HomeMy WebLinkAbout10/05/1992 BAKERSFIELD
Patricia M. Smith, Chair
Patricia J. DeMond
Lynn Edwards
Staff: Tmdy Slater
. Larry Lunardini
AGENDA
LEGISLATIVE AND LITIGATION COMMITTEE
Monday, October 5, 1992
12:00 Noon
City Manager's Conference Room
1. Amendment to Chapter 5.06 of the Bakersfield Municipal Code Relating to Adult
Entertainment Businesses (Michael Allford)
2. Proposition 167 - State Taxes. Initiative Statute. (Trudy Slater)
3. Proposition 156 - Passenger Rail and Clean Air Bond Act of 1992 (Trudy Slater)
4. Set Next Meeting
AEMORAN
SEP 2 4 1992
September 24, 1992 CITY MANAGER'S OFFICE
,TO: VICE-MAYOR KEVIN McDERMOTT
FROM: LAWRENCE M. LUNARDINI, CITY ATTORNEY /~
SUBJECT: AMENDMENT TO CHAPTER 5.06 OF THE BAKERSFIELD MUNICIPAL
CODE RELATING TO ADULT ENTERTAI~ BUSINESSES
Please refer the following proposed ordinance amendment
to whichever committee you deem appropriate:
AMENDMm~T TO CHAPTER 5.06 RELATING TO ADULT ENTERTAINMENT'
BUSINESSES.
Background:
The amendments as set forth in the attached ordinance and
briefly detailed'below will resolve issues of concern to the
Federal District Court in the action entitled Deja Vu, et al.
vs. City of Bakersfield. Adoption of the amendments will also
result in a complete dismissal of that lawsuit.
1. Current section 5.06.040 requires all employees of
an adult entertainment establishment to obtain a permit. This
section has been modified to require only the owners and
managerial personnel to obtain a permit. If the business
permit-holder (owner) will be on the premises at all times
while the establishment is open to the public, then it is not
necessary for .the manager to obtain a permit.
2. Present section 5.06.060 restricts owners and'
employees of adult entertainment businesses to persons 21
years of age or older. The amended ordinance lowers this
restriction to persons of 18 years of age or older', as set
forth in prior chapter 5.06.
3. Present sections 5.06.030 and 5.06.040 mandate an
automatic denial of a permit application if the requisite
findings cannot be made by the city manager within three days
(business permit) or fifteen days (employee permit). These
amended sections will require granting the business' or
managerial per'it within these time frames if the city manager
is unable to complete the permit process/background check
within' those periods of time.
Memorandum to Vice-Mayor
Re: Amendment of Adult Entertainment Ordinance
September 24, 1992
4. Present section 5.06.060 requires the owner of an
adult entertainment business to advise the police department
upon the termination/resignation of an employee 'so that
his/her employee permit may be revoked. This requirement is
now deleted, as employee permits will not be required.
5. Present section 5.06.060 forbids operation of adult
entertainment businesses between the hours of 2:00 a.m. to
6:00 a.m. This amended section will remain in effect for the
same time periods Monday through Friday. However, Saturday
and Sunday hours will be extended to 4:00 a.m., with closure
mandated from 4:00 a.m. to 6:00 a.m.
6. Section 5.06.080 is amended to require revocation of
an adult entertainment business permit whenever material
misrepresentations have been included on the application for
the permit and deletes revocation authority for violation of
this ordinance or violation of local state or federal law. As
the business permit has been judicially determined to be a
prior restraint on the exercise of constitutionally protected
speech, revocation of the permit for violation of the
ordinance or any other applicable law is not permitted.
7. I wish to emphasize that the regulations prohibiting
private booths, mandating a six-foot separation between nude
entertainers and patrons, and the prohibition against any
persons under the age of 18 years of age being on the premises
of an adult entertainment business will remain in full force
and effect under the amended ordinance.
M~h:gp
OI{DIN~CES\ADULTENT. W{
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 5.06
OF THE BAKERSFIELD MUNICIPAL CODE
RELATING TO ADULT ENTERTAINMENT
BUSINESSES.
