New America Foundation

How to Make Self-Funding Initiative Legislation Work

Joe Mathews — Wed, 24 Jun 2009 14:31:00 -0400

Mark Paul, New America senior scholar, has studied the question of how the state might implement rules requiring initiatives that create new spending to include a source of revenues. (This is in reference to California legislation, SCA-14, prohibiting "something for nothing" initiatives that mandate spending without new revenues). Here is the relevant excerpt from a memo he prepared on the subject.

"The initiative process is established in Article 2, Section 8 of the state consti-
tution. This section should be amended to provide that no initiative measure
shall be placed before voters or have any effect if it increases General Fund
spending or reduces General Fund revenues and does not include provisions
that offset those effects on the state budget.
"To carry out this constitutional change, it will also be necessary to revise the
corresponding statutes involving the initiative process. Section 12172 of the
Government Code and Section 9005 of the Elections Code currently guide
the preparation of a ﬁscal analysis of initiatives submitted to the Attorney
General for title and summary. These seem the most likely places to add lan-
guage specifying how it will be determined if an initiative meets the new
constitutional language barring 'something for nothing' measures.
"Issues for consideration:
"1. Threshold. Should the prohibition on 'something for nothing' initia-
tives have a threshold? The goal of the changes proposed here is to
keep the initiative process from distorting the state's ﬁnances. But the
costs associated with "something for nothing" measures range from
very minor to huge. It seems sensible to set a threshold for application
of this provision, just as there is usually a dollar threshold set by the
appropriations committees in dealing with legislation. For example,
the constitutional provision could require an offset when the initiative is estimated to have an annual ﬁscal effect amounting to more than
one-twentieth of 1 percent of the General Fund (roughly $50 million in
current terms) or more than one-tenth of 1 percent of the General Fund
in one-time or capital costs (roughly $100 million).
2. Time frame. The language should spell out over what time the initiative
should be measured for ﬁscal effect. The time should be long enough
to discourage initiative proponents from backloading costs into future
years but short enough to allow for credible estimates by analysts.
Given that the most expensive measures have been those, like Three
Strikes, that build up slowly, ten years seems a reasonable time frame.
3. Fiscal estimates. Under current law, the Legislative Analyst, Depart-
ment of Finance, and Joint Legislative Budget Committee have roles in
determining the ﬁscal impact of initiatives. Does it make sense to set
up a process for estimating how much a measure will cost and
whether the proposed offsets are sufﬁcient or credible? Would it be
useful for there to be a way for the public to participate (by way of a
hearing?) in the analysis or give the initiative proponent an opportunity
to appeal an estimate he or she considers incorrect or arbitrary?"

Bay Area Event Thursday: What's Next in California?

Joe Mathews — Mon, 18 May 2009 16:36:00 -0400

Those of you in the Bay Area may want to check out a lunchtime event this Thursday at the San Francisco State downtown campus. My New America colleague Mark Paul and Noel Perry, founder of Next 10, will offer a detailed budget briefing of the state's options. The event is free, but be sure to reserve a seat (and find out more details) here.

Please Join Us This Saturday In San Diego

Joe Mathews — Mon, 27 Apr 2009 14:33:00 -0400

Please join us this Saturday morning, May 2, in San Diego for what should be a fascinating discussion about the ballot measures on the May 19 special election. The event runs from 10 to 11:30 a.m. at the San Diego Hall of Champions. (Sports fans out there would be wise to make it a day of California governance and sports). The event is free, but be sure to reserve yourself a seat by signing up here or here. And you can consider this brunch if you like--there will be food.

The panel is headlined by former Congressman and former state finance director Tom Campbell, who has thought as deeply about the state budget as anyone alive. (He has an interesting discussion on tax reform currently running on his web site). Also on the panel are Chris Reed of the San Diego Union-Tribune, writer of America's Finest Blog; New America senior scholar Mark Paul; and your blogger. The co-sponsors are New America, the Center for Policy Initiatives, and the City Club of San Diego.

Paul on Whether Voters Can Call A Constitutional Convention

Joe Mathews — Wed, 04 Mar 2009 18:53:00 -0500

New America senior scholar Mark Paul has a strong post on New America's political reform blog in which he rebuts claims that only the legislature can call a constitutional convention.

How Has 'Top Two' Primary Worked in Washington State?

