LAKE COUNTY, Calif. — Officials across Lake County and the rest of the state are breathing a collective sigh of relief after the California Supreme Court handed down a decision stopping a ballot initiative aimed at attacking how governments fund services before it can reach the November ballot.
The justices reached a unanimous decision on Thursday morning in the case State of California v. Weber that the “Taxpayer Protection and Government Accountability Act” initiative cannot be included on the November 2024 ballot.
Called by opponents the “Taxpayer Deception Act,” the initiative would have required any changes in state law resulting in tax increases to be passed by a two-thirds majority vote of the state Legislature before being submitted to the electorate for a majority vote.
Additionally, each act resulting in increased taxation would have to have a specific time duration and an estimate of the annual amount expected to be derived from the tax, and a specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.
Opponents also attacked the measure for being “an illegal revision to the constitution funded by a handful of wealthy real-estate developers and landlords desperate to avoid paying their fair share,” said Jonathan Underland, spokesperson for the NO on the Taxpayer Deception Act campaign.
It was on that question of constitutional revision that the justices focused their consideration of the proposed ballot initiative, which shared the same name as a similar attempt that fell short of qualifying for the 2022 November ballot.
“The only question before us is whether the measure may be validly enacted by initiative,” said Associate Justice Goodwin H. Liu, who wrote the decision.
“After considering the pleadings and briefs filed by the parties and amici curiae as well as the parties’ oral arguments, we conclude that Petitioners have clearly established that the challenged measure would revise the Constitution without complying with the appropriate procedure. The changes proposed by the TPA [Taxpayer Protection Act] are within the electorate’s prerogative to enact, but because those changes would substantially alter our basic plan of government, the proposal cannot be enacted by initiative. It is instead governed by the procedures for revising our Constitution,” Liu wrote.
As a result, the court issued a peremptory writ of mandate directing Secretary of State Shirley Weber “to refrain from taking any steps to place the TPA on the November 5, 2024 election ballot or to include the measure in the voter information guide.”
Senate President pro Tempore Mike McGuire (D-North Coast), whose district includes Lake County, lauded the decision.
“Today’s unanimous Supreme Court decision protects Californians and our ability to provide law enforcement, fire protection, and vital services that communities rely upon,” McGuire said Thursday. “This Court worked long and hard on this decision, which clearly stated that the initiative process can’t be weaponized to undermine the basic functions of government prescribed by our constitution.”
The cities of Clearlake and Lakeport have been watching the matter closely.
On Tuesday, Lakeport City Attorney David Ruderman told the Lakeport City Council that he was expecting the decision this week.
The news about the decision was “an enormous relief,” said Clearlake City Manager Alan Flora.
“We always seem to be fighting for local control and this was no different,” Flora said. “In our view this was large corporations’ attempt to shift their costs of doing business to local taxpayers. The vague language of the initiative would have likely resulted in lots of litigation over attempts to adjust fees. Further, extraordinary efforts would be required to raise fees even a small amount and would have likely rendered many adjustments impossible. The end result would have been the need to simply reduce the services we can provide. We wish the Governor and Legislature would use the same effort to protect local control on a variety of other issues.”
Lakeport City Manager Kevin Ingram agreed with Flora.
“The initiative was an affront to good governance practices, as it allowed large corporations to avoid paying their fair share of infrastructure and other service-related costs associated with their projects,” Ingram said. “Additionally, the initiative was so vague and poorly written that it would likely have had the unintended consequence of making it even more difficult for developers to complete projects in California. It targeted many of the tools developers commonly use to fund their projects.”
Putting the blame on government, bureaucrats
In the initiative’s findings, it blames California’s challenges — including poverty and homelessness — on its cost of living. “State and local governments’ appetite for new revenue adds to the rapidly rising costs of living that Californians face for housing, childcare, gasoline, food, energy, healthcare, and education.”
Proponents also faulted “unelected bureaucrats” who, “empowered by politicians and the courts, have nearly unchecked ability to raise additional costs on consumers by imposing so-called ‘fees’ and other costs without a vote of a single elected body.”
The Supreme Court was careful to stress that it was focused on the question of following the law for changing the state constitution, and that its members were not weighing the initiative’s social and economic wisdom or its general propriety.
“We typically review constitutional challenges to an initiative after an election in order to avoid disrupting the electoral process and the exercise of the franchise,” the decision explained.
However, the justices noted that preelection review is proper for challenges that address the electorate’s power to adopt the proposal in the first place.
Referencing another case challenged on the basis of constitutional revision rather than an amendment, the decision explained that the justices find preelection review to be appropriate because in circumstance where waiting after the election would defeat “the constitutionally contemplated procedure” and “contribute to an increasing cynicism on the part of the electorate with respect to the efficacy of the initiative process.”
The decision added that invalid ballot measures steal time, money and attention from valid ballot propositions, and will add to confusion, and denigrate the initiative process.
“No amount of funding from wealthy corporations will change the fact that the California Supreme Court decided the Taxpayer Deception Act is unconstitutional. It’s great news for cities and their residents that this dangerous initiative will not move forward this year, and local officials can now keep their focus on delivering vital local services,” said League of California Cities Executive Director and CEO Carolyn Coleman.
Graham Knaus, CEO of the California State Association of Counties, said the measure, which was retroactive, would have crippled essential government functions by cutting off funding for the essential services provided by our counties, from public health and safety to emergency response and environmental protection.
“Moreover, the needs of our 58 counties are unique and CSAC strongly believes that local voters and elected leaders must have the right to self-govern by passing measures that meet the needs of their local communities on how their tax dollars should be spent,” Knaus said.
“The Supreme Court’s decision to take this dangerous initiative off the ballot avoids a host of catastrophic impacts, protecting billions of dollars for schools, access to reproductive healthcare, gun safety laws that keep students safe in classrooms, and paid family leave,” Underland added.
Expecting the same proposal in a new form
The proposed ballot initiative is the latest in a series of attempts to hamstring governments from being able to pursue fees and taxes for services provided to taxpayers.
While these efforts have been framed in the guise of protecting taxpayers, government officials from across the spectrum have said they will have the reverse effect, and they have raised the alarm about how they would impact the ability to provide the services community members expect.
In May of 2022, voter Initiative No. 21-0042A1 — also named the Taxpayer Protection and Government Accountability Act and also sponsored by the California Business Roundtable — failed to get the signatures needed to qualify for that year’s November election.
In February of 2022, the Clearlake and Lakeport city councils had voted to oppose that initiative at the request of the League of California cities.
Like its latest iteration, opponents said the effort was backed by wealthy corporations.
Ruderman had presciently warned in 2022 that there were indications that the measure would be brought back this year, as it was.
Both Flora and Ingram warn that the issue is far from over.
Flora told the Clearlake City Council on Thursday evening about the Supreme Court’s decision. “I feel like that was a good win for this year,” but he cautioned that it hasn’t been the only effort of its kind.
He told Lake County News, “I have no doubt the California Business Roundtable, the consortium of large businesses behind the measure, will try to bring this back in a different form, so we must keep an eye out, but it is a fortunate outcome for now.”
Ingram agreed. “Unfortunately, as Alan mentioned, it is likely that this initiative will resurface in a different form in the not-too-distant future.”
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City and county governments laud Supreme Court decision stopping ballot initiative
- Elizabeth Larson
- Posted On