HomeMy WebLinkAboutMINUTES - 08052003 - SD.11 THE BOARD OF SUPERVISORS OF
CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on August 5, 2003, by the fallowing vete:
AYES: Supervisors Glola, Ulikema, Greenberg, Glover and DeSaulnler
ABSENT: None
ABSTAIN: None
SUBJECT. In the matter of endorsing the Budget
Accountability Act.
CONTINUED: to August 12, 2003
1 hereby certify that this is a true and correct
copy of an action taken and entered on the
minutes of the Board of Supervisors on the
date shown.
Attested: August 5, 2003
John Sweeten, Clerk of the Board
Of Supervisors and County Administrator
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Deputy Glerk £/
In the Matter of Endorsing the Resolution No. 20031463
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 farce 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 unanimous vote of the Board Members present on this 51h day of August, 2003.
MARK DeSAULNIER
Chair
District IV Supervisor
JOHN GIOIA GAYLE B. UILKEMA
District I Supervisor District III Supervisor
MILLIE GREENBERG FEDERAL D. GLOVER
District III Supervisor District V Supervisor
Witness my hand and the Seal of the Board of Supervisors
axed on this 5r"day of August 2003.
JOHN SWEETEN, Clerk of the Board of Supervisors and
County Administrator
By: Deputy
Introduced by Supervisors John Gioia and Mark DeSaulnier
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Budget Accountability Act
Questions & Answers
Q: Whet is the Budget Accountability Act?
A: The Budget Accountability Act is a comprehensive budget reform initiative that gives
legislators the tools they need to end budget gridlock and allows voters to hold their legislators
accountable.
Q: What will the Budget Accountability Act do?
• Require the legislature to stay in session until the budget is done. .
o Hold legislators and the Governor accountable by withholding their pay if the fail to meet
the constitutional deadline for passing the budget.
( o Require a 55%vote 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 I5, constitutional deadline, the Governor and
members of the Legislature will permanently forfeit their salary, per diem expense allowance and
other payments for each day until 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 encourage.fiscal responsibility?
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.
Q: Haw will the Budget Accountability Act help voters hold politicians
accountable?
A: The Budget Accountability Act would require the Official Voter Information Guide that is
prepared by the Secretary of State and sent towoters each election to contain a two-page
summary explaining how the state spends the funds it receives.The summary Is required to
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 line.This provision will give legislators the freedom to make up
their own minds on the state budget.
Q: Haw will the Budget Accountability Act end California's budget crisis year after
year?
A: Currently, California is one of only three states to require a two-thirds majority vote on the
budget (Arkansas and Rhode Island are the other states). The two-thirds requirement creates
i gridlock because it's so difficult to get that-many legislators to agree.The Budget Accountability
Act would require a 55% vote of the California Senate and Assembly to adopt the state budget
1` and related tax legislation. This maintains the requirement of a broad consensus on the budget
but stops small groups of Legislators from holding all Californians hostage each budget cycle..
Q: How will the Budget Accountability Act protect jobs and services?
A: The Budge'Accountability Act is a major step toward leveling the playing field for working
families. It allows us to hold politicians accountable-- both Republicans and Democrats--to
deliver a budget on time that provides adequate funding for critical services.
Q: Who has endorsed the Budget Accountability Act?
A. The Budget Accountability Act is supported by a wide range of individuals and organizations
including the League of Women Voters, Health Access and the California Teachers Association.
More groups are joining in support every day.
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Q: Isn't this an attack on Proposition 13?
A: The Budget Accountability Act does not affect the Prop.13 limits on property tax increases. It
simply gives legislators the tools to do their jobs and allows voters to hold them accountable.
Q: Isn't this just a power play by Democrats so that they don't have to get bl-
partisan support for the budget and taxes?
A: The Budget Accountability Act holds all legislators accountable (regardless of their party
affiliation)for doing their jobs. No budget will be passed without a broad consensus as it requires
a 55%vote to pass the budget and tax related legislation.
Q: What will the louver threshold mean for our state if Republicans become the
majority?
A: That's the democratic process. If voters decide to put a majority of Republicans in charge, h
they will still need to get 55% of all legislators in the state Assembly and the Senate to pass the
budget and related tax legislation and they will have to report to the voters on their decisions.
Q: Haw is a surplus defined that requires monies to be deposited into a rainy day
.fund?
A: The Budget Accountability Act requires the Legislature to set aside a"rainy day"fund in good
times to protect services in a weak economy.They way it works is that once current service
levels are funded, the Budget Accountability Act would require the state to set aside 25% of
additional revenues until the reserve is 5%of the General Fund. The state could only dip into the
rainy day fund during an economic downturn or for expenses reiated to a disaster declared by the
Governor."Current services levels"are defined as the constitutional, statutory, and contractual
obligations of the state.
Q: Won't forcing them to pass the budget on time mean that they might settle for a
bad budget just so that they don't lose their pay?
A: The Budget Accountability Act will give legislators an incentive to complete the budget on time
and to cast their vote as a representative of the people living in their district. The Budget
Accountability Act will give voters the information they need to hold their elected official
1 accountable by including a summary of how California spends the funds It receives with a
website address where voters can see how their legislator voted on the budget and related
legislation.
