Californians Reject Prop. 56, Support Props. 57, 58
(March 3, 2004) California voters and the California Chamber of Commerce were in agreement on election day, opposing Proposition 56, the “Blank Check Initiative,” and supporting Propositions 57 and 58, the Governor’s California Recovery Plan.
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| Chamber President Allan Zaremberg (center) prepares to outline problems with Proposition 56 for Carmine Gallo of KCBS 2/KCAL 9, Los Angeles. |
“The failure of Proposition 56 is a victory for Californians across the state,” said Chamber President Allan Zaremberg. “Despite the deceptive tactics used by the measure’s proponents, voters clearly saw this measure for what it is: a ploy to raise taxes.”
On the other hand, Propositions 57 and 58 “are essential steps toward placing California’s economy on the road to recovery,” Zaremberg said. “Voter approval of these measures will stimulate California’s jobs climate and our economy may again generate the general fund revenues that fund essential state services such as education, public safety and others.”
Proposition 56
The Chamber-led campaign opposing Proposition 56 pointed out repeatedly that California’s economy and jobs climate would only have been harmed by this measure and the onslaught of tax increases on every sector of California that would have resulted if it had passed.
Proposition 56 would have made it easier for the Legislature to increase taxes by eliminating the requirement that any tax be approved by a two-thirds vote. The initiative wrapped its tax provision in popular ideas, such as punishing legislators for a late budget, as a diversion to gain public support.
“The California Chamber of Commerce applauds the voters of California for seeing though the deceptive tactics used by the proponents and rejecting the ‘blank check’ Proposition 56 would have given to the Legislature,” Zaremberg said.
Propositions 57, 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. 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.
Zaremberg was an honorary co-chair of the campaign supporting Propositions 57 and 58.
“The next step toward restoring California’s fiscal house is for the state Legislature to adopt Governor Schwarzenegger’s budget plan. This plan begins to control the root of the problem — out-of-control growth in state spending, while also spreading this solution across various aspects of government,” Zaremberg said.
“The Legislature overcame partisan boundaries to place Governor Schwarzenegger’s California Recovery Plan on the ballot. We encourage them to again overcome partisan differences and enact the Governor’s fiscally responsible budget to bring California’s finances back into balance.”
Zaremberg also said lawmakers must focus on legislation and other measures that will help bring the economy back — such as a complete overhaul of California’s workers’ compensation system and the rejection of measures that will only drive California’s jobs to other states. Proposition 56 was one such measure.
“The passage of Propositions 57 and 58 is also a clear message to the state Legislature: when Governor Schwarzenegger takes his message to the voters of California, they listen,” Zaremberg said. “Over the coming weeks, the Legislature must take seriously the ability of Governor Schwarzenegger to place his workers’ compensation plan on the November ballot unless his reforms are adopted. California employers need the relief the Governor’s plan will provide. It is essential to keep jobs in our state.”
Staff Contact: Sara Lee