from Damon R. Conklin, Director of Government Affairs, Sacramento Regional Builders Exchange
Budget Update
California ran up against a slate of important deadlines Thursday that could affect the state’s fiscal, political and environmental landscape for decades to come. The federal government did not pass another coronavirus relief package dashing California’s hope of reversing $11 billion in cuts to state employee salaries, courts and higher education. Without an influx of federal funding, California will stare down a projected $8.7 billion budget deficit next year, forcing lawmakers to choose between raising taxes and slashing services that mainly benefit the poor. Both Gov. Gavin Newsom and lawmakers balked at raising taxes on millionaires during the legislative session, and are already under pressure to reverse their stance.
Upcoming events
Oct. 21, 5-6:30pm: Rebuilding and Resiliency: How We Need to Handle Wildfires From Now On. In this two-part virtual event, California wildfires are examined through the lens of Rebuilding Paradise, a new documentary from Academy Award-winning director Ron Howard. Register here (free)
California’s looming water problem
California must handle the fallout from a water shutoff moratorium that has allowed residents to keep the water on even if they can’t pay their bills, accumulating millions of dollars of debt even as water providers are pushed to the financial brink. Some providers say they have seen revenues drop by 20 to 50%, and small water systems — which tend to serve high rates of low-income Californians — have been hit hardest, experts say.
Jonathan Nelson of the Community Water Center: “Those water bills are going to come due. Not only is there no plan for what to do about that crisis of water debt and potential mass shutoffs next year, but we don’t even know the full scope of the problem.”
Republican Leader Kevin McCarthy Hauled in $103 Million in Contributions
McCarthy raised more than $16 million in the third quarter across all seven of his fundraising accounts. That puts his total for the 2020 election at $103 million -- the most ever for a House Republican in any election cycle...ever. Read more here.
19 Days Remaining
Just over two weeks to go until 2020 Election Day. The numbers on Proposition 15, the measure to create a split roll property tax and increase taxes to our industry by a whopping $11B, remain too close to call. It will all depend on who turns out to vote.
Here is the latest advertisement, released just today, advocating against Prop. 15.
Tom Steyer just contributed $500,000 to the Yes on 15 efforts, joining Facebook Billionaire Mark Zuckerberg’s $11M.
If you are worried about billionaires trying to raise your taxes, click here to help defeat Prop. 15 – defeat split roll property tax!
LA Times Shreds Prop 15
Respected L.A. Times John Meyers takes a look at Prop. 15 and ends up shredding many of the proponent’s argument, including the so-called “Small Business Exemption:”
“But the $3-million threshold could be met by the size of a business property owner’s portfolio. A low-value property would be reassessed for higher taxes if its owner — even a partial owner — owns commercial property in California with a total value of $3 million or more.”
Not much of an “exemption.”
Additionally, the so-called “tax cut for business” is also shown to be a myth:
“Nor is there agreement on a component of Proposition 15 advertised as a tax cut for smaller businesses: a reduction or elimination of taxes owed on equipment and inventory. Those lost tax revenues are likely to be made up by the higher property taxes in large California counties. But the California Assessors’ Assn., which opposes the ballot measure, believes rural counties — where few or no properties are worth $3 million — will end up losing money because of the tax cut on business equipment.”
Finally, if you think Ag land is not included, think again:
“Opponents question why the measure focuses on land, given that California property taxes are paid also on the value of any structures, listed as ‘improvements’ on an annual tax bill. Farmers, in particular, believe the ballot measure’s silence on land improvements could mean higher property tax assessments for barns, offices — and even fruit trees planted as part of new farming operations.
“‘This affects agriculture,’ Jamie Johansson, president of the California Farm Bureau Federation and an Oroville farmer, said during the Sacramento Press Club debate. ‘And multiple-generation farmers, as well as first-time farmers like myself, are vulnerable.’”
Click here to read the whole article and share it with all your friends, family, and colleagues.
Best,
Damon R. Conklin
Director of Government Affairs
Sacramento Regional Builders Exchange
5370 Elvas Avenue ǀ Sacramento, CA 95819
Telephone: 916.442.8991 ǀ Cell: 916.290.3400
Email: dconklin@srbx.org ǀ www.srbx.org