CALIFORNIANSfor
Endorsement List
American federation of State, County & Municipal Employees, APL-CIO
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 f=ederation of Teachers
California Foundation for Independent Living Centers, Inc.
California Independent Public Employees Legislative Council (CIPELC)
California Labor Federation
Califomia 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 Lang Term Care
Child Care Law Center
FOR S for
Centennial United Methodist Women
Central Coast Alliance United for a Sustainable Economy (CAUSE)
Center on Policy Initiative
The Citizenship Project
Coalition for Community Health
• Coalition of California Welfare Rights Organizations
Coalition of Labor Union Women, California Capitol Chapter
Committee of Interns and Residents/SEIU 1957
Communications Workers of America, Local 9575
Communities Actively Living Independent and Free
Community Alliance for a Fair Economy
Congress of California Seniors
Consumer Federation of California
Contra Costa Central Labor Council
Councilmember Mary Lou Zoglin, City of Mountain View
Councilmember Nora Campos, City of San Jose
EI Camino College Federation of Teachers
Esperanza Community Housing Corp
Faculty Association of California Community Colleges
Families to Amend California's Three Strikes Law (FACTS)
Gardena Valley Democratic Club
Golden State Mobile/Manufactured Homeowner's League
Health Access California
Health Care for All
Housing California
Human Services Alliance of Los Angeles
ILWU Northern California District Council
Imperial Counties Labor Council, San Diego
Interfaith Coalition for Immigrant Rights
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.IN SPIRIT
JERICHO
Justice Matters Institute
Kern Regional Center
Kids in Common
Korean Resource Center
Latino Issues Forum
La Maestra Family Clinic, Inc.
League of Women Voters of California
Los Angeles Alliance for a New Economy
Los Angeles Community College District
Los Angeles Family Mousing
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
Peace and Freedom Party of California
Planned Parenthood Affiliates of California.
Resources for Independent Living
San Diego-Imperial 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
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%I&IAL-IFORNIANSfor
State Council of H.E.R.E.
Teamsters Union
United Farm Workers
Vote Health
Women's International League for Peace & Freedom - Fresno
*Partial List
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CALIFORNIANSfor
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A Permanent Volution for California 's Budget Crisis
The Budget Accountability Act will held the {governor and Legislature
more accountable to taxpayers in order to produce more responsible and
timely State budgets. Here's how:
Hold Legislators accountable to pass a budget on time.
If the State 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 1985. 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.
The vote required for the State Senate and Assembly to adopt the State budget and related tax
legislation is reduced from 2/3rds 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
the gridlock caused by our current system.
End political gridlock.
The Budget Accountability Act also provides the Legislative Ethics Committees of the Assembly
and State 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.
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.
Force the Legislature to make the budget its top priority.
If the State Budget is not passed by the Constitutional deadline, 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.
Passing a responsible budget on time is the Legislature's most important job, but right now
legislators can work on other bills.or even go on vacation while California's budget remains in
limbo.
Give voters the facts about the budget.
The official voter pamphlet sent to voters each statewide election will be required to contain a
summary explaining how the state spends the funds it receives and a website address where
voters can go to find out how their legislators voted on the budget.
To hold politicians accountable, voters should know how their money is being spent and who is
spending it.
Encourage fiscal responsibility.
The state is required to create a"rainy day" fund of 5% in years when revenues exceed the
amount needed to fund existing service levels. Expenditures from the reserve could be made
only when there is an economic downturn and revenues fall below existing program levels or for
expenses related to a disaster declared by the Governor.
The current constitutional requirement establishes a"reasonable and necessary"prudent reserve,
but no amount is specified. The Budget Accountability Act requires the Legislature to set aside a
"rainy day" fund of at least 5% in good times to have a cushion so that extreme budget cuts and
tax increases will be less likely in a weak econbmy.
To learn more about the Budget Accountability Act, please visit:
wwwbudaetaccountabilif--, ori.
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Language of the Initiative
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Ballot Title and Summary
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Date: June 20,2003
File: SA2003RF0018
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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,IFS,AND RESERVE. VOTING REQUIREEMMNTS.
PENALITIES. INITIATIVE CONSTITUTIONAL AMENDN ENT 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
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Legislatures.
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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
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 enact a comprehensive reform of the State budget
process designers 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 1985.
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 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 ormore of the legislature to pass a.budget.
f) After researching California's two-thirds vote requirement,the nonpartisan California
Citizens Budget 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,
park 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 ager year until
they equal many billions of dollars. Paced with these hugedeficits, the Governor and Legislature
make massive cuts to education.,health care,and transportation and raise billions of dollars in taxes.
These deep cuts and large tax increases would not have been necessary if responsible budget solutions
had been possible instead of year after year of gridlock.
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h) Warty leaders threaten to punish state legislators i.f'they refuse to vote the party line on the
budget. iMemberss 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 both major parties have increased spending and out 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 downturns and states of emergency,
which is essential for responsible budget management.
Section 3. Purpose and latent
1.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 fund 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 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) Delp voters hold their state representatives more accountable by providing voters with a
two-page summary of hour 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
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
voting the party lino. 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.
e) Ensure funds are set aside in a rainy day reserve fund in good economic tinges 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 meed 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 fund may only be used for these purposes and may not be used to increase
spending.