BE IT ORDAINED by the Council of the City of Bakersfield
as follows:
SECTION 1.
Chapter 5.06 of the Bakersfield Municipal Code is hereby
amended to read as follows:
Chapter 5.06
ADULT ENTERTAINMENT BUSINESSES
Sections:
5.06.010 Definitions.
5.06.020 Permits required.
5.06.030 Business permit application - Issuance - Fee.
5.06.040 Managerial permit application - Issuance - Fee.
5.06.050 Renewal.
5.06.060 Regulations.
5.06.070 Abatement.
5.06.080 Revocation.
5.06.090 Appeal.
5.06.010 Definitions.
Whenever used in this chapter, unless a different meaning
clearly appears from the context, the words set forth in this
Section shall have the following meanings:
A. "Adult entertainment business" means any adult
bookstore, adult motion picture theater, adult motion picture or
Video arcade, or adult live entertainment theater.
B. "Adult bookstore" means any business selling .or
renting books, magazines, periodicals or other printed matter,
photographs, films, motion pictures, slides, tapes, video
cassettes, records or any other form of visual or audio
representationtwenty-five percent or more of the stock-in-trade on
display being characterized by an emphasis upon the depiction of
harmful matter.
C. "Adult motion picture theater" means any business
with the capacity of five or more persons where, for any form of
consideration, films, motion pictures, video cassettes, slides, or
similar photographic reproductions in which the predominant
character and theme is the depiction of harmful matter are shown on
any ten or more days in any thirty consecutive day period.
D. "Adult motion picture or video arcade" means any
business wherein coin or token-operated, or electronically,
electrically, or mechanically controlled still or motion picture
machines, projectors, or other image-producing devices are
maintained to show images to four or fewer persons per machine, at
any one time, and where the predominant character or theme of the
images so displayed is depiction of harmful matter.
E. "Adult live entertainment theater" means any
business with the capacity of five or more persons where, for any
form of consideration, live adult entertainment takes place on any
ten or more days in any thirty consecutive day period.
F. "Harmful matter" shall have the same meaning and the
same definition as that word is defined in Chapter 7.6 of Title 9
of Part 1 of the California Penal Code.
G. "Live adult entertainment" means any physical human
body activity, whether performed or engaged in alone or with other
persons, including but not limited to singing, walking, speaking,
dancing, acting, posing, simulating, wrestling or pantomiming, in
which the performer or performers expose to public view without
opaque covering the genitals, vulva, pubis, pubic hair, natal
cleft, buttocks, perineum, anus or anal region; or in which any
female performer exposes to public view without opaque covering any
portion of the breast at or below the upper edge of the areola
thereof.
H. "Operate" means to own, lease (as lessor or lessee),
rent (as landlord, tenant or agent for the purpose of representing
a principal in the management, rental or operation of the property
of such principal), manage, operate, conduct, direct, or be
employed in an adult entertainment business.
I. "Person" means any individual, partnership,
corporation or association of any nature whatsoever.
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5.06.020 Permits required.
A. No person shall own or operate an adult
entertainment business in the city in violation of this chapter or
without having first procured and maintained a valid business
permit from the city manager or his designee. Only one permit per
establishment need be obtained pursuant to this Subsection.
B. Managerial permits are not required except to the
extent that the business permit-holder desires various individuals
to be licensed as manager.
5.06.030 Business permit application - Issuance - Fe~.
A. Applications for business permits under this Section
shall be made on forms to be furnished by the city manager or his
designee, shall be signed under penalty of perjury by the applicant
and shall require the following information:
1. The full true name, current mailing address,
title, current telephone number, date of birth, sex, driver's
license number, and social security number of the applicant and of
all persons who will manage the business and all persons having a
financial interest in the business, (except shareholders of a
corporation);
2. The name, mailing address and location of the
business;
3. The business tax certificate number of the
business; and
4. Prior permits held, the dates held, whether
such permits were ever revoked or suspended and the reasons
therefor.
