No on Prop. 56, Yes on 57 and 58 Critical for Economy

(March 1, 2004) In the last weekend before tomorrow’s primary election, the California Chamber of Commerce was actively involved in the final push to win voter opposition to or support for measures that will have a huge impact on the state’s job and economic outlook.

The Chamber-led campaign opposing Proposition 56, the 'Blank Check Initiative' aired ads in key markets pointing out the deceptive nature of the measure, which makes it easier for the Legislature to increase taxes.

Chamber First Vice Chair Eugene J. Voiland joined Governor Arnold Schwarzenegger on a weekend campaign blitz to build on the growing support for Propositions 57 and 58, the Governor’s California Recovery Plan.

'Passing Propositions 57 and 58 is critical to the state's economic recovery,' Voiland said. 'The huge deficit from the past cannot be addressed without very significant negative impact to the California economy and necessary state services. California needs this workout plan to refinance this past debt and ensure safeguards are put in place to keep the state budget in balance from now on.'

Chamber President Allan Zaremberg also highlighted the importance of passing Propositions 57 and 58 in a live debate on the Roger Hedgecock show on KOGO news radio in San Diego.

Polling showed that while momentum was building toward the Chamber’s positions on the March ballot measures, there were enough undecided voters to keep the contests close. It will be important for opponents of Proposition 56 and supporters of Propositions 57, 58 and 55 to cast their ballots tomorrow.

Yes on Props. 57 and 58
Proposition 57 is the one-time bond to pay off the state’s accumulated deficit. It is tied to passage of Proposition 58, which requires the state to adopt a balanced budget.

'We need to make sure the state can spread out its accumulated debt over a longer period of time because it doesn’t have the cash to pay it now,' Zaremberg said. 'Proposition 57 will allow the state to do that and Proposition 58 ensures California will live within our means.'

Proposition 58 also creates a 'rainy day savings account' to be used for paying the bonds off early and helping the state through any future economic downturns.

No on Prop. 56
Proposition 56 eliminates the current requirement that any tax be approved by a two-thirds vote of the Legislature. This central provision of the initiative is deceptively wrapped in popular ideas, such as punishing legislators for a late budget, as a diversion aimed at gaining public support.

By giving legislators an even freer hand to pass unlimited tax increases, Proposition 56 would harm the state’s economy as businesses and consumers carry a heavier tax burden. In 2003 alone, legislators proposed nearly 100 additional tax and fee increases totaling close to $65 billion. Proposition 56 will make it easier for Sacramento politicians to increase numerous taxes without justification or bipartisan consensus.

Chamber Positions
The Chamber recommends the following positions on the March propositions:

• YES on Proposition 55 - A statewide bond for kindergarten-university facilities that is a sound, fiscally responsible investment in our economy and future workforce. www.yeson55.com.
• NO on Proposition 56 - The 'blank check initiative' makes it easier to raise taxes on every single Californian. www.noblankchecks.com.
• YES on Proposition 57 -A one-time bond to pay off the state's accumulated deficit, an essential first step for California's economic recovery, which will help to foster an environment that stimulates job growth. Tied to passage of Proposition 58. www.yes57and58.org.
• YES on Proposition 58 - A balanced budget requirement that will stop the state from spending more than it takes in, which is essential for the future health of California's business climate. www.yes57and58.org.

Links to other articles and information appear on the ballot measures page at www.calchamber.com.