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2. The Budget Accountability Act will not change Proposition 13's property tax limitations in
any way.' The Budget.Accountability Act changes the legislative vote requirement for taxes to
55 percent only for the purpose of increasing taxes as part of the process of adopting the budge:.
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
expendrt°ares 4xceed estimated revenues, the Governor shall recommend the sources from which to
additional revenues should be provided.
(b) The Governor and the Governor-elect may require a state agency,officer or employee to
furnish 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 bilis until the budget and bills related
to the budget are adopted, except for emergency bilis 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 for any day after the.dune .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
event the Governor vetoes the budget ball, the prohibitions of this subdivision shall remain in effect
until a budget is passed and signed by the Governor.
(4)(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 to each house by rollcall vote entered in the,journal,two thirds
of the membership concurring.
0(1) Notwithstanding Section 3 of tlrtacle AM 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 rollcail vote entered in the f ournal,f fty-five percent of the membership concurring,to take
effect immediately upon being signed by the Governor or upon a date spewed in the legislation.
Nothing in this subdivision shall affect the vote requirement for appropriations for the public schools
contained in subdivision (e) of this Section and in subdivision (b)of Section 8 of this Article.
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(2) Tax and other bills related to the budget bill shall consist only of bills identified as related
to the budget in the budget bill passed by the Legislature.
(3) Tax bills related to the budget bill shall include bills increasing tees, 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 properfj, or sales or transaction taxes on the
sales of real property may be imposed.
(g) No officer, committee, or member of either house of the Legislature shall punish or
threaten topunish any other member for his or her vote bn 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
commtteeshall investigate the complaint and mage 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 tiny fiscal yearfor or 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 S.S ofArticle A=,
unless the.Deserve Fund equals 5percent or more of General Fund expenditures for the ftscalyear
immediarely 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 anti may not be used to increase expenditures. Notwithstanding Section 5 of Article x'1718,
contributions to the fund shall not constitute appropriations subject to limitation until they are
appropriated for expenditure from the fund
{i} The l egislature may control the submission, approval, and enforcement of oudgets and the
.Ming of claims for all state agencies.
Section 5: Section 9082.8 is hereby added to the Elections Cade to read as follows:
9082.8 rhe State Controller, in cons%dtation with the Department of Finance and the Legislative
Analyst's mice, 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.Mules Committee of the Legislature, that includes voting
records of legislators on the budget and tax and other bills related to the budget.
Section b: Section 9518 is hereby added to the Government Code to read as follows:
9518. For the purposes of Article It, section 12, subdivision (h) of the California Constitution,.
"current General Fund service levels"shall mean levels of service as of June 30 of the prior
,fiscal year necessary to meet the constitutional, statutory, and contractual obligations of the
state adjusted for population and cost of living as provided in Article AMB, Section 8 of f the
Constitution as of the effective date of this measure.
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Section 7: Severabdiry
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 treasure are deemed to be severable.
Section 8: Amendment
By rollcah vote entered in the jowl 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
Government Code to further the purposes of this Act.
Section 9: Conflicringlnitiatives
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 null
and void.
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Peter Schrag. Budget reform �-�-
' Harnessing the power of disgust
By Peter Schrag - Sacramento Bee Columnist - (Published
March 19, 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'sbudget 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 go 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
i number that's helped block and delay California budgets year after year. It
would set the same 55 percent margin for lowering taxes. Because that now
takes only a simple majority, the resulting ratchet effect has left the state
with ever more tax loopholes.
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If a budget were not passed by the June 15 constitutional budget deadline,
prohibit the governor and members of the Legislature from being paid or
receiving any per diem 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.
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,* Prohibit legislative leaders, committees and other members from punishing
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or threatening legislators for their votes on the budget bill and related tax
measures. It would require a public ethics committee report on the complaint
of any member who reported such threats.
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Of all those provisions, the last Is the most dubious. Although former state
GOP chairman Shawn Steel last year threatened a recall against any party
member who voted for a tax increase (Steel was subsequently censured by
his party for it), the line between the legitimate exercise of party discipline
and threats and punishment is a thin one. And without party discipline,
concerted action is often difficult.
. But there's no doubt that the proposal addresses major elements in a badly
broken fiscal system that, among other things, has driven the state's credit
into the tank. California is one of only three states in the country that
i requires a two-thirds vote to enact a budget. i
That provision, which gives any determined political minority the power to
block budgets and thus shake down the majority, is an ideal device for the
governor and legislators to duck responsibility. It often makes it impossible G
j for voters to determine who's accountable for delays. The price for ending
the shakedowns, moreover, can be a lot of pork spending that hardly anyone
wants.
In any case, why should every No vote be worth two Yes votes? Last year
voters reduced the margin required to pass local school bonds from two-
thirds to 55 percent. That's hardly a magic number -- nearly all other states l
require just a simple majority.
But it's absurd to.make it harder for legislators to pass a one-year budget
than for voters to approve the 20-or 30-year commitment that bonds impose
on future generations.
California's major taxpayer organizations are almost certain to oppose it.
There are also reports that some legislators were apoplectic when they
learned that the measure would require publication of their voting records on
! the budget in the ballot pamphlet.
