California's Competing Sports Gambling Measures Both Prove to Be Losing Bets
Support for Prop. 30 Slips Following Newsom's Opposition Blitz, New Poll Shows
Fact-Checking Ads for California’s Sports Betting Propositions
Competing State Sports-Betting Measures Headed to November Ballot, With Record-Shattering Campaign Spending Likely
Did a Court Just Create a New Pathway to 'Tax' Californians?
Scott Shafer and John Myers on Props 25/26
Scott Shafer Demystifies Important Proposition 26
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Kevin joined KQED in 2019, and has covered issues related to energy, wildfire, climate change and the environment.","avatar":"https://secure.gravatar.com/avatar/1f646bf546a63d638e04ff23b52b0e79?s=600&d=blank&r=g","twitter":"starkkev","facebook":null,"instagram":null,"linkedin":null,"sites":[{"site":"","roles":["editor"]},{"site":"news","roles":["editor"]},{"site":"science","roles":["administrator"]}],"headData":{"title":"Kevin Stark | KQED","description":"Senior Editor","ogImgSrc":"https://secure.gravatar.com/avatar/1f646bf546a63d638e04ff23b52b0e79?s=600&d=blank&r=g","twImgSrc":"https://secure.gravatar.com/avatar/1f646bf546a63d638e04ff23b52b0e79?s=600&d=blank&r=g"},"isLoading":false,"link":"/author/kevinstark"}},"breakingNewsReducer":{},"campaignFinanceReducer":{},"firebase":{"requesting":{},"requested":{},"timestamps":{},"data":{},"ordered":{},"auth":{"isLoaded":false,"isEmpty":true},"authError":null,"profile":{"isLoaded":false,"isEmpty":true},"listeners":{"byId":{},"allIds":[]},"isInitializing":false,"errors":[]},"navBarReducer":{"navBarId":"news","fullView":true,"showPlayer":false},"navMenuReducer":{"menus":[{"key":"menu1","items":[{"name":"News","link":"/","type":"title"},{"name":"Politics","link":"/politics"},{"name":"Science","link":"/science"},{"name":"Education","link":"/educationnews"},{"name":"Housing","link":"/housing"},{"name":"Immigration","link":"/immigration"},{"name":"Criminal Justice","link":"/criminaljustice"},{"name":"Silicon Valley","link":"/siliconvalley"},{"name":"Forum","link":"/forum"},{"name":"The California Report","link":"/californiareport"}]},{"key":"menu2","items":[{"name":"Arts & Culture","link":"/arts","type":"title"},{"name":"Critics’ Picks","link":"/thedolist"},{"name":"Cultural Commentary","link":"/artscommentary"},{"name":"Food & Drink","link":"/food"},{"name":"Bay Area Hip-Hop","link":"/bayareahiphop"},{"name":"Rebel Girls","link":"/rebelgirls"},{"name":"Arts Video","link":"/artsvideos"}]},{"key":"menu3","items":[{"name":"Podcasts","link":"/podcasts","type":"title"},{"name":"Bay Curious","link":"/podcasts/baycurious"},{"name":"Rightnowish","link":"/podcasts/rightnowish"},{"name":"The Bay","link":"/podcasts/thebay"},{"name":"On Our Watch","link":"/podcasts/onourwatch"},{"name":"Mindshift","link":"/podcasts/mindshift"},{"name":"Consider This","link":"/podcasts/considerthis"},{"name":"Political Breakdown","link":"/podcasts/politicalbreakdown"}]},{"key":"menu4","items":[{"name":"Live Radio","link":"/radio","type":"title"},{"name":"TV","link":"/tv","type":"title"},{"name":"Events","link":"/events","type":"title"},{"name":"For Educators","link":"/education","type":"title"},{"name":"Support KQED","link":"/support","type":"title"},{"name":"About","link":"/about","type":"title"},{"name":"Help Center","link":"https://kqed-helpcenter.kqed.org/s","type":"title"}]}]},"pagesReducer":{},"postsReducer":{"stream_live":{"type":"live","id":"stream_live","audioUrl":"https://streams.kqed.org/kqedradio","title":"Live Stream","excerpt":"Live Stream information currently unavailable.","link":"/radio","featImg":"","label":{"name":"KQED Live","link":"/"}},"stream_kqedNewscast":{"type":"posts","id":"stream_kqedNewscast","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/newscast.mp3?_=1","title":"KQED Newscast","featImg":"","label":{"name":"88.5 FM","link":"/"}},"news_11931029":{"type":"posts","id":"news_11931029","meta":{"index":"posts_1591205157","site":"news","id":"11931029","score":null,"sort":[1667970012000]},"guestAuthors":[],"slug":"california-sports-gambling-measures-losing-bets","title":"California's Competing Sports Gambling Measures Both Prove to Be Losing Bets","publishDate":1667970012,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Competing measures to allow sports gambling in California lost by huge margins on Tuesday, following the most expensive ballot initiative campaign in U.S. history.\u003c/p>\n\u003cp>Proposition 26, backed by dozens of California's Native American tribal governments, would legalize sports betting at tribal casinos, while allowing them to offer craps and roulette. The measure was fiercely opposed by operators of cardrooms, who worry about a provision that would allow individuals to bring civil lawsuits against card clubs over disputes in state gaming law – \u003ca class=\"c-link\" href=\"https://www.kqed.org/news/11931351/sports-betting-measure-may-be-defeated-due-to-voter-apathy-and-targeted-ads\">essentially enshrining a lessening of tribal sovereignty into California law\u003c/a>.\u003c/p>\n\u003cp>The measure had \u003ca href=\"https://electionresults.sos.ca.gov/returns/ballot-measures\">garnered just under 30% support\u003c/a> as of Wednesday afternoon.\u003c/p>\n\u003cp>Meanwhile Proposition 27, which was getting trounced by an even larger margin – drawing a measly 16.7% support – was put on the ballot by major sports betting companies such as DraftKings and FanDuel, which have expanded their business across the state in the wake of a 2018 Supreme Court decision overturning a federal ban on sports wagering. It is opposed by California tribes who fear the measure would cut them out of a booming market.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"gambling\"]The gaming industry and Native American tribes raised hundreds of millions of dollars to capture a piece of a potential billion-dollar market in the nation’s most populous state, inundating Californians with \u003ca href=\"https://apnews.com/article/2022-midterm-elections-sports-california-gavin-newsom-native-americans-218eb0e80aa9206cb40e67e9449441c6\">a blast of advertisements\u003c/a>.\u003c/p>\n\u003cp>The money raised and spent more than doubled the \u003ca href=\"https://apnews.com/article/business-california-837ebb151c7aa65596537b4a5f7a2f9d\">record amount spent in 2020 by Uber, Lyft\u003c/a> and other app-based ride-hailing and delivery services to prevent drivers from becoming employees eligible for benefits and job protection.\u003c/p>\n\u003cp>Still, preelection polls showed that both ballot measures faced an uphill fight to win a majority.\u003c/p>\n\u003cp>After Labor Day, the campaigns supporting both initiatives largely folded their cards. Spending tailed off, and executives of the top betting companies signaled that legalization would likely have to wait until 2024.\u003c/p>\n\u003cp>\u003ca href=\"https://apnews.com/article/nfl-sports-football-baseball-e416ec2c3a4a267b3bdbf1cfeb1ad08d\">More than 30 other states allow sports betting\u003c/a>, but gambling in California is currently limited to Native American casinos, horse tracks, cardrooms and the state lottery.\u003c/p>\n\u003cp>Despite the avalanche of spending, voters never seemed all that invested in the fate of sports betting. The measures gained little support in public polling throughout the campaign, and an \u003ca href=\"https://www.ppic.org/blog/voters-views-on-novembers-propositions/\">October survey from the Public Policy Institute of California\u003c/a> found that just 21% of likely voters thought the result of the vote on Proposition 26 was \"very important,\" with 31% of likely voters saying the same about Proposition 27.\u003c/p>\n\u003cp>Now the debate will likely head back to the Legislature, where the same competing forces quashed potential compromises on the sports betting issue over the last two years.\u003c/p>\n\u003cp>The initiative was being promoted for the funding it promised to funnel through tax revenues to help the unhoused, those with mental illness and and tribes that haven't been enriched by casinos.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office found that both initiatives would increase state revenues, but it was unclear by how much. Proposition 26 could bring in tens of millions of dollars while Proposition 27 could bring in hundreds of millions, the office said.\u003c/p>\n\u003cp>However, that revenue could be offset if people spend money on sports gambling instead of shopping or buying lottery tickets.\u003c/p>\n\u003cp>Gov. Gavin Newsom didn't take a position on either proposal but said Proposition 27 was “not a homeless initiative.”\u003c/p>\n\u003cp>The California Republican Party opposes both proposals. State Democrats oppose Proposition 27, but are neutral on Proposition 26. Major League Baseball backs Proposition 27.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Voters definitively rejected the competing gambling measures, despite record spending by backers. ","status":"publish","parent":0,"modified":1668037867,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":583},"headData":{"title":"California's Competing Sports Gambling Measures Both Prove to Be Losing Bets | KQED","description":"Voters definitively rejected the competing gambling measures, despite record spending by backers. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"California's Competing Sports Gambling Measures Both Prove to Be Losing Bets","datePublished":"2022-11-09T05:00:12.000Z","dateModified":"2022-11-09T23:51:07.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11931029 https://ww2.kqed.org/news/?p=11931029","disqusUrl":"https://ww2.kqed.org/news/2022/11/08/california-sports-gambling-measures-losing-bets/","disqusTitle":"California's Competing Sports Gambling Measures Both Prove to Be Losing Bets","excludeFromSiteSearch":"Include","path":"/news/11931029/california-sports-gambling-measures-losing-bets","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Competing measures to allow sports gambling in California lost by huge margins on Tuesday, following the most expensive ballot initiative campaign in U.S. history.\u003c/p>\n\u003cp>Proposition 26, backed by dozens of California's Native American tribal governments, would legalize sports betting at tribal casinos, while allowing them to offer craps and roulette. The measure was fiercely opposed by operators of cardrooms, who worry about a provision that would allow individuals to bring civil lawsuits against card clubs over disputes in state gaming law – \u003ca class=\"c-link\" href=\"https://www.kqed.org/news/11931351/sports-betting-measure-may-be-defeated-due-to-voter-apathy-and-targeted-ads\">essentially enshrining a lessening of tribal sovereignty into California law\u003c/a>.\u003c/p>\n\u003cp>The measure had \u003ca href=\"https://electionresults.sos.ca.gov/returns/ballot-measures\">garnered just under 30% support\u003c/a> as of Wednesday afternoon.\u003c/p>\n\u003cp>Meanwhile Proposition 27, which was getting trounced by an even larger margin – drawing a measly 16.7% support – was put on the ballot by major sports betting companies such as DraftKings and FanDuel, which have expanded their business across the state in the wake of a 2018 Supreme Court decision overturning a federal ban on sports wagering. It is opposed by California tribes who fear the measure would cut them out of a booming market.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"gambling"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The gaming industry and Native American tribes raised hundreds of millions of dollars to capture a piece of a potential billion-dollar market in the nation’s most populous state, inundating Californians with \u003ca href=\"https://apnews.com/article/2022-midterm-elections-sports-california-gavin-newsom-native-americans-218eb0e80aa9206cb40e67e9449441c6\">a blast of advertisements\u003c/a>.\u003c/p>\n\u003cp>The money raised and spent more than doubled the \u003ca href=\"https://apnews.com/article/business-california-837ebb151c7aa65596537b4a5f7a2f9d\">record amount spent in 2020 by Uber, Lyft\u003c/a> and other app-based ride-hailing and delivery services to prevent drivers from becoming employees eligible for benefits and job protection.\u003c/p>\n\u003cp>Still, preelection polls showed that both ballot measures faced an uphill fight to win a majority.\u003c/p>\n\u003cp>After Labor Day, the campaigns supporting both initiatives largely folded their cards. Spending tailed off, and executives of the top betting companies signaled that legalization would likely have to wait until 2024.\u003c/p>\n\u003cp>\u003ca href=\"https://apnews.com/article/nfl-sports-football-baseball-e416ec2c3a4a267b3bdbf1cfeb1ad08d\">More than 30 other states allow sports betting\u003c/a>, but gambling in California is currently limited to Native American casinos, horse tracks, cardrooms and the state lottery.\u003c/p>\n\u003cp>Despite the avalanche of spending, voters never seemed all that invested in the fate of sports betting. The measures gained little support in public polling throughout the campaign, and an \u003ca href=\"https://www.ppic.org/blog/voters-views-on-novembers-propositions/\">October survey from the Public Policy Institute of California\u003c/a> found that just 21% of likely voters thought the result of the vote on Proposition 26 was \"very important,\" with 31% of likely voters saying the same about Proposition 27.\u003c/p>\n\u003cp>Now the debate will likely head back to the Legislature, where the same competing forces quashed potential compromises on the sports betting issue over the last two years.\u003c/p>\n\u003cp>The initiative was being promoted for the funding it promised to funnel through tax revenues to help the unhoused, those with mental illness and and tribes that haven't been enriched by casinos.\u003c/p>\n\u003cp>The nonpartisan Legislative Analyst’s Office found that both initiatives would increase state revenues, but it was unclear by how much. Proposition 26 could bring in tens of millions of dollars while Proposition 27 could bring in hundreds of millions, the office said.\u003c/p>\n\u003cp>However, that revenue could be offset if people spend money on sports gambling instead of shopping or buying lottery tickets.\u003c/p>\n\u003cp>Gov. Gavin Newsom didn't take a position on either proposal but said Proposition 27 was “not a homeless initiative.”\u003c/p>\n\u003cp>The California Republican Party opposes both proposals. State Democrats oppose Proposition 27, but are neutral on Proposition 26. Major League Baseball backs Proposition 27.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11931029/california-sports-gambling-measures-losing-bets","authors":["227"],"categories":["news_8","news_13"],"tags":["news_31947","news_30879","news_20002","news_164","news_31284","news_30403"],"featImg":"news_11931030","label":"news"},"news_11930190":{"type":"posts","id":"news_11930190","meta":{"index":"posts_1591205157","site":"news","id":"11930190","score":null,"sort":[1666839604000]},"guestAuthors":[],"slug":"support-for-prop-30-slips-following-newsoms-opposition-blitz-new-poll-shows","title":"Support for Prop. 30 Slips Following Newsom's Opposition Blitz, New Poll Shows","publishDate":1666839604,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Support among likely voters for Proposition 30, a clean air initiative that would tax the wealthiest Californians to pay for electric car rebates, has fallen well below the 50% it needs to pass, according to a new survey from the Public Policy Institute of California, or PPIC.\u003c/p>\n\u003cp>Last July, a similar survey found that nearly two-thirds of likely voters favored the measure, and it still maintained a strong majority as recently as September. But support has slid markedly since then, with the latest survey showing just 41% of likely voters still in favor of it — a change largely attributed to Gov. Gavin Newsom's well-funded efforts to derail the measure.