Proposition 5 – Voter Approval Thresholds
Proposition 5 would make it easier for local governments to pay for housing and infrastructure projects through voter-approved bonds. Right now, bonds require the support of two-thirds of those voting for approval. The measure would change the constitution to say they only have to reach 55% voter approval. The bonds in question are for housing assistance, which includes building affordable housing or down payment assistance. They also cover a broad range of infrastructure projects, like broadband, water management and hospitals.
FRAMING: For cities, counties, and special districts, general obligation bonds paid for by increased property taxes typically require two-thirds of local voters to approve them. Lowering the voter threshold would make it easier to pass GO bonds for housing assistance and public infrastructure. Recent local election results suggest that an additional 20-50 percent of local bond measures would have passed under Prop 5’s lower voter approval requirement.
This proposition is setting up a fight between business groups and local governments, many local/regional business groups are staying neutral and letting the statewide associations oppose so as to not directly oppose their city and county governments.
Proponents of the measure say that this would help local governments bring much-needed projects online. Opponents say it would encourage cities and counties to take on too much debt and raise taxes too high as a consequence.
SUMMARY: Allows local bonds for affordable housing and public infrastructure with 55% voter approval.
FISCAL IMPACT: Increased local borrowing to fund affordable housing, supportive housing, and public infrastructure. The amount of increased borrowing would depend on decisions by local governments and voters. Borrowed funds would be repaid with higher property taxes.
SUPPORT: CA Professional Firefighters, League of Women Voters of CA, Habitat for Humanity CA
OPPOSITION: CA Business Roundtable, CA Business Properties Association, CA Taxpayers Association, CA Hispanic Chambers of Commerce, CalChamber
✅ A “yes” vote would lower the threshold to approve bonds to 55%.
❌ A “no” vote would keep the threshold at a two-thirds majority.
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MARK SMITH
Smith Policy Group
1001 K Street, 6th Floor
Sacramento, CA 95814
(916) 335-5072
mark@smithpolicygroup.com
smithpolicygroup.com