CalTax Recommendations for the November Election

These are the official CalTax recommendations for the statewide measures that will appear on the November 4 ballot:



CalTax Recommendations for the 2014 Ballot

Prop. 1

Water Bond. Authorizes $7.545 billion in bond funds for water quality, water storage, and recycling, and environmental protection. Click here for the analysis.

CalTax makes no recommendation

Prop. 2

Changes to Rainy Day Fund. Proposition 2 strengthens the state’s Rainy Day Fund, but also contains provisions that may diminish the effectiveness of California’s budget reserve:

  • Limits the governor’s ability to withdraw funds from the Rainy Day Fund in non-emergency situations by requiring a two-thirds vote of the Legislature.
  • Specifies that 3 percent of general fund revenue be set aside in most fiscal years, with half allocated to the Rainy Day Fund, and half allocated to eliminate California’s so-called “Wall of Debt.”
  • Specifies that half of capital gains revenue exceeding a certain percentage shall be allocated to the Rainy Day Fund.
  • May provide permanent, ongoing funding for public employee pensions and other post-employment benefits.
  • Limits local school districts from maintaining and retaining a significant budget reserve when the state establishes a statewide Proposition 98 Rainy Day Fund.

Click here for the analysis.

CalTax makes no recommendation

Prop. 45

Additional Government Regulatory Rules for Healthcare Coverage. Expands the California state insurance commissioner’s authority to set insurance rates, requiring health insurers to submit rate change plans to the state prior to modifying health insurance plans. Click here for the analysis.


Prop. 46

Increased Healthcare Costs for Medical Malpractice, and Practitioner Oversight. Allows consumers to sue health care providers, including doctors and hospitals, for medical malpractice up to $1.1 million. Subjects doctors to drug and alcohol testing. Requires the California Medical Board to suspend licenses of doctors found impaired while on duty. Requires health care practitioners to consult a state prescription drug database to review a patient’s drug history before prescribing a controlled substance. Click here for the analysis.


Prop. 47

Property and Drug Crime Sentence Reductions. Reduces sentences for non-violent and non-serious violations involving property, and for drug crimes, from a felony sentence to a misdemeanor sentence. State savings associated with the measure would be earmarked to schools and criminal justice programs. Click here for the analysis.

CalTax makes no recommendation

Prop. 48

Repeals Indian Casino Agreement in Madera County. Proposes to repeal AB 277, which ratified gaming compacts between the State of California and the North Fork Rancheria of Mono Indians and the Wiyot Tribe. A “yes” vote on this referendum measure would enact the compact, while a “no” vote would reject the compact.

CalTax makes no recommendation

The California Taxpayers Association is a nonprofit, nonpartisan association formed in 1926 to protect taxpayers from unnecessary taxes and to promote government efficiency. CalTax does not solicit or accept money in relation to its positions on ballot measures.

October 3, 2014

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