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Hay 12, 1994
THE HONORABLE CITY COUlICIL
PALO ALTO, CALIFORNIA
S~J\T£ BALLOT MBASURES -JUNE 1994 PRIHJ\RY ELECTION
Members of the council:
Report i.n....1}.tiJ!.f
Nino state propositions will be presented ,to the voters on June 7.
The l1leaS\lres have been placed on the ballot elthc).' by action of the
State Legislature or by initiative petition.
staff recommends that the Council take positions on six of the
roeasuras. Th~ Council may want to take positions on additional
ballot measures.
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Uine state ballot measures, or propositions, will appear on the
ballot for the June 71 1994 prim~ry election. One of these
qualified for the ballot as the result of initiative petition. The
balance were placed on the ballot by the State Legislature.
state law requires that legislative bond meaSUl."es appear fi:r~'c. on
tho ballot. Because the three legislative bond measures for the
June ballot were approved by t.he Legislature and Governor after the
original ballot pamphlet deadlinc 1 they bear the unusual
proposition numbers lA, 1B and lC. All other propositions are
numbered sequentially from the .last state election.
Public agencies may take formal positions in support of or in
opposition to ballot measures, but public funds may not be used to
encourage citizens .to vote a specific way_ It is 'permissible to
provide information to the public on the impact any ballot m~asure
will have on the city.
Further information on the lneasures is contained in materials
accompanying this report: the California Ballot Pamphlet and
Supplemental Ballot Pamphlet p:l-epared by the secretary of state and
the Pros/Cons publication of the League of Women voters of
California {LWV). Pages 4 and 5 of both of the California ballot
pamphlets contain brief summaries of the state measures.
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'hI Proposition.
Table I lists the: '11n& ltIcasures, shows the positions taken by the
League of CalIfornia Citios Board of Directors and indicatos if
stafr recouO-nda. .any position to counciL
fABlE I
STATE BALLOT MEASURES
Prlmtry Elec110(lj Jun .. 7. 1994
~tJllro DtJt I&Q ~ij
~l!lgn Illi.
./\ f.ar1hqu."llle A~i\!r a')(j $elS!fllc NeLrt{al Support
R&troflt 8()()d Arl of 1994.
'8 Safe Schools A(.i of 1994. NeuHal Support
Ie Higher EJucaHon Facl~ies Neutral
Ilon(j A<:l 01 June 1934.
176 R4Hil:efs'lr.come Tax Cred~. No PositIon Oppose
116 Taxalloo: Noopn:lit Oppose Oppose
Ot03ol>.tlon,
171 ?(optrty Tax Exemption. No Pos'hloo
Disabled PtrSOOS' Acce-ss.
'13 p,Oj)e<ty Tax E,cj\lSlOO. Oppose Oppose
W.,.,. COr.s.M1!oo Equlpmont.
119 Murder. Pi.iffishrnenl. Support
100 Palk Lands.. Historic Silas, SUPIlOI' Support
Ylldl ite and F()(GSI Conservation
Bond '-<;1.
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lA, E.~tlJmLWs"ic Jl~.J.L»sm<LM_L_2LJ..~~.L.
This "e"sura provides for $2 billion in genera I obligation bonds to
fund repairs related to tha Northridge earthqul'lIke. Bond proceeds
Arc allocated in the catogories of transportation, public
infrnstructure, hat-arcl ~itigation projects, highway seismic
rotrofit and housing reconstruction. The high .... ay portion is not
restricted to Northridqe da~age, but could also be used for the
BtatQwld. highw.y seismic r"troUt progr .... estabUshed follo"ing
the Lohla Prieta Earthqu4k~. }"ivo. ~ay Area toll bt"1dges are inoluded
in the retrofit progr ... ,
The underlying issue J;'.elatod to this And the other three bond
measures on the ballot Ss. ''Whetha:t: the stl\t:c should increase its
bonded indebtedll4Jas. An i)v.or ..... lo'W' of state bond debt appllnrs on
page 18 of the Supplenente.l Ballot Pol'Inphlc.t', Sin11s1' information
appears in the attached L~~ publication.
Staff r~co .. en~9 tho counoil pupport P~opo~1tlon lA.
This. l'lcasure authorizes the stato to sell $1 billion in general
obllgaticn bond~ to inprove school facilities. The money would be
spent to build noW' f:lchools and repllir c)(istiJl9 schools. In ot'der
to receive rnone:y, ,school districts :oust r.'oot: cort"in eligibility
requirements and contribute Ratching funds.
The palo Alto Unified School District is currently studying the
measure to confir.rn the distrlct t s eligibility to apply tor funding
under its provis.ions. "rho district is Apt t.o onter into an
extensive reconstruction proqraTll with!'" the ncar future, f6110wing
upon the recorullendati<ms of the Schools for the, 21st Century
planning study,
staff reeoZlURends the coun'oil support Propo.9ition lB~
le. l!igb~~itl<1ill,lgJL1L91ld bct QL"'_\lllil_~-L
This measure authorizes the state to 6-911 $900 ""illion in general
obliqation bonds for California's public highor education system.
The money would be us~d to construct new buildings, alter existing
buildinqs and purchElise equipnent for use in the new or altered
buildings,
staff makes no recommendation.
