The first three propositions on this year’s ballot will determine whether California borrows more than $11 billion in bonds for housing, if the state should increase its rainy day fund, and whether some certain income taxes on high earners should be made permanent.
Here’s a breakdown of each measure and its implications.
Prop. 1: Housing bond
Proposition 1 is designed to help the state address the housing crisis by funding affordable housing. The measure promises to build 40,000 multi-family rental units and help 40,000 California residents buy a home.
Funding for the projects would come from the state selling $11.25 billion in bonds, $1.25 billion of which would go towards veteran housing.
Prop 1. is supported by the California Democratic Party and Gov. Gavin Newsom, but some republicans who oppose Prop. 1 say it doesn’t do anything to address why it’s so expensive to build in California in the first place.
Prop. 2: Rainy day fund
Proposition 2 would raise the limit on the state’s rainy day fund. California already has a rainy-day fund for emergencies or economic challenges.
Prop. 2 would restructure existing state funding, allowing more money to be put away for times of need. The measure is supported by Newsom and the California Democratic Party.
Republicans oppose Prop. 2 because they believe it would serve as a slush fund for politicians and could allow the state Legislature to withhold additional tax revenue.
Prop. 3: High-income tax
Proposition 3 which would extend income taxes on the state’s top earners to fund education and healthcare. Prop. 3 would cement the current tax rates for those making more than $371,000 a year.
Eighty-nine percent of the money generated from Prop. 3 would go to K-12 schools, 11% would go to community colleges and any excess funds would go to public healthcare.
It’s supported by Newsom and the California Teachers Association. Prop. 3 is opposed by groups who support lowering taxes for Californians and those who fear it could result in wealthy residents leaving California for other states.
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