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The Democratic Strategist

Political Strategy for a Permanent Democratic Majority

July 4: Affirmative Action Restoration Leads California Ballot Initiatives

California ballot initiatives often set national trends and affect down-ballot races in the Golden State. I wrote about this year’s batch at New York:

California offers reasonably easy access to the ballot for groups wanting to change state policies, and requires public approval of constitutional amendments passed by the legislature. So it has a rich history of ballot initiative fights that sometimes overshadow elections for public office, from the tax revolts of the 1970s to the immigration backlash of the 1990s and beyond. 2020 is no exception, with 12 measures on the ballot in a year when California won’t be competitive in the presidential contest and has no Senate seats up for grabs.

Going into 2020, it was widely anticipated that a so-called “split roll” initiative removing strict limits on property tax increases from commercial property might blot out the sky and produce one of the most expensive and consequential battles ever. Long the apple of the eye of many public-sector unions and good government groups seeking a broader tax base, the initiative would limit the sacrosanct Proposition 13 protections against tax increases to (largely) residential real estate, exposing commercial property to tax assessments based on current market value rather than its value when the property last changed hands.

Backers of a “split roll” figured a presidential year with high Democratic turnout would be the best time to pursue this measure, but didn’t account for the arrival of the coronavirus and a deep economic recession, which may have made voters averse to major changes in the status quo. The defeat by voters of a statewide bond initiative for education in the March primary may indicate California’s entering a period of fiscal retrenchment, though the huge budget deficits the state is now facing could cut the other way. An April PPIC survey showed.a slim majority of voters then favoring the split roll initiative.

While Prop 209 won 55 percent approval from California voters, the state’s demographics have significantly changed since then. Additionally, past hostility to affirmative action among the state’s Asian-American leadership has abated; a majority of Asian-American legislators supported the repeal initiative on grounds that whatever losses their community might have in university admissions would be more than offset in gains in public employment and contracts, but there may be grassroots opposition among white and Asian-American voters. The repeal is being supported by Governor Gavin Newsom, the Regents of the University of California and most elected Democrats.

Two other ballot initiatives of note would be aimed at expanding voting rights. One would extend restoration of voting rights to parolees as well as the probationers who currently qualify. According to one study, about 40,000 Californians would benefit from this initiative if it passes. A separate amendment would allow those who will turn 18 by any general election date to vote in the preceding primaries (or special elections) at the age of 17.

An initiative relaxing state limits on local imposition of rent control was defeated in 2018. A narrower measure is back on the ballot this year that supplements a new state law limiting the size of rent increases generally.

Another initiative that could spur heavy ad spending is one backed by Uber and Lyft and some delivery services that would essentially exempt their drivers from a new California law designed to limit the classification of workers as independent contractors to avoid minimum wage and benefits obligations.

And in one other notable battle, “split roll” isn’t the only ballot initiative that would change the Prop 13 property tax system. Another backed by realtors (who failed with a similar initiative in 2018) would let homeowners over 55 keep Prop 13 protections when buying new properties. As a sweetener to progressives often hostile to Prop 13, the initiative would also eliminate the so-called “Lebowski Loophole” (so named because actor Jeff Bridges was a major beneficiary, though he is all for its elimination) whereby children can continue Prop 13 protections on expensive investment and rental properties they inherit.

The California airwaves will be busy with ads for and against initiatives in the fall, and could help goose turnout, affecting U.S. House and state legislative races if not the presidential contest.

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