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California Proposition 71, Taxation and Appropriation Limits Initiative (June 1988)

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California Proposition 71

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Election date

June 7, 1988

Topic
State and local government budgets, spending, and finance
Status

DefeatedDefeated

Type
Initiated constitutional amendment
Origin

Citizens



California Proposition 71 was on the ballot as an initiated constitutional amendment in California on June 7, 1988. It was defeated.

A “yes” vote supported changing the measure of the annual inflation adjustment, changing the measure of annual population adjustment, requiring the recalculation of the appropriation limits for 1986-87 and 1987-88, establishing that taxes used for transportation purposes are user fees, and requiring the Commission on State Finance report to the citizens how the state's revenue was used and the amount of appropriations subject to limitations.

A “no” vote opposed changing the measure of the annual inflation adjustment, changing the measure of annual population adjustment, requiring the recalculation of the appropriation limits for 1986-87 and 1987-88, establishing that taxes used for transportation purposes are user fees, and requiring the Commission on State Finance report to the citizens how the state's revenue was used and the amount of appropriations subject to limitations.


Election results

California Proposition 71

Result Votes Percentage
Yes 2,544,731 48.87%

Defeated No

2,662,463 51.13%
Results are officially certified.
Source


Text of measure

Ballot title

The ballot title for Proposition 71 was as follows:

Appropriations Limit Adjustment.

Ballot summary

The ballot summary for this measure was:

APPROPRIATIONS LIMIT ADJUSTMENT. INITIATIVE CONSTITUTIONAL AMENDMENT. Constitution limits tax revenues state and local governments annually appropriate for expenditure: allows "cost of living" and "population" changes. "Cost of living" defined as lesser of change in US Consumer Price Index or per capita personal income; measure redefines as greater of change in California Consumer Price Index or per capita personal income. "State population" redefined: includes increases in K-12 or community college average daily attendance greater than state population growth. Local government "population" redefined: includes increases in residents and persons employed. Specifies motor vehicle and fuel taxes are fees excluded from appropriations limit. Summary of Legislative Analyst's estimate of net state and local government fiscal impact: Change in the appropriations limit inflation adjustment will allow increased state appropriations of up to $700 million in 1988-89, and increasing amounts annually thereafter. Change in the population adjustment will allow further undetermined increase in state appropriations. State's ability to appropriate additional funds as a result of increased state limit is dependent on receipt of sufficient revenue. Based on estimates contained in Governor's Budget, state revenues will not be sufficient in 1988-89 to fund any additional appropriations allowed by this measure. In future years, economy's performance will determine whether and to what extent state revenues will be available to fund such additional appropriations. Local government and school district appropriation limits will be increased by unknown but significant amounts. Change in the treatment of state transportation-related revenues would have no fiscal effect because of the limit adjustment formula.

Full Text

The full text of this measure is available here.


Path to the ballot

See also: Signature requirements for ballot measures in California

In California, the number of signatures required for an initiated constitutional amendment is equal to 8 percent of the votes cast at the preceding gubernatorial election. For initiated amendments filed in 1988, at least 595,485 valid signatures were required.

See also


External links

Footnotes