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175. Renters' Income Ta~~
This measure amends the state Constltution to require that tha
renters' income tax credit ($60 individuals, $120 :marriod couples)
be provided to all eligiblo renters each year, boqinninq in 1995.
state law presently provides for this tax credit, however income
limitations were imposed in 1991 and the entire tax <n:edit was
suopende~ in 1993 because of stat~ budgot shortfall~. By plactnq
it in tne constitution, the st~te wo~ld be prevented from 11~lting
or suspending the credit in future years except by 0 vota t)f the
people.
stiff recommends the Counoil oppoa& Proposition 175.
176. TM{atlon: Nonprofit .QL'ilbni;atiQn~
A constitutional amendment, this measure prevents city and count)'
governments from imposing business liC('lIlSG taxos or fees 01)
nonprofit organizations if they are based on inconC' or gross
reoeipts. Nonprofit organizations are generally exempt from
taxation under federal and state law, and local governments soldon
if ever apply their business license tax to nonprofits. Palo Alto
do en not have a business license tax. Hevert.helesB, this r.ie1\sure
represents an incursion into an area of local governmant authority.
staff reoommends the council oppose proposition 176.
177. Pro.p.ru:.tL~~ption. Dill~et:~QlHi~....A&:~
Modifications to buildings usually trigger property tax
reassessment, however} over the years since the passago 6f
proposition 13 1 some exceptions hav~ been approvnd. This
constitutional amendment would extend the property tit)'. cX(JJ:1ption to
all buildings that are modified to provide aCCE'la8 for tho disabled.
These moclifications could be required for ADA compli~nce. Voters
approved a similar exemption for modifications to private ho~os in
1990 (Proposition 110, 'Which was :supPolted by the Palo Alto City
council.) The exemption ends when the prOpel"t.y is sold and
. reappraised at its full market value. Cities, counties and special
districts would bear nearly one-half of the annua 1 property ta)(
revenue lOBS which the Legislative Analyst estimates could g.ro\ro' to
as much as $10 million statewide.
staff makes no t:eco1l1roendation.
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17.L...........£t:®erty Tax Exclusion. WateL.....~tlYftti9~'lY..!I:?~_!,.
'this cOil$titutiorial amendment excludes from property taxation the
installation of water conservation equipment for commercial
agricultural purposes. As with Proposition 1771 cities, counties
and special districts 'Would boar nearly one-half of the annual
property tax revenue loss which the Legislative Analyst estimates
could grow to as much as $10 million statewide. From the
perspective of the City's utilities Department, there are adequate
economic reasons for agricultural water Usel'S to exercise water
conservation without a p~operty tax e~clu8ion. $uch an eXClusion
would distort the price signals that water agencies are sendin9 to
Agricultural' customers and may even,make it less cost-effective to
install water-efficient conservation equipment from a total cost
basis.
staff ,recommends the COllhCil oppose proposition 178~
179 t Murder, __ P\lDis~
This legislative initiative Qmends the penal Code to inc):-ease by
five years the penalty tor second-dt!gree murder if the killing
occurs during a ul'ivc-by shooting. The penalty would become
imprisonment lor 20 years to life. The proposal wa9 approved
unanimously in the State Lcgislaturcj no ballot argument opposing
the measure was submitted,
staff makes no recommendation.
l]P.. Park!ands, Hist2r-~tes. Wildlife ~Qrest Conservation
l!.QDd Act.
This initiative statute authorizes a general obligation bond issue
of nearly $2 billion for the acquisition, development, restoration
and cOllservation of park lands, historic site's, wildlife areas and
forests throughout California.
since 19&4, voters have authorized about $1.3 billion in general
obligation bonds for pal:'"ks and wildlife. As of December 1993, all
but $10 million had been:comrnitted' for specific projects.
proposition 180 ma1<:es the bond tunds available in two ways. About
$1.5 billion will be appropriated directly to the state and local
agencies that will spend the money on specific projects or
cate90ries of projects which are identified in the ballot measure.
The remainder will be available when appropriated by the
Legislature through the annual budget. To countol-the public
concern about the state's incl'easl;!d bonded indebteduess l the
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concludinq section of the text of the measure acknowledges thu
i~portance of avoldinq impairment of the statefs credit rating.
Host of the previous state park bond authorizations have been put
on the ballot by the Le9islature. However, a,graosroots initiative
sinil.r to this one appeared on the ballot in 1988 (Proposition 70)
and was endorsed by the Palo Alto City council.
The sponsors or Proposition 180 (Californians for Parks and
Wildlite 1994 and the Planning ancl Conservat.ion League) have
prepared a pack aye of information which accompanies this staff
report. It includes descriptions of projects ill Santa Cla:ra county
and nearby areas which could be funded from passage of this
eeasut'e~
"staft r80~Aaen~D the Council support proposition 180~
Staff .rGcommends that the Council:
1) Support Propositions lA, 18 and 180 on the June 1994 primary
election ballot;
2) 0pp090 propositions 175, 176, and 178;
J) Consider whether Ccuncil Menbors wish to announce positions in
support of or opposition to the other ballot measures.
Respectfully submitted,
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En~lo9UrE',S :
LWV Pros and Cons
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Ber are f7~~jnY Assistan~~oManager
California Ballot pamphlet (for Council Members only)
California Supplemental Ballot Pamphlet (for Counnil Members
only)
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