Those votes are already matters of public record, but the reaction still
demonstrates how some politicians rely on confusion and ignorance in doing
their business. You can count on the proponents to make the most of that.
But the biggest factor in the sponsors' campaign Is likely to be that public
frustration. It's usually the groups that sponsor conservative measures that i
rely on voter frustration. If It succeeds it will be the first time in many years
that voters will have opted for legislative accountability instead of shackles.
The leaders in the effort, Dean Tipps of the SEIU and Anthony Wright of
Health Access, are just beginning to assemble the coalition of unions, good
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government groups and other organizations that they hope will drive this
"campaign.The war could kill it; voter disgust could make it.
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About the Writer
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Peter Schrag can be ruched at Sox 15779, Sacramento, CA 95852-0779 or at
r� hra9si�k�ee.ct�m.
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REQUEST TO SPEAK FORM
(THREE (3) XINUTE LIMIT)
Complete this form and place it in the box near the speakers'
rostrum before addressing the Board. s
Name: 1C t7 t rrrv�- S
1141" Phones
Address: city.
I am speaking for myself or organization: COAAI,7c?I!- GOAM-19
(rAw of orgrnintion)
CIMCX ONE:
I wish to speak on Agenda, Item a1_4 Date:
My comments will be: general for against
I wish to speak on the subject of
I do not ;wish to spew but leave these comments for the
Board to 'consider:
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0 BLANK CHECK
INITIATIV
WHO OPPOSES THE: BLANK CHECK INITIATIVE?
Citizens Against Government Waste California Travel Parks Association
National Taxpayers Union California Women for Agriculture
California Taxpayers' Association Clovis Chamber of Commerce
California.Taxpayer Protection Committee Costa Mesa Chamber of Commerce
Howard Jarvis Taxpayers Association Latinos Chamber of Commerce of Compton
United Californians for Tax Reform Nisei Farmers League
Butte County Taxpayers Association Personal Insurance Federation of California
Contra.Costa Taxpayers Association. Rancho Cordova Chamber of Commerce *
Dern County Taxpayers Association. Regional Hispanic Chamber of Commerce
Marin United Taxpayers Association (Long Beach)
Orange County Taxpayers Association Salinas Valley California Women for
San Diego Tax.Fighters Agriculture *
Santa Barbara County Taxpayers The Seniors Coalition
Association 60 Plus Association
Shasta.County Taxpayers Association Small Business Survival Committee
Ventura County Taxpayers Association
Waste Watchers
American Electronics Association
Anaheim Chamber of Commerce
Antelope'Valley Chambers of Commerce
Associated Builders and Contractors of
California*
Butte County Citizens for Better
Government
California Beer and Beverage.Distributors
California Business Alliance
California Business Roundtable
California Chamber of Commerce
California Dump Truck Owners
Association. *
California Farm Bureau Federation
California Independent Grocers&
Convenience Stores *
California Independent Grocers
Association *
California Manufacturers &Technology
Association
California Rental Association * * �new endorsement
California Restaurant Association
California Retailers Association
PAID FOR BY CALIFORNIANS AGAINST HIGHER TAXES, Computer Generated
a coalition of Taxpayers,Consumers,Businesses,Retailers and ChevronTexaco.
111 Anxa Blvd.,Suite 406+Burlingame,CA 94010+Tel:(650)340-0470+Fax(650)340-4740
11300 West Olympic Blvd.,Suite 840+Las Angeles,CA 90064+Tel:(310)996-2678+Fax:(310)996-2673
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CALIFORNIANSfor
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Language of the Initiative
Ballot Title and Summary
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Date: June 20,2003
File: SA2003RF0018
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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.
PENALITMS. INITIATIVE CONSTITUTIONAL ANVIENDMENT AND STATUTE. Permits
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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,
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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
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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.
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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
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 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 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) Iu 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 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
Citizens Budget 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-thirds vote requirement. These deficits increase year after year until
they equal many billions of dollars. Faced with these huge deficits,the Governor and Legislature
make massive cuts to education,health case, and transportation and raise billions of dollars in taxes.
These deep cuts and large tax increases would not have been necessary if responsible budget solutions
had 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 line on the
budget. -Ie-tubers of tiie L eg.slature should be accountable to their constituents,not to pasty leaders.
Cour 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 both 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 downturns and states of emergency,
which is essential for responsible budget management.
Section 3. Purpose and Intent
1. In order to make elected officials more responsible for the consequences of their actions, to
'_peep 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 fund 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 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) Delp 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 tact and other legislation from
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
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.
e) Ensure funds 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 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.
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2 The Budget Accountability Act will notchange Proposition 13's property tax limitations i A
any way. Tine Budget Accountability Act changes the legislative vote requirement for taxes to
55 percent only for the purpose of increasing taxes as part of the process of adopting the budget.
Section,;, Article W, suction 12 of the California Constitution is hereby amended to read as follows:
Sec. 11 (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 recon .+'ended ystate
,,ppexfpppend}.intureeyswvvand
�+�..e��.stimates)¢�{state revenues.
�+.+�If re�c�+oyn�m+e�mpen�.d�eyd P
ex—n,endntures -c-ed estimated revenues, the Go T emor shall recommend the sources from which.the
additional revenues should be provided.