\u003c/p>\n\u003cp>“There are a lot of things that people liked about [Proposition 30], but they're just hearing too many things that come from people that they trust that raise questions about whether this is the kind of climate change bill that they should support,” said Mark Baldassare, PPIC's president and CEO.\u003c/p>\n\u003cp>Newsom’s staunch opposition to Proposition 30 — promoted in a recent blitz of mailings and TV ads — has him siding with conservative anti-tax and business groups and billionaires who have collectively spent more than $10 million to defeat it. Some of the biggest funders of the No campaign include Netflix CEO Reed Hastings, Silicon Valley venture capitalist Michael Moritz and Oakland A’s owner John Fisher.\u003c/p>\n\u003cp>Newsom has argued Proposition 30 would disrupt the state’s finances and is unnecessary in California, which has \u003ca href=\"https://www.gov.ca.gov/2022/01/26/governor-newsom-outlines-historic-10-billion-zero-emission-vehicle-package-to-lead-the-worlds-transition-to-clean-energy-combat-climate-change/\">already committed billions\u003c/a> from its record budget surplus to funding electric vehicle initiatives. He has called the measure a corporate tax grab on the part of Lyft, the largest donor to the Yes campaign.[aside label=\"related coverage\" tag=\"proposition-30\"]But environmental groups who devised Proposition 30 say it's a vital investment in the fight against climate change and bad air quality. If passed, \u003ca href=\"https://www.kqed.org/news/11929046/some-key-questions-about-prop-30-answered\">the measure\u003c/a> would increase state income taxes — by 1.75% — on Californians who make more than $2 million a year, raising up to an estimated $5 billion annually. The state would be required to spend 80% of that revenue on electric-vehicle rebates and on the installation of charging stations in public places and residences. The remaining funds would go toward wildfire mitigation efforts.\u003c/p>\n\u003cp>The Coalition for Clean Air, a key backer of the measure, was quick to refute the latest PPIC polling results, insisting in a statement that “independent polls, as well as private polling, have shown dramatically different results than this survey.”\u003c/p>\n\u003cp>The group noted that the California Democratic Party and the American Lung Association, along with a spate of environmental groups and labor unions, including those representing firefighters, still support the measure and “are working tirelessly in this election for the benefits of clean air, climate action and reducing wildfires that will result from the initiative.”\u003c/p>\n\u003cp>Newsom’s sway with voters, in spite of the pessimism most Californians have about the economy and the state’s future, is also evident in the governor’s race. With voters already casting ballots, Newsom leads his opponent, state Sen. Brian Dahle, a Lassen County Republican, by a nearly 20-point margin, the PPIC poll found.\u003c/p>\n\u003cp>“What's really remarkable about the findings of this October survey are that despite the fact that majorities of Californians think that the state is headed in the wrong direction, and an overwhelming majority feel that the nation is headed in the wrong direction, that Newsom leads by a substantial margin,” Baldassare said.\u003c/p>\n\u003cp>\"This is a reflection of the fact that we are very polarized in terms of the electorate in this blue state, with 90% of Democrats saying that, that they're sticking with the Democrat and 90% of Republicans saying that, that they're going to go with the Republican,\" said Baldassare.\u003c/p>\n\u003cp>The poll also found that abortion is the most important issue to voters, especially Democrats and independents. And among the 10 most competitive House districts in California, it found that likely voters favor the Democratic candidate over the Republican by a whopping 22% advantage — in spite of the oft-reported headwinds facing Democrats over major issues like inflation, gas prices and crime.\u003c/p>\n\u003cp>\u003cb>\"\u003c/b>With a majority of likely voters saying that they approve of President Biden, this is a very different political climate in California than we're seeing nationally,\" Baldassare noted. \"And as a result, in those competitive districts, the Democrats are ahead of the Republicans by a sizable margin.\"\u003c/p>\n\u003cp>He added that the high level of importance voters are placing on abortion is also giving Democrats a lift they might not otherwise have in this midterm election.\u003c/p>\n\u003cp>Consistent with the findings of other recent polls, the PPIC survey showed Propositions 26 and 27 — to legalize sports betting in California — both heading for defeat, with likely voters opposing the measures by 57% and 67% respectively.\u003c/p>\n\u003cp>“As it turns out … relatively few people are interested in sports gambling in the state,” Baldassare said, noting the high threshold that the well-funded backers of both measures will have to clear to secure passage.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The measure, which would tax the wealthiest Californians to pay for electric car rebates, maintained strong majority support as recently as last month, but a new survey indicates just 41% of likely voters now back it.","status":"publish","parent":0,"modified":1666887508,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":17,"wordCount":872},"headData":{"title":"Support for Prop. 30 Slips Following Newsom's Opposition Blitz, New Poll Shows | KQED","description":"The measure, which would tax the wealthiest Californians to pay for electric car rebates, maintained strong majority support as recently as last month, but a new survey indicates just 41% of likely voters now back it.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Support for Prop. 30 Slips Following Newsom's Opposition Blitz, New Poll Shows","datePublished":"2022-10-27T03:00:04.000Z","dateModified":"2022-10-27T16:18:28.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11930190 https://ww2.kqed.org/news/?p=11930190","disqusUrl":"https://ww2.kqed.org/news/2022/10/26/support-for-prop-30-slips-following-newsoms-opposition-blitz-new-poll-shows/","disqusTitle":"Support for Prop. 30 Slips Following Newsom's Opposition Blitz, New Poll Shows","excludeFromSiteSearch":"Include","path":"/news/11930190/support-for-prop-30-slips-following-newsoms-opposition-blitz-new-poll-shows","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Support among likely voters for Proposition 30, a clean air initiative that would tax the wealthiest Californians to pay for electric car rebates, has fallen well below the 50% it needs to pass, according to a new survey from the Public Policy Institute of California, or PPIC.\u003c/p>\n\u003cp>Last July, a similar survey found that nearly two-thirds of likely voters favored the measure, and it still maintained a strong majority as recently as September. But support has slid markedly since then, with the latest survey showing just 41% of likely voters still in favor of it — a change largely attributed to Gov. Gavin Newsom's well-funded efforts to derail the measure.\u003c/p>\n\u003cp>“There are a lot of things that people liked about [Proposition 30], but they're just hearing too many things that come from people that they trust that raise questions about whether this is the kind of climate change bill that they should support,” said Mark Baldassare, PPIC's president and CEO.\u003c/p>\n\u003cp>Newsom’s staunch opposition to Proposition 30 — promoted in a recent blitz of mailings and TV ads — has him siding with conservative anti-tax and business groups and billionaires who have collectively spent more than $10 million to defeat it. Some of the biggest funders of the No campaign include Netflix CEO Reed Hastings, Silicon Valley venture capitalist Michael Moritz and Oakland A’s owner John Fisher.\u003c/p>\n\u003cp>Newsom has argued Proposition 30 would disrupt the state’s finances and is unnecessary in California, which has \u003ca href=\"https://www.gov.ca.gov/2022/01/26/governor-newsom-outlines-historic-10-billion-zero-emission-vehicle-package-to-lead-the-worlds-transition-to-clean-energy-combat-climate-change/\">already committed billions\u003c/a> from its record budget surplus to funding electric vehicle initiatives. He has called the measure a corporate tax grab on the part of Lyft, the largest donor to the Yes campaign.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"proposition-30"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>But environmental groups who devised Proposition 30 say it's a vital investment in the fight against climate change and bad air quality. If passed, \u003ca href=\"https://www.kqed.org/news/11929046/some-key-questions-about-prop-30-answered\">the measure\u003c/a> would increase state income taxes — by 1.75% — on Californians who make more than $2 million a year, raising up to an estimated $5 billion annually. The state would be required to spend 80% of that revenue on electric-vehicle rebates and on the installation of charging stations in public places and residences. The remaining funds would go toward wildfire mitigation efforts.\u003c/p>\n\u003cp>The Coalition for Clean Air, a key backer of the measure, was quick to refute the latest PPIC polling results, insisting in a statement that “independent polls, as well as private polling, have shown dramatically different results than this survey.”\u003c/p>\n\u003cp>The group noted that the California Democratic Party and the American Lung Association, along with a spate of environmental groups and labor unions, including those representing firefighters, still support the measure and “are working tirelessly in this election for the benefits of clean air, climate action and reducing wildfires that will result from the initiative.”\u003c/p>\n\u003cp>Newsom’s sway with voters, in spite of the pessimism most Californians have about the economy and the state’s future, is also evident in the governor’s race. With voters already casting ballots, Newsom leads his opponent, state Sen. Brian Dahle, a Lassen County Republican, by a nearly 20-point margin, the PPIC poll found.\u003c/p>\n\u003cp>“What's really remarkable about the findings of this October survey are that despite the fact that majorities of Californians think that the state is headed in the wrong direction, and an overwhelming majority feel that the nation is headed in the wrong direction, that Newsom leads by a substantial margin,” Baldassare said.\u003c/p>\n\u003cp>\"This is a reflection of the fact that we are very polarized in terms of the electorate in this blue state, with 90% of Democrats saying that, that they're sticking with the Democrat and 90% of Republicans saying that, that they're going to go with the Republican,\" said Baldassare.\u003c/p>\n\u003cp>The poll also found that abortion is the most important issue to voters, especially Democrats and independents. And among the 10 most competitive House districts in California, it found that likely voters favor the Democratic candidate over the Republican by a whopping 22% advantage — in spite of the oft-reported headwinds facing Democrats over major issues like inflation, gas prices and crime.\u003c/p>\n\u003cp>\u003cb>\"\u003c/b>With a majority of likely voters saying that they approve of President Biden, this is a very different political climate in California than we're seeing nationally,\" Baldassare noted. \"And as a result, in those competitive districts, the Democrats are ahead of the Republicans by a sizable margin.\"\u003c/p>\n\u003cp>He added that the high level of importance voters are placing on abortion is also giving Democrats a lift they might not otherwise have in this midterm election.\u003c/p>\n\u003cp>Consistent with the findings of other recent polls, the PPIC survey showed Propositions 26 and 27 — to legalize sports betting in California — both heading for defeat, with likely voters opposing the measures by 57% and 67% respectively.\u003c/p>\n\u003cp>“As it turns out … relatively few people are interested in sports gambling in the state,” Baldassare said, noting the high threshold that the well-funded backers of both measures will have to clear to secure passage.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11930190/support-for-prop-30-slips-following-newsoms-opposition-blitz-new-poll-shows","authors":["255","11608"],"categories":["news_8","news_13"],"tags":["news_31642","news_30879","news_27626","news_16","news_24474","news_347","news_164","news_31284","news_17602"],"featImg":"news_11930229","label":"news"},"news_11927451":{"type":"posts","id":"news_11927451","meta":{"index":"posts_1591205157","site":"news","id":"11927451","score":null,"sort":[1664726419000]},"guestAuthors":[],"slug":"fact-checking-ads-for-californias-sports-betting-propositions","title":"Fact-Checking Ads for California’s Sports Betting Propositions","publishDate":1664726419,"format":"standard","headTitle":"CALmatters | KQED News","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>Odds are, one of the many ads for legalizing sports betting has snagged your attention, given their ubiquity on TV, websites and billboards across California.\u003c/p>\n\u003cp>You’d be forgiven, though, for still not having a clear sense of what either of the initiatives \u003cem>do\u003c/em>. Some of the \u003ca href=\"https://www.youtube.com/watch?v=LjlQX9ZARlY\">ads don’t mention sports betting at all\u003c/a>, potentially leaving Californians foggy on what exactly it is they’re being asked to decide.\u003c/p>\n\u003cp>The ads are “oversimplified to a point of not being fully accurate,” said Mary Beth Moylan, an associate dean and professor at the McGeorge School of Law at University of the Pacific who oversees a journal dedicated to California’s initiatives.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/california-voter-guide-2022/propositions/prop-26-sports-betting-tribal-casinos/\">Proposition 26\u003c/a> would legalize sports betting at tribal casinos and at California’s four private horse race tracks. It is being paid for by about a dozen Native American tribes. It would also allow tribes to begin offering roulette and dice games.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/california-voter-guide-2022/propositions/prop-27-sports-betting-online/\">Proposition 27\u003c/a> would legalize online sports betting across the state and is being paid for by a handful of large gaming companies. Under Proposition 27, both gaming companies and tribes could offer online and mobile sports betting.\u003c/p>\n\u003cp>But how truthful are the ads? Here’s what you need to know about some of the often-repeated claims.\u003c/p>\n\u003ch2 id=\"h-claim-tribal-leaders-support-the-solutions-act-prop-27\">\u003cstrong>Claim:\u003c/strong> \u003ca href=\"https://www.youtube.com/watch?v=FG9RHlDedQI\">\u003cstrong>“Tribal leaders support the Solutions Act (Prop 27)”\u003c/strong>\u003c/a>\u003c/h2>\n\u003cp>Leaders from three of \u003ca href=\"https://www.ncsl.org/legislators-staff/legislators/quad-caucus/list-of-federal-and-state-recognized-tribes.aspx#ca\">California’s 110 federally recognized Native American tribes\u003c/a> — Santa Rosa Rancheria Tachi Yokut Tribe, Middletown Rancheria of Pomo Indians and Big Valley Band of Pomo Indians\u003cem> \u003c/em>—\u003cem> \u003c/em>support the online sports betting proposition.\u003c/p>\n\u003cp>Chairman Jose “Moke” Simon III of the Middletown Rancheria of Pomo Indians said in an interview with CalMatters that he supports Proposition 27 because it gives the tribe an opportunity to bring in more funds. The tribe is rural and has a casino about an hour’s drive north of Napa.\u003c/p>\n\u003cp>“Our brick-and-mortar (casino) is limited by just our area where we’re located and the mobile sports betting would allow us to reach a much broader audience,” said Simon III.