for tastes to
55 percent only for the purpose of increasing taxes as part of the process of adopting the budget.
Section 4: Article IV,section 12 of the California Constitution is hereby amended to read as follows:
Sex;. 12. (a) Within the first 10 days of each calendar year,the Governor shall submit to the
Legislature,with an explanatory message:,a budget for the ensuing fiscal year containing itemized
statemcatst for recommended state expenditures and estimated state revenuers. If recommended
d
expenditures exceed estimated revenues,the Governor shall recommend the sources from which the
additional revenues should be provided.
(b) The Governor and the Governor-elect may require a state agency,officer or employee to
Amrish whatever htfotanation is deemed necessary to prepare the budget.
(c) The budget shall be accompanied by a budget bill itemizing recommended expenditures.
The bill shall be introduced immediately in each house by the persons chairing the committees that
consider appropriations. The Legislature:shall pass the budget bill by midnight on June 15 of each
year. Until the budget bill has been enacted,the Legislature shall not send to the Governor for
cores da%tioa any bill appropriating funds for expenditure during the fiscal year for which the budget
bill is to be enacted,except emergency bills recominended by the Governor.eespppepgafiem(of the
(d) 1,f the budget bill has not been passed and sent to the Governor by.Pune IS, the Legislature
shall remain in session and may not consider or puss any other bills until the budget and bilis related
to the budget are adopted, except for emergency bills recommended by the Governor. Neither the .
Governor nor any member o,f'the;Legislature shall be entitled to any salary,per diem, or other expense
allowance for any day after the June 15 deadline until a budget bill has been passed and sent to the
Governor. No forfeited salary,per diem, or expense allowance shall be paid retroactively. In the
event the Governor vetoes the budget bill, the prohibitions of this subdivision shall remain in effect
until a budget is passed and signed by the Governor.
(d)(a) No bill except the budget bill may contain more than one item of appropriation,and that
for one certain,expressed purpose. Appropriations from the Genand Fund of the States,except
appropriations in the budget bill and in other bills related to the budget bill and appropriations for tho
public schools,are void unless passed in each house by rollcall vote entered in the journal,two thirds
of the membership conoumrig.
(f)(1) Notwithstanding Section 3 of Article XM or any other provision of law or of this
Constitution, the budget bill and tax and other bills related to the budget bill may be passed in each
house by rollcall vote Bantered in the}ournal,,fifty-,f Ive percent df the membership concurring, to take
gct immediately upon being signed by the governor or upon a date:specs,fled in the legislation.
othing in this subdivision shall affect the vote requirement,for appropriations for the public schools
contained in subdivision(e)orf this Section and in subdivision (b)of Section 8 of this Article.
. ' 9nv,? "vtt�
(2) Tax and other balls related to the budget bill shall consist only of bills identified as related
to the budget in the budget gill pained by the Legislature.
(3) Tax Dills related to the budget bill shall include bills increasing taxes, whether by
increased rates or changes in methods of computation,UeWed in the budget bill as related to the
budget,except that no new ad valorem taxes on real property, or sates or transaction tames on the
sales of real property may be unposed
(g) No officer, committee, or member of either house of the Legislature shallpunish or
threaten to punish any other member for his or her vote on the budget bill or tax and other bills related
to the budget. Any member miry file a complaint regarding violations of this section with the
appropriate ethics committee of the house in which the alleged violation occurred The ethics
committee shall investigate the complaint and make recommendations to the full house regarding
appropriate action, including censure, to be taken on the complaint. The ethics committee's findings
Shall be made public
(h)For any,f?scal year for which General Fund revenues exceed the amount needed to fund
current General Fund service levels, the Legislature shall deposit at least 25 percent of the excess
revenues into the Prudent State Reserve Fund established pursuant to Section 5.5 of Amide XM,
unless the Reserve Fund equals 5 percent or more of General Fund expenditures for the furcal year
immediately preceding that fUcal year.Appropriations from the fund may be made only in years in
which revenues are not sq fflcient to fund current General Fund service levels or in response to a state
of emergency declared by the Governor. Appropriations frons the f tnd may only be used for there
purposes and may not be used to increase expenditures. Notwithstanding Section 5 of Article AM,
contributions to the fund shall not constitute appropriations subject to limitation until they are
appropriated for expenditure from the fund,
(i) The Legislature may control the submission,approval,and enforcement of budgets and the
filing of claims for all state agencies.