(b) The Governer and the Governor-elect may require a state agency,officer or employee to
finrnsish whatever information is deemed necessary to prepare the budget.
(c) The budget shall he 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. er-as
(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 for any day after the June 15 deadline until a budget bill has been passed and sent to the
Governer. 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,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 rollcall vote entered in the journal,two thirds
of the membership concurring.
690) Notwithstanding vection 3 ofArticle AllIA 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 parsed in each
house by rollcall vote entered in the journal,fifty-five percent of the membership concurring, to take
effect immediately upon being signed by the Governor or upon a date species in the legislation.
Nothing in this subdivision shall affect the vote requirement for appropriations for the public schools
contained in subdivision (e) of this Section and in subdivision (b) of Section 8 oaf°this Article.
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(2) Tax and other bills related to the budget bill shall consist only of balls identified as related
to the budget in the budget bill passed by the Legislature.
(3) Tax balls related to the budget bill shall include hills 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 realproperty, or sales or transaction taxes on the
sales of real property may be imposed.
(g) No officer, 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 f le 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 hese 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 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 Article MIB,
unless the,Reserve Fund equals 5percent or more of General Fund expenditures for the fiscalyear
immediately preceding that fiscalyear. 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 frons the fund may only be usedfor these
purposes and may not be used to increase expenditures. Notwithstanding Section S of Article XM,
contributions to the fundshall 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.
Section 5: Section 9082.8 is hereby added to the Elections Code to read as follows:
9082.8 The State Controller, in consultation with the Department Of Finance and the Legislative
Analyst's Ofte, shall prepare a budget summary explaining how state funds are spent, not to
exceed two printedpages, which shall be published in the state ballot pamphlet sent to waters 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 9518 is hereby added to the Government Cade to read as follows:
9518. For the purposes of Article II, section 1.2, subdivision (h) of the California Constitution,
`"current General Fund service levels"shall mean levels of service as of,lune 30 of the prior
fiscal year necessary to meet the constitutional, statutory, and contractual obligations of the
state adjusted,for population and cost of living as provided in Article MB, Section 8 of the
Constitution as of the effective date of this measure.
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Section 7: Severability
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 othervise 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.
Section 8: Amendment
By rollcall 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 Cade and Section 9518 of the
Govermnent Code to further 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 null
and void.
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. CALIFORNIANSfor
A Permanent Volution for California'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 State budgets. Here's how.
Hold Legislators accountable to pass a budget on time.
If the State 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.
Deform the budget process.
The vote required for the State Senate and Assembly to adopt the State budget and related tax
legislation is reduced from 2/3rds 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
the gridlock caused by our current system.
End political gridlock.
The Budget Accountability Act also provides the Legislative Ethics Committees of the Assembly
and State 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.
In the current political atmosphere, legislators are threatened and punished if they do not follow
the party lire. 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.
Force the Legislature to make the budget its top priority.
If the State Budget is not passers by the Constitutional deadline, 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.
Passing a responsible budget on time is the Legislature's most important job, but right now
legislators can work on other bills or even go on vacation while California's budget remains in
limbo.
Give voters the facts about the budget.
The official voter pamphlet sent to voters each statewide election will be required to contain a
summary explaining how the state spends the funds it receives and a website address where
voters can go to find out how their legislators voted on the budget.
To hold politicians accountable, voters should know how their money is being spent and who is
spending it.
Encourage fiscal responsibility.
The state is required to create a"rainy day" fund of 5% in years when revenues exceed the
amount needed to fund existing service levels. Expenditures from the reserve could be made
only when there is an economic downturn and revenues fall below existing program levels or for
expenses related to a disaster declared by the Governor.
The current constitutional requirement establishes a"reasonable and necessary"prudent reserve,
but no amount is specified. The Budget Accountability Act requires the Legislature to set aside a
"rainy day" fund of at least 5% in good times to have a cushion so that extreme budget cuts and
tax increases will be less likely in a wear economy.
To learn more about the Budget Accountability Act, please visit.
ww�v.bud�etaccountabilitynow.or .
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Endorsement List
American Federation of State, County & Municipal Employees, AFL-CIU
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
California 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
CALIFORNIANSfor
Centennial United Methodist Women
Central Coast Alliance United for a Sustainable Economy (CAUSE)
Center on Policy Initiative
The Citizenship Project
Coalition for Community Health
Coalition of California Welfare Rights Organizations
Coalition of Labor Union Women, California Capitol Chapter
Committee of Interns and ResidentsfSEIU 1957
Communications Workers of America, Local 9575
Communities Actively Living Independent and Free
Community Alliance for a Fair Economy
Congress of California Seniors
Consumer Federation of California
Contra Costa Central Labor Council
Councilmember Mary Lou Zoglin, City of Mountain View
Councilmember Nora Campos, City of San Jose
El Camino College Federation of Teachers
Esperanza Community Housing Corp
Faculty Association of California Community Colleges
Families to Amend California's Three Strikes Law (FACTS)
Gardena Valley Democratic Club
Golden State Mobile/Manufactured Homeowner's League
Health Access California
Health.Care for All
Housing California
Human Services Alliance of Los Angeles
ILWU Northern California District Council
Imperial Counties Labor Council, San Diego
Interfaith Coalition for Immigrant Rights
CALIFORNIANSfor
State Council of H.E.R.E.