\u003c/p>\n\u003cp>But, \u003ca href=\"https://noon27.com/our-coalition-2/\">over 50 tribes and tribal organizations oppose Proposition 27\u003c/a>. They say it would disrupt the gaming that has been operating on tribal lands for decades and would drive business away from Indian casinos.\u003c/p>\n\u003cp>\u003cstrong>True? \u003c/strong>\u003c/p>\n\u003cp>It is true that a few tribal leaders support Proposition 27, but far more tribal leaders oppose the measure.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Proposition 27 “\u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=FG9RHlDedQI\">\u003cstrong>supports every California tribe, including financially disadvantaged tribes that don’t own big casinos\u003c/strong>\u003c/a>\u003cstrong>”\u003c/strong>\u003c/h2>\n\u003cp>It’s true that every tribe would see some kind of benefit from Proposition 27. Tribes that have compacts with the state of California that allow them to offer gambling could create their own mobile sports betting app or website. Or, they could partner with a gaming company that wants to offer online sports betting in California.\u003c/p>\n\u003cp>The initiative also taxes online sports betting and sets aside 15% of the money for tribes that \u003cem>aren’t\u003c/em> involved in sports betting. But, because it’s hard to know exactly how many people will place bets, how many companies and tribes will want to offer sports betting, or how many tax deductions companies will take, it’s impossible to know exactly how much money that will be.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>Every tribe has the potential to benefit from Proposition 27, yes. It’s unclear to what degree each tribe would benefit.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Proposition 27 provides “\u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=uoKuFHNnkrU\">\u003cstrong>hundreds of millions in yearly funding to finally address homelessness in California\u003c/strong>\u003c/a>\u003cstrong>” \u003c/strong>\u003c/h2>\n\u003cp>This one is a bit complicated. It’s possible the proposition will generate hundreds of millions of dollars annually to address homelessness, but it’s not guaranteed.\u003c/p>\n\u003cp>Each election cycle, the non-partisan Legislative Analyst’s Office \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Propositions\">reviews each proposition\u003c/a> and estimates the new costs and revenue each could create for the state. \u003ca href=\"https://lao.ca.gov/ballot/2022/Prop27-110822.pdf\">They found\u003c/a> that Proposition 27, via taxes and fees, would increase money flowing to the state by “possibly in the hundreds of millions of dollars but likely not more than $500 million annually.” The office didn’t include a lower-end estimate.\u003c/p>\n\u003cp>First, that money would be used to cover new costs related to regulating sports betting, which the analysts estimate could reach tens of millions of dollars annually.\u003c/p>\n\u003cp>Out of the money that remains, 15% would go to tribes that don’t participate in sports betting and 85% would go to homelessness solutions. The Legislature could also choose to direct some of it to gambling-addiction treatments.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>It is possible that Proposition 27 would wind up generating hundreds of millions of dollars per year for the state to address homelessness. But if taxes and fees end up bringing in $100 million or $200 million a year — as opposed to $500 million — then it would not. Also, if the Legislature decides to direct a large portion to gambling-addiction treatments, that would reduce the amount that goes to homelessness solutions.\u003c/p>\n\u003cp>How does this money fit into what California is already spending to address homelessness? California spent $7.2 billion on homelessness-related programs in the 2021-22 budget year, according to \u003ca href=\"https://lao.ca.gov/Publications/Report/4521\">state analysts\u003c/a>. If Proposition 27 added, say, $300 million, that would translate to a 4% boost.\u003c/p>\n\u003ch2>\u003cstrong>Claim: \u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=DFvi7VZ2uc0\">\u003cstrong>“90% of the profits (of Prop. 27) go to out-of-state corporations”\u003c/strong>\u003c/a>\u003c/h2>\n\u003cp>This claim is based on the fact that Proposition 27 taxes online sports betting at a rate of 10%. So the question is: Where exactly will the other 90% go? The truth is that it’s impossible to know precisely.\u003c/p>\n\u003cp>If Proposition 27 passes, gaming companies headquartered in other states will want to get in on the action, since they are the ones funding the measure. The companies bankrolling the initiative have some of the most popular online sports betting platforms: FanDuel commands 31% of the U.S. market, followed by DraftKings with 26% and BetMGM with 16%, according to Eilers & Krejcik, a research firm focused on gaming. So it’s reasonable to expect their platforms would be popular in California too.\u003c/p>\n\u003cp>Does that mean those companies would reap all of the profit? The initiative also allows California tribes to offer mobile and online sports betting on their own. If tribes choose to do that, they’d be earning some of the profits.\u003c/p>\n\u003cp>Gaming companies headquartered in other states might also wind up needing to spend money in California to do business here. For example, companies will need to make a deal with a tribe in order to legally operate, and that deal could include some kind of payment or revenue sharing. Gaming companies may also need to pay employees or contractors in California to get their business going here.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>The companies funding the campaign are headquartered outside California. What percentage of profits would actually go to them is impossible to know right now.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Tribes are “\u003c/strong>\u003ca href=\"https://votenoonprop26.org/?gclid=CjwKCAjwyaWZBhBGEiwACslQo8NdwT21DPSaPnLoFgZL0Ak5gnUQ95nq5xXIyewEZBpWGpZlfx_sLRoCtVEQAvD_BwE\">\u003cstrong>pushing Prop 26 to guarantee themselves a virtual monopoly on all gaming in California by giving private trial lawyers the powers of the Attorney General to bury their licensed cardroom competitors with frivolous lawsuits\u003c/strong>\u003c/a>\u003cstrong>.”\u003c/strong>\u003c/h2>\n\u003cp>This argument contains several claims. It’s based on a part of Proposition 26 that allows any person (or organization) that believes someone else is breaking California gambling laws — by offering an illegal game, for example — to sue. Before they could sue, though, they’d need to first ask the state Department of Justice to act, and could only move ahead if the department doesn’t take action, or the department \u003cem>does\u003c/em> file a case and the court rejects the case but allows it to be re-filed. It’s complicated legal stuff. But it’s not a totally novel idea; California has used a \u003ca href=\"https://calmatters.org/economy/2022/04/california-labor-law/\">similar process to enforce labor laws\u003c/a>.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>Buckle up.\u003c/p>\n\u003cp>Are tribes trying to “guarantee themselves a virtual monopoly?” In 2000, Californians voted to \u003ca href=\"https://lao.ca.gov/ballot/2000/1A_03_2000.html\">allow tribes to offer certain forms of gambling\u003c/a> — including slot machines and card games backed by the casino — that no other entity in California is allowed to offer. Proposition 26 would allow tribes to begin offering roulette and dice games, which no other entity can offer, so long as they renegotiate their agreement with the state. So, the initiative would expand tribes’ exclusive rights to offer certain forms of gambling.\u003c/p>\n\u003cp>Would the new lawsuit process give “private trial lawyers the powers of the Attorney General to bury their licensed cardroom competitors with frivolous lawsuits?” It would allow private attorneys to bring cases that are currently under the purview of government lawyers\u003cem>. \u003c/em>The Proposition 26 campaign hasn’t hidden the fact that tribes intend to sue \u003ca href=\"https://calmatters.org/explainers/sports-betting-california/#2ac3276a-bd30-47fa-866c-c325717c7aab\">cardrooms\u003c/a>, which compete with tribal casinos.\u003c/p>\n\u003cp>The lawsuit process was “crafted to settle the house bank games law that governs cardrooms,” said Kathy Fairbanks, a spokesperson for the Yes on 26 campaign, at a recent debate. The rules over exactly how cardrooms are allowed to offer certain games has long been a source of disagreement between cardrooms and tribes. The tribes don’t have standing to challenge them in court, Fairbanks said, so they want a way to do that.\u003c/p>\n\u003cp>The notion that this would unlock a slew of meritless lawsuits, though, assumes that courts don’t already have a process in place to handle frivolous lawsuits, said Moylan, the law professor. Courts can sanction lawyers who bring frivolous lawsuits, for example, Moylan said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"The campaigns for Propositions 26 and 27 on this November’s ballot have made a wide variety of claims, especially about how the money gleaned from sports betting in California will get distributed.","status":"publish","parent":0,"modified":1664669617,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":38,"wordCount":1634},"headData":{"title":"Fact-Checking Ads for California’s Sports Betting Propositions | KQED","description":"The campaigns for Propositions 26 and 27 on this November’s ballot have made a wide variety of claims, especially about how the money gleaned from sports betting in California will get distributed.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Fact-Checking Ads for California’s Sports Betting Propositions","datePublished":"2022-10-02T16:00:19.000Z","dateModified":"2022-10-02T00:13:37.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11927451 https://ww2.kqed.org/news/?p=11927451","disqusUrl":"https://ww2.kqed.org/news/2022/10/02/fact-checking-ads-for-californias-sports-betting-propositions/","disqusTitle":"Fact-Checking Ads for California’s Sports Betting Propositions","nprByline":"\u003ca href=\"https://calmatters.org/author/grace-gedye/\">Grace Gedye\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11927451/fact-checking-ads-for-californias-sports-betting-propositions","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Odds are, one of the many ads for legalizing sports betting has snagged your attention, given their ubiquity on TV, websites and billboards across California.\u003c/p>\n\u003cp>You’d be forgiven, though, for still not having a clear sense of what either of the initiatives \u003cem>do\u003c/em>. Some of the \u003ca href=\"https://www.youtube.com/watch?v=LjlQX9ZARlY\">ads don’t mention sports betting at all\u003c/a>, potentially leaving Californians foggy on what exactly it is they’re being asked to decide.\u003c/p>\n\u003cp>The ads are “oversimplified to a point of not being fully accurate,” said Mary Beth Moylan, an associate dean and professor at the McGeorge School of Law at University of the Pacific who oversees a journal dedicated to California’s initiatives.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/california-voter-guide-2022/propositions/prop-26-sports-betting-tribal-casinos/\">Proposition 26\u003c/a> would legalize sports betting at tribal casinos and at California’s four private horse race tracks. It is being paid for by about a dozen Native American tribes. It would also allow tribes to begin offering roulette and dice games.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/california-voter-guide-2022/propositions/prop-27-sports-betting-online/\">Proposition 27\u003c/a> would legalize online sports betting across the state and is being paid for by a handful of large gaming companies. Under Proposition 27, both gaming companies and tribes could offer online and mobile sports betting.\u003c/p>\n\u003cp>But how truthful are the ads? Here’s what you need to know about some of the often-repeated claims.\u003c/p>\n\u003ch2 id=\"h-claim-tribal-leaders-support-the-solutions-act-prop-27\">\u003cstrong>Claim:\u003c/strong> \u003ca href=\"https://www.youtube.com/watch?v=FG9RHlDedQI\">\u003cstrong>“Tribal leaders support the Solutions Act (Prop 27)”\u003c/strong>\u003c/a>\u003c/h2>\n\u003cp>Leaders from three of \u003ca href=\"https://www.ncsl.org/legislators-staff/legislators/quad-caucus/list-of-federal-and-state-recognized-tribes.aspx#ca\">California’s 110 federally recognized Native American tribes\u003c/a> — Santa Rosa Rancheria Tachi Yokut Tribe, Middletown Rancheria of Pomo Indians and Big Valley Band of Pomo Indians\u003cem> \u003c/em>—\u003cem> \u003c/em>support the online sports betting proposition.\u003c/p>\n\u003cp>Chairman Jose “Moke” Simon III of the Middletown Rancheria of Pomo Indians said in an interview with CalMatters that he supports Proposition 27 because it gives the tribe an opportunity to bring in more funds. The tribe is rural and has a casino about an hour’s drive north of Napa.\u003c/p>\n\u003cp>“Our brick-and-mortar (casino) is limited by just our area where we’re located and the mobile sports betting would allow us to reach a much broader audience,” said Simon III.\u003c/p>\n\u003cp>But, \u003ca href=\"https://noon27.com/our-coalition-2/\">over 50 tribes and tribal organizations oppose Proposition 27\u003c/a>. They say it would disrupt the gaming that has been operating on tribal lands for decades and would drive business away from Indian casinos.\u003c/p>\n\u003cp>\u003cstrong>True? \u003c/strong>\u003c/p>\n\u003cp>It is true that a few tribal leaders support Proposition 27, but far more tribal leaders oppose the measure.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Proposition 27 “\u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=FG9RHlDedQI\">\u003cstrong>supports every California tribe, including financially disadvantaged tribes that don’t own big casinos\u003c/strong>\u003c/a>\u003cstrong>”\u003c/strong>\u003c/h2>\n\u003cp>It’s true that every tribe would see some kind of benefit from Proposition 27. Tribes that have compacts with the state of California that allow them to offer gambling could create their own mobile sports betting app or website. Or, they could partner with a gaming company that wants to offer online sports betting in California.\u003c/p>\n\u003cp>The initiative also taxes online sports betting and sets aside 15% of the money for tribes that \u003cem>aren’t\u003c/em> involved in sports betting. But, because it’s hard to know exactly how many people will place bets, how many companies and tribes will want to offer sports betting, or how many tax deductions companies will take, it’s impossible to know exactly how much money that will be.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>Every tribe has the potential to benefit from Proposition 27, yes. It’s unclear to what degree each tribe would benefit.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Proposition 27 provides “\u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=uoKuFHNnkrU\">\u003cstrong>hundreds of millions in yearly funding to finally address homelessness in California\u003c/strong>\u003c/a>\u003cstrong>” \u003c/strong>\u003c/h2>\n\u003cp>This one is a bit complicated. It’s possible the proposition will generate hundreds of millions of dollars annually to address homelessness, but it’s not guaranteed.\u003c/p>\n\u003cp>Each election cycle, the non-partisan Legislative Analyst’s Office \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Propositions\">reviews each proposition\u003c/a> and estimates the new costs and revenue each could create for the state. \u003ca href=\"https://lao.ca.gov/ballot/2022/Prop27-110822.pdf\">They found\u003c/a> that Proposition 27, via taxes and fees, would increase money flowing to the state by “possibly in the hundreds of millions of dollars but likely not more than $500 million annually.” The office didn’t include a lower-end estimate.