Prop 26: Increases Legislative Vote Requirement to Two-Thirds for State Levies and Charges. Imposes Additional Requirement for Voters to Approve Local Levies and Charges with Limited Exceptions.
Summary: Increases legislative vote requirement to two-thirds for state levies and charges, with limited exceptions, and for certain taxes currently subject to majority vote. Changes Constitution to require voters to approve, either by two-thirds or majority, local levies and charges with limited exceptions.
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Potentially major decrease in state and local revenues and spending, depending upon future actions of the Legislature, local governing bodies, and local voters.
CCRC endorses a ‘NO’ vote on Prop 26
Again, addressing the California budget crisis at its root causes is one of CCRC’s highest priorities. CCRC strongly opposes Proposition 26. Currently, California defines fees imposed on companies for environmental harm or harm done to public health as regulatory fees. Prop 26 would redefine these and consider them taxes instead. Since taxes, unlike fees, require a two-thirds vote for approval, it would be much more difficult for state and local governments to secure such payments from companies selling or using harmful products or creating public nuisances. CCRC opposes Proposition 26 because we believe that decisions on all revenue measures should be made by a simple majority vote and that the imposition of two-thirds super majority votes is what has caused California’s budget crisis in the first place. This initiative would likely cause a reduction in monies available to the state, thereby exacerbating the current deficit. Californians would likely see even more cuts in our services and programs.