Teamsters Union
United Farm Workers
Vote Health
Women's International League for Peace & Freedom - Fresno
*Partial List
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,Los Angeles Times —May 22, 2403
GEORGE SKELTON CAPITOL JOURNAL
By Digging In on 'Faxes, GOP
May Dig Its Grave
George Skelton
May 22, 2003
Sacramento
Listen closely,and that hissing in the Capitol over taxes may be the sound of Republicans
cooking their own goose.
This small band of rigid ideologues may be in the process of doing in the only thing that 1
currently makes them relevant in Sacramento; the two-thirds vote requirement for passage
of a budget or a tax increase.
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The issue has been simmering and may be ready for voters,
"It's a very unusual moment because voters are so ticked off at the Legislature for this
constant,year-after-year budget logjam,"says Democratic political consultant Gale
Kaufman.
Kaufman is coordinating a coalition----mainly labor unions---that is preparing a ballot
initiative to lower the two-thirds requirement to 55%. California voters---53,4%of them
— approved a similar measure for local school bonds in 2000.The new proposal is
targeted for the March 2004 ballot,when sponsors hope a hot Democratic presidential
primary will,attract a good turnout of liberal voters.
The coalition's cause will receive a huge boost from.GOP legislators if they continue to �
thwart budget talks by refusing to consider a tax increase.
If there's no budget by August,state government is likely to run out of cash.Employees
may have to work for the minimum wage.Vendors won't be paid.Teachers will be laid
1 off.
And voters may be ready to toss the two-thirds rule into the garbage.
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Hardly anybody, except a few hidebound Republicans,really believes a S38-billion
budget hole can be patched without a tax hike. Even if it could,neither Democrats nor
most Republicans would cut that deeply- denying artificial limbs for poor people, adult
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Lohuizen,who normally works for Republicans but has been hired by the labor coalition.
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11 "The public has become more anti-politician but not more anti-tax," Lohuizen says. "The
j anti-politician attitude goes well beyond the governor to the entire Legislature."
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Like the public has trouble with hires who consistently can't get their work done on time.
� So the initiative sponsors are sweetening the pot nri
or voters with these two goodies:The ;
governor and legislators must forfeit their salaries for each day the budget is late.And
after the deadline, no other bill can be acted on until a budget is passed. y
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This may be very tempting for voters.
Republicans need to ask themselves which is worse:raising some taxes or losing all their :
relevance—and maybe their summer pay.
If you want other stories on this topic,search the Archives at iatimes.comtarchives.
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Peter Schrag; Budget reform --
Harnessing the power of disgust
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By Peter Schrag - Sacramento Bee Columnist - (Published
March 19, 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.
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The proposed Budget Accountability Act obviously belongs to the second
category. Its initial sponsors, including the Service Employees International �l
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 go 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 live 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 r_ still a supermajority, but one more easily attainable than the
number that's helped block and delay California budgets year after year. It
would set the same 55 percent margin for lowering taxes. Because that now
takes only a simple majority, the resulting ratchet effect has left the state
with ever more tax loopholes.
* If a budget were not passed by the June 15 constitutional budget deadline,
prohibit the governor and members of the Legislature from being paid or
receiving any per diem 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.
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.* Prohibit legislative leaders, committees and other members from punishing
or threatening legislators for their votes on the budget bili and related tax
measures. It would require a public ethics committee report on the complaint
of any member who reported such threats.
Of all those provisions, the last is the most dubious. Although former state f
GOP chairman Shawn Steel last year threatened a recall against any party
member who voted for a tax increase (Steel was subsequently censured by
his party for it;, the line between the legitimate exercise of party discipline
j and threats and punishment is a thin one. And without party discipline, a
concerted action is often difficult.
But there's no doubt that thero osal addresses major elements in a bads
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broken fiscal system that, among other things, has driven the state's credit
into the tank. California is one of only three states in the country that
requires a two-thirds vote to enact a budget.
That provision, which gives any determined political minority the power to
block budgets and thus shake down the majority, is an ideal device for the
governor and legislators-to duck responsibility. It often makes it impossible
for voters to determine who's accountable for delays. The price for ending
the shakedowns, moreover, can be a lot of pork spending that hardly anyone
wants.
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In any case, why should every No vote be worth two Yes votes? Last year
voters reduced the margin required to pass local school bonds from two-
thirds to 55 percent. That's hardly a magic number -- nearly all other states
require just a simple majority.
But it's absurd to make it harder for legislators to pass a one-year budget
than for voters to approve the 20-or 30-year commitment that bonds impose
on future generations.
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California's major Taxpayer organizations are almost certain to oppose it.
There are also reports that some legislators were apoplectic when they
learned that the measure would require publication of their voting records on
the budget in the ballot pamphlet.
Those votes are already matters of public record, but the reaction still
demonstrates how some politicians rely on confusion and ignorance in doing
their business. You can count on the proponents to make the most of that.
But the biggest factor in the sponsors' campaign is likely to be that public g
frustration. It's usually the groups that sponsor conservative measures that
rely on voter frustration. If it succeeds it will be the first time in many years
that voters will have opted for legislative accountability instead of shackles.