B. The city manager or his designee shall issue a
permit within fifteen days of receipt of the application if he
finds:
1. That the application is complete and truthful;
2. The business for which the application is made,
and the building in which such business is to be conducted, conform
to all federal, state and local laws, including, but not limited to
building codes and zoning ordinances, and be accessible for
inspection by city fire, police and building officials;
3. That a valid business tax certificate has been
issued for this business;
- 3 -
4. That the applicant is eighteen years of age or
older; and
5. That the applicant has not had a permit, issued
under this Section, revoked in the past three years, unless the
city manager finds that the reasons for such revocation are
unrelated to this application. For the purposes of this
Subsection, "applicant" includes all persons designated in
Subsection (A)(1) of this Section.
C. If the city manager or his designee determine that
the applicant has failed to meet any of the criteria of subsection
B, above, he shall notify the applicant of the decision to deny the
permit. Notice of such decision shall be sent in writing to the
applicant at the mailing address set forth in the application,
within fifteen days of submittal of the application. Failure to so
notify the applicant within the allotted time or failure to make
the findings set forth in subsection B above within the allotted
time shall be deemed a grant of the permit.
D. The applicant shall pay a nonrefundable fee not to
exceed the cost of processing any such application and inspecting
the business as set forth in Section 3.70.040.
5.06.040 Managerial Dermit application - Issuance - Fee.
A. Applications for managerial permits under this
section shall be made on forms to be furnished by the city manager
or his designee, shall be signed under penalty of perjury by the
applicant and shall require the following information:
1. The full true name, current mailing address,
title, current telephone number, date of birth, sex, driver's
license number and social security number of the applicant;
2. The name, mailing address and location of the
business;
3. The business tax certificate number of the
business; and
4. Prior managerial permits held, the dates held,
and whether such permits were ever revoked or suspended and the
reasons therefor.
B. The city manager or his designee shall issue a
permit within three days of receipt of'the application if he finds:
1. That the application is complete and truthful;
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2. That the applicant is eighteen years of age or
older; and
3. That the applicant has not had a managerial
permit, issued under this Section, revoked in the past three years,
unless the city manager finds that the reasons for such revocation
are unrelated to this application.
C. If the city manager or his designee determine that
the applicant has failed to meet any of the criteria of subsection
B, above, he shall notify the applicant of the decision to deny the
permit within three days. Notice of such decision shall be sent in
writing to the applicant at the mailing address set forth in the
application, within three days of submittal of the application.
Failure to so notify the applicant within the allotted time or
failure to make the findings set forth in subsection B, above,
within the allotted time, shall be deemed a grant of the permit.
D. The applicant shall pay a nonrefundable fee not to
exceed the cost of processing any such application as set forth in
Section 3.70.040.
E. At time of application, all applicants for a permit
pursuant to this Section shall submit two passport-size photographs
taken within one month of application.
5.06.050 Permit renewal.
A. Ail permits issued under this chapter shall remain
in effect until December 31 of the calendar year of issue, unless
earlier revoked.
B. Valid business permits which have neither expired
nor been revoked shall be renewed by the city manager or his
designee upon payment of the fees set forth in Subsection D of
Section 5.06.030.
C. Valid managerial employee permits which have neither
expired nor been revoked shall be renewed by the city manager or
his designee upon payment of the fees set forth in Subsection D of
Section 5.06.040.
D. Renewal by the city manager or his designee shall
not constitute an admission by the city that the permitted business
or managerial employee is in compliance with state or local law at
time of renewal.
- 5 -
5.06.060 Regulations.
A. No adult entertainment business shall be operated
unless one of the following persons is present on the premises
whenever such establishment is open for business:
1. The business permit-holder;
2. If the business permit-holder is a corporation,
any of the corporation officers; or
3. If no person from Category 1 or 2, above, is
present, then a person who possesses a valid manager's permit as
issued by the City of Bakersfield.
