SACRAMENTO, Calif. - (Business Wire) The California Forward Action Fund submitted a pair of nonpartisan initiatives Friday that would bring comprehensive reform to California’s broken budget process, protect funding for local services and give communities new tools and resources to set their own priorities and chart their own paths for the future. “In jobs and technology, education and quality of life, our state has always led the way. We’ve been to every corner of the state, talked to hundreds of people from every walk of life and spent months of research refining our proposals. These reforms get California moving again so California can lead again,” said Bob Hertzberg, co-chair of the California Forward Action Fund and former Assembly Speaker.
“Politics as usual won’t solve our problems,” said Thomas McKernan, California Forward Action Fund co-chair and CEO of the Automobile Club of Southern California. “It’s time to focus on common sense – by taking practices that have proven themselves in business and other states, and putting them to work in California, balancing the budget, reducing waste and delivering better results.”
The first measure, the Best Practices Budget Accountability Act, calls for the state budget to set clear goals and for the Legislature and Governor to take action when things go wrong. Its provisions include:
Planning ahead on spending: Requires the Governor and lawmakers to think long-term about spending priorities and revenues by reviewing a two-year spending plan along with a five-year fiscal forecast before approving the annual budget. The measure also strengthens requirements for quick action when the budget is out of balance.
Results and accountability: Requires clear goals for every program to be spelled out in the Governor’s budget and improves the legislative process for developing the budget by focusing on results and greater public transparency.
Performance review: Requires the Legislature to oversee major expenditures and examine every program at least once every 10 years, looking for ways to improve efficiency and reduce waste.
Reduce debt when revenues spike: Creates a process for identifying and using occasional, nonrecurring spikes in revenue for one-time uses, such as paying down debt.
Pay-as-you-go: Requires that major new or expanded programs and tax reductions proposed in the budget or legislation identify a specific funding source such as savings, cuts to other programs or tax increases.
Majority vote budget: As part of these comprehensive fiscal reforms, lowers the vote requirement for adopting the state budget to a majority vote of the Legislature. All lawmakers would forfeit their pay and per diem when the budget is late. The measure also requires a two-thirds vote for any new fees that replace tax revenue, but does not change the majority vote requirement for other fees or the two-thirds vote requirement to raise taxes.
The second proposal, the Community Funding Protection and Accountability Act, protects funding for local services and provides a strong preference for government that’s closer to the people. Its provisions include:
Protecting Local Tax Dollars: The proceeds of any tax, assessment or fee levied by a local agency (including a county, city, a school district, or any other local or regional governmental entity) belong exclusively to that entity. The state would be prohibited from borrowing, transferring or making any appropriation of those funds, including Prop. 42 transportation funds.
Encouraging Community Problem-Solving: Local governments would be allowed to develop and implement countywide action plans to ensure that officials are working together to address local priorities, eliminate waste and duplication, and identify how additional revenue would be used to reach community goals.
New resources for community services: If a countywide action plan is adopted requiring additional revenue, county supervisors may ask voters to approve an increase in the sales and use tax of up to 1 cent. If approved by a majority of voters, an amount equal to the new revenue will be distributed among local governments.
Public accountability for results: Local officials would have discretion about how to spend new dollars, but also be held accountable for reporting progress toward community goals, and be required to seek voter approval to continue carrying out the plan at least once every 10 years.
Both of the initiatives submitted to the Attorney General for title and summary would amend the state Constitution. Each will require 694,354 signatures by April 16, 2010 to be placed on the November 2, 2010 ballot.
The initiative proposals are based on the reform plan California Forward presented to the Governor and Legislature earlier this year. The plan was developed and refined based on discussions and comments with thousands of Californians throughout the state. The California Forward Action Fund will continue to work with state leaders to bring a comprehensive reform plan before voters.
California Forward and the California Forward Action Fund are nonpartisan, non-profit organizations launched in 2008 to reform state government.
For California Forward
Molly Weedn, 415-209-4217 (Cell)
