By @Mustafa Hessabi
Last week, Governor Gavin Newsom joined the State Legislature and former President pro Tempore of the California State Senate John Burton to file an emergency petition for writ of mandate with the California Supreme Court, asking the court to conduct preelection review of the so-called "Taxpayer Protection and Government Accountability Act" (Initiative #1935) and prevent the measure from being placed on the November 2024 ballot.
Initiative #1935, sponsored by the California Business Roundtable ("CBRT"), is the most consequential proposal to limit the ability of the state and local governments to enact, modify, or expand taxes, assessments, fees, and property-related charges since the passage of Proposition 218 (1996) and Proposition 26 (2010). If passed by voters in 2024, the CBRT voter limitation initiative would impose a host of new requirements that would result in the loss of billions of dollars annually in critical state and local funding. You can find more information and analysis regarding the voter limitation initiative on the CSDA Take Action webpage.
The Governor and fellow Petitioners argue the CBRT initiative is an unlawful attempt to revise the California constitution and would gravely interfere with essential government functions. The Governor’s petition asserts that, “the Measure would restructure the power among the legislative branch, the executive branch, local governments, and the initiative process to create new requirements for adopting laws that result in additional money being paid to the government, whether a ‘tax’ or not.”
The brief states that “[s]uch far-reaching changes to the foundational powers of the government would amount to an unlawful constitutional revision.” Furthermore, the brief argues that the California Supreme Court must review this matter urgently given that provisions in the initiative would retroactively impose all of its requirements to January 1, 2022, and would render any non-compliant state or local tax, fee, charge, or administrative fee unlawful unless it has been reenacted within 12 months of passage of the measure to comply with the new requirements. A copy of the brief filed on behalf of the Governor and other Petitioners can be found HERE.
Following the filing of the Governor’s preelection challenge to the CBRT voter limitation initiative, CSDA moved swiftly along with other local government groups to support the action, filing a letter in support of the petition with the California Supreme Court. Joined by the California Association of Sanitation Agencies (CASA), the California Municipal Utilities Association (CMUA), the California State Association of Counties (CSAC), and the League of California Cities (Cal Cities), CSDA and local government partners urged the Supreme Court to conduct preelection review of the initiative. In particular, the letter highlights the uncertainty the measure creates for local government finance; the questionable and undefined terms and phrases used throughout the initiative; and the risks posed given that measure would invalidate every local government revenue measure adopted after January 1, 2022 that did not anticipate its requirements unless reapproved by voters in the 12 months following the measure’s late-2024 effective date. A copy of the letter filed on behalf of CSDA in support of the Governor’s petition can be found HERE.
CSDA will continue to monitor this case and whether the California Supreme Court grants preelection review. Stay tuned to CSDA eNews and Advocacy News for more information.
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