B. No permit-holder shall operate, or allow to be
operated, any adult entertainment business having any partially or
fully enclosed booth or partially or fully concealed booth. No
exterior door to any adult entertainment business shall be locked
or barred during hours when such business is open to the public,
including booths. Ail booths open to the public shall be visible
from the primary entrance to the hallway or room in which the
booths are located.
C. No person shall enter, be, or remain in any part of
an adult entertainment business while in the possession of,
consuming, using, or under the influence of any alcoholic beverage,
or any drug; and no permit-holder who, with knowledge that a person
is in the possession of, consuming, using or under the influence of
any alcoholic beverage or any drug, or who fails to exercise
reasonable care in ascertaining that a person is in the possession
of, consuming, using or under the influence of any alcoholic
beverage or any drug, shall permit such person to enter, be, or
remain on the premises.
D. No adult entertainment business shall operate, and
no permit-holder-shall permit such business to operate, at any time
unless there is displayed in a location clearly visible to the
public a valid business permit to'so operate.
E. Any business or managerial employee permit issued
pursuant.to this chapter shall be non-transferrable, and shall be
valid only as to the applicant and location provided on the
application for such permit.
F. No business or managerial employee permit shall be
issued for, or used in more than one adult entertainment business.
- 6 -
G. No harmful matter shall be displayed so as to be
visible from any street, sidewalk, parking area or other area
outside the premises.
H. No person under the age of eighteen years shall
enter, be, or remain in any part of an adult entertainment
business; and no permit-holder who, with knowledge that a person is
a minor, or who fails to exercise reasonable care in ascertaining
the true age of a minor, shall permit such person to enter, be, or
remain on the premises of an adult entertainment business.
I. No adult entertainment business shall be operated in
violation of Chapter 9.12 of the Bakersfield Municipal Code.
J. Anyone performing live adult entertainment shall
remain no less than six (6) feet away from patrons, customers or
members, of the audience of the business.
K. No permit-holder shall permit any physical contact
between a performer of live adult entertainment and any patron,
customer or member of the audience of the adult entertainment
business.
L. No adult entertainment business shall be conducted
or carried on between the hours of 2:00 a.m. and 6:00 a.m. Monday
through Friday. No adult entertainment business shall be conducted
or carried on between the hours of 4:00 a.m. and 6:00 a.m. on
Saturday and Sunday.
5.06.070 Abatement.
Any adult entertainment business operated contrary to
the provisions of this chapter or local, state or federal law, is
unlawful and a public nuisance. The city attorney may, in addition
to, or in lieu of, prosecuting a criminal action under this chapter
and section 1.40.010, or revoke the permit to operate, commence an
action or actions, proceeding or proceedings for the abatement,
removal and enjoinment thereof in the manner provided by law, and.
shall take such other steps and shall apply to such other court or
courts as may have jurisdiction to grant such relief as will abate
or remove such adult entertainment business and restrain and enjoin
any person from operating, conducting, or maintaining an adult
entertainment business ,contrary to the provisions of this
chapter.
- 7 -
5.06.080 Revocation.
Any permit issued pursuant to this chapter shall be
revoked by the city manager or his designee whenever he finds that
material misrepresentations were made on the application. The
revocation shall take effect, absent an appeal, ten (10) days from
the date the notice of revocation is deposited in the United States
mail, addressed to the permittee, at the address provided on the
application.
5.06.090 ADpeal.'
A. Should the applicant be dissatisfied with the
decision of the city manager or his designee to deny or to revoke
a permit, then said applicant may, no later than ten (10) days
after notice of such decision is deposited in the United States
mail, addressed to the applicant or permittee at the address
provided on the application, make written objection to the city
council setting forth the grounds for dissatisfaction, whereupon
the council shall hear said objections at a regular meeting no
later than three (3) weeks following the filing of the objection
with the city clerk. The applicant shall be given written notice
no less than three (3) days prior to said hearing. The council
may, upon said hearing, sustain, suspend or overrule the decision
of the city manager, which decision shall be final and conclusive.
