Pasadena Chamber of Commerce Board of Directors Positions on Statewide Initiatives for November 4th Election
The Pasadena Chamber of Commerce Board of Directors considered and took positions on several statewide initiatives that will appear on the ballot on November 4, 2014. Over the course of several months the Chamber’s Legislative and Government Affairs Committee deliberated the measures before recommending action to the Board of Directors.
The Pasadena Chamber of Commerce Board of Directors makes the following recommendation on initiatives on the California ballot this November:
- Proposition 1 (Water Bond): Proposition 1 is beneficial, both environmentally and economically. While it raises a number of fiscal questions, particularly with how this $7.5 billion repayment will affect taxpayers, who will pay the cost of the bond over the next 40 years. However, the bill’s benefits clearly outweigh its possible risks. Plainly, some investment needs to be made in California’s water infrastructure and, though this bond will not fix the water system, it is a necessary start. The Pasadena Chamber Board recommends support for Proposition 1.
- Proposition 2 (Rainy Day Budget Stabilization Fund): Proposition 2 would alter the state’s existing requirements for the Budget Stabilization Account. If approved by voters, it would require the controller to deposit annually into the Budget Stabilization Account 1.5 percent of general fund revenues and an amount equal to revenues derived from capital gains-related taxes that exceed eight percent of general fund revenues. Deposits to the BSA would begin by no later than October 1, 2015. Deposits would be made until the BSA balance reaches an amount equal to 10 percent of general fund revenues. 50 percent of the revenues that would have otherwise been deposited into the BSA must be used to pay for fiscal obligations, such as budgetary loans and unfunded state-level pensions plans. It would also create a Public School System Stabilization Account that would be funded by a transfer of capital gains-related tax revenues in excess of eight percent of general fund revenues. Funds would be appropriated from the PSSSA when state support for K-14 education exceeds the allocation of general fund revenues, allocated property taxes and other available resources. Proposition 2 is simply god financial practice. When there are excess revenues, a previously determined amount will be put into funds that can be used later to offset budget deficiencies caused by revenue loss. It also begins funding pension obligations that threaten to overwhelm the state budget. The Pasadena Chamber Board recommends support for Proposition 2.
- Proposition 45 (Insurance Commissioner Authority over Health Insurance Rates: Proposition 45 would give the elected Insurance Commissioner authority over changes to health insurance rates and anything that impacts charges associated with health insurance. Currently, there is an appointed commission with jurisdiction over health insurance rates and co-pays. To take that authority away from an independent appointed commission and give it to one elected official removes safeguards for consumers. It also provides too much opportunity for influence and even corruption by giving one politician the sole decision-making authority. We have already experienced how money can influence decisions made by our first elected insurance commissioner. It would be a mistake to give one elected official authority over health insurance rates. The Pasadena Chamber Board opposes passage of Proposition 45 and recommends a no vote.
- Proposition 46 (Medical Malpractice Lawsuit Caps): Proposition 46 raises the maximum amount that can be awarded for non-economic damages in a medical malpractice lawsuit from the current $250,000 to $1.1 million. It also requires drug testing of doctors and that health care practitioners consult the state prescription drug history database before prescribing controlled substances. This is a very transparent attempt to increase the payout in medical malpractice lawsuits to increase the amount trial lawyers can make on these cases. While it may seem noble to require testing and controlled substance reporting, that is simply a shield to hide the true objective of Proposition 46-to increase monetary awards and the amount lawyers suing for malpractice can earn. The result of passage of Proposition 46 will be higher health care costs, higher health insurance rates and no increased safety or consumer protection for the public. The Pasadena Chamber Board opposes Prop 46 and recommends a no vote.
- Proposition 47 (Reduced Penalties for Some Felonies): Proposition 46 mandates misdemeanors instead of felonies for “non-serious, nonviolent crimes," unless the defendant has prior convictions for murder, rape, certain sex offenses or certain gun crimes. It would permit re-sentencing for anyone currently serving a prison sentence for any of the offenses that the initiative reduces to misdemeanors. It also creates a Safe Neighborhoods and Schools Fund. The idea behind Proposition 47 seems sound, to alleviate jail overcrowding and costs of incarceration for some criminals, there are too many concerns left unaddressed in the measure to create any certainly that offenders released would actually not pose a further threat of serious criminal behavior. The Pasadena Chamber Board chose to take no position on this initiative, which expressing doubts about its implementation and concerns about impacts on local communities.
- The Chamber Board did not consider Proposition 48 (Gambling Compacts with Mono Indians and Wiyot Tribe as there was little or no impact perceived on the Pasadena economy or Pasadena businesses.