Tag: public funding

Money Measures and the November Ballot

Earlier this year, we looked at how voters responded to the 107 money measures on the June ballot. The November election featured a considerably larger number of taxes, bonds, and fees: local governments asked voters to make decisions on 397 money-related questions, by our count. Most of these measures passed (314 or 79%), though success rates varied across types of taxation or borrowing.

Overall, most bonds passed (98 of 128), but the share of successful bonds for K–12 schools and community colleges (92 of 116, or 79%) was higher than the share of general obligation bonds in other spending areas (6 of 12, or 50%). Since Proposition 39 (which passed in 2000) lowered the passage threshold for school bond measures to 55%, more than 1,400 school bonds have been placed on ballots, and voters have approved more than 80% of them. Of the 92 school bonds that passed this year, 65 met the 55% threshold but fell short of a two-thirds majority.

Parcel taxes, California’s unique way of increasing property taxes in the Proposition 13 era, were the least successful type of taxes on the November ballot. However, voters did approve 60% of these measures (36 of 60), which is in line with their historical success rate. Most parcel taxes proposed by school districts passed (11 of 16, or 69%), while those placed on the ballot by fire districts were less successful (9 of 19, or 47%).

Through 2017, local governments had proposed 80 measures to tax cannabis businesses, generally based on gross receipts, size (measured in square footage), or some combination of the two. On the November ballot, there were 75 cannabis tax measures. As has been the case historically, voters approved the vast majority (69, or 92%).

Is California shedding its reputation as an anti-tax state? The fact that local measures have been successful nearly 80% of the time does not necessarily reflect voter support for taxes in general. According to recent PPIC Statewide Surveys, a majority of Californians feel that their tax burden is greater than it should be and see Proposition 13 as “mostly a good thing.” Also, savvy local leaders put money measures on the ballot only when polling or canvassing suggests the probability of passage is high.

A more precise interpretation of recent results might be that local governments have been very successful at identifying the type of taxes and purposes around which they can mount successful campaigns. Moreover, recent local measures have been put before voters during a period of economic growth. It will be interesting to see if they continue to succeed going forward.

Funding Measures and the June Ballot

Last week’s primary election garnered considerable statewide and national attention, with much of the focus on the governor’s race and contested congressional seats. Further down the ballot, however, voters were asked to decide on millions of dollars of local tax, bond, and fee initiatives. On the whole, these measures enjoyed considerable success across the state.

We found that Californians voted on 107 local tax, bond, and fee measures, representing the range of fiscal tools that local jurisdictions can use to raise revenue and borrow funds. Bond measures were the most popular, with 42 different local governments seeking voter approval (37 K–12 school districts; 2 community college districts; 3 cities). There were also 32 parcel tax measures; those related to K–12 schools (12) and fire/public safety (10) were most common. Ballots also included proposals to impose or increase taxes on cannabis (13) general sales (9), gross business receipts (2), and hotel stays (3). And there were proposals to raise utility fees (3), business license fees (1), and bridge tolls (1).

Most of the long list of funding proposals passed—but just putting a measure on the ballot did not guarantee success. Although counties are still counting some ballots, which could affect a race or two, at this time, we observe the following:

  • Overall, voters passed 76 of the 107 measures.
  • Of the 39 school bond measures, 30 passed. Proposition 39, passed in 2000, lowered the threshold for passing school bonds from a two-thirds majority to 55%. Had these measures been subjected to the previous standard, only 11 would have passed. The 19 measures approved under the current standard increased borrowing for investment in public schools by $1.8 billion.
  • On the heels of one of the states’ worst seasons of wildfires on record, California voters held the line on parcel taxes intended to support fire protection, with only 3 of the 9 measures passing.
  • All 13 of the cannabis tax proposals passed overwhelmingly.

California touched off a revolt against taxes 40 years ago. Primary voters in 2018 generally voted for increases but were relatively discriminating in their support, depending upon the type of tax and its intended purpose. This discernment comes at a time when the state’s economy is growing and unemployment is low. It will be interesting to see what happens in November, when we expect to see even more funding measures on the ballot.