Prop 22: Prohibits the State from Taking Funds Used for Transportation or Local Government Projects and Services.
Summary: Prohibits the State from shifting, taking, borrowing, or restricting the use of tax revenues dedicated by law to fund local government services, community redevelopment projects, or transportation projects and services. Prohibits the State from delaying the distribution of tax revenues for these purposes even when the Governor deems it necessary due to a severe state fiscal hardship.
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Significant constraints on state authority over city, county, special district, and redevelopment agency funds. As a result, higher and more stable local resources, potentially affecting billions of dollars in some years. Commensurate reductions in state resources, resulting in major decreases in state spending and/or increases in state revenues.
CCRC remains Neutral on Prop 22
Proposition 22 would provide additional stability in funding for local government, which is important. While we recognize that local governments have been acutely affected by the government’s inability to raise revenues as a result of Proposition 218 and other initiatives, this proposition does little to address the ability to support local government’s critically important services. It imbeds virtually unchangeable law into the constitution that further restricts the legislature’s ability to manage the budget. “Ballot-box budgeting” has consistently restricted the Legislature’s ﬂexibility to oversee the State budget and has contributed to the state’s persistent budget shortfalls. To the extent this trend continues, including Proposition 22, the Legislature will be left with extremely limited discretion to address budget shortfalls. CCRC would prefer a broader solution to local and state funding obstacles and thus remains neutral on the proposition.