Yes on Proposition 5
Allows Local Bonds for Affordable Housing and Public Infrastructure With 55% Voter Approval
What is it?
Currently, for local governments to borrow money, 66.67% of voters must vote yes.
Prop 5 lowers this threshold from 66.67% to 55% for local bonds. The revenue generated from a local bond must be used for housing assistance, affordable housing, or public infrastructure projects.
The purpose of this bill is to make it easier for local governments to raise funds through local special taxes by only requiring a 55% voter threshold of approval. We believe that the purpose of this bill is true to a democratic philosophy. It allows local governments to approve bonds supported by a majority, which ensures that the will of voters can be heard. Importantly, moving from a super majority to a majority also reduces the disproportionate power of a minority of voters to block initiatives that have substantial public support.
It has a bit of an odd structure. The proposition is a combination of two different constitutional amendments that are presented as a package to approve or deny together.
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- Legislative Analyst's Office report (PDF)
- Full legal text of ACA-1 (PDF)
- Full legal text of ACA-10 (PDF)
Fiscal impacts
There is no direct fiscal impact to the state or local governments.
However, our analysis of local special taxes in San Francisco over the past twenty years suggests that passing this proposition will likely result in more bonds and local taxes being approved by voters in San Francisco when compared to other counties. Currently, new local special taxes and local bonds in San Franciscans require a two-thirds majority, and most of them get between 60% and 70% approval rates in an election. By lowering the voter threshold, the majority of local special taxes and local bonds proposed in San Francisco in future years will likely pass.
- See "Fiscal Effects" section of the Legislative Analyst's Office report (PDF)
Why is this on the ballot?
According to Article XVIII of the California Constitution, amendments to the California Constitution initiated by the State Legislature must first be approved by a supermajority of both houses and the amendment must then be approved by voters with a simple majority of 50% + 1.
- Authors: Cecilia Aguiar-Curry, Matt Haney, Buffy Wicks
- Co-authors: A slate of 17 other Democrats.
- Placed on ballot by: Vote of both houses of the Legislature
- View vote details on leginfo
Why vote Yes?
Prop 5 makes it easier for local governments to invest in affordable housing and public infrastructure.
This amendment strengthens our democratic process by empowering a simple majority of voters to bring about meaningful change. It will ensure that local governments are responsive to the will of the people, and not hindered by special interests and outdated supermajority requirements.
Prop 5 will promote more affordable housing and better infrastructure in cities all across California. We believe that this bill will enable a more nimble policy environment that does not require constant concessions to a vocal minority of voters who may not approve of local special taxes that the majority do.