Sections: Section 9082.8 is hereby added to the Elections Cade to read as follows:
9082.8 The State Controller, in consultation with the Department of Finance and the Legislative
Analyst's Office, shall prepare a budget summary explaining how state funds are spent, not to
exceed two printed pages, which shall be published in the state ballot pamphlet sent to voters in
every statewide election. The budget summary shall include directions to a state website,
prepared and maintained by the Joint Rules Committee of the Legislature, that includes voting
records of legislators on the budget and tax and other bills related to the budget.
Section 6: Section 9528 is hereby added to the Government Code to read as follows:
9518. For the purposes ofArticle 17; section 12, subdivision (h)of the Cal farnia Constitution,
"current General Fund service levels"shall mean levels of service as of June 30 of the prior
f%scaal year necessary to meet the constitutional,statutory, and contractual obligations of the
state aWursted for population and cost of living as provided in Article B, Section 8 of the
Constitution as of the effective date of this measure.
' -11
{
Section 7, Severability
a
If any of the provisions of this nmasure or the applicability of any provision of this measure to
any pin or circumstances shall be found to be unconstitutional or otherwise invalid,such finding
not affect the rmd wing provision or applications of this m inure to other persons or
circumstances,and to that eft the provisions ofthis measure aro deemed to be severable.
Section 8: Amendmew'
I
Ey rollcall vete entered in the journal of each house,fifty-five percent of the membership
concurring, the Legislature may amend Section 9082.8 of the Elections Code and Section.9519 of the
Government Code to Anther the purposes of this Act,
Section 9; Con)IIcting.tnttfatfves
In the event that this meaaure and another measure or measures relating to the legislative votes
required to pass the state budget,increase taxes,or enact or increase fees shall appear on the same
statewide election ballet,the provisions of the other measure or measures shall be deemed to be in
conflict with this measure. In the event that this measure receives a greater number of affirmative
votes,the provisions of this measure shall prevail in their entirety,and the other measure shalt be null
and void..
-12-
� ��
� � �
n
. ..13�
�.
Section 1: Title
This measure shall be known and may be cited as the"Budget Accountability Act"
Section 2: Findings and Declaration of Purpose
The People of the State of California find and declare that:
The Budget.Accountability Act is designed to end the budget delays that have created a fiscal
crisis in our state. The purpose of this measure is to anact a comprehensive reform of the State budget
process designed to hold the Governor and Legislature,more accountable to the People of California by
producing more responsible and timely state budgets.
a) After the Governor introduces the budget,the State Legislature and Governor have almost
six months to complete the budget on time. However,the State Legislature has not passed a budget on
time afi= 1986.
b) The State Legislature and the Governor face no consequences when they,fail to meet the
budget deadline imposed by the State Constitution. They can continue to collect their salary and
expense allowances.+They are not required to continue to work on the budget. In fact, they can even
go on vacation.
c) In order to hold elected officials accountable,voters are entitled to know how their tax
dollars are spent each year and how their state representatives vote on the budget and taxes. Currently
voters do not have easy access to this information.
d) The two-thirds vote requirement to pass a state budget and related takes has contributed to
persistent late budgets and large deficits. Political party leaders refuse to compromise to solve the
state's budget problem and Have used the two-thirds vote requirement to hold up the budget.
e) California,Rhode Island,and Arkansas are the only states in the country that require a vote
of two-thirds or more of the legislature to pass a budget.
f) After researching California's two-thirds vote requirement,the non-partisan California
Citizens Budget Commission concluded that"the current supea majority requirement fails to achieve its
oft-stated goal of beeping budgetary spending in check,while at the same time it promotes gridlock,
pork barrel legislation and lack of accountability."
g)When the economy weakens,the State budget goes into deficit. These deficits are increased
by the gridlock caused by the two4hirds vote requirement. These deficits increase year after year until
they equal many bill ons of dollars. Faced with these huge deficits,the Govemor aid.Legislature
ake massive cuts to education,health care,and transportation MUd raise billions of dollars in taxes.
deep cuts and large tax increases would not have been necessary if responsible budget solutions
had begirt possible instead of year after year of gridlock.