\u003c/p>\n\u003cp>First, that money would be used to cover new costs related to regulating sports betting, which the analysts estimate could reach tens of millions of dollars annually.\u003c/p>\n\u003cp>Out of the money that remains, 15% would go to tribes that don’t participate in sports betting and 85% would go to homelessness solutions. The Legislature could also choose to direct some of it to gambling-addiction treatments.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>It is possible that Proposition 27 would wind up generating hundreds of millions of dollars per year for the state to address homelessness. But if taxes and fees end up bringing in $100 million or $200 million a year — as opposed to $500 million — then it would not. Also, if the Legislature decides to direct a large portion to gambling-addiction treatments, that would reduce the amount that goes to homelessness solutions.\u003c/p>\n\u003cp>How does this money fit into what California is already spending to address homelessness? California spent $7.2 billion on homelessness-related programs in the 2021-22 budget year, according to \u003ca href=\"https://lao.ca.gov/Publications/Report/4521\">state analysts\u003c/a>. If Proposition 27 added, say, $300 million, that would translate to a 4% boost.\u003c/p>\n\u003ch2>\u003cstrong>Claim: \u003c/strong>\u003ca href=\"https://www.youtube.com/watch?v=DFvi7VZ2uc0\">\u003cstrong>“90% of the profits (of Prop. 27) go to out-of-state corporations”\u003c/strong>\u003c/a>\u003c/h2>\n\u003cp>This claim is based on the fact that Proposition 27 taxes online sports betting at a rate of 10%. So the question is: Where exactly will the other 90% go? The truth is that it’s impossible to know precisely.\u003c/p>\n\u003cp>If Proposition 27 passes, gaming companies headquartered in other states will want to get in on the action, since they are the ones funding the measure. The companies bankrolling the initiative have some of the most popular online sports betting platforms: FanDuel commands 31% of the U.S. market, followed by DraftKings with 26% and BetMGM with 16%, according to Eilers & Krejcik, a research firm focused on gaming. So it’s reasonable to expect their platforms would be popular in California too.\u003c/p>\n\u003cp>Does that mean those companies would reap all of the profit? The initiative also allows California tribes to offer mobile and online sports betting on their own. If tribes choose to do that, they’d be earning some of the profits.\u003c/p>\n\u003cp>Gaming companies headquartered in other states might also wind up needing to spend money in California to do business here. For example, companies will need to make a deal with a tribe in order to legally operate, and that deal could include some kind of payment or revenue sharing. Gaming companies may also need to pay employees or contractors in California to get their business going here.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>The companies funding the campaign are headquartered outside California. What percentage of profits would actually go to them is impossible to know right now.\u003c/p>\n\u003ch2>\u003cstrong>Claim: Tribes are “\u003c/strong>\u003ca href=\"https://votenoonprop26.org/?gclid=CjwKCAjwyaWZBhBGEiwACslQo8NdwT21DPSaPnLoFgZL0Ak5gnUQ95nq5xXIyewEZBpWGpZlfx_sLRoCtVEQAvD_BwE\">\u003cstrong>pushing Prop 26 to guarantee themselves a virtual monopoly on all gaming in California by giving private trial lawyers the powers of the Attorney General to bury their licensed cardroom competitors with frivolous lawsuits\u003c/strong>\u003c/a>\u003cstrong>.”\u003c/strong>\u003c/h2>\n\u003cp>This argument contains several claims. It’s based on a part of Proposition 26 that allows any person (or organization) that believes someone else is breaking California gambling laws — by offering an illegal game, for example — to sue. Before they could sue, though, they’d need to first ask the state Department of Justice to act, and could only move ahead if the department doesn’t take action, or the department \u003cem>does\u003c/em> file a case and the court rejects the case but allows it to be re-filed. It’s complicated legal stuff. But it’s not a totally novel idea; California has used a \u003ca href=\"https://calmatters.org/economy/2022/04/california-labor-law/\">similar process to enforce labor laws\u003c/a>.\u003c/p>\n\u003cp>\u003cstrong>True?\u003c/strong>\u003c/p>\n\u003cp>Buckle up.\u003c/p>\n\u003cp>Are tribes trying to “guarantee themselves a virtual monopoly?” In 2000, Californians voted to \u003ca href=\"https://lao.ca.gov/ballot/2000/1A_03_2000.html\">allow tribes to offer certain forms of gambling\u003c/a> — including slot machines and card games backed by the casino — that no other entity in California is allowed to offer. Proposition 26 would allow tribes to begin offering roulette and dice games, which no other entity can offer, so long as they renegotiate their agreement with the state. So, the initiative would expand tribes’ exclusive rights to offer certain forms of gambling.\u003c/p>\n\u003cp>Would the new lawsuit process give “private trial lawyers the powers of the Attorney General to bury their licensed cardroom competitors with frivolous lawsuits?” It would allow private attorneys to bring cases that are currently under the purview of government lawyers\u003cem>. \u003c/em>The Proposition 26 campaign hasn’t hidden the fact that tribes intend to sue \u003ca href=\"https://calmatters.org/explainers/sports-betting-california/#2ac3276a-bd30-47fa-866c-c325717c7aab\">cardrooms\u003c/a>, which compete with tribal casinos.\u003c/p>\n\u003cp>The lawsuit process was “crafted to settle the house bank games law that governs cardrooms,” said Kathy Fairbanks, a spokesperson for the Yes on 26 campaign, at a recent debate. The rules over exactly how cardrooms are allowed to offer certain games has long been a source of disagreement between cardrooms and tribes. The tribes don’t have standing to challenge them in court, Fairbanks said, so they want a way to do that.\u003c/p>\n\u003cp>The notion that this would unlock a slew of meritless lawsuits, though, assumes that courts don’t already have a process in place to handle frivolous lawsuits, said Moylan, the law professor. Courts can sanction lawyers who bring frivolous lawsuits, for example, Moylan said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11927451/fact-checking-ads-for-californias-sports-betting-propositions","authors":["byline_news_11927451"],"categories":["news_8","news_13"],"tags":["news_31726","news_31724","news_31725","news_164","news_31284","news_30403"],"affiliates":["news_18481"],"featImg":"news_11927455","label":"news_18481"},"news_11918631":{"type":"posts","id":"news_11918631","meta":{"index":"posts_1591205157","site":"news","id":"11918631","score":null,"sort":[1656716677000]},"guestAuthors":[],"slug":"competing-state-sports-betting-measures-headed-to-november-ballot-with-record-shattering-campaign-spending-likely","title":"Competing State Sports-Betting Measures Headed to November Ballot, With Record-Shattering Campaign Spending Likely","publishDate":1656716677,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>California voters will weigh in on seven statewide ballot measures this fall, a list finalized by the Secretary of State's office late Thursday.\u003c/p>\n\u003cp>But on the airwaves, one campaign is already well underway: a fight between two competing proposals to \u003ca href=\"https://www.kqed.org/news/11899623/is-sports-gambling-in-californias-future\" target=\"_blank\" rel=\"noopener noreferrer\">legalize and tax sports betting\u003c/a>. With billions of dollars up for grabs, California campaign-watchers expect that spending from Native American tribal governments on one side and sports gambling companies on the other could shatter ballot-measure records.\u003c/p>\n\u003cp>And experts say that while voters could technically approve both measures, it's unlikely both can simultaneously become law because of their contradictory language — creating the potential for a post-election legal battle.\u003c/p>\n\u003cp>\"There's a lot at stake, which is why the advertising campaigns are going to be dominating the airwaves over the next couple of months,\" said Daniel Wallach, co-founding director of the Sports Wagering and Integrity Certificate program at the University of New Hampshire School of Law.\u003c/p>\n\u003cp>In 2018, the U.S. Supreme Court opened the door for states to legitimize sports gambling when it \u003ca href=\"https://www.npr.org/2018/05/15/611213995/high-court-strikes-down-law-that-made-sports-gambling-illegal\" target=\"_blank\" rel=\"noopener noreferrer\">struck down a longstanding federal ban\u003c/a>. Legalizing the betting market in California, Wallach said, could net up to $5 billion annually for gaming operators.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\"California is poised to basically be the gold standard and the holy grail of U.S. sports-betting markets,\" he added.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"gambling\"]Two years ago, state legislators tried, but failed, to \u003ca href=\"https://www.kqed.org/news/11825635/supporters-of-sports-gambling-legalization-halt-effort-for-2020-ballot-measure\" target=\"_blank\" rel=\"noopener noreferrer\">forge a compromise\u003c/a> to legalize sports gambling, with one lawmaker \u003ca href=\"https://www.kqed.org/news/11821371/should-california-legalize-and-tax-sports-betting-voters-could-decide\">likening the process to\u003c/a> \"trying to solve Middle East peace.\"\u003c/p>\n\u003cp>Now, voters are left to arbitrate.\u003c/p>\n\u003cp>Proposition 26, backed by dozens of California tribes, would allow sports betting, but only in person at casinos on tribal lands, along with a handful of horse-racing tracks — not online. It would also fulfill a pair of longstanding tribal goals by allowing tribes to sue cardrooms and other venues over specific games they are offering, instead of waiting for state investigators to take action, while also sanctioning dice games and roulette at tribal casinos (which currently are not allowed).\u003c/p>\n\u003cp>Tax revenue on profits would mostly flow into the state’s general fund.\u003c/p>\n\u003cp>Under the second measure — Proposition 27 — online gaming operators like DraftKings, FanDuel and BetMGM, who are seeking to legalize online and mobile wagers in California — would have to partner with an Indian tribe, with 85% of tax revenue earmarked for statewide housing and homeless services.\u003c/p>\n\u003cp>Chris Grove, partner emeritus at Eilers and Krejcik Gaming, an Irvine-based research and consulting firm, described the ballot fight as \"fairly close to existential territory for the primary parties involved.\"\u003c/p>\n\u003cp>Digital gambling operators need access to California's market to continue to show growth for investors, said Grove. And for tribal governments, the addition of craps and roulette is of similar importance.\u003c/p>\n\u003cp>The Proposition 26 campaign has raised the stakes by hitting the airwaves early to sell its message. In campaign filings through March, the tribal coalition reported spending $14.7 million on TV airtime and production costs — the vast majority on ads that attack the mobile gaming measure for attempting to \"break the promise\" between the state and tribes.\u003c/p>\n\u003cp>\"We're laying the foundation, if you will, for voters,\" said Kathy Fairbanks, a spokesperson for the Coalition for Safe, Responsible Gaming. \"We think that [Proposition 26] is the more responsible approach to sports betting in California because it is highly regulated. You can ensure that people who come to bet are 21 or over. You can physically check their ID, look at the person face-to-face.\"\u003c/p>\n\u003cp>With large campaign war chests on both sides of the sports-betting debate, some political consultants think spending could surpass the current high-water mark: the $224 million spent by the campaigns supporting and opposing Proposition 22, the 2020 initiative that exempted companies such as Uber, Lyft and Instacart from state labor law.\u003c/p>\n\u003cp>\"I just think we're going to see record, record numbers of how much money is spent specifically on these ballot measures,\" said Marva Diaz, a political strategist and editor of the California Target Book. \"What I don't think people are understanding is that the [TV ad] purchasing time is already started, so the time for October, September, August, they're already being bought up.\"\u003c/p>\n\u003cp>\"So is it normal? Not necessarily, but it's smart,\" Diaz said of the early spending. \"If you're a ballot measure committee that has a very complicated issue, you're going to use every single moment to try to educate the voters.\"\u003c/p>\n\u003cp>The Proposition 27 campaign, meanwhile, has amassed more than $100 million from commercial operators around the country.\u003c/p>\n\u003cp>\"We've got a long campaign to go,\" said campaign spokesperson Nathan Click, noting that TV and digital ads will be rolling out in the coming weeks.\u003c/p>\n\u003cp>In states that have legalized sports gaming, mobile betting has proven far more popular — and lucrative — than in-person wagering. As a result, Proposition 27 is likely to bring far more tax revenue into state coffers than would Proposition 26.\u003c/p>\n\u003cp>Analyses done by the California Legislative Analyst's Office found that while state revenue from Prop. 26 \"could reach the \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Initiative/2019-029\" target=\"_blank\" rel=\"noopener noreferrer\">tens of millions of dollars annually\u003c/a>,\" the tax windfall from Prop. 27 \"\u003ca href=\"https://lao.ca.gov/BallotAnalysis/Initiative/2021-017\" target=\"_blank\" rel=\"noopener noreferrer\"> could reach the mid-hundreds of millions of dollars\u003c/a> annually.\"\u003c/p>\n\u003cp>\"Our initiative is the only one that will raise hundreds of millions of dollars each year that will go directly to help solving one of our state's most desperate challenges,\" said Click. \"And that's homelessness and mental health support.\"\u003c/p>\n\u003cp>The spending blitz by the two sides might not stop on Election Day, either. Wallach, who has testified about sports betting in the state Legislature, said a legal showdown could ensue if both measures pass in November.\u003c/p>\n\u003cp>\"The existence of a conflict ... on the face of the ballot initiatives will lead to litigation after Election Day,\" he said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>In the next four months, Wallach said, campaigns need to convey to voters that the measures \"are, in fact, mutually exclusive — it's one or the other.\"\u003c/p>\n\n","blocks":[],"excerpt":"Proposition 26 would legalize in-person sports betting at casinos on tribal lands, while Proposition 27 would legalize mobile wagering across the state.","status":"publish","parent":0,"modified":1664818205,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":28,"wordCount":1017},"headData":{"title":"Competing State Sports-Betting Measures Headed to November Ballot, With Record-Shattering Campaign Spending Likely | KQED","description":"Proposition 26 would legalize in-person sports betting at casinos on tribal lands, while Proposition 27 would legalize mobile wagering across the state.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Competing State Sports-Betting Measures Headed to November Ballot, With Record-Shattering Campaign Spending Likely","datePublished":"2022-07-01T23:04:37.000Z","dateModified":"2022-10-03T17:30:05.