The leaders in the effort, Dean Tipps of the SEIU and Anthony Wright of
Health Access, are just beginning to assemble the coalition of unions, good
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campaign. The war could kill it; voter disgust could make it.
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About the Writer
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Peter Schrag can be reached at Box 15779, Sacramento, CA 95852-0779 or at
P—schraq@sacbett.com.
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Mercury News Editorial
Posted on Tue, Apr. 29, 2003
Haw to break the budget deadlock
(MAJORITY RULE IS THE PROCESS ALMOST EVERYWHERE EXCEPT CALIFORNIA;AN
INTITIATIVE COULD FIX THAT
Mercury News Editorial
CONSIDER a radical idea: Enable a mere majority, not two-thirds, of the California Legislature
to pass a budget.
Then consider how completely un-radical it is. Majority rule is good enough for Congress to
approve the federal budget. Mai ority rule is good enough for all but two other states.
:Majority rale ought to be the rule for the California budget also.
Only voters can amend the 70-year-old provision in the state Constitution to lower the threshold.
They might get the chance, perhaps in March 2004. An initiative, the Budget Accountability Act,
is being prepared to reduce the necessary vote to 55 percent. The groups backing it, labor unions
in particular, have the money to gather enough signatures to qualify it.
The impact would be simple. Unless the.Legislature were divided almost equally between
Republicans and Democrats, the majority party could pass a budget without any votes from the
opposition. The perpetual budget gridlock, a partisan tussle that last year stretched past the July 1
deadline into September, would be a thing of the past.
The party that Californians put in power would be obligated to write a budget, and could not
avoid taking responsibility for it. No longer could it blame a lousy budget on the necessity of
accommodating the unreasonable demands of the minority in order to win two-thirds approval.
The initiative also proposes to cut legislators`pay if the budget is late. It would require a 5
percent reserve in flush years, to set aside money for bad years. 'While those reforms may be
useful, what is essential is to louver the threshold to pass a budget.
Of course, one of the checks on majority party power would evaporate. A party holding the
governor's office and both houses of the Legislature, as the Democrats do now, would have a
much freer hand to do as,it wished..
Democrats will wish to raise taxes, say Republicans. And there is certainly reason to suspect that
the groups promoting the initiative --public employee unions and public advocacy organizations
such as Health Access-- would like the current Democratic Legislature to be able to pass a
budget without obstruction from anti-tax Republicans.
But Democrats would,hold no more power in Sacramento than Republicans in Washington do
now. If Democrats raised taxes willy-nilly, and voters hated it --well,that's what elections are
for.
To judge by recent budgets, California's two-thirds requirement functions less like a wall against
recklessness and more like an open door for partisan gamesmanship and evasion of
responsibility. To make a better budget,make it easier to pass one.
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Sunday, May 1', 2003(SF Chronicle) '
Bat`rowing billions to ease the pain k
GET OUT your credit cards, California. The state budget shortfall a
record $35 billion and rising -- has pushed forward a slippery strategy y to
borrow heavily and flip the bill to future taxpayers.
Desperate times breed desperate measures. Put another wa
p p y, no serious idea
should be ruled out as Sacramento struggles to pay this year's final few months and
next year's expenses. f
About$7 billion in cuts were adopted last week, a mere dawn payment on
the budget problem. republicans, who vowed no new taxes, are now drifting ,
back to the bargaining table, sounding much like borrow-happy Democrats.
Bowing to reality, both parties want to float a $10 billion bond to pay
off immediate bilis, There are major differences between the two borrowing schemes.
The GOP would pay bond costs out of present taxes while Democrats want a
half-cent higher sales tax.
But it's the same game. Get through this patch, fend off the bill collectors, and hope it
all resolves itself in time. Built into both plans is an improbable hope that a rising
economy will rake in enough tax money tomorrow, next week or next year.
Rolling over the debt papers over the weaknesses in each side's arguments.
The GOP promises to protect education and health from major cuts. Party
leaders also drop the $35 billion deficit figure for this year and next to
$27 billion, claiming the bigger number anticipates higher spending than
needed.
Forget new taxes, float the $10 billion bond figure and freeze future
spending, say republicans. As the economy revives, all will be well.
But it may not work out that way. A growing population produces more k
students to educate from kindergarten through college. More jobless and t
sick Californians will ask for state help. These numbers can't be frozen
or stopped.
Democrats are in their own bind. Much as they want to avoid cuts, many are
inevitable. In addition, rolling over debt to future years won't be
pain-free or legally bulletproof. A half-cent sale tax increase--raising
the burden to 9 percent in San Francisco --to pay for the bonds may be #
challenged in court by anti-tax groups.
And don't forget that any higher levy--such as restored vehicle license
fees or higher income taxes --could be just the spark needed by the
doddering recall effort aimed at Gov. Gray Davis.
A huge bond measure can't be rejected out of hand. But the public needs to
know where California is headed. Will this year be a rerun of last year
when cookie jar accounts were raided and smaller sums borrowed to lash
together a budget?
he state's rickety taxation system needs overhauling. A two-thirds margin
to pass a budget has proved a recipe for delay and gridlock; year after
year. Proposition 13 has proved a windfall for commercial property owners
and a burden for new home buyers. The state's basic tax structure is
highly sensitive to even minor spikes and downturns in the economy.
