After more than 18-months of preparation, the non-partisan reform group California Forward is preparing to qualify a package of reforms for the November 2010 ballot that would overhaul the state’s budget process, enact state/local government reform, and reform term limits.
The reform package would include lowering the vote requirement from 2/3 to a majority vote for passage of a state budget, two-year budgeting for the state, and narrowing the definition of fees that can be enacted on a majority vote, among other things.
KC Fiscal Focus sat down with California Forward executive director James P. Mayer this week to discuss the reform package.
“We built a model tailored to California—no state is doing all of the pieces,” Mayer said, noting that the California Forward effort has examined countless policy options and pulled together the best practices from California communities and states across the country.
“We tried to create the entire spaceship by pulling together pieces of what other states do well,” noting that California currently lacks many of the tools that other states are using to better manage themselves.
The reform package includes three major components: 1) budget reform, 2) state/local government reform, and 3) political reform (see below for a summary). He said all three pieces were developed and vetted through a long conversation and series of meetings with local communities, business leaders, legislators, legislative staff, national groups, and other major stakeholders.
Mayer said California Forward has conducted extensive polling and focus groups in developing the package of reforms and that most of the reforms are very popular with the public. Mayer said specific language for the proposals has been developed and will be available on the group’s website in a week or so.
Mayer said the goal is to get the Legislature to approve the package of constitutional and statutory reforms but the group is preparing to begin collecting signatures in the fall to ensure that the reform package will be placed on the November 2010 ballot.
“The public wants the lowering of the vote threshold for passage of a budget,” Mayer said, noting that most voters do not support lowering the vote requirement as a standalone measure but are willing to support the provision if it is part of a larger package of budget reforms.
Mayer said fundraising for the effort is being conducted by a separate entity, the California Forward Action Fund (which is 501(c)(4) political committee), and did not specify how much money he thought the effort would need to raise because it will depend on the amount of opposition. The California Secretary of State’s Office does not show any major fundraising activity for the action fund as of yet.
California Forward has also started working a package of reforms to the state’s tax system but is waiting to see what the Commission on the 21st Economy recommends before releasing its own recommendations. Mayer said he thought it would be too late to qualify the group’s recommendations on tax reform for the November 2010 ballot, but would push for tax reform in the Legislature and possibly qualify a tax reform measure for a future ballot.
Summary of Reforms (specific language to be available at www.caforward.org shortly):
Budget Reforms
► Lower Vote Requirement for Passage of a State Budget: Lower the legislative vote requirement for passage of a state budget from a 2/3 vote to a simple majority vote.
► Two-Year State Budget: Require the Governor and Legislature to craft two-year budgets with midyear correction authority, long-term revenue forecasts, and capital investment plans.
► Pay-As-You-Go Budgeting: Require that new programs identify a funding source for the new spending that they require.
► Result-Based Budgeting: Require the Governor and lawmakers to set clear goals for programs, measurements for effectiveness, monitor performance to improve efficiency, and consider eliminating outdated and duplicative programs.
► One-Time Use of One-Time Revenues: Reduce future budget shortfalls by prohibiting the use of unexpected spikes in revenues to increase spending on programs that continue year after year.
► Clarify Vote Requirement for Fees: Clarify the circumstances in which the Legislature and the Governor can impose fees without a two-thirds vote.
► Protect Local Revenue: Give communities more control over community-related services and prevent the state from siphoning off local revenue by giving local governments legal ownership of specific funds for community services.
► Remove Barriers to Local Government Coordination: Encourage community-level governments to coordinate and consolidate districts when this makes sense, give county governments the authority to redistribute local property taxes to improve efficiency, improve services, and deliver better results.
► Foster and Fund Long-Term Regional Collaboration: Allow cities, counties and school officials who craft long-term flexible plans to address community needs and seek majority vote approval to provide funds to pay for them while retaining the vote thresholds established under Proposition 218.
► Term Limit Reform: Reduce the total time newly-elected state legislators are allowed to serve from 14 years to 12 years, regardless of whether the time is spent in the Assembly or Senate.
► Constitutional Access and Accountability: Require legislators to spend part of every year in their district, in consultation with constituents and local leaders.
California Forward is registered as a nonprofit 501(c)(3) and started out a year and a half ago with $15.9 million in operating funds donated by the James Irvine Foundation, the William and Flora Hewlett Foundation, the David and Lucille Package Foundation, the California Endowment, and the Evelyn and Walter Haas Jr. Fund.
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