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11918631 https://ww2.kqed.org/news/?p=11918631","disqusUrl":"https://ww2.kqed.org/news/2022/07/01/competing-state-sports-betting-measures-headed-to-november-ballot-with-record-shattering-campaign-spending-likely/","disqusTitle":"Competing State Sports-Betting Measures Headed to November Ballot, With Record-Shattering Campaign Spending Likely","excludeFromSiteSearch":"Include","path":"/news/11918631/competing-state-sports-betting-measures-headed-to-november-ballot-with-record-shattering-campaign-spending-likely","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>California voters will weigh in on seven statewide ballot measures this fall, a list finalized by the Secretary of State's office late Thursday.\u003c/p>\n\u003cp>But on the airwaves, one campaign is already well underway: a fight between two competing proposals to \u003ca href=\"https://www.kqed.org/news/11899623/is-sports-gambling-in-californias-future\" target=\"_blank\" rel=\"noopener noreferrer\">legalize and tax sports betting\u003c/a>. With billions of dollars up for grabs, California campaign-watchers expect that spending from Native American tribal governments on one side and sports gambling companies on the other could shatter ballot-measure records.\u003c/p>\n\u003cp>And experts say that while voters could technically approve both measures, it's unlikely both can simultaneously become law because of their contradictory language — creating the potential for a post-election legal battle.\u003c/p>\n\u003cp>\"There's a lot at stake, which is why the advertising campaigns are going to be dominating the airwaves over the next couple of months,\" said Daniel Wallach, co-founding director of the Sports Wagering and Integrity Certificate program at the University of New Hampshire School of Law.\u003c/p>\n\u003cp>In 2018, the U.S. Supreme Court opened the door for states to legitimize sports gambling when it \u003ca href=\"https://www.npr.org/2018/05/15/611213995/high-court-strikes-down-law-that-made-sports-gambling-illegal\" target=\"_blank\" rel=\"noopener noreferrer\">struck down a longstanding federal ban\u003c/a>. Legalizing the betting market in California, Wallach said, could net up to $5 billion annually for gaming operators.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\"California is poised to basically be the gold standard and the holy grail of U.S. sports-betting markets,\" he added.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"gambling"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Two years ago, state legislators tried, but failed, to \u003ca href=\"https://www.kqed.org/news/11825635/supporters-of-sports-gambling-legalization-halt-effort-for-2020-ballot-measure\" target=\"_blank\" rel=\"noopener noreferrer\">forge a compromise\u003c/a> to legalize sports gambling, with one lawmaker \u003ca href=\"https://www.kqed.org/news/11821371/should-california-legalize-and-tax-sports-betting-voters-could-decide\">likening the process to\u003c/a> \"trying to solve Middle East peace.\"\u003c/p>\n\u003cp>Now, voters are left to arbitrate.\u003c/p>\n\u003cp>Proposition 26, backed by dozens of California tribes, would allow sports betting, but only in person at casinos on tribal lands, along with a handful of horse-racing tracks — not online. It would also fulfill a pair of longstanding tribal goals by allowing tribes to sue cardrooms and other venues over specific games they are offering, instead of waiting for state investigators to take action, while also sanctioning dice games and roulette at tribal casinos (which currently are not allowed).\u003c/p>\n\u003cp>Tax revenue on profits would mostly flow into the state’s general fund.\u003c/p>\n\u003cp>Under the second measure — Proposition 27 — online gaming operators like DraftKings, FanDuel and BetMGM, who are seeking to legalize online and mobile wagers in California — would have to partner with an Indian tribe, with 85% of tax revenue earmarked for statewide housing and homeless services.\u003c/p>\n\u003cp>Chris Grove, partner emeritus at Eilers and Krejcik Gaming, an Irvine-based research and consulting firm, described the ballot fight as \"fairly close to existential territory for the primary parties involved.\"\u003c/p>\n\u003cp>Digital gambling operators need access to California's market to continue to show growth for investors, said Grove. And for tribal governments, the addition of craps and roulette is of similar importance.\u003c/p>\n\u003cp>The Proposition 26 campaign has raised the stakes by hitting the airwaves early to sell its message. In campaign filings through March, the tribal coalition reported spending $14.7 million on TV airtime and production costs — the vast majority on ads that attack the mobile gaming measure for attempting to \"break the promise\" between the state and tribes.\u003c/p>\n\u003cp>\"We're laying the foundation, if you will, for voters,\" said Kathy Fairbanks, a spokesperson for the Coalition for Safe, Responsible Gaming. \"We think that [Proposition 26] is the more responsible approach to sports betting in California because it is highly regulated. You can ensure that people who come to bet are 21 or over. You can physically check their ID, look at the person face-to-face.\"\u003c/p>\n\u003cp>With large campaign war chests on both sides of the sports-betting debate, some political consultants think spending could surpass the current high-water mark: the $224 million spent by the campaigns supporting and opposing Proposition 22, the 2020 initiative that exempted companies such as Uber, Lyft and Instacart from state labor law.\u003c/p>\n\u003cp>\"I just think we're going to see record, record numbers of how much money is spent specifically on these ballot measures,\" said Marva Diaz, a political strategist and editor of the California Target Book. \"What I don't think people are understanding is that the [TV ad] purchasing time is already started, so the time for October, September, August, they're already being bought up.\"\u003c/p>\n\u003cp>\"So is it normal? Not necessarily, but it's smart,\" Diaz said of the early spending. \"If you're a ballot measure committee that has a very complicated issue, you're going to use every single moment to try to educate the voters.\"\u003c/p>\n\u003cp>The Proposition 27 campaign, meanwhile, has amassed more than $100 million from commercial operators around the country.\u003c/p>\n\u003cp>\"We've got a long campaign to go,\" said campaign spokesperson Nathan Click, noting that TV and digital ads will be rolling out in the coming weeks.\u003c/p>\n\u003cp>In states that have legalized sports gaming, mobile betting has proven far more popular — and lucrative — than in-person wagering. As a result, Proposition 27 is likely to bring far more tax revenue into state coffers than would Proposition 26.\u003c/p>\n\u003cp>Analyses done by the California Legislative Analyst's Office found that while state revenue from Prop. 26 \"could reach the \u003ca href=\"https://lao.ca.gov/BallotAnalysis/Initiative/2019-029\" target=\"_blank\" rel=\"noopener noreferrer\">tens of millions of dollars annually\u003c/a>,\" the tax windfall from Prop. 27 \"\u003ca href=\"https://lao.ca.gov/BallotAnalysis/Initiative/2021-017\" target=\"_blank\" rel=\"noopener noreferrer\"> could reach the mid-hundreds of millions of dollars\u003c/a> annually.\"\u003c/p>\n\u003cp>\"Our initiative is the only one that will raise hundreds of millions of dollars each year that will go directly to help solving one of our state's most desperate challenges,\" said Click. \"And that's homelessness and mental health support.\"\u003c/p>\n\u003cp>The spending blitz by the two sides might not stop on Election Day, either. Wallach, who has testified about sports betting in the state Legislature, said a legal showdown could ensue if both measures pass in November.\u003c/p>\n\u003cp>\"The existence of a conflict ... on the face of the ballot initiatives will lead to litigation after Election Day,\" he said.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>In the next four months, Wallach said, campaigns need to convey to voters that the measures \"are, in fact, mutually exclusive — it's one or the other.\"\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11918631/competing-state-sports-betting-measures-headed-to-november-ballot-with-record-shattering-campaign-spending-likely","authors":["227"],"categories":["news_8"],"tags":["news_30879","news_31734","news_31735","news_18745","news_17968","news_164","news_31284","news_31286"],"featImg":"news_11918639","label":"news"},"news_11438840":{"type":"posts","id":"news_11438840","meta":{"index":"posts_1591205157","site":"news","id":"11438840","score":null,"sort":[1493881542000]},"guestAuthors":[],"slug":"did-a-court-just-create-a-new-pathway-to-tax-californians","title":"Did a Court Just Create a New Pathway to 'Tax' Californians?","publishDate":1493881542,"format":"image","headTitle":"The California Report | KQED News","labelTerm":{},"content":"\u003cp>Could a few words buried within a recent court ruling make it easier for the state to raise money from Californians?\u003c/p>\n\u003cp>The words -- contained within a decision \u003ca href=\"http://www.courts.ca.gov/opinions/documents/C075930.PDF\">affirming\u003c/a> the constitutionality of California’s policy of charging polluters -- are causing a stir among some state budget experts, who wonder if the ruling could be used to pry loose constitutional constraints that have long restricted lawmakers’ ability to increase taxes.\u003c/p>\n\u003cp>In its 2-1 ruling, California’s 3rd District Court of Appeal declared that the state’s \u003ca href=\"https://vimeo.com/133691850\">cap-and-trade\u003c/a> climate program is neither a tax nor a fee -- the two categories into which state jurists have traditionally slotted all revenue raisers -- but falls into a mysterious \u003cem>none of the above\u003c/em> category.\u003c/p>\n\u003cp>Such semantic distinctions matter in California because the state constitution puts tight restrictions on lawmakers' ability to raise money from taxpayers. Voters in 1978 passed the most famous of these restrictions, property-tax-cutting \u003ca href=\"https://www.hjta.org/propositions/proposition-13/original-proposition-13/\">Proposition 13\u003c/a>, which also lifted the legislative threshold for new state and local tax hikes from a simple majority to a two-thirds “supermajority.”\u003c/p>\n\u003cp>The suit, filed by the California Chamber of Commerce and other business groups, contended that when the Legislature created the cap-and-trade program in 2006, it introduced a new tax with only a simple majority vote -- violating the two-thirds vote requirements of Proposition 13. (Since then, the auctions have generated $4.4 billion for the state.)\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[contextly_sidebar id=\"iLj5jUbECqekfaKH9rqV3bc5RjwlKX2Q\"]\u003c/p>\n\u003cp>But what is a tax? In explaining its decision, the court offered a new, narrower definition of the word: “A tax has two hallmarks: (1) it is compulsory, and (2) it does not grant any special benefit to the payor.”\u003c/p>\n\u003cp>According to Tony Francois from the Pacific Legal Foundation, which represents one of the plaintiffs in the case, that definition leaves out many of the levies that most Californians would be surprised to learn aren’t “taxes.”\u003c/p>\n\u003cp>“Under (the court’s) analysis, any transaction-based tax, such as the sales tax or the gasoline tax, is voluntary instead of compulsory,” he says. “Anyone can choose whether to drive their own car and buy gas for it or not. And, all of these transaction taxes provide something of value to the payer.”\u003c/p>\n\u003cp>Seemingly anticipating that broad interpretation, the court’s majority opinion insisted there was an obvious distinction between a payment made for a thing of value (in this case, an allowance for emitting greenhouse gases) and a sales tax, which one pays “but receives nothing of particular value for the tax.”\u003c/p>\n\u003cp>But some conservatives find that distinction too blurry for comfort.\u003c/p>\n\u003cp>“All the Legislature has to do is say, ‘We’re not taxing the purchase of the commodity, we’re just selling you the right to purchase the commodity,’ ” says Mike Genest, who directed the Department of Finance under Gov. Arnold Schwarzenegger and is the founding partner at Capitol Matrix Consulting. “If you take that logic and apply it liberally, you could probably apply it to any tax.”\u003c/p>\n\u003cfigure id=\"attachment_10845734\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-10845734\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/PumpingGas-800x518.jpg\" alt=\"A customer prepares to pump gas into his truck at a Valero gas station in Mill Valley.\" width=\"800\" height=\"518\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-800x518.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-400x259.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-768x497.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-1440x932.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-1180x763.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-960x621.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A customer prepares to pump gas into his truck at a Valero gas station in Mill Valley. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The court has “invalidated the Proposition 13 two-thirds requirement,” he says. Even, he argues, as it applies to the income tax: “You just purchased the right to live and work in California for only 13 percent of your income -- congratulations!”\u003c/p>\n\u003cp>Many legal analysts, policy advocates and lawmakers disagree that the ruling is quite so earth-shattering. A spokesperson for the Department of Finance says that they are still reviewing the ruling and its implications. And although the offices of both Assembly Speaker Anthony Rendon and Senate President Pro Tem Kevin de León declined to comment, numerous legislative staff members around the Capitol said that they do not expect to see a raft of new tax-hiking legislation emerge on the basis of this ruling, both because the ruling was narrowly focused on cap and trade, and because the case is being \u003ca href=\"https://www.pacificlegal.org/releases/release-4/14/17-ab32-Morning-Star-1-1408\">appealed\u003c/a> to the California Supreme Court.\u003c/p>\n\u003cp>“I wouldn’t take one appellate court ruling as a landslide,” says Danny Cullenward, a lawyer and energy economist at Stanford University and a research associate with the nonprofit Near Zero. “If one is convinced, as the plaintiffs are, that this fundamentally changes the line, I think there’s good reason to believe that the state Supreme Court would at least look into the question.”\u003c/p>\n\u003cp>But many are not convinced that this ruling fundamentally changes anything.\u003c/p>\n\u003cp>“This is not some sort of revolution,” says Cara Horowitz, co-executive director of the Emmett Institute on Climate Change and the Environment at UCLA School of Law, who also filed an amicus\u003ca href=\"https://www.edf.org/sites/default/files/content/amicus_brief_nature_conservancy_final.pdf\"> brief\u003c/a> in support of the program.\u003c/p>\n\u003cp>“It’s not really reversing what we used to think. It’s really just figuring out for the first time what a cap-and-trade auction really is in the context of tax law,” she says. The court may have broken from \u003ca href=\"http://www.caltax.org/sinclair.htm\">precedent\u003c/a> by establishing a “neither tax nor fee” classification of revenue generator, but Horowitz says that the cap-and-trade program is so unique it’s hard to imagine how this new third category could be applied to much else.\u003c/p>\n\u003cp>“There are no instances that jump out at me of other California regulations that I now think of differently in light of this opinion,” she says.\u003c/p>\n\u003cp>Plus, even if the ruling does undermine Proposition 13, there are other constraints on lawmakers’ ability to raise taxes.