B. Pending the ruling of the council following the
appeal hearing, and for ten (10) days after notice has been
provided to the permit holder of the council's decision, any
revoked permit shall remain in full force and effect.
SECTION 2.
This Ordinance shall be posted in accordance with the
Bakersfield Municipal Code and shall become effective thirty (30)
days from and after the date of its passage.
,o0o
--' 8 --
I HE~RBY CERTIFY that the foregoing Ordinance was passed
and adopted by the Council of the City of Bakersfield at a regular
meeting thereof held on , by the
following vote:
CITY CLERK and Ex Officio Clerk of the
Council of the City of Bakersfield
APPROVED
CLARENCE E. MEDDERS
MAYOR of the City of Bakersfield
APPROVED as to form:
LAWRENCE M. LUNARDINI
CITY ATTORNEY of the City of Bakersfield
MGA:9~
ORDINANCE~DULTENT
09/10/92
- 9 -
Official Title and Summary Prepared by the Attorney General
STATE TAXES.
INITIATIVE STATUTE.
· Increases state tax rates for top personal income taxpayers.
· Temporarily suspends indexing on top personal income tax brackets.
· Increases income tax rates for corporations and premium tax rates on insurers.
· Defines corporate income to include specified excess employee compensation.
· Increases tax liability of banks and corporations doing business within and outside California.
· Provides for reappraisal of most business-owned real property upon specified change in oxvnership
interests.
· Imposes new oil severance tax.
· Changes tax rules related to oil and gas production.
· Repeals 1991'sales tax increases.
· Provides for renters' tax credits.
Summary of Legislative Analyst's
Estimate of Net State and Local Government Fiscal Impact:
· Increases state tax revenues by roughly $340 million in 1992-93, and $210 million annually through
1995-96. Additional annual revenue increases of roughly $1 billion beginning in 1996-97.
· Replaces state expenditures on schools with increased local property tax revenue of $350 million to
$700 million annually beginning in 1993-94.
· Increases property tax revenue to local governments by $750 million .to $1.4 billion annually; beginning
in 1993-94. Reduces sales tax revenue to local governments by about $95 million in 1992-93 and $200
million annually thereafter.
· The actual fiscal impact could differ significantly from these estimates, depending on how individuals
and businesses respond to the measure's tax changes.
Analysis by the Legislative Analyst
Background however, about 8 percent statewide. State law does not
The State of California imposes three' major types of allow the sales tax to be imposed on certain items. The
taxes to fund the programs and services it provides, tax does not apply, for example, to most food items sold
These taxes are the personal income tax, sales and use for home consumption
taxes, and bank and corporation taxes. Local Property taxes are imposed on individuals and
governments in California (including counties, cities, and businesses who own property. They are based on each
special districts) receive most of their tax revenue from property's assessed value. As longas property has the
'the property tax and sales and use taxes: same owner and there is no new construction, its assessed
Personal income taxes are imposed on the net income value does not change from year to year, except for a
of individuals and vary according to how much income small increase for inflation. The California Constitution
each individual earns in a year. Similarly, bank and limits the property tax rate to I percent of the assessed
corporation taxes are imposed on the net income of value of the property.
businesses, but are assessed at a constant rate of 9.3
percent. Proposal
Sales and use taxes are imposed on most goods This~measure makes changes to each of these taxes.
purchased in California. Because there are'both state and Table 1 identifies each provision of this measure,
local government components of this tax, the total sales describes how the current system works, and explains the
tax rate varies from county to county. It averages, proposed changes.
58 G92
How Does Proposition 167 Change Existing Law?
Provision Current System Proposed Change
Sales Tax
Sales Tax Rate Current statewide rate is 6 percent until Reduces statewide rate to 5.75 percent
July 199'3, then will drop by ~ percent to on January 1, 1993 and to 5.25 percent
5.5 percent, on July 1, 1993.
