Some Thoughts on Four Controversial California Ballot Measures

 Although I haven't lived in California for decades, I remain close to the state through my research efforts and the many friends who live there. Further, because California has historically led the Nation with its legislative approaches, the results of this year's election could very well have nationwide consequences. Below you will find my views on four of the ballot propositions.

Proposition 15 - Vote NO

This proposition would overturn Proposition 13 by stepping the property tax basis for commercial and industrial property to current market values. The measure would raise about $10 billion a year. In the middle of a pandemic recession it hardly makes sense to raise taxes whose burden would especially hit the devastated retail, restaurant and office tenant sectors with a substantial increase in tax pass-throughs. The money raised would go to inflate the state's already bloated public sector bureaucracies. I would feel much better about the measure if its proceeds were used to lower income and sales taxes.

Proposition 16 - Vote NO

This proposition would repeal the 1996 Proposition 209 which eliminated the use of affirmative action in college admissions. Simply put, given the high Asian enrollment at the University of California, the measure would, in effect, be a 21st Century version of the 1882 Chinese Exclusion Act.

Proposition 21 - Vote NO

This proposition would allow local jurisdictions to adopt an extreme form of residential rent control which would allow controlling rents based on the unit, rather than the tenancy. In a time when rents are falling, the measure would actually work to keep rents high because owners would be reluctant to cut rents today in fear that rents could not be increased in the future. Further the measure would place all units more than 15 years old to be covered on a rolling basis, compared to current law which covers only those units build prior to 1995. In a nutshell apartment construction would be reduced and the housing shortage in California would be exacerbated.

Proposition 22 - Vote YES

This proposition would repeal AB-5 that classified Uber, Lyft and Door Dash drivers as employees rather than independent contractors. Since it emergence over a decade ago the the ride hailing platform industry has offered huge convenience for the public and offered income opportunities to hundreds of thousands of contractors. The essence of the platforms requires flexibility for both the contractor and its contractors. By converting contractors to employees, the business model would be stultified at a cost to both the public and the companies. Thus repeal of AB-5 is necessary.