\u003c/p>\n\u003cp>In 2010, voters approved \u003ca href=\"http://www.boe.ca.gov/lawguides/property/current/ptlg/ccp/XIII-A-3.html\">Proposition 26\u003c/a>, a chamber-sponsored measure that significantly broadened the definition of tax, leaving only a few, specific exceptions. Prop. 26 didn’t enter into the court’s ruling this time around because the Legislature voted to enact the cap-and-trade program before voters approved the initiated constitutional amendment\u003c/p>\n\u003cp>“There’s so little case law developing the idea of how Proposition 26 defines a tax, it’s really hard to say what the courts will conclude,” says Horowitz.\u003c/p>\n\u003cp>That’s a question that will have to be answered before too long.\u003c/p>\n\u003cp>Under current law, California’s cap-and-trade program phases out in 2020. As Democratic lawmakers in both chambers introduce various extension proposals, the Brown administration has demanded a two-thirds vote to put any questions about the legal validity of the program in the rear view mirror.\u003c/p>\n\u003cp>But even if Gov. Jerry Brown sees a supermajority as politically necessary, it might not be legally so.\u003c/p>\n\u003cp>The Office of Legislative Counsel, which prepares summaries on all new bills and serves as the Legislature’s official lawyer, has designated the two \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB151\">extension\u003c/a> \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB378\">bills\u003c/a> in the Assembly as simple majority votes. Not coincidentally, a third \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB775\">bill\u003c/a>, introduced in the Senate this week, has been written to require a two-thirds vote.\u003c/p>\n\u003cp>In other words, even if the appellate court’s ruling does blow a hole in Proposition 13 and even if it is upheld by the Supreme Court, Proposition 26 still reigns. Or at the very least, that may be a question for a later day in court.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"A few words buried in a decision affirming the constitutionality of cap-and-trade are causing a stir among some state budget experts.","status":"publish","parent":0,"modified":1493859534,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":30,"wordCount":1248},"headData":{"title":"Did a Court Just Create a New Pathway to 'Tax' Californians? | KQED","description":"A few words buried in a decision affirming the constitutionality of cap-and-trade are causing a stir among some state budget experts.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Did a Court Just Create a New Pathway to 'Tax' Californians?","datePublished":"2017-05-04T07:05:42.000Z","dateModified":"2017-05-04T00:58:54.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11438840 https://ww2.kqed.org/news/?p=11438840","disqusUrl":"https://ww2.kqed.org/news/2017/05/04/did-a-court-just-create-a-new-pathway-to-tax-californians/","disqusTitle":"Did a Court Just Create a New Pathway to 'Tax' Californians?","source":"CALmatters","sourceUrl":"https://calmatters.org/","nprByline":"\u003cstrong>\u003ca href=\"https://calmatters.org/articles/author/ben-christopher/\">Ben Christopher\u003c/a>\u003c/strong>","path":"/news/11438840/did-a-court-just-create-a-new-pathway-to-tax-californians","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Could a few words buried within a recent court ruling make it easier for the state to raise money from Californians?\u003c/p>\n\u003cp>The words -- contained within a decision \u003ca href=\"http://www.courts.ca.gov/opinions/documents/C075930.PDF\">affirming\u003c/a> the constitutionality of California’s policy of charging polluters -- are causing a stir among some state budget experts, who wonder if the ruling could be used to pry loose constitutional constraints that have long restricted lawmakers’ ability to increase taxes.\u003c/p>\n\u003cp>In its 2-1 ruling, California’s 3rd District Court of Appeal declared that the state’s \u003ca href=\"https://vimeo.com/133691850\">cap-and-trade\u003c/a> climate program is neither a tax nor a fee -- the two categories into which state jurists have traditionally slotted all revenue raisers -- but falls into a mysterious \u003cem>none of the above\u003c/em> category.\u003c/p>\n\u003cp>Such semantic distinctions matter in California because the state constitution puts tight restrictions on lawmakers' ability to raise money from taxpayers. Voters in 1978 passed the most famous of these restrictions, property-tax-cutting \u003ca href=\"https://www.hjta.org/propositions/proposition-13/original-proposition-13/\">Proposition 13\u003c/a>, which also lifted the legislative threshold for new state and local tax hikes from a simple majority to a two-thirds “supermajority.”\u003c/p>\n\u003cp>The suit, filed by the California Chamber of Commerce and other business groups, contended that when the Legislature created the cap-and-trade program in 2006, it introduced a new tax with only a simple majority vote -- violating the two-thirds vote requirements of Proposition 13. (Since then, the auctions have generated $4.4 billion for the state.)\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003c/p>\u003cp>\u003c/p>\n\u003cp>But what is a tax? In explaining its decision, the court offered a new, narrower definition of the word: “A tax has two hallmarks: (1) it is compulsory, and (2) it does not grant any special benefit to the payor.”\u003c/p>\n\u003cp>According to Tony Francois from the Pacific Legal Foundation, which represents one of the plaintiffs in the case, that definition leaves out many of the levies that most Californians would be surprised to learn aren’t “taxes.”\u003c/p>\n\u003cp>“Under (the court’s) analysis, any transaction-based tax, such as the sales tax or the gasoline tax, is voluntary instead of compulsory,” he says. “Anyone can choose whether to drive their own car and buy gas for it or not. And, all of these transaction taxes provide something of value to the payer.”\u003c/p>\n\u003cp>Seemingly anticipating that broad interpretation, the court’s majority opinion insisted there was an obvious distinction between a payment made for a thing of value (in this case, an allowance for emitting greenhouse gases) and a sales tax, which one pays “but receives nothing of particular value for the tax.”\u003c/p>\n\u003cp>But some conservatives find that distinction too blurry for comfort.\u003c/p>\n\u003cp>“All the Legislature has to do is say, ‘We’re not taxing the purchase of the commodity, we’re just selling you the right to purchase the commodity,’ ” says Mike Genest, who directed the Department of Finance under Gov. Arnold Schwarzenegger and is the founding partner at Capitol Matrix Consulting. “If you take that logic and apply it liberally, you could probably apply it to any tax.”\u003c/p>\n\u003cfigure id=\"attachment_10845734\" class=\"wp-caption aligncenter\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-10845734\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2016/01/PumpingGas-800x518.jpg\" alt=\"A customer prepares to pump gas into his truck at a Valero gas station in Mill Valley.\" width=\"800\" height=\"518\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-800x518.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-400x259.jpg 400w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-768x497.jpg 768w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-1440x932.jpg 1440w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-1180x763.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2016/01/PumpingGas-960x621.jpg 960w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A customer prepares to pump gas into his truck at a Valero gas station in Mill Valley. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The court has “invalidated the Proposition 13 two-thirds requirement,” he says. Even, he argues, as it applies to the income tax: “You just purchased the right to live and work in California for only 13 percent of your income -- congratulations!”\u003c/p>\n\u003cp>Many legal analysts, policy advocates and lawmakers disagree that the ruling is quite so earth-shattering. A spokesperson for the Department of Finance says that they are still reviewing the ruling and its implications. And although the offices of both Assembly Speaker Anthony Rendon and Senate President Pro Tem Kevin de León declined to comment, numerous legislative staff members around the Capitol said that they do not expect to see a raft of new tax-hiking legislation emerge on the basis of this ruling, both because the ruling was narrowly focused on cap and trade, and because the case is being \u003ca href=\"https://www.pacificlegal.org/releases/release-4/14/17-ab32-Morning-Star-1-1408\">appealed\u003c/a> to the California Supreme Court.\u003c/p>\n\u003cp>“I wouldn’t take one appellate court ruling as a landslide,” says Danny Cullenward, a lawyer and energy economist at Stanford University and a research associate with the nonprofit Near Zero. “If one is convinced, as the plaintiffs are, that this fundamentally changes the line, I think there’s good reason to believe that the state Supreme Court would at least look into the question.”\u003c/p>\n\u003cp>But many are not convinced that this ruling fundamentally changes anything.\u003c/p>\n\u003cp>“This is not some sort of revolution,” says Cara Horowitz, co-executive director of the Emmett Institute on Climate Change and the Environment at UCLA School of Law, who also filed an amicus\u003ca href=\"https://www.edf.org/sites/default/files/content/amicus_brief_nature_conservancy_final.pdf\"> brief\u003c/a> in support of the program.\u003c/p>\n\u003cp>“It’s not really reversing what we used to think. It’s really just figuring out for the first time what a cap-and-trade auction really is in the context of tax law,” she says. The court may have broken from \u003ca href=\"http://www.caltax.org/sinclair.htm\">precedent\u003c/a> by establishing a “neither tax nor fee” classification of revenue generator, but Horowitz says that the cap-and-trade program is so unique it’s hard to imagine how this new third category could be applied to much else.\u003c/p>\n\u003cp>“There are no instances that jump out at me of other California regulations that I now think of differently in light of this opinion,” she says.\u003c/p>\n\u003cp>Plus, even if the ruling does undermine Proposition 13, there are other constraints on lawmakers’ ability to raise taxes.\u003c/p>\n\u003cp>In 2010, voters approved \u003ca href=\"http://www.boe.ca.gov/lawguides/property/current/ptlg/ccp/XIII-A-3.html\">Proposition 26\u003c/a>, a chamber-sponsored measure that significantly broadened the definition of tax, leaving only a few, specific exceptions. Prop. 26 didn’t enter into the court’s ruling this time around because the Legislature voted to enact the cap-and-trade program before voters approved the initiated constitutional amendment\u003c/p>\n\u003cp>“There’s so little case law developing the idea of how Proposition 26 defines a tax, it’s really hard to say what the courts will conclude,” says Horowitz.\u003c/p>\n\u003cp>That’s a question that will have to be answered before too long.\u003c/p>\n\u003cp>Under current law, California’s cap-and-trade program phases out in 2020. As Democratic lawmakers in both chambers introduce various extension proposals, the Brown administration has demanded a two-thirds vote to put any questions about the legal validity of the program in the rear view mirror.\u003c/p>\n\u003cp>But even if Gov. Jerry Brown sees a supermajority as politically necessary, it might not be legally so.\u003c/p>\n\u003cp>The Office of Legislative Counsel, which prepares summaries on all new bills and serves as the Legislature’s official lawyer, has designated the two \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB151\">extension\u003c/a> \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180AB378\">bills\u003c/a> in the Assembly as simple majority votes. Not coincidentally, a third \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB775\">bill\u003c/a>, introduced in the Senate this week, has been written to require a two-thirds vote.\u003c/p>\n\u003cp>In other words, even if the appellate court’s ruling does blow a hole in Proposition 13 and even if it is upheld by the Supreme Court, Proposition 26 still reigns. Or at the very least, that may be a question for a later day in court.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11438840/did-a-court-just-create-a-new-pathway-to-tax-californians","authors":["byline_news_11438840"],"programs":["news_6944","news_72"],"categories":["news_1758","news_8","news_13","news_356"],"tags":["news_782","news_725","news_164","news_423","news_17286"],"affiliates":["news_18481"],"featImg":"news_11439022","label":"source_news_11438840"},"news_5647":{"type":"posts","id":"news_5647","meta":{"index":"posts_1591205157","site":"news","id":"5647","score":null,"sort":[1290027933000]},"guestAuthors":[],"slug":"scott-shafer-and-john-myers-on-props-2526","title":"Scott Shafer and John Myers on Props 25/26","publishDate":1290027933,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>It was a very busy election season, you may recall. Not only did you need to ready for Act II of that age-old political drama, titled \"President Loses House,\" but for your average California voter, proposition preparation was particularly laborious.\u003c/p>\n\u003cp>Most of the pre-election focus centered on Proposition 19, marijuana legalization; and Proposition 23, an attempt to derail California's landmark greenhouse-gas reduction law. But while both of those failed at the ballot box, two under-the-radar initiatives, which may end up fundamentally changing the way California is governed, passed. \u003c/p>\n\u003cp>\u003ca href=\"http://www.ballotpedia.org/wiki/index.php/California_Proposition_25,_Majority_Vote_for_Legislature_to_Pass_the_Budget_%282010%29\">Proposition 25\u003c/a> lowers the required vote margin to pass the state budget from two-thirds to a simple majority. \u003ca href=\"http://www.voterguide.sos.ca.gov/propositions/26/\">Proposition 26\u003c/a>, however, goes in the opposite direction, upping the votes needed for state, county, and city governments to levy certain fees, from a simple majority to two-thirds. \u003c/p>\n\u003cp>One noteworthy aspect about these twin victories: Proponents of 25 folded opposition to 26 into their campaign, and proponents of 26 did the same regarding 25. But since both measures passed, both blocs won. And lost.\u003c/p>\n\u003cp>I asked KQED's two policy and political wonks, Scott Shafer and John Myers, what they make of the 25/26 situation. \u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nOn a broad level, the Dems/unions were pro-25, anti-26; Considering that they each only got half of what they want, who came out ahead? \u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nI think the election results are a version of what Cold War political scientists used to call \"mutually assured destruction,\" where both sides launch their missles without regard to whether an attack wipes them out, too. That said, I think the passage of Prop 26 will have a bigger policy impact than the passage of Prop 25, while 25 will have the bigger political impact. Prop 26 is a far-reaching change in the imposition of fees, modifying governing decisions made on both the state and local level. \u003c/p>\n\u003cp>Prop 25, while a noteworthy change to the annual budget dance, will have the largest impact in short-term demands that the business community traditionally makes through Republicans, who then hold out on a budget deal. But the bottom line is that organized labor and big business both won... and lost... \u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nI think Prop. 26 was the sleeper initiative. Didn’t get much attention, totally overshadowed by the other races. But in terms of impact it could be big. The League of California Cities led the No on 26 campaign, such as it was, because their members worried this would hamstring them further in efforts to generate revenue. The Yes on 26 folks said that’s exactly the point – that increasingly fees are just an easier way to raise revenue than taxes, not legitimately tied to a particular service or benefit to the payer.