-14-
h) Party loaders threaten to punish state legislators.if they refie to vote the party line on the
budget. Members of the Legislature should be accountable to their constituents,not to party leaders-
our elected representatives must be free to vete their consciences.
i) Cara has faoexi large budget deficits and surpluses over the past ten years. Elaated
offic iah from both major parties have increased spending and cut takes in good economic titnos,
leaving the State with inadequate reserves when the economy turns bad. Saving money in a rainy day
find in good times provides a prudent reserve during economic downturns and states of emergency,
which is essential for responsible budget management
Section S. Purpose and intent
1.In order to make elected officials more responsible for the consequences of their actions,to
keep voters more informed of the:budge decisions being made by thein legislators,to limit partisan
extremismand and gridlock in the budget proem,and to require a rainy day rresarve fiord to balance
the budget in hard times and protect Califrnmiia taxpayers,the People of the State of California do
heroby enact the Budget Accountability Act. This measure is intended to accomplish its purpose by
ameaciding the California Constitution and the statutes of California to.
a) Probibit the;Legislature and Covemwr from collecting their salary and expenses for every
day they miss the budget deadline sett by the Constitution and to force the Legislature to stay in session
and consider the budget until it is passed.
b) Help voters hold their state representatives more accountable by providing voters with a
two-page summary of how the Statwis spending the funds it receives. The summary will be published
in the state ballot pamphlet mailed to voters before every statewide election. The summary will
include a wobsite address when voters can find the voting record of their representatives on all budget
and related legislation,including tax bills,that are subject to the 55 percent vote requirement
. c) CWmge the votes;necessary to pass the:budget and related legislation from two-thirds to
55 porcenl,and authorize a 55 percent vote to adopt temporary taxes and proposals to plane takes
-before the voters that are related to the budget,to improve accountability to voters,reduce budget
gridlock,and encourages legislators to work together to salve California's budget problems regardless
oftherparty affiliation.
d) Allow legislators to vote their consciences on the budget instead of being pressured into
voting the party line. A legislator who is threatened by another legislator because of a vote on the
budget will be able to Erle a complaint with the Ethics Committees of the Senate.or Assembly,which
will investigate the complaint and maker public its report and reconuriendation for appropriate action to
the fid Senate or the Assembly.
i e) Ensure Rmds are set aside in a rainy day reserve fund in good economic times when
revenues exceed what is needed for existing programs so that when revenues fall short in times of
economic downturn the reserve fund can be used to reduce the need for drastic cuts in programs and
increases in takes. The reserve fiord could also be used for a state of emergency declared by the
Governor. The reserve fiord may only be used for these purposes and may not be used to increase
spm .
2. The Budget Accountability Act will not change Proposition 13's property tax IimYtations in
any way. The Budget Accountability Act changes the legislative vete requirement for taxes to
55 putt only for the purpose of permitting temporary tax increasers that remain in effect no longer
than three years or placing a measure proposing to increase taxes on the ballot for voter approval as
part of the budget process.
Section 4: Article TV,section 12 of the California Constitution is hereby amended to read as follows:
See. 12. (a) Within the first 10 days of each calendar year,the Governor shall submit to the
Legislature,with an explanatory message, a budget for the ensuing fiscal year containing itemized
statements for recommended state expenditures and estimated state revenues. If recommended
expenditures exceed estimated revenues,,the Governor shall recommend the sources from which the
additional revenues should be pr9vi4e&
(b) The Governor and the Governor-elect may require a state agency,officer or employee;to
f`umish whatever information is deemed necessary to prepare the budget.
(c) The budget shall be accompanied by a budget bill itemizing recommended expenditures.
The bill shall be introduced immediately in each house by the persons chairing the committees that
consider,appropriations. The Legislature shall pass the budget bill by midnight on June 15 of each
year. `Until the budget bill has been enacted, the Legislature shall not send to the Governor for
consideration any bill appropriating funds for expenditure during the fiscal year for which the budget
bill is to be enacted,except emergency bills recommended by the Governor.
(d) If the budget bill has not been passed and sent to the Governor by June 15, the Legislature
shall remain in session and may not consider or pass any other bills until the budget and Bills related
to the budget are adopted, except for emergency bills recommended by the Governor. Neither the
Governor nor any member of the Legislature shall be entitled to any salary,per diem, or other expense
allowance,or any day after the June 1.5 deadline until a budget kill has been passed and sent to the
Governor. No forfeited salary,per diem, or expense allowance shall be paid retroactively. In the
event the Governor vetoes the budget bill, the prohibitions of this subdivision shall remain in effect
until a budget is passed and signed by the Governor.
(d)(e) No bill except the budget bill may contain more than one item of appropriation,and that
for one certain, exprossed purpose. Appropriations from the General Fund of the State,except "
appropriations in the budget bill and in other bills related to the budget bill and appropriations for the
public schools,are void unless passed in each house by mlllcall vote entered in the journal,two thirds
of the membership concurring.
(1)(1) Notwithstanding any other provision of law or of this Constitution, the budget bill and
4 other bills related to the budget bill may be passed in each house by milcall vote entered in the
journal,fifly;five percent of the membership concurring, to take effect immediately upon being signed
i
X
-16-
by the Governor or upon a date spec#Ted in the legislation.Nothing in this subdivision shall a fect the
vote re quirement for appropriations far the public schools contained in subdivision(e)of this Section
and in subdivision(b)of-Section 8 ofthis Article.