Joe Mathews — Fri, 06 Feb 2009 15:32:00 -0500

In the Sacramento Bee, New America's Steven Hill examines claims being made in California about the value of a "top two"-style open primary, which appears to be the new favorite idea of the state's community of goo goo reformers. Hill is skeptical of claims that such a primary would produce more moderate office holders or provide voter choice -- particularly in light of Washington state's experience with such a primary.

Who Are California's James Madisons?

Joe Mathews — Fri, 06 Feb 2009 15:27:00 -0500

New America's Micah Weinberg, writing in the Mercury News, argues that it's time for Californians to think more precisely about what we want a state constitutional convention to produce.

New America Lauded For Being "Aggressive"

Joe Mathews — Sun, 30 Nov 2008 19:26:00 -0500

Sacramento Bee columnist Dan Walters draws a picture Sunday of the reform landscape in California. He puts Leon Panetta's California Forward as the incrementalist side of the reform movement and the Bay Area Council (which wants a constitutional convention) and the New America Foundation (your blogger's employer, which has been talking about changing the make-up of the legislature) as the big-thinking, "aggressive" side. More on this subject later--after I go out and aggressively hunt big game for dinner.

Can't Miss Event Wednesday in Sacramento

Joe Mathews — Mon, 17 Nov 2008 17:19:00 -0500

New America is sponsoring a very important event this Wednesday from 9:30 a.m. to 1 p.m. in Sacramento, "A Nation Without States," that will offer a whole new way of looking at California -- and some big ideas for reform that you may not have heard before. Below is a description of the event and its panel. To RSVP for it (there's no cost, but they try to get a count so they have enough food for lunch, which is provided), click here.

CALIFORNIA'S REGIONS

The first panel will describe California's regions, detailing the differences between and relationships among them and focusing on how each is transforming itself in response to the globalizing 21st century economy. The speakers will assess how well California's data collection and state agencies serve the needs of policy makers, both in the State Capitol and within the regions themselves.

Jed Kolko
Research Fellow, Public Policy Institute of California
Ed Kawahara
Chief Consultant, Economic Strategy Panel, State of California

PIONEERS OF REGIONALISM

The second panel session will highlight regional initiatives in California, assess their effectiveness in dealing with economic development and environmental protection, and offer ideas to help them carry forward their visions for the future of regional development in California.

Sunne Wright McPeak
President, California Emerging Technology Fund
Mike McKeever
Executive Director, Sacramento Area Council of Governments
Ashley Swearengin
California Partnership for the San Joaquin Valley

REPRESENTING CALIFORNIA'S REGIONS

The third panel session will outline a series of bold policy reforms aimed at improving representation in the Legislature while simultaneously updating our state government system to increase our capacity to effectively address issues of regional development and coordination.

Micah Weinberg
Research Fellow, New America Foundation
Mark Paul
Deputy Director, California Program, New America Foundation

Reminder: Blockbuster Democracy Event This Morning in Sacramento

Joe Mathews — Tue, 14 Oct 2008 13:57:00 -0400

I'd be honored if you join me and my fellow panelists from 9:30 a.m. to 1 p.m. today (or for any part of that time) for an event on the initiative process and how it might be reformed. The location is the California State Association of Counties, 1020 11th Street, (2nd floor), in Sacramento. More details are here.

Tuesday in Sacramento: Please Join Me for 'Blockbuster Democracy' Event

Joe Mathews — Sun, 12 Oct 2008 14:51:00 -0400

For all the complaints about California's initiative process, there have been few serious proposals for improving it. New America is hosting an event Tuesday (October 14) in Sacramento, Blockbuster Democracy (a familiar and catchy name, don't you think?), to give several folks -- your blogger among them -- a chance to offer possible solutions. Full details of the event are here. (That link also includes space to sign up to attend the event). u

The event kicks off at 9:30 a.m. at the California State Association of Counties conference center, 1020 11th Street, 2nd floor. I'll be speaking first, offering a detailed proposal I'm calling, "More Referenda, Fewer Initiatives." After that, you'll hear from Bob Stern of the Center for Governmental Studies, which earlier this year released an exhaustive study of direct democracy in California. Other panelists are Rick Jacobs of the Courage Campaign; Anthony Rubenstein, managing partner of SinoTransPacific Ventures and chairman of Californians for Clean Energy, sponsor of Proposition 87 in 2006; and my New America colleague Mark Paul, senior scholar, who will discuss the impact of initiatives on California's troubled finances. Lunch is provided, and there will be time during lunch for lots of questions from the audience. Hope you'll be able to join us. It should be worth your while.