TO: RULES AND OPEN FROM: Councilmember Cohen
GOVERNMENT COMMITTEE
SUBJECT: Oppose California Ballot Initiative
Constitutional Amendment 21-0042A1
DATE: 2/17/22
Approved Date 2/23/22
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RECOMMENDATION
1. Adopt a resolution expressing the City of San José’s opposition to California Ballot Initiative 21-0042A1, an Initiative Constitutional Amendment limiting the ability of voters, as well as state and local governments, to raise revenues for public services.
2. Direct the City Manager to draft a letter that conveys the City’s opposition to the initiative and distribute the letter to stakeholders.
BACKGROUND
The City of San José is beginning 2022 with serious challenges ahead of us, particularly as we look towards resuming services that were impacted by the pandemic and addressing long-term problems like homelessness and climate change. There is still great uncertainty about the city’s budget moving forward, and we need the flexibility to work with our residents to ensure we can meet those challenges and raise revenue for services and solutions. Now, however, that flexibility is threatened by an initiative that, if passed, would threaten local control and force cuts to the most fundamental City services.
Initiative 21-0042A1 has been deceptively referred to by its proponents as the “Taxpayer Protection and Government Accountability Act”; in reality, it will hurt taxpayers, diminish the quality of life for our residents, and rob voters of a voice in local spending decisions. In a time when cities are struggling to maintain local control, this initiative—bankrolled by some of California’s largest oil and banking corporations—would badly hinder local governments’ ability to serve residents and raise revenue. It puts billions of dollars in vital services on the chopping block—services like fire and emergency response, road infrastructure, parks, disaster preparedness, sanitation, services crucial to the safety and wellbeing of San José families—while also putting much-needed resources for our schools at risk. And by placing restrictions on local advisory measures, it seeks to limit taxpayers’ most fundamental right: the right to decide how they want their local tax dollars spent.
RULES COMMITTEE: 2/23/22
ITEM: C.1
RULES AND OPEN GOVERNMENTCOMMITTEE
2/23/2022
Subject: OPPOSE INITIATIVE 21-0042A1
Recognizing that Initiative 21-0042A1 would decimate services and infrastructure that residents rely on every day, the League of California Cities’ board voted unanimously to oppose the initiative two months ago. They have since been joined by a diverse coalition of organizations, including California Professional Firefighters, SEIU California, AFSCME California, the California Special Districts Association, and the California Alliance for Jobs, and they have called on cities to add their voices to the campaign to defeat this irresponsible and harmful initiative.
1 We recommend San José adopt the resolution and register formal opposition to Initiative 21-0042A1.
The Attorney General has prepared the following title and summary of the chief purpose and points of the proposed measure:
Title: Limits Ability of Voters and State and Local Governments to Raise Revenues for Government Services. Initiative Constitutional Amendment.
Summary: For n new or increased state taxes currently enacted by two-thirds vote of Legislature, also requires statewide election and majority voter approval. Limits voters’ ability to pass voter-proposed local special taxes by raising vote requirement to twothirds. Eliminates voters’ ability to advise how to spend revenues from proposed general tax on same ballot as the proposed tax. Expands definition of “taxes” to include certain regulatory fees, broadening application of tax approval requirements. Requires Legislature or local governing body set certain other fees. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: Lower annual state and local revenues, potentially substantially lower, depending on future actions of the Legislature, local governing bodies, voters, and the courts. (21-0042A1.)2
1 https://www.calcities.org/detail-pages/news/2022/02/02/public-safety-labor-local-government-and-infrastructureadvocates-announce-strong-opposition-to-california-business-roundtable-ballot-measure-that-would-benefitwealthy-corporations-while-decimating-vital-local-and-state-services 2 https://oag.ca.gov/system/files/initiatives/pdfs/Title%20and%20Summary%20%2821 -0042A1%29.pdf.