\u003cbr>\n\u003c!--more-->\u003cbr>\n\u003cem>QUESTION\u003c/em>\u003cbr>\nWhat fees are covered under Prop 26? And are only future fees affected, or will 26 be applied retroactively? \u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nProp 26's most immediate effect will be its impact on last year's state budget deal. That budget included a complicated \"tax swap\" element, which shuffled and redistributed some of the gas taxes collected at the pump. The effect on consumers was zero -- but the transfer of those revenues to state coffers and away from local coffers was big. The passage of Prop 26 (along with Prop 22) could result in about $1 billion in additional budget red ink, plus what may be an additional $1 billion in short-term cash woes.\u003cbr>\n \u003c/p>\u003cp>\u003c/p>\u003cbr>\n\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nIt IS retroactive to January 1, 2010 so it captures that gas tax/fee deal. It could also apply to any local measures passed during that time that do not meet the new definition of fees.\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nOpponents portrayed Prop 26 as a giveaway to big business in that many fees levied on certain industries will now require a two-thirds super-majority. But do some of these fees end up being paid by consumers? And does 26 impact any fees paid DIRECTLY by individuals, not businesses? \u003c/p>\n\u003cp>SCOTT SHAFER\u003cbr>\nCritics of fees say businesses never really pay them because they just get passed on to their customers. There’s some truth in that. Prop. 26 DOES apply to fees potentially paid by consumers. For example several weeks ago Mayor Newsom vetoed a fee on alcoholic beverages that would have been paid by patrons of bars and restaurants. Now that will be considered a tax and require a 2/3 vote. \u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nA legal question: How can a statewide vote dictate the revenue-gathering policies of individual cities and counties? So you have San Francisco, for example, voting against 26, yet now the city is still subject to its mandates...\u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nRemember that Prop 26 was an amendment to the state constitution, the document which governs everyone. Constitutional amendments can, and often have, dictated both state and local government actions. Proposition 13, for example, is a constitutional amendment, forbidding local governments from raising property taxes beyond certain levels...\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nYes, it's no different from, say, Proposition 8 which prevented SF from performing gay marriages even though the city voted against it.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nWere the Democrats outmaneuvered on this one? They win 25, so now they can pass a budget without having to deal with Republicans. But they can’t raise any revenue under Prop 13 and can’t institute new fees under Prop 26. So isn’t it like, they now have all the responsibility without any of the authority?\u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nRemember that Prop 25 is an amendment to the state constitution, so it will apply in both good and bad years. In years where there's plenty of revenue, there will be very few restraints for the majority party (which, hard as it is to believe now, may not always be Democrats!). In lean years, yes, it will limit the choices. \u003c/p>\n\u003cp>But remember that this year's $20 billion deficit fix included no new taxes and no new fees; it closed the gap through spending cuts, presumed borrowing (mostly from the feds), and funding shifts/transfers. With that in mind, might that mean the budget would have been agreed to months earlier under 25? Perhaps.\u003c/p>\n\u003cp>The more intriguing question for me is whether majority Democrats will now start to splinter when it comes time to pass a budget. Will the most liberal or moderate Democrats in the Legislature start to hold out for their own specific demands, much in the way GOP legislators did? It seems possible; after all, during this fall's budget impasse some liberal Dems had to have their arms twisted mightily by leaders to vote for some of the deepest spending cuts.\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nWhat John said.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nHow will AB 32, California's law aimed at reducing greenhouse gases, be affected by Prop 26? \u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nTo a certain extent environmentalists may have overstated the harm Prop. 26 would do to environmental regulation. The measure EXCLUDES many fees, which will allow simple majority votes to pass them. \u003c/p>\n\u003cp>However, Prop. 26 does in fact require that a charge imposed for a regulatory program designed to mitigate the social or economic burdens created by the operations of fee payers be treated as a TAX. This likely means for example that the California Air Resources Board’s (CARB) fee imposed on the source of greenhouse gas emissions to pay for implementation of AB 32 would be considered a tax, requiring a 2/3 vote. That’s a very stiff barrier to enacting those charges on polluters.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>That said, ALL of this will end up in the courts for years to come.\u003c/p>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1290028467,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":27,"wordCount":1281},"headData":{"title":"Scott Shafer and John Myers on Props 25/26 | KQED","description":"It was a very busy election season, you may recall. Not only did you need to ready for Act II of that age-old political drama, titled "President Loses House," but for your average California voter, proposition preparation was particularly laborious. Most of the pre-election focus centered on Proposition 19, marijuana legalization; and Proposition 23, an","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Scott Shafer and John Myers on Props 25/26","datePublished":"2010-11-17T21:05:33.000Z","dateModified":"2010-11-17T21:14:27.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"5647 http://ww2.kqed.org/news/?p=5647","disqusUrl":"https://ww2.kqed.org/news/2010/11/17/scott-shafer-and-john-myers-on-props-2526/","disqusTitle":"Scott Shafer and John Myers on Props 25/26","path":"/news/5647/scott-shafer-and-john-myers-on-props-2526","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>It was a very busy election season, you may recall. Not only did you need to ready for Act II of that age-old political drama, titled \"President Loses House,\" but for your average California voter, proposition preparation was particularly laborious.\u003c/p>\n\u003cp>Most of the pre-election focus centered on Proposition 19, marijuana legalization; and Proposition 23, an attempt to derail California's landmark greenhouse-gas reduction law. But while both of those failed at the ballot box, two under-the-radar initiatives, which may end up fundamentally changing the way California is governed, passed. \u003c/p>\n\u003cp>\u003ca href=\"http://www.ballotpedia.org/wiki/index.php/California_Proposition_25,_Majority_Vote_for_Legislature_to_Pass_the_Budget_%282010%29\">Proposition 25\u003c/a> lowers the required vote margin to pass the state budget from two-thirds to a simple majority. \u003ca href=\"http://www.voterguide.sos.ca.gov/propositions/26/\">Proposition 26\u003c/a>, however, goes in the opposite direction, upping the votes needed for state, county, and city governments to levy certain fees, from a simple majority to two-thirds. \u003c/p>\n\u003cp>One noteworthy aspect about these twin victories: Proponents of 25 folded opposition to 26 into their campaign, and proponents of 26 did the same regarding 25. But since both measures passed, both blocs won. And lost.\u003c/p>\n\u003cp>I asked KQED's two policy and political wonks, Scott Shafer and John Myers, what they make of the 25/26 situation. \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nOn a broad level, the Dems/unions were pro-25, anti-26; Considering that they each only got half of what they want, who came out ahead? \u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nI think the election results are a version of what Cold War political scientists used to call \"mutually assured destruction,\" where both sides launch their missles without regard to whether an attack wipes them out, too. That said, I think the passage of Prop 26 will have a bigger policy impact than the passage of Prop 25, while 25 will have the bigger political impact. Prop 26 is a far-reaching change in the imposition of fees, modifying governing decisions made on both the state and local level. \u003c/p>\n\u003cp>Prop 25, while a noteworthy change to the annual budget dance, will have the largest impact in short-term demands that the business community traditionally makes through Republicans, who then hold out on a budget deal. But the bottom line is that organized labor and big business both won... and lost... \u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nI think Prop. 26 was the sleeper initiative. Didn’t get much attention, totally overshadowed by the other races. But in terms of impact it could be big. The League of California Cities led the No on 26 campaign, such as it was, because their members worried this would hamstring them further in efforts to generate revenue. The Yes on 26 folks said that’s exactly the point – that increasingly fees are just an easier way to raise revenue than taxes, not legitimately tied to a particular service or benefit to the payer.\u003cbr>\n\u003c!--more-->\u003cbr>\n\u003cem>QUESTION\u003c/em>\u003cbr>\nWhat fees are covered under Prop 26? And are only future fees affected, or will 26 be applied retroactively? \u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nProp 26's most immediate effect will be its impact on last year's state budget deal. That budget included a complicated \"tax swap\" element, which shuffled and redistributed some of the gas taxes collected at the pump. The effect on consumers was zero -- but the transfer of those revenues to state coffers and away from local coffers was big. The passage of Prop 26 (along with Prop 22) could result in about $1 billion in additional budget red ink, plus what may be an additional $1 billion in short-term cash woes.\u003cbr>\n \u003c/p>\u003cp>\u003c/p>\u003cbr>\n\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nIt IS retroactive to January 1, 2010 so it captures that gas tax/fee deal. It could also apply to any local measures passed during that time that do not meet the new definition of fees.\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nOpponents portrayed Prop 26 as a giveaway to big business in that many fees levied on certain industries will now require a two-thirds super-majority. But do some of these fees end up being paid by consumers? And does 26 impact any fees paid DIRECTLY by individuals, not businesses? \u003c/p>\n\u003cp>SCOTT SHAFER\u003cbr>\nCritics of fees say businesses never really pay them because they just get passed on to their customers. There’s some truth in that. Prop. 26 DOES apply to fees potentially paid by consumers. For example several weeks ago Mayor Newsom vetoed a fee on alcoholic beverages that would have been paid by patrons of bars and restaurants. Now that will be considered a tax and require a 2/3 vote. \u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nA legal question: How can a statewide vote dictate the revenue-gathering policies of individual cities and counties? So you have San Francisco, for example, voting against 26, yet now the city is still subject to its mandates...\u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nRemember that Prop 26 was an amendment to the state constitution, the document which governs everyone. Constitutional amendments can, and often have, dictated both state and local government actions. Proposition 13, for example, is a constitutional amendment, forbidding local governments from raising property taxes beyond certain levels...\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nYes, it's no different from, say, Proposition 8 which prevented SF from performing gay marriages even though the city voted against it.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nWere the Democrats outmaneuvered on this one? They win 25, so now they can pass a budget without having to deal with Republicans. But they can’t raise any revenue under Prop 13 and can’t institute new fees under Prop 26. So isn’t it like, they now have all the responsibility without any of the authority?\u003c/p>\n\u003cp>\u003cem>JOHN MYERS\u003c/em>\u003cbr>\nRemember that Prop 25 is an amendment to the state constitution, so it will apply in both good and bad years. In years where there's plenty of revenue, there will be very few restraints for the majority party (which, hard as it is to believe now, may not always be Democrats!). In lean years, yes, it will limit the choices. \u003c/p>\n\u003cp>But remember that this year's $20 billion deficit fix included no new taxes and no new fees; it closed the gap through spending cuts, presumed borrowing (mostly from the feds), and funding shifts/transfers. With that in mind, might that mean the budget would have been agreed to months earlier under 25? Perhaps.\u003c/p>\n\u003cp>The more intriguing question for me is whether majority Democrats will now start to splinter when it comes time to pass a budget. Will the most liberal or moderate Democrats in the Legislature start to hold out for their own specific demands, much in the way GOP legislators did? It seems possible; after all, during this fall's budget impasse some liberal Dems had to have their arms twisted mightily by leaders to vote for some of the deepest spending cuts.\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nWhat John said.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003cbr>\nHow will AB 32, California's law aimed at reducing greenhouse gases, be affected by Prop 26? \u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003cbr>\nTo a certain extent environmentalists may have overstated the harm Prop. 26 would do to environmental regulation. The measure EXCLUDES many fees, which will allow simple majority votes to pass them. \u003c/p>\n\u003cp>However, Prop. 26 does in fact require that a charge imposed for a regulatory program designed to mitigate the social or economic burdens created by the operations of fee payers be treated as a TAX. This likely means for example that the California Air Resources Board’s (CARB) fee imposed on the source of greenhouse gas emissions to pay for implementation of AB 32 would be considered a tax, requiring a 2/3 vote. That’s a very stiff barrier to enacting those charges on polluters.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>That said, ALL of this will end up in the courts for years to come.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/5647/scott-shafer-and-john-myers-on-props-2526","authors":["80"],"programs":["news_6944"],"categories":["news_13"],"tags":["news_152","news_43","news_145","news_164","news_163"],"label":"news_6944"},"news_3402":{"type":"posts","id":"news_3402","meta":{"index":"posts_1591205157","site":"news","id":"3402","score":null,"sort":[1288381271000]},"guestAuthors":[],"slug":"scott-shafer-demystifies-important-proposition-26","title":"Scott Shafer Demystifies Important Proposition 26","publishDate":1288381271,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>Last week we asked John Myers, KQED's Sacramento Bureau Chief, to \u003ca href=\"http://ww2.kqed.org/news/2010/10/26/prop-25-puts-california-on-verge-of-budget-reform/\">\u003cstrong>enlighten us\u003c/strong>\u003c/a> on \u003ca href=\"http://ballotpedia.org/wiki/index.php/California_Proposition_25,_Majority_Vote_for_Legislature_to_Pass_the_Budget_%282010%29\">Proposition 25\u003c/a>. This week, we turn to The California Report's Scott Shafer for the skinny on \u003ca href=\"http://www.ballotpedia.org/wiki/index.php/California_Proposition_26,_Supermajority_Vote_to_Pass_New_Taxes_and_Fees_%282010%29\">Proposition 26\u003c/a>.