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California
Church IMPACT
March 2, 2004 Primary Election
Ballot Proposition Recommendations
The
positions listed below represent the decisions of the Board
of Directors of California Church IMPACT. While Board members
come from various member denominations, their views do not
necessarily represent their denomination's position on specific
recommendations.
Proposition 55
The Kindergarten-University Public Education Facilities Bond
Act of 2004.
This bond act provides $12.3 billion for education facilities
at all levels to end overcrowding and repair older schools.
$10 billion will be for K-12; $2.3 billion for higher education.
This fund is more flexible in targeting educational facility
needs than are local bonds and revenue sources. It will substantially
improve the educational infrastructure, much of which has
been long neglected, especially in inner-city areas where
the need for quality educational facilities is greatest. Because
it provides for specific improvements in schools, it generates
social wealth that contributes to the growth and improvement
of our state and society. This is a social good for our children
whose education depends in part on quality environments in
which to learn. Bonds for actual value contribute to the well-being
of our economy. Thus, we support this bond measure to support
our educational infrastructure.
WE RECOMMEND A “YES” VOTE.
Proposition 56
State Budget, Related Taxes, and Reserve, Voting Requirements,
Penalties, Initiative Constitutional Amendment and Statute.
This initiative will reduce the vote needed to pass the budget
and tax legislation from the current 2/3 "supermajority"
to 55%. Only two other states, Rhode Island and Arkansas,
have this requirement, and the majority of states provide
for a simple majority. Legislators will be held accountable
for passing budgets by the constitutionally-mandated deadline
of June 15 or will permanently lose all pay, benefits, and
perquisites for each day the budget is late. Legislators will
also be unable to leave town or engage in any business other
than passing the budget if they miss the constitutional deadline.
In addition, this initiative requires a strong "lockbox"
budget reserve that sets aside a significant portion of budget
surplus that can be used only by declared emergency or to
protect residents in years of real budget shortfalls. California
Church IMPACT has supported this measure from the outset as
a way of ending the gridlock and expansion of costs to taxpayers.
Studies have indicated that the wanton politics of vote-getting
to obtain the 2/3 majority contribute to increased spending
rather than reducing it. Deal-making has not produced an on-time
budget for California since 1986. Late and irresponsible budgets
cost the state in lost federal revenues, additional spending
for 'pork' to get votes, and crises in programs and for small
business vendors that have to borrow to cover their costs
until the budget is done. Worries about wanton tax increases
are not realistic since the governor retains a line-item veto
against any portion of the budget.
Proposition 56 offers California a more rational budget process
than we now have. Currently the votes for and against the
budget are politically structured and are not easily discovered
by constituents. Votes on the budget will become matters of
public record for which legislators will be accountable. More
importantly, votes will reflect members' conscience and citizens'
preference rather than demanded as evidence of party loyalty
obtained by coercion and threat. It is considerably past time
for California to have a rational mode of budget accountability.
We strongly support this initiative.
WE RECOMMEND A "YES" VOTE.
Proposition 57
For Proposition 57 to pass, Proposition 58 must also pass.
The Economic Bond Recovery Act
This proposition authorizes a one-time bond permitting borrowing
of up to $15 billion. Ostensibly it is to cover the deficit
incurred in 2003 from last-minute shortfalls that did not
meet existing state obligations and the hole left from the
decision not to reinstate the 1998 levels in the vehicle license
fee. As a compromise measure supported by members of both
parties plus the governor, this bond will cost far less than
the original 30-year proposal.
Partly financed by a revenue stream comprised of 1/4 cent
from the existing sales tax (with no tax increase) it will
be repaid over 15 years rather than the 30 years originally
proposed. Nevertheless, it will cost nearly double its face
value with the debt service being extracted from social and
educational programs. It is a moral challenge for people of
faith to oppose this bond since the risk is that the revenue
gap will also be extracted from those programs. However, support
for the bond sets a dangerous precedent of borrowing to cover
what has already been spent and that creates no new value.
The state therefore will be paying $30 billion for 15 years
to fill the $8.9 billion hole left in the 2003 spending and
the $3 billion lost from restoring the VLF.
We urge people of the faith community to work for a genuinely
fair budget with taxes on upper incomes restored to 1998 levels
and a renewed look at removing special interest deductions
among other alternatives. It is time that the solutions to
our fiscal crisis truly 'share the pain' rather than placing
the burden exclusively on those in need by burying their survival
programs under mountains of debt.
WE RECOMMEND A "NO" VOTE.
Proposition 58
For Proposition 58 to pass, Proposition 57 must also pass.
The California Balanced Budget Act.
This proposition offers much less than it first appears. It
requires the state to create a balanced budget, and, like
Proposition 56, to establish a 'rainy day fund.' The end result
is to prevent the issuing of general deficit bonds such as
that in Proposition 57 in the future. However, there are numerous
loopholes and weaknesses according to the Legislative Analyst's
Office (www.lao.ca.gov). The reserve, or Budget Stabilization
Account, is larger than those previously proposed, but the
BSA has no "lockbox" protections at all. The governor
can prohibit putting funds into the BSA for any reason while
the Legislature and Executive can withdraw them for virtually
any reason. Also, it is intended that portions of the BSA
will be directed toward repayment of the existing bond, but
all the funds can be spent immediately on the heels of being
saved for any reason at all. Borrowing of long-term bonds
will be prohibited, but borrowing of short-term funds or between
state funds (robbing Peter to pay Paul) will in no way be
restricted. The state constitution already prohibits long-term
borrowing without voter approval, so that increased short-term
borrowing would be a constant risk. This measure provides
no genuine protections for either a balanced budget or for
a genuine reserve.
WE RECOMMEND A "NO" VOTE.
_________________________________________________________
SUMMARY OF CALIFORNIA CHURCH IMPACT POSITIONS
March, 2004 Ballot Propositions
Proposition 55 YES
Proposition 56 YES
Proposition 57 NO
Proposition 58 NO
As
of January 1, 2003, all Legislative News Alerts will be sent
electronically, with the exception of Ballot Recommendations,
which are printed and mailed. Please send us your e-mail address
so that we may keep you up to date on legislative issues.
Send your name, address with ZIP, and e-mail address to: impactinfo@calchurches.org
Thank you!
California Church IMPACT’s Ballot Proposition recommendations
are among the most respected and sought-after guides in the
state. We freely give permission to reproduce and distribute
the print or electronic versions as you wish. Please help
us continue to provide this service and our other programs
to advocate for California’s most vulnerable citizens!
Send your contribution today to California Church IMPACT,
2715 K St. Suite D, Sacramento CA 95816. Because we use these
funds for advocacy, contributions are not tax-deductible.
Thank you!
If you have further questions, please feel free to contact
us.
Elizabeth Sholes
Public Policy Coordinator
California Council of Churches/California Church IMPACT
2715 K Street, Suite D
Sacramento, CA 95816
(916) 442-5447
(916) 442-3036-FAX
www.calchurches.org
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