News Release -- March 18, 1996

Cal-Tax supports six March 26 ballot propositions

The Cal-Tax Board of Directors, after considering impacts on taxes and the competitiveness of the California economy, has recommended voter approval of six statewide propositions on the March 26 ballot.

Cal-Tax has endorsed:

• Proposition 192 authorizes the $2 billion Seismic Retrofit Bond Act of 1996. This measure is needed to strengthen vital transportation systems against damage from future earthquakes; it would create jobs and boost the economy, and also would allow needed transportation projects to remain on track.
• Proposition 194 prohibits prison inmates, upon release, from collecting unemployment insurance benefits based on their work experience as convicts with the Joint Venture Program. A loophole in the law has allowed released prisoners to collect unemployment checks, which result in higher unemployment insurance premiums for Joint Venture Program businesses.
• Proposition 200 creates a system of no-fault auto insurance. According to RAND Corporation, this initiative could reduce insurance premiums by 25%, and removing lawyers and lawsuits from most auto accident cases would save consumers millions of dollars. Uninsured drivers would no longer be a problem; they would be unable to sue.
• Proposition 201 restricts shareholder lawsuits. This measure is designed to stop frivolous lawsuits by professional plaintiffs. Recently enacted federal law makes similar changes to federal court procedures, and this initiative would ensure that future federal shareholder lawsuits are not simply shifted to a California court. High litigation cost is a California business climate issue.
• Proposition 202 limits attorney contingency fees. By reducing lawyers' monetary incentives to file lawsuits, there would be less litigation, and a better California business environment. Fewer lawsuits would reduce the amount of tax dollars needed to operate the courts.
• Proposition 203 authorizes the $3 billion Public Education Facilities Bond Act of 1996. It would help meet needs for improved and adequate classrooms and campuses for the state's growing student population. To be competitive in the world economy, the state needs a well-educated work force.