On the ballot this fall, California voters will be asked to take a stand on Prop 5.
A “yes” vote would make it easier for governments to borrow money. A “no” vote would maintain the status quo.
When local governments in California want to borrow money, in the form of bonds, they need to seek voter approval through a measure on the ballot. Typically, these proposals require a supermajority of 66%. Prop 5 asks voters to lower that threshold to 55%.
Prop 5 advocates say parks, police stations and affordable housing are among the projects cities would be able to fund with the money they could more easily borrow if the proposition passes.
“We’ve got to do more to raise the funds we need to build the housing and to fund the housing that people at that end of the income spectrum need to live in, and Prop 5 is a really critical tool to help us achieve that,” said Matthew Lewis of California YIMBY.
Opponents, however, argue a “yes” on Prop 5 will ultimately come at a cost for taxpayers. According to the nonpartisan state Legislative Analyst’s Office, the local bonds would be repaid through higher property taxes.
“The bottom line is to protect their monthly checking account to keep as much money as they can keep and stop letting government take more of their money,” said State Senate Minority Leader Brian Jones of Santee.
Lewis said the current 66% threshold means a third of voters can override the vast majority and wants to see Prop 5 change that. This ask is not unprecedented; decades ago, California voters lowered the threshold for school bonds to 55%.
“It goes to 55% and says, ‘If this many voters approve a measure to raise money we need for things like affordable housing and street paving and schools, then it passes,’ ” Lewis said. “So it’s really about making that process more democratic.”
If Prop 5 passes, it applies to bonds on the same ballot this fall.
“Government is a never-ending, growing monster that wants to consume more and more and more,” Jones said. “And as an elected official, being the what I’ll call the bulwark between that monster growing and protecting the taxpayers’ taxes and income, that’s the most difficult job,” Jones said.
