Tuesday, June 5, 2018

Prop 70: CFRW recommends a NO vote

Prop Spotlight: Prop 70 - Vote Requirement to Use Cap and Trade Funds Amendment

The CFRW Recommends a NO Vote

Ballot Title: Requires Legislative Supermajority Vote Approving Use of Cap-and-trade Reserve Fund. Legislative Constitutional Amendment

Ballot Summary:

  • Beginning in 2024, cap-and-trade revenues will accumulate in a reserve fund.
  • These cap-and-trade revenues cannot be used unless the Legislature authorizes such use by a two-thirds majority.
  • On the effective date of any such authorization, the requirement that new revenues accumulate in this reserve fund will expire.
  • Suspends certain tax exemptions, including for equipment used in manufacturing and research and development, beginning in 2024, until the effective date of any such authorization

Background

AB 32 was passed in 2006. It created California’s Cap and Trade program, whereby the California Air Resources Board monitors and regulates the greenhouse gas emissions of businesses with the goal of 1990 levels by 2020. Last year, the legislature passed AB 398 to extend Cap and Trade to 2030, giving CARB regulating powers once more. AB 398 needed a 2/3rds vote in each chamber to pass. A deal was struck and 8 Republicans (7 Assembly members and 1 Senator) voted for the extension of Cap and Trade in exchange for a repeal of the Fire Tax (until 2031) and Prop 70 being on the June ballot.

Talking Points

  • Prop 70 is a straw man. The “if we don’t pass it, we might get something worse” argument doesn’t work here. This was a bad deal that a few Republicans made, allowing three vulnerable Democrats to vote against the Cap and Trade extension.
  • There is no guarantee that the Cap and Trade funding will be allocated in any way that benefits taxpayers. There is also no guarantee that it will not be sent to fund the High Speed Rail project.
  • Again, there is also no guarantee that a 2/3rds vote in both chambers will be a bi-partisan vote. Republicans are currently in the super-minority, so a measure like this would do nothing to protect taxpayers or provide bi-partisanship.
  • It is time for Californians to stand up to the legislative Democrat bullying. This deal was made with broad Democrat support, and now virtually every legislative Democrat except Governor Jerry Brown opposes it. The Republicans who made this deal were duped. This might sound like enough reason to support Prop 70, but a message should be sent to Sacramento. Duplicitous back-room deals should not be tolerated from EITHER party.
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Official CFRW Positions

  • Prop 68: NO
  • Prop 69: NO
  • Prop 70: NO
  • Prop 71: YES
  • Prop 72: YES
June Ballot Measures

Proposition 68: California Parks, Environment, and Water Bond- would issue a $4 billion general obligation bond, with a 3.5% interest rate over 30 years, bringing the bill to the taxpayers up to $6.4 billion total. The CFRW says vote NO.

Proposition 69: Transportation Taxes and Fees Lockbox and Appropriations Limit Exemption Amendment- states that Senate Bill 1 revenue from diesel taxes will be placed in a “lockbox” and used only for transportation fund purposes. The CFRW says vote NO.

Proposition 70: Vote Requirement to Use Cap and Trade Funds Amendment- would require a one-time vote in 2024 by a 2/3rds legislative majority to allocate state Cap and Trade program revenue. The CFRW says vote NO.

Proposition 71: Effective Date of Ballot Measures Amendment- changes the date for when voter approved ballot measures take effect from the day after the election to the fifth day after the Secretary of State certifies the election. The CFRW says vote YES.

Proposition 72: Rainwater Capture Systems Excluded from Property Tax Assessment- would exclude any new rainwater capture structures from property value tax reassessment from counting as a new structure. The CFRW says vote YES.

If you would like ALL the talking points for each proposition, please email our Advocate at advocate@cfrw.org.
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