Argument in Favor of Proposition 76

PROPOSITION 76 IS ONE OF THE CRITICAL REFORMS WE NEED TO CLEAN UP THE MESS IN SACRAMENTO!

YES on Prop. 76: Control State Spending

California’s budget system is broken. We have record deficits, unbalanced budgets, and out-of-control spending.

The politicians can’t say “no” to more spending. Since 1999–2000, the state has increased spending by twice as much as it has increased its revenue.

“California faces a budget crisis that needs to be resolved this year. The Governor’s reforms . . . can go a long way toward establishing and maintaining fiscal responsibility in the state.”

Contra Costa Times, April 3, 2005

Budget experts project next year’s budget deficit at $6 billion and annual deficits after that of $4–$5 billion. At that pace, the State will accumulate $22 to $26 billion in deficits over the next five fiscal years.

The choice is simple: Pass Prop. 76 or face higher taxes such as the car tax, income tax, sales tax, and even property taxes.

PROP. 76 IS THE BIPARTISAN SOLUTION THAT FORCES THE STATE TO LIVE WITHIN ITS MEANS:

• Limits spending to the average rate of tax growth of the past three years, so we don’t overspend in good times followed by huge deficits in bad times.
• Establishes “checks and balances”  to encourage the Governor and Legislature to work together. When tax revenue slows, the Legislature can cut wasteful spending to balance the budget. If the Legislature doesn’t act, the Governor can then cut wasteful spending, while protecting funding for education, public safety, and roads.
• Stabilizes K–14 education spending. By cutting wasteful spending and balancing the budget, we’ll have more funds to spend on what the state needs, without raising taxes.
• Stops the autopilot spending binge and holds the politicians accountable.
• Guarantees that taxes dedicated for highways and roads are spent on those projects and never again raided to balance the budget.

Unfortunately, Opponents of Prop. 76 Don’t Want Reform:

• They think deficits and gridlock are just fine in Sacramento.
• They will stop at nothing to defeat Prop. 76 and have spent millions for television ads to confuse voters.
• They use scare tactics, inaccurate statements, and outright deceit, like their claims that it will cut funds for law enforcement. It’s not true.

“Prop. 76 requires repayment of previously borrowed funds so we can build new roads and repair existing roads and it doesn’t reduce dedicated tax spending on local law enforcement.”

Alan Autry, Mayor of Fresno

“YES” on Prop. 76:

• Balance our budget without raising taxes.
• Promote bipartisan cooperation between the Legislature and the Governor.
• Eliminate wasteful spending and provide more money for roads, health care, law enforcement, and other important programs without raising taxes.

PLEASE VOTE “YES ON PROP. 76”—TO CLEAN UP THE BUDGET MESS IN SACRAMENTO.

GOVERNOR ARNOLD SCHWARZENEGGER

TOM CAMPBELL, Director
California Department of Finance

SANDRA L. McBRAYER
Former National Teacher of the Year

Rebuttal to Argument in Favor of Proposition 76

According to an analysis by two recent California Finance Directors: “Proposition 76 makes a mess of the state’s budget process and destroys our system of checks and balances. It slashes school funding, could force deep cuts in local services like health care and public safety, and gives the governor unchecked power over the budget—with no oversight or accountability.”

Prop. 76 wasn’t written by budget experts or taxpayer advocates. It was written by the president of a big business group that lobbies for tobacco, oil, insurance, and other special interests.

PROP. 76 DOESN’T “STABILIZE” SCHOOL FUNDING. It will cut school funding by over $4 billion a year and eliminate voter-approved school funding guarantees.

PROP. 76 DOESN’T STOP NEW TAXES. Even the president of the California Republican Assembly says Prop. 76 “actually encourages tax increases.”

PROP. 76 DOESN’T HOLD POLITICIANS ACCOUNTABLE OR ENCOURAGE BIPARTISAN COOPERATION. It destroys our system of checks and balances by giving the Governor unlimited power over budget decisions. He will be accountable to no one.

PROP. 76 DOESN’T END WASTEFUL SPENDING. The
Orange County Register calls its spending controls “phony.” While forcing cuts in education and public safety, Prop. 76 actually prevents cuts in programs like the California Dried Plum Board.

“PROPOSITION 76’s IMPACT ON PUBLIC SAFETY WILL BE DEVASTATING,” warns Ron Cottingham, president of the Peace Officers Research Association of California. “It strips local government of the funding needed for police and fire, health care, and other essential services.”

PROPOSITION 76 IS “PHONY” AND A “BAD IDEA.” VOTE NO.

BARBARA KERR, President
California Teachers Association

DEBORAH BURGER, President
California Nurses Association

LOU PAULSON, President
California Professional Firefighters

Argument Against Proposition 76

PROPOSITION 76 WILL CUT FUNDING FOR SCHOOLS, HEALTH CARE, POLICE, AND FIRE. It undermines our democratic system of checks and balances by giving the governor awesome new powers without any oversight. And it opens the door to higher taxes.

