ballot measure

SACRAMENTO — Gov. Gavin Newsom and Democratic leaders of the California Legislature plan to approve a proposed constitutional amendment this week that would ask voters to give them more flexibility over state spending and allow them to save money that could otherwise go back to taxpayers.

The proposal seeks to exempt deposits into state savings accounts from a spending limit that voters adopted through a series of ballot measures dating back to the late 1970s and to increase the share of tax revenue that can be put into the rainy day fund.

“Putting money aside to protect ourselves from future uncertainties isn’t just good government; it’s common sense,” Newsom said in a statement. “California is strong and resilient, but we’re not immune to economic headwinds. At a time when our essential services are under pressure, we have a responsibility to safeguard the programs and investments that Californians rely on.”

Assembly Constitutional Amendment 20, which Democrats are calling the “Save for California’s Future Act,” could receive push back from taxpayer advocates.

Under an existing state appropriations restraint, also known as the Gann limit, lawmakers cannot spend more than an amount determined by a formula that takes into consideration annual tax proceeds and changes to the population and cost of living. Tax revenue above the limit must be divided between schools and refunds to taxpayers.

With few exceptions, the limit applies to most appropriations of tax revenue, including money that lawmakers tuck away into the rainy day fund and other reserves. California voters have also capped the amount of money lawmakers can set aside in the rainy day fund to 10% of general fund proceeds in a given year.

Since taking office, Newsom has argued that it doesn’t make sense for savings to count as spending under state law.

State budget revenue is subject to dramatic swings from year to year based on stock market activity. The law, Newsom has said, prevents the state from saving more money in good years to stave off cuts to programs in bad years.

The proposed changes would exempt deposits into the rainy day fund and a short term reserve, called the “Projected Surplus Temporary Holding Account,” from the state appropriations limit. The cap on the rainy day fund would grow from 10% of general fund tax revenue to 20%.

“Californians live by a simple, bipartisan truth: set money aside when times are good so you’re ready when they’re not,” Assembly Speaker Robert Rivas (D-Hollister) said in a statement. “The Save For California’s Future Act is what responsible leadership looks like — and future taxpayers will thank us for it.”

The measure could incentivize Democrats to save more money because funds tucked away in the rainy day fund would no longer be considered expenditures counted toward the spending limit. By allowing lawmakers to set aside more money that is not subjected to state spending limits, it could also allow them to hold onto money that would be returned to taxpayers under current law.

The measure is slated for a vote Thursday. If approved by two-thirds of lawmakers, voters will consider the proposal on the November ballot.

An effort to exempt new apartment buildings in Los Angeles from the so-called mansion tax moved forward Wednesday, amid concerns that the tax is suppressing housing construction and making the affordability crisis worse.

In a 9 to 5 vote, the City Council directed the City Attorney to draft a ballot measure that would ask voters to change Measure ULA, which funds subsidized housing construction and homeless prevention efforts by taxing nearly all property sales over $5.3 million.

Once the proposal is drafted, it must come back to council for a final approval to make it onto the November ballot.

Wednesday was the deadline for the council to take the vote and stay on track to make the ballot this fall, said Councilmember Katy Yaroslavsky, who introduced the proposal along with Councilmember Tim McOsker.

“We should protect what is working and fix what’s not,” Yaroslavsky told colleagues before the vote. “If we fail to act today, that door closes.”

The ULA tax, approved by voters in 2022, is known as the mansion tax but applies a 4% tax to nearly all properties — whether they are mansions or not — if they sell for more than $5.3 million, increasing to 5.5% for sales at or above $10.6 million.

Under the proposed ballot measure, the ULA tax wouldn’t apply to multifamily buildings sold within 10 years of construction. There would also be some more technical changes put before voters, including to allow ULA money to be spent on temporary housing for homeless people.

Since ULA passed, apartment construction in Los Angeles has plummeted. Some studies have found that the additional tax on property sales has played a big role in the drop-off by adding extra costs for developers.

That’s led to fears that the tax, in some ways, is making the affordability crisis worse by suppressing new supply.

A coalition of business groups and pro-development activists have been pushing the council to amend ULA, in part hoping that the effort will blunt another possible measure on November’s ballot that would cancel ULA and other similar taxes altogether.

ULA supporters, however, have fought the exemption for new construction and say that other factors — like high interest rates — are the reasons for the multi-year construction drop-off. They also point to a surge in new building during the first three months of this year to argue that it’s too early to know ULA’s long-term impact.

Also on Wednesday, the council, in a unanimous vote, directed the City Attorney to draft a separate ballot measure that would exempt homeowners impacted by the Palisades fire from paying the ULA tax for five years, retroactive to Jan. 7, 2025.

“ULA has been an impediment to the Palisades recovery, leaving properties sitting empty and people mired in tax and regulatory hell,” City Councilmember Traci Park, who represents Pacific Palisades, told colleagues before the vote. “We need to move forward with this exemption.”

Similar to the broader ULA changes, the Palisades changes must receive a second council approval to make the ballot.

SACRAMENTO — A ballot measure that would require Californians to show identification every time they vote in person, or use a special pin number when submitting mail-in ballots, has qualified for the November ballot, elections officials announced Friday.

The measure also would require election officials to verify registered voters are U.S. citizens, aligning with a Republican-led push for new restrictions on voters in the wake of President Trump’s baseless claims that the 2020 election was stolen from him, and that undocumented immigrants are swaying elections by voting illegally.

Republican Assemblymember Carl DeMaio from San Diego has been pushing the measure for several years, while Trump and Republicans also are seeking a similar initiative at the federal level.

If passed, the California ballot measure would require a voter to present government-issued identification, such as a state driver’s license, every time they vote. Voters mailing ballots would be required to write a four-digit number, essentially a pin number, on their ballots matching the one generated when they registered to vote.

The pin would come from ID such as a driver’s license, or could be generated from the county. The vast majority of Californians mail in their ballots in elections.

Under the measure, election officials also must ensure that registered voters are U.S. citizens by using information from government records, which could include information in the federal Social Security Administration database, and maintain accurate voter registration lists.

DeMaio said the measure is different than a federal proposal, known as the SAVE Act, which stalled out in the U.S. Senate this week.

DeMaio said the state ballot measure “does not do away with mail in ballots, because voters of all political backgrounds like the convenience of mail in ballots. So we want to keep that convenience.”

The ballot measure needs a simple majority to pass.

Under current law, Californians are not required to show or provide identification when casting a ballot in person or by mail. They are required to provide identification when registering to vote, and must swear under penalty of perjury, a felony, that they are eligible to vote and a U.S. citizen.

Jenny Farrell, executive director of the League of Women Voters of California, told the Times that her group is committed to fighting the measure, arguing it would make it harder for people in the state to vote.

She said that people may forget to use a pin on their mail-in ballot, leading to their vote being disqualified. Similar changes in Texas, she said, led to a rise in rejected ballots due to technical errors.

“It doesn’t really weed out illegal voting,” which doesn’t actually exist, she said, “but it does cause more ballots to be incorrectly flagged and ultimately rejected.”

ACLU of Northern and Southern California, Common Cause, Disability Rights California also oppose the measure.

DeMaio filed for the ballot initiative in 2021 and 2023, but did not move forward with the signature collection process in order to fine-tune the ballot language.

He said his ballot measure wasn’t focused primarily about making sure that undocumented people don’t vote.

“That’s one element of concern that we’ve heard from some groups, but it really is making sure that, number one, we properly maintain our voter rolls,” he said.