(March 1, 2010) The California Chamber of Commerce is a strong supporter of Proposition 16, The Taxpayers Right to Vote Act, and is asking local chambers of commerce and other members to endorse this important measure on the June ballot.

This initiative simply requires that voters have the final say if a local government chooses to spend public money or incur public debt to create a government-run electricity business. Like most other local special tax and bond decisions in California, a two-thirds vote would be required.

At the state level, California already is burdened by record debt and again faces a $20 billion annual deficit this year. At the local level, budgets are being slashed, with critical services from public safety to public works to parks being cut. The bottom line is: California’s state and local governments cannot make ends meet.

Yet, at the same time, some local leaders are working to have their communities commit hundreds of millions of public dollars or debt to push out privately run electricity businesses and get government into the retail electricity business.

And, even in these tough economic times, they don’t want taxpayers to vote on it because current law does not require a vote.

Public Discussion

Requiring a vote will ensure that the complicated and risky choice to create a government-run electricity business gets the public discussion it deserves. These are long-term deals that can commit generations to hundreds of millions of dollars of debt.

And to pay for them, more cuts in local programs might be required or, perhaps, even new taxes or fees. The voters need to be allowed to weigh the promises of benefits versus the real risks and costs of failure.

Just as important, requiring a vote before government-owned utilities can annex territory or customers currently served by electrical corporations will make it harder for government-run utilities to cherry-pick the best customers out of the electrical corporation’s territory—leaving the remaining customers with higher electric rates to compensate for the loss.

Opponents of Proposition 16 erroneously claim that Proposition 16 could require an election before a new subdivision, or even a single home, could be served with electricity if it is located within the territory of an existing local publicly owned utility.

In fact, Proposition 16 specifically exempts situations where publicly owned utilities extend service to new customers located within their exclusive geographic territories. This is confirmed by the non-partisan Legislative Analyst’s analysis of Proposition 16, and by the measure’s own findings and declarations. Moreover, the opponents’ argument is based on an absurd, almost laughable, interpretation that no court would ever accept.

More Information

Visit www.taxpayersrighttovote.com to learn more about Proposition 16. Call Sophia Cazanis at (916) 491-4094 to be listed among the initiative’s supporters.