(2) .Notwithstanding Section 3 of Article AllU or any other provision of law or of this
Constitution, the Legislature may pass temporary taxes related to the budget bill by rollcall vote
entered in the Journal,f five percent of the membership concurring, to take effect immediately upon
being signed by the Governor or upon a date spedi,f ed in the legislation. Any increase in taxes
pursuant to this paragraph shall remain in e,ffect for,no more than threefiscal years, unless it has
been approved by a mefority of the voters voting at a statewide electron;and no new ad valorem taxes
on regi property, or sales or transaction taxes on the sales of real property may be imposed
(3) the Legislature by concurrent resolution, y;fve percent of the membership concurring,
may propose at any statewide,election that one or more taxes related to the budget bill be inacted,
amendeed, or continued for a sped,jRed period;provided, however, that no new ad valorem taxes on real
property, or sales or transaction taxes on the sales of real property may be proposed.
(4) Tax and other bills related to the budget bill passed pursuant to this Section shall consist
only of bills ident#Ted as related to the budget to the budget bill passed by the Legislature.
(g) No oficer, committee, or member of either house of the Legislature shall punish or
threaten to punish any other member for his or her vote on the budget Bill or tax and other bills related
to the budget. Any member may,file a complaint regarding violations of this section with the
appropriate ethics committee of the house in which the alleged violation occurred The ethics
committee shall investigate the complaint and make recommendations to the full house regarding
appropriate action, including censure, to be taken on the complaint The:ethics committee's,findings
shall be made public.
(h) For any fiscal year far which General Fund revenues exceed the amount needed to fund
current General Fund service lesvels, the Legislature shall appropriate at least 25 percent of the excess
revenues for deposit into the Prudent State Reserve Fund established pursuant to Section 3.5 of
Article M S, unless the Reserve Fund equals S percent or more of General Fund expendituresfor the
fiscal year immediatety preceding that fiscal yerar.Appropriations from the fund may be made only in
years in which revenues are not su,,fteient to fund current General Fund service levels or in response
to a state of emergency declared by the Governor. Appropriations from thea fund may only be used for
these purposes and may not be used to increase expenditures. Notwithstanding Section 3 of
Article XUIB, contributions to the fund shall not constitute appropriations subject to limitation until
they are appropriated for expenditure from thee fun t,
(i) The Legislature may control the submission,approval,and enforcement of budgets and the
flag of claims for all state agencies.
k
Section 5: Section 9082.8 is herby added to the Elections Code to read as follows:
9082.8The State Controller, in consultation with the Department of Finance and the Legislative
Analyst's Office,shall prepare a budget summary explaining how state funds are spent, not to
-17-
exceed two printed pages, which shall be published in the state ballot pamphlet sent to voters in
eWY statewide electian. Me budget summary Shull include directions to a state website,
Prepared and maintained by the Joint Rules Committee of the.LegUlraturs, that includes voting
records of legislators on the budget and tax and ether bills related to the budget.
Section 6: Section 9518 is hereby added to the Government Code to read as follows.
9518. For the purpmes of Article ly,, section 12,subdivision 0),paragraph (2)and subdivision(h)o,f
the California Constitution, "current General Fundservice levels"shall mean levels of service
as of`June 30 of the prior fiscal year necessary to meet the constitudong statutory, and
contractual obligations of the stater n4Nsted orp population and cost of living as provided in
ArtiderAM, Section 8 of the Constitution as of the effective date of this measure.
Section 7; Severability
If any of the provisions of this measure or the applicability of any provision of this measure to
any person or circumstatices shall be found to be unconstitutional or od arwise invalid,such fmding
shall not affact the remaining provision or applications of this measm to ether persons or
circmnstmcc8,and to that extent the provisions ofthis measure are deemed to be severable.
Section 8: Amendment
By roilcall vote entered in the journal of each house, fifty-five percent of the membership
ip
conOUrrsng, the Legislature may amend Section 9082.8 of the Elections Code. and Section 9518 of the
Government Code to father the purposes of this Act.
Section 9; Conflicting Initiatives
In the event that this measure and another measure or measures relating to the legislative votes
required to pass the state budget,increase takes,or enact or increase fees shall appear on the same
statewide election ballet,the provisions of the other measure or measures shall be deemed to be in
confliet'with this measure. In the event that this measure receives a greater member of affirmative
votes,the provisions of this measure shall prevail in their entirety,and the other measure shall be null
and void in its entirety,
i