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>In a nutshell, what exactly is Prop 26?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Prop. 26 sounds like eye-glazing government minutia – and it kind of is. But it’s also really important.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Some background: Two important ways that state and local government raise revenue are through taxes and fees. Taxes (income, property and sales primarily) go into the General Fund and are used for the general costs of government. State law requires a 2/3 majority to pass a tax increase.\u003c/p>\n\u003cp>But fees – on everything from cigarettes to gas suppliers – require just a \u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2010/10/CaliforniaBear1.jpg\">\u003cimg class=\"alignleft size-medium wp-image-3426\" title=\"CaliforniaBear\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2010/10/CaliforniaBear1-300x200.jpg\" alt=\"\" width=\"200\" height=\"132\">\u003c/a>majority vote by the state or local legislature/city council. The catch is they must be used to pay for a specific service or program benefiting individuals or businesses.\u003c/p>\n\u003cp>State and local governments often turn to fees to free up money from the General Fund, which is used to pay for services like schools, roads, etc. They’re also easier to get enacted because they only take a majority vote, and no vote of the people. And it often seems fair to, say, charge gasoline or oil suppliers to pay a fee to help mitigate the costs of cleaning up air pollution or MTBE contamination related to their product.\u003c/p>\n\u003cp>Prop. 26 would change that and redefine many fees as taxes, thus requiring a 2/3 vote to enact or raise them.\u003c/p>\n\u003cp>One other thing. Tucked into the measure is a repeal of recently passed laws that conflict with Prop. 26, such as a recent increase in the fuel tax. That helps explain why the largest donor to the Yes on 26 campaign is Chevron.\u003c/p>\n\u003cp>\u003c!--more-->\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>If it passes, what exactly are the fees that would be subjected to a 2/3 vote?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Too many to name. Generally speaking, fees that would become taxes are ones government imposes to address health, environmental or other societal or economic concerns. It could include, for example, fees on public utilities, restaurants, oil and gas suppliers, sellers of alcoholic beverages and tobacco.\u003c/p>\n\u003cp>Fees that would not be affected include user fees (like state park entrance fees) and property charges (like those that developers pay to improve roads).\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Who’s behind Prop 26 and why? How much money have they sunk into the campaign?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Prop. 26 got on the ballot through a signature gathering campaign funded by large businesses, including Chevron, the American Beverage Association and the California Chamber of Commerce. They represent the kinds of companies who are often the “targets” of these fees. And they would benefit if it passes.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Who’s opposed?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>The No on 26 campaign has been vastly outraised. Most of the big contributions come from labor unions. As you might imagine, Jerry Brown (and almost all local officials) oppose Prop. 26, while Meg Whitman (and many Republicans and most business groups) support it.\u003c/p>\n\u003cp>One other note: Both the Yes and No on 26 campaigns are running joint efforts aimed at both Prop. 26 and Prop. 25 (the majority vote on the budget measure). So there’s a \u003ca href=\"http://www.no25yes26.com\">No on 25/Yes on 26\u003c/a> effort and a \u003ca href=\"http://www.endbudgetgridlock.com/\">Yes on 25/No on 26\u003c/a> campaign. Combined, the No on 25/Yes on 26 campaign has vastly out-raised the other side.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>I read a report that that the oil companies have given up on Prop 23 but are still hopeful about Prop 26. True? What do the polls show?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Dan Morain of the Sacramento Bee \u003ca href=\"http://www.sacbee.com/2010/10/17/3108147/as-prop-23-dives-money-goes-elsewhere.html\">reported\u003c/a> that with polls showing Prop. 23 tanking, its business supporters have started sending their contributions to the Yes on Prop. 26 campaign. Examples of big contributions in the past week or so: California Chamber of Commerce: $600,000; American Beverage Association: $1.25 million, Chevron: $1.25 million.\u003c/p>\n\u003cp>Most major polling firms haven’t done much polling on Prop. 26 so it’s hard to say where it’s heading.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Is there a trend in the initiative process in which big business is more frequently floating narrowly tailored, self-interested propositions? I’m thinking of Prop 23, but also of the initiative in June sponsored by PG&E that tried to up the bar for voting in public power.\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>I don’t think business has a monopoly on self-serving ballot measures. Labor unions, political parties, environmental groups et al all push ballot measures designed to help them.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Has there been any talk of trying to reform the initiative process or is this a sacred cow in California?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>There’s been a lot of talk about reforming the initiative system in California, but so far it’s just that: talk. Efforts to call a constitutional convention and another to “reform” state government never got off the ground this year. The reason: Most of the big interest groups – business, labor, et al – like the current system because they basically know how to “game it” and are afraid that would not be the case if, say, it became harder to get something on the ballot.\u003c/p>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1288390106,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":40,"wordCount":896},"headData":{"title":"Scott Shafer Demystifies Important Proposition 26 | KQED","description":"Last week we asked John Myers, KQED's Sacramento Bureau Chief, to enlighten us on Proposition 25. This week, we turn to The California Report's Scott Shafer for the skinny on Proposition 26. QUESTION In a nutshell, what exactly is Prop 26? SCOTT SHAFER Prop. 26 sounds like eye-glazing government minutia – and it kind of","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Scott Shafer Demystifies Important Proposition 26","datePublished":"2010-10-29T19:41:11.000Z","dateModified":"2010-10-29T22:08:26.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"3402 http://ww2.kqed.org/news/?p=3402","disqusUrl":"https://ww2.kqed.org/news/2010/10/29/scott-shafer-demystifies-important-proposition-26/","disqusTitle":"Scott Shafer Demystifies Important Proposition 26","path":"/news/3402/scott-shafer-demystifies-important-proposition-26","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Last week we asked John Myers, KQED's Sacramento Bureau Chief, to \u003ca href=\"http://ww2.kqed.org/news/2010/10/26/prop-25-puts-california-on-verge-of-budget-reform/\">\u003cstrong>enlighten us\u003c/strong>\u003c/a> on \u003ca href=\"http://ballotpedia.org/wiki/index.php/California_Proposition_25,_Majority_Vote_for_Legislature_to_Pass_the_Budget_%282010%29\">Proposition 25\u003c/a>. This week, we turn to The California Report's Scott Shafer for the skinny on \u003ca href=\"http://www.ballotpedia.org/wiki/index.php/California_Proposition_26,_Supermajority_Vote_to_Pass_New_Taxes_and_Fees_%282010%29\">Proposition 26\u003c/a>.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>In a nutshell, what exactly is Prop 26?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Prop. 26 sounds like eye-glazing government minutia – and it kind of is. But it’s also really important.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Some background: Two important ways that state and local government raise revenue are through taxes and fees. Taxes (income, property and sales primarily) go into the General Fund and are used for the general costs of government. State law requires a 2/3 majority to pass a tax increase.\u003c/p>\n\u003cp>But fees – on everything from cigarettes to gas suppliers – require just a \u003ca href=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2010/10/CaliforniaBear1.jpg\">\u003cimg class=\"alignleft size-medium wp-image-3426\" title=\"CaliforniaBear\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2010/10/CaliforniaBear1-300x200.jpg\" alt=\"\" width=\"200\" height=\"132\">\u003c/a>majority vote by the state or local legislature/city council. The catch is they must be used to pay for a specific service or program benefiting individuals or businesses.\u003c/p>\n\u003cp>State and local governments often turn to fees to free up money from the General Fund, which is used to pay for services like schools, roads, etc. They’re also easier to get enacted because they only take a majority vote, and no vote of the people. And it often seems fair to, say, charge gasoline or oil suppliers to pay a fee to help mitigate the costs of cleaning up air pollution or MTBE contamination related to their product.\u003c/p>\n\u003cp>Prop. 26 would change that and redefine many fees as taxes, thus requiring a 2/3 vote to enact or raise them.\u003c/p>\n\u003cp>One other thing. Tucked into the measure is a repeal of recently passed laws that conflict with Prop. 26, such as a recent increase in the fuel tax. That helps explain why the largest donor to the Yes on 26 campaign is Chevron.\u003c/p>\n\u003cp>\u003c!--more-->\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>If it passes, what exactly are the fees that would be subjected to a 2/3 vote?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Too many to name. Generally speaking, fees that would become taxes are ones government imposes to address health, environmental or other societal or economic concerns. It could include, for example, fees on public utilities, restaurants, oil and gas suppliers, sellers of alcoholic beverages and tobacco.\u003c/p>\n\u003cp>Fees that would not be affected include user fees (like state park entrance fees) and property charges (like those that developers pay to improve roads).\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Who’s behind Prop 26 and why? How much money have they sunk into the campaign?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Prop. 26 got on the ballot through a signature gathering campaign funded by large businesses, including Chevron, the American Beverage Association and the California Chamber of Commerce. They represent the kinds of companies who are often the “targets” of these fees. And they would benefit if it passes.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Who’s opposed?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>The No on 26 campaign has been vastly outraised. Most of the big contributions come from labor unions. As you might imagine, Jerry Brown (and almost all local officials) oppose Prop. 26, while Meg Whitman (and many Republicans and most business groups) support it.\u003c/p>\n\u003cp>One other note: Both the Yes and No on 26 campaigns are running joint efforts aimed at both Prop. 26 and Prop. 25 (the majority vote on the budget measure). So there’s a \u003ca href=\"http://www.no25yes26.com\">No on 25/Yes on 26\u003c/a> effort and a \u003ca href=\"http://www.endbudgetgridlock.com/\">Yes on 25/No on 26\u003c/a> campaign. Combined, the No on 25/Yes on 26 campaign has vastly out-raised the other side.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>I read a report that that the oil companies have given up on Prop 23 but are still hopeful about Prop 26. True? What do the polls show?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>Dan Morain of the Sacramento Bee \u003ca href=\"http://www.sacbee.com/2010/10/17/3108147/as-prop-23-dives-money-goes-elsewhere.html\">reported\u003c/a> that with polls showing Prop. 23 tanking, its business supporters have started sending their contributions to the Yes on Prop. 26 campaign. Examples of big contributions in the past week or so: California Chamber of Commerce: $600,000; American Beverage Association: $1.25 million, Chevron: $1.25 million.\u003c/p>\n\u003cp>Most major polling firms haven’t done much polling on Prop. 26 so it’s hard to say where it’s heading.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Is there a trend in the initiative process in which big business is more frequently floating narrowly tailored, self-interested propositions? I’m thinking of Prop 23, but also of the initiative in June sponsored by PG&E that tried to up the bar for voting in public power.\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>I don’t think business has a monopoly on self-serving ballot measures. Labor unions, political parties, environmental groups et al all push ballot measures designed to help them.\u003c/p>\n\u003cp>\u003cem>QUESTION\u003c/em>\u003c/p>\n\u003cp>Has there been any talk of trying to reform the initiative process or is this a sacred cow in California?\u003c/p>\n\u003cp>\u003cem>SCOTT SHAFER\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>There’s been a lot of talk about reforming the initiative system in California, but so far it’s just that: talk. Efforts to call a constitutional convention and another to “reform” state government never got off the ground this year. The reason: Most of the big interest groups – business, labor, et al – like the current system because they basically know how to “game it” and are afraid that would not be the case if, say, it became harder to get something on the ballot.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/3402/scott-shafer-demystifies-important-proposition-26","authors":["80"],"programs":["news_6944"],"categories":["news_1758","news_13"],"tags":["news_164","news_163","news_71"],"label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. 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Hosted by journalists of color, the show tackles the subject of race head-on, exploring how it impacts every part of society — from politics and pop culture to history, sports and more.\u003cbr />\u003cbr />\u003cem>Life Kit\u003c/em>, which will be in the second part of the hour, guides you through spaces and feelings no one prepares you for — from finances to mental health, from workplace microaggressions to imposter syndrome, from relationships to parenting. The show features experts with real world experience and shares their knowledge. Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Code-Switch-Life-Kit-Podcast-Tile-360x360-1.jpg","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Mindshift-Podcast-Tile-703x703-1.jpg","imageAlt":"KQED MindShift: How We Will Learn","officialWebsiteLink":"/mindshift/","meta":{"site":"news","source":"kqed","order":"2"},"link":"/podcasts/mindshift","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/mindshift-podcast/id1078765985","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkM1NzY0NjAwNDI5","npr":"https://www.npr.org/podcasts/464615685/mind-shift-podcast","stitcher":"https://www.stitcher.com/podcast/kqed/stories-teachers-share","spotify":"https://open.spotify.com/show/0MxSpNYZKNprFLCl7eEtyx"}},"morning-edition":{"id":"morning-edition","title":"Morning Edition","info":"\u003cem>Morning Edition\u003c/em> takes listeners around the country and the world with multi-faceted stories and commentaries every weekday. 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