PROPOSITION 76 OVERTURNS THE MINIMUM SCHOOL FUNDING PROTECTIONS APPROVED BY CALIFORNIA VOTERS WHEN THEY PASSED PROPOSITION 98. Proposition 76 allows the Governor to permanently reduce school funding without a vote of the people.

Our students and schools lost three billion dollars when Governor Schwarzenegger broke his promise to repay the money he took from education. Proposition 76 “terminates the repayment requirement,” meaning the Governor will never have to return this money to our schools’ minimum guarantee.

Proposition 76 will permanently reduce the money schools will get by over $4 billion—$600 per student. That means teacher layoffs, larger classes, fewer textbooks, less classroom materials, poorly paid teachers, and overcrowded schools. Proposition 76 keeps California behind states like West Virginia and Kentucky in per pupil education funding.

PROPOSITION 76 DEPRIVES CITIES AND COUNTIES OF HUNDREDS OF MILLIONS OF DOLLARS IN STATE FUNDING NEEDED FOR POLICE, FIRE, AND HEALTH CARE. Incredibly, if a “fiscal emergency” is declared, this initiative requires funding be cut for vital services like education, health care, fire, and police, but actually prevents cutting “pork barrel” road projects.

PROPOSITION 76 ATTACKS CALIFORNIA’S SYSTEM OF CHECKS AND BALANCES BY PLACING TOO MUCH POWER IN THE HANDS OF ONE PERSON—THE GOVERNOR. Even if you trust this Governor, who knows what future Governors might do with this unlimited new power.

Under Proposition 76, any Governor could declare a “fiscal emergency” simply by having his own staff overestimate state revenues. Once a fiscal emergency is declared, the Governor would be free to cut vital programs without voter approval and without oversight.

Under Proposition 76, “The Governor could exercise any whim or impose any political vendetta,” warns the Los Angeles Times, which calls Proposition 76 “a really bad idea.”

THIS INITIATIVE ALSO GIVES STATE LEGISLATORS
NEW POWER TO MAKE MISCHIEF. Just 14 of 120 legislators could block passage of the budget indefinitely, putting government spending on autopilot. This could allow the Governor to declare a “fiscal emergency,” giving the Governor sweeping new powers to make state spending and budget decisions “at his discretion,” with absolutely no oversight or accountability.

CLAIMS THAT PROPOSITION 76 PREVENTS NEW TAXES ARE ABSOLUTELY UNTRUE. This initiative does nothing to prevent higher taxes. If it passes, the Governor and Legislature can raise car taxes, income taxes, or sales taxes without voter approval. Even the President of the California Republican Assembly says that Proposition 76 “actually encourages tax increases.”

CALIFORNIANS CAN’T AFFORD PROPOSITION 76. It will cut education, health care, fire, and police. It attacks our system of checks and balances. And it opens the door to higher taxes. Vote NO.

BRENDA J. DAVIS, President
California State PTA

HENRY L. “HANK” LACAYO, State President
Congress of California Seniors

WAYNE QUINT, JR., President
California Coalition of Law Enforcement Associations

Rebuttal to Argument Against Proposition 76

Opponents of Prop. 76—The Live Within Our Means Act—have a solution to California’s budget crisis:

Spend wildly, incur huge debt, and raise taxes to cover the deficits!

That’s how California ended up $22 billion in debt. California doesn’t have a revenue problem—it has a spending problem. We need Prop. 76 to fix our broken budget system.

Don’t be misled by outrageous claims that Prop. 76 will gut education spending or harm police and fire protection.

Education funding increased by a record $3 billion this year and now accounts for more than 50% of our general fund spending! Prop. 76 upholds existing state law that mandates education is the state’s #1 funding priority.

Prop. 76 will protect dedicated funds for highway and road construction.

“Prop. 76 will permanently protect law enforcement special funds so politicians cannot cut police and emergency services.”

David W. Paulson, Solano County District Attorney

Proposition 76 is real reform to ensure our state lives by the basic rule California families live by: Don’t spend more money than you bring in:

• Controls state budget growth by limiting annual state spending increases to average growth in revenue for the past 3 fiscal years.
• Stops autopilot spending that threatens our economic health.
• Establishes “checks and balances” for budget decisions. If the Legislature doesn’t cut wasteful spending when revenues drop, the Governor can—a similar provision to what previous California governors had for decades.

“YES on 76”—Balance the Budget Responsibly.

www.JoinArnold.com

SEBASTIAN EDWARDS, Ph.D., Professor of Economics
University of California, Los Angeles

ALAN BERSIN, Secretary of Education
State of California

JON COUPAL, President
Howard Jarvis Taxpayers Association

Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.