Sales Tax Exemptions Sales tax applies to sales of candy, snack Exempts these items from sales tax.
food, bottled water, newspa, pers, and
periodicals.
Personal Income Tax
Personal Income Temporary I0 percent and 11 percent 1. Lowers income level at which the 11
Tax Rates income tax rates for upper-income percent rate applies and makes both the
taxpayers (rates expire in 1996). 10 percent and 11 percent rates
permanent. 2. Creates new 12 percent
rate.
Alternative Minimum Tax T a x p a y e r s w h o e I a i m m a n y t a x Raises the minimum rate to 9.3 percent
on Personal Income deductions and exemptions must pay a for high-income taxpayers.
minimum tax'of 8.5 percent of specified
income.
Renters' Credit Income tax credit provided to l°w. and Extends this credit to all renters.
moderate-income renters.
Bank and Corporation Taxes
Corporate Franchise Most corporations are subject to a tax on Raises the tax rate to 10.3 percent.
(Income) Tax Rate · their net income of 9.3 percent.
Alternative Minimum Tax Corporations that claim many tax Raises th'e minimum tax rate to 7.7
on Businesses' Income deductions and exemptions must pay a percent..
minimum tax of 7 percent of specified
income.
"In-lieu" Tax for Banks and financial corporations are Makes banks and financial corporations
Banks and Financial exempt from local business taxes and subject to local business and personal
Corporations personal property taxes, and instead pay property taxes. Eliminates "in-lieu"
"in-lieu" income taxes to the state, income taxes.
Tax on Certain Certain, generally smaller, corporations Limits which corporations can take
Small Corporations have special r. ules regarding the advantage of these special rules to those
(SubehapterS accounting of profits and losses for tax corporations with gross income of less
Corporations) purposes. These rules usually lower than $10 million per year.
taxes owed to the state..
Deduetibility of Loan Loss Banks and other financial corporations Limits deductions to actual, losses from
Reserves for Banks can deduct from their income any funds bad loans.
that they set aside as reservbs to pay for
losses from bad loans.
Deduetibility of Companies can deduct from their Requires businesses to deduct these
Drilling Costs income most expenses associated with expenses over a longer period of time.
exploration for oil and natural gas in the
year the expenses occurred.
Deduetibility of Corporations can deduct from their Limits the amount of compensation
Executive Salaries ~neome the compensation they pay,to paid to executives that businesses can
their employees, deduct for tax purposes. Limits apply to
businesses with more than 1,000
employees.
G92 ' 59
How Does Proposition 167 Change Existing Law?
~ Provision Current System Proposed Change
Bank and Corporation Taxes---continued
Interstate and To determine income taxes, companies Changes the rules regarding this
International doing business in other states or determination by .(1) re. quiring the
Businesses countries must determine what portion consideration of income earned only in
of their income is due to business the United States and (2) increasing the
activity in California using specific rules significance of a Company's California
that consider how much property, sales relative to the rest of the country.
payroll, and sales a company has inside
and outside of the state,
Property Taxes
Property Taxes Real estate property owned by business Requires county tax assessors to reassess
(Change inOwnership) is generally reassessed when more than property whenever 50 percent of the
50 percent of the interest in the business interest in a business is sold, and to
is obtained by a single purchaser, presume this occurs once in every
three-year period, unless it is proven
not to have been sold.
Other Taxes
Insurance Companies Most insurance companies pay tax at a Raises the tax rate to 2.46 percent.
rate of 2.35 percent on the amount of
premiums from insurance policies sold.
Oil Severance Tax The state imposes a fee for the Establishes a tax on oil that is extracted
regulation of companies extracting 'oil in California. Tax would be 3 percent of
from California based on the amount of the value of oil extracted and would
oil produced. The rate of this tax varies apply only to companies extracting
from year to year and is currently set at more than 1.2 million gallons a month.
2.5 cents per barrel (about 0.2 percent
of the value of the oil).
