California Proposition 1A (2004)
Encyclopedia
Proposition 1A was a California ballot proposition
on the November 2, 2004 ballot. The proposition successfully passed with 9,411,198 (83.7%) votes in favor and 1,840,002 (16.3%) against.
The proposition
is intended to protect revenue
s collected by local governments
(cities, counties, and special districts) from being transferred to the California state government
for statewide use. The provisions may be suspended if the governor
declares a fiscal necessity and two-thirds of the California State Legislature
approve the suspension. It did not take effect until 2006.
Proposition 1A was added to the ballot by the California Legislature
as a state-sponsored compromise to take the place of the initiative-drawn Proposition 65
on the same ballot. It was passed by the California Assembly
by a vote of 64-13. It was approved by the California State Senate
by a vote of 34-5. Proponents of Prop 65 negotiated with state officials to draw up the provisions of Proposition 1A. The former proponents then dropped their support for 65 in favor of 1A.
California ballot proposition
In California, a ballot proposition is a proposed law that is submitted to the electorate for approval in a direct vote . It may take the form of a constitutional amendment or an ordinary statute. A ballot proposition may be proposed by the State Legislature or by a petition signed by members of...
on the November 2, 2004 ballot. The proposition successfully passed with 9,411,198 (83.7%) votes in favor and 1,840,002 (16.3%) against.
The proposition
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
is intended to protect revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
s collected by local governments
Local government in the United States
Local government in the United States is generally structured in accordance with the laws of the various individual states. Typically each state has at least two separate tiers: counties and municipalities. Some states have their counties divided into townships...
(cities, counties, and special districts) from being transferred to the California state government
Government of California
The government of California operates in the context of a democratic republic with three branches of government: the executive branch consisting of the Governor of California and the other elected constitutional officers; the legislative branch consisting of the California State Legislature which...
for statewide use. The provisions may be suspended if the governor
Governor of California
The Governor of California is the chief executive of the California state government, whose responsibilities include making annual State of the State addresses to the California State Legislature, submitting the budget, and ensuring that state laws are enforced...
declares a fiscal necessity and two-thirds of the California State Legislature
California State Legislature
The California State Legislature is the state legislature of the U.S. state of California. It is a bicameral body consisting of the lower house, the California State Assembly, with 80 members, and the upper house, the California State Senate, with 40 members...
approve the suspension. It did not take effect until 2006.
Proposition 1A was added to the ballot by the California Legislature
Legislative referral
A Legislative referral is a form of referendum in which a legislature puts proposed legislation up for popular vote , rather than through the initiative or referendum process...
as a state-sponsored compromise to take the place of the initiative-drawn Proposition 65
California Proposition 65 (2004)
Proposition 65 was a California ballot proposition on the November 2, 2004 ballot. It failed to pass with 3,901,748 votes in favor and 6,471,506 against. It was a state constitutional amendment that would have required voter approval for any state legislation reducing certain local government...
on the same ballot. It was passed by the California Assembly
California State Assembly
The California State Assembly is the lower house of the California State Legislature. There are 80 members in the Assembly, representing an approximately equal number of constituents, with each district having a population of at least 420,000...
by a vote of 64-13. It was approved by the California State Senate
California State Senate
The California State Senate is the upper house of the California State Legislature. There are 40 state senators. The state legislature meets in the California State Capitol in Sacramento. The Lieutenant Governor is the ex officio President of the Senate and may break a tied vote...
by a vote of 34-5. Proponents of Prop 65 negotiated with state officials to draw up the provisions of Proposition 1A. The former proponents then dropped their support for 65 in favor of 1A.
Official summary
- Protects local funding for public safety, health, libraries, parks, and other locally delivered services.
- Prohibits the State from reducing local governments' property tax proceeds.
- Allows the provisions to be suspended only if the Governor declares a fiscal necessity and two-thirds of the Legislature approve the suspension. Suspended funds must be repaid within three years.
- Also requires local sales tax revenues to remain with local government and be spent for local purposes.
- Requires the State to fund legislative mandates on local governments or suspend their operation.
Results
Impact
The passing of California Proposition 1A resulted in significant changes to state authority over local finances:- Higher local government revenues than otherwise would have been the case, possibly in the billions of dollars annually over time.
- Any such local revenue impacts would result in decreased resources to the state of similar amounts.