From Kevin Pedrotti, Legislative Advocate, Golden State Builders Exchanges
California did not participate in the “red” wave that swept most of the country on November 2, confirming its blue state status. Come January, California will be lead by the oldest person to hold the position of Governor who was once the youngest person to be elected Governor. Those in the know expect Brown’s wife to play a strong role in his administration and may be the reason Brown said he may not have a Chief of Staff. It will be interesting to watch as this administration roles out and who comes into leadership within state government.
With the announcement the state faces a $25.4 billion dollar deficit 33 days after the most recent budget was passed, fiscal issues will dominate state policy. Brown has said he intends to get working on the budget right away and met with the Department of Finance the day after his election. With the passage of Proposition 25 which allows for the budget to be passed on a majority vote, it will be easier to obtain mid-year corrections to the current budget prior to the passage of next year’s state budget. Republican’s will be scrambling to find a role to play in the new environment now that they have no clout to stop the budget. That said, any new taxes or fees will need some republican support to obtain the 2/3’rds vote needed.
Although we just had an election, 2012 will bring some significant changes. First, reapportionment will be done by a citizen’s commission instead of the legislature. Legislative districts will more closely reflect communities of interests instead works of modern art that draw in particular voting blocks. Also, 2012 elections will have open primaries where voters can vote for whatever candidate is running regardless of party. The two top voters will move to the general election regardless of party, making legislative races more competitive in theory.
Lastly, despite continuing budget deficits, it expected many bills will be introduced where interests groups hope a new Governor will view issues differently than the last one. Governor Schwarzenegger was not shy with the veto pen and those who lost bills will pin their hope that a Democratic governor will treat these issues differently.
Governor’s Race
Democratic Attorney General Jerry Brown won, capping a remarkable political career in which he will now be both the youngest and the oldest person to serve as the state’s governor. Brown won comfortably with roughly 53.9% of the vote.
Statewide Race Winners
Governor—Jerry Brown (D)
Lieutenant Governor—Gavin Newsom (D)
Attorney General— Steve Cooley (R) is leading by a small margin.
Treasurer—Bill Lockyer (D)
Controller—John Chiang (D)
Secretary of State—Debra Bowen (D)
Superintendent of Public Instruction—Tom Torlakson (D)
Legislature
While there will be significant turnover in the Legislature, the partisan composition will remain largely unchanged. With 11 new Senators and 28 new Assembly members, there will be many new relationships to develop.
Senate
Democrats went into the election with a 25-15 majority, with 27 votes constituting a 2/3 supermajority. (Last week, Democratic Senator Jenny Oropeza passed away. Her name remained on the ballot, she was easily re-elected, and a special Election will be held to fill her seat. There is also an election to fill the seat of Dave Cox who passed away. ) A 2/3 supermajority allows the majority party to raise taxes without any minority party votes.
Democrats continuing to enjoy a 25-15 advantage in the Senate.
Assembly
Democrats have a commanding 51-29 majority, with 54 votes constituting a 2/3 majority. (There is one Independent who caucuses with the Democrats.)
The democrats picked up one seat, continuing to enjoy a large 52-28 advantage in the Assembly.
Ballot Initiatives
Listed below are the results of the ballot initiatives:
Proposition 19 (Marijuana Legalization)--Legalizes marijuana and allows it to be regulated and taxed. Failed.
Proposition 20 (Congressional Redistricting Reform) -- Places responsibility for drawing congressional districts with the Citizens Redistricting Commission established in 2008 by Proposition 11. Note: Of some interest because it could result in more competitive congressional races, and could lead to the election of more moderates to Congress. Would probably increase number of Latino members of California congressional delegation. Passed.
Proposition 21 ($18 VLF Increase to Fund State Parks)--Imposes an $18 vehicle license fee to fund state parks (which were de-funded by the legislature). Failed.
Proposition 23 (AB 32 Suspension)—Would suspend implementation of AB 32, the state’s Greenhouse Gas emissions law, until the state’s unemployment rate returns to 5.5% for four consecutive quarters. Failed.
Proposition 24 (Jobs Tax/Repeals Recent Tax Updates) -- Repeals recent legislation that would allow businesses to carry back losses, share tax credits, and use a sales-based income calculation to lower taxable income. Failed.
Proposition 25 (Majority Vote Budget) -- Lowers the legislative vote requirement to pass the state budget from two-thirds to a bare majority, while theoretically retaining the 2/3 requirement for tax increases. (Many tax experts and lawyers contend that this initiative is artfully drafted to authorize tax increases with a simple majority vote if the tax increase is part of the budget package.) Passed.
Proposition 26 (Preservation of 2/3 Vote on Taxes)—Countermeasure to Prop 25, increases legislative vote requirement to two-thirds for taxes that are characterized as “regulatory fees.” Passed.
Proposition 27 (Repeal Prop. 11/Eliminate Citizens Redistricting Commission) – Countermeasure to Prop 20, eliminates Citizens Commission on Redistricting and returns redistricting authority for drawing Legislative and Board of Equalization districts to the Legislature. Failed.
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