A borrowing binge may work today, but where will it leave California in j
the future? California legislators, while tackling the short-term mess,
also need to address the structural problems that contributed to it. a
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, s
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CALIFORNIANSior d
jThe Budget Accountability Act is a comprehensive reform package designed to
end state budget gridlock, stop the annual political posturing in Sacramento,
and deliver a timely and responsible state budget.
Yes! I support holding, the California Legislature and the Governor more
ac
countab€e to a fair and on-time state budget. Add me and/or my
organization to the supporter list for the Budget Accountability Act. '
Please fax this form to 916-441-2653.
Official Endorsement
You can use our name in support of the Budget Accountability Act slated for
the March 2004 ballet. Please check boxes below.
C3 Please list my organization as a member of
Californians for Budget Accountability
Q Please list my name as an individual member of
Californians for Budget Accountability
Organizational Name (print)
Your Name fz Signature
Organization
t
Mailing Address
City state zip code
Telephone Fax
Email
I can also help in the following ways:
® Distribute materials 0 Send a letter to employees/members/others
0 Speak at local press events :1 Place a newsletter article
CI Sign a tetter-to-the-editor C] Other help
For more information about the initiative, please call 916-443-7817
Sample Resolution Endorsing the 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
hereby endorses the Budget Accountability Act.
Date Signed by
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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 end budget gridlock and allows voters to hold their legislators
accountable.
Q: What will the Budget Accountability Act do?
Require the legislature to stay in session until the budget is done.
• Hold legislators and the Governor accountable by withholding their pay if the fail to meet
the constitutional deadline for passing the budget.
a Require a 55% vote to adopt the budget and any related tax legislation.
• Create a"rainy day„reserve fund to protect services in bad times.
o 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
z:
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 diem expense allowance and
other payments for each day until 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 1
emergency declared by the Governor.
Q: How will the Budget Accountability Act encourage fiscal responsibility?
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.
Q: How will the Budget Accountability Act help voters hold politicians
accountable?
A: The Budget Accountability Act would require the Official Voter Information Guide that is
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
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 i
threaten to punish any legislator for casting a particular legislative vote. Legislators have been
punished for not towing the party line. This provision will give legislators the freedom to make up
their own minds on the state budget. 1
Q: How will the Budget Accountability Act end California's budget crisis year after --
year?
1=
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A: Currently, California is one of only three states to require a two-thirds majority vote on the
budget(Arkansas and Rhode island are the other states). The two-thirds requirement creates
gridlock because it's so difficult to get that many legislators to agree. The Budget Accountability
Act would require a 55%vote of the California Senate and Assembly to adopt the state budget f
and related tax legislation. This maintains the requirement of a broad consensus on the budget i
but stops small groups of Legislators from holding all Californians hostage each budget cycle.
Q: How will the Budget Accountability Act protect jobs and services?
A: The Budget Accountability Act is a major step toward leveling the paying field for working
families. It allows us to hold politicians accountable--both Republicans and Democrats—to
deliver a budget on time that provides adequate funding for critical services.
Q: Who has endorsed the Budget Accountability Act?
A: The Budget Accountability Act is supported by a wide range of individuals and organizations
including the League of Women Voters, Health Access and the California Teachers Association.
More groups are joining in support every day.
Q: Isn't this an attack on Proposition 13?
A: The Budget Accountability Act does not affect the Prop.13 limits on property tax increases. it
simply gives legislators the tools to do their jobs and allows voters to hold them accountable.
Q: Isn't this just a power play by Democrats so that they don't have to get bi-
partisan support for the budget and taxes?
A: The Budget Accountability Act holds all legislators accountable (regardless of their party
affiliation)for doing their jobs. No budget will be passed without a broad consensus as it requires
a 55%vote to pass the budget and.tax related legislation.
Q: What will the lower threshold mean for our state if Republicans become the
majority?
A: That's the democratic process. If voters decide to put a majority of Republicans in charge,
they will still need to get 55% of all legislators in the state Assembly and the Senate to pass the k
budget and related tax legislation and they will have to report to the voters on their decisions.
Q: How is a surplus defined that requires monies to be deposited into a rainy day
fund?
A: The Budget Accountability Act requires the Legislature to set aside a"rainy day„fund in good
times to protect services in a weak economy. They way it works is that once current service
levels are funded, the Budget Accountability Act would require the state to set aside 25% of
additional revenues until the reserve is 5% of the General Fund. The state could only dip into the
rainy day fund during an economic downturn or for expenses related to a disaster declared by the
Governor. "Current services levels"are defined as the constitutional, statutory, and contractual
obligations of the state.
Q: Won't forcing there to pass the budget on time mean that they might settle for a
bad budget just so that they don't lose their pay?
A: The Budget Accountability Act will give legislators an incentive to complete the budget on time
and to cast their vote as a representative of the people living in their district. The Budget
Accountabilitv Act will give voters the information they need to hold their elected official
accountable by including a summary of how California spends the funds it receives with a
website address where voters can see how their legislator voted on the budget and related
-- legislation.
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