California Proposition 1A (2004)
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This page is about a 2004 California proposition labeled "Proposition 1A". Consult the Proposition 1A disambiguation page if you are looking for a different Proposition 1A.
California Proposition 1(A) was on the November 2, 2004 ballot in California as a legislatively-referred constitutional amendment, where it was overwhelmingly approved.
- Yes: 9,411,198 (83.7%)
- No: 1,840,002 (16.3%)
Proposition 1A said that local property and sales tax revenue is to remain with local governments rather than going into the statewide treasury. The only exception is if the governor declares an emergency and 2/3rds of the California State Legislature agrees.
Over $8.7 million was spent by supporters of the measure (including Walmart) on their campaign; no money was spent by any opponents.
Ballot question
The ballot title was:
- "Should local property tax and sales tax revenues remain with local government thereby safeguarding funding for public safety, health, libraries, parks, and other local services? Provisions can only be suspended if the Governor declares a fiscal necessity and two-thirds of the Legislature concur."
Campaign consultants
The campaign to pass Proposition 1A paid Winner & Mandabach Campaigns slightly over $2,543,000 in consulting fees. The petition drive management company, Progressive Campaigns, Inc., received over $2,776,000 for petition circulating and campaign consulting.[1]
Fiscal impact estimate
The California Legislative Analyst's Office provided an estimate of net state and local government fiscal impact for Proposition 55. That estimate was:
- Proposition 1A would reduce state authority over local finances. Over time, it could have significant fiscal impacts on state and local governments, as described below.
- Long-Term Effect on Local and State Finance
- Higher and More Stable Local Government Revenues. Given the number and magnitude of past state actions affecting local taxes, this measure’s restrictions on state authority to enact such measures in the future would have potentially major fiscal effects on local governments. For example, the state could not enact measures that permanently shift property taxes from local governments to schools in order to reduce state costs for education programs. In these cases, this measure would result in local government revenues being more stable—and higher—than otherwise would be the case. The magnitude of increased local revenues is unknown and would depend on future actions by the state. Given past actions by the state, however, this increase in local government revenues could be in the billions of dollars annually. These increased local revenues could result in higher spending on local programs or decreased local fees or taxes.
- Lower Resources for State Programs. In general, the measure’s effect on state finances would be the opposite of its effect on local finances. That is, this measure could result in decreased resources being available for state programs than otherwise would be the case. This reduction, in turn, would affect state spending and/or taxes. For example, because the state could not use local government property taxes permanently as part of the state’s budget solution, the Legislature would need to take alternative actions to resolve the state’s budget difficulties—such as increasing state taxes or decreasing spending on other state programs. As with the local impact, the total fiscal effect also could be in the billions of dollars annually.
- Less Change to the Revenue of Individual Local Governments. Proposition 1A restricts the state’s authority to reallocate local tax revenues to address concerns regarding funding for specific local governments or to restructure local government finance. For example, the state could not enact measures that changed how local sales tax revenues are allocated to cities and counties. In addition, measures that reallocated property taxes among local governments in a county would require approval by two-thirds of the Members of each house of the Legislature (rather than majority votes). As a result, this measure would result in fewer changes to local government revenues than otherwise would have been the case.
Campaign donations
The ballot measure campaign was heavily subsidized by:
- League of California Cities, $3,109,888.
- California State Association of Counties: over $1,235,000
- California Public Securities Association, $250,000
- Southern California Edison, $200,000
- Pechanga Band of Mission Indians: $50,000
- Morongo Band of Mission Indians: $100,000
Path to the ballot
Proposition 1A was voted onto the ballot by the California State Legislature via SCA 4.
| Chamber | Ayes | Noes |
|---|---|---|
| Assembly | 64 | 13 |
| Senate | 34 | 5 |
External links
- Official Voter Guide to Proposition 1A
- Funding for the measure as reported by Cal-Access
- Campaign donors to Yes on 1A as reported by Follow The Money
- LAO analysis of Proposition 1A
- November 2004 election results from the California Secretary of State
- Analysis of Proposition 1A from the Institute of Governmental Studies
- Overview of Prop 1A from the California Voter Foundation