Fiscal Effect various items from the sales tax, and (3) the extension of
Table 2 summarizes the measure's direct fiscal impact the renters' credit to all renters, regardless of income.
on the state, local governments, and school districts. Together, these three changes would decrease state
These estimates do not incorporate the effect of revenues by approximately $660 million in 1992-93 and
economic factors, which are discussed below. The table $1.3 billion in 1993-94.
shows that, on a full-year basis (beginning in 1993-94), These revenue estimates assume that the suspension of
the provisions of this measure would generate net indexing for 1992 applies only to the 11 percent and 12
revenue of between $1 billion and $2 billion. This percent personal income tax rates, and that the bank and
additional money would be available for spending by the corporation tax rate changes are applied in 1992 only to
state and local governments, those corporations whose tax returns are due after the
The table also shows how the measure would reduce date this measure becomes effective.
the role of sales taxes. It would accomplish this by .Local Government Revenue. The provision that
repealing a portion of the sales tax increases enacted in requires more frequent reassessments of business
1991. The initiative replaces these revenue losses with properties .would increase local, property tax revenue by
increased income and property taxes imposed on $1 billion to $2 billion annually, beginning in 1993-94.
businesses and increased personal income taxes imposed Approximately $350 million to $700 million of these
on upper-income individuals.
revenues would be allocated to schools. The remaining
State General Fund. The increases in personal
income taxes and business taxes would result in $650 million to '$1.3 billion would be allocated to cities,
additional General Fund revenue of about $1 billion in counties, and special districts.
1992-93 and $1:5 billion in 1993-94. Additional annual In addition, the provision that allows local, agencies to
revenue gains in excess of $1 billion would be realized impose personal property and local business taxes on
beginning in 1996-97, due to the provisions that make financial institutions would increase local revenue on a
permanent the temporary 10 pe.rcent and 11 percent *statewide basis, potentially in the range of $100 million
income tax brackets, annually. The exemptions from'the sales tax would
These revenue increases would be partly offset by (1) decrease local revenue from the sales tax by roughly $95
a reduction in the sales tax rate, (2).the exemption of million in 1992-93 and $200 million annually thereafter.
60 G92
~. Generally, whenever Schools receive increases in their
property tax revenues, the state's funding requirement is
Direct Fiscal Effect of Proposition 167' reduced on a dollar-for-dollar basis. Since schools would
receive an increase in property tax revenues of $350
(In millions) million to $700 million as a result of this measure, the
"- state's funding requirement would be reduced by the
1993~94
" and same amount--S350 million to $700 million annually.
1992-93 Thereafter Overall, the schoois would receive the same amount of
State funds in total, but the shares provided by the state and
Revenue Increases by local property taxes would change.
Personal income tax a $ 300 $ 250 b Under certain conditions, changes in state revenue
Business taxes c 700 1,250 collections can affect the amount of money the state
Revenue Losses must provide to schools. Because this measure increases
Sales tax -560 -1,185 state tax collections, the state may be required to
Renters' credit -100 -105 increase its funding to schools in years after 1992-93 by
School Funding unknown amounts.
Shift to property tax - 350 to 700 Administrative Costs. The measure would result in
Net State Gain $ 340 $ 560 to $910 b
additional administrative costs to state and lOcal tax
Local Gbvernments, agencies. The most significant cost would be to county
Revenue Increases . tax assessors to reassess additional business properties.
Property tax - $650 to $1,300 .These state and local costs could be several million
Bank taxes - 100 dollars annually.
Revenue Losses General Economic Effects. The fiscal effect of this
Sales tax $ -95 -200
measure could differ significantly from the annual
Net Local Gain $ -95 $ 550 to $1,200 impacts discussed above. This is because the changes in
School Districts state and local taxes could influence the behavior of
Funding Shifts individuals and businesses. These effects, in turn, could
Property tax · - $ 350 to $ 700 affect future levels of economic activity in the state, and
State school funding - -350 to -700 future state and local tax revenues. The net impact is
Net School Changes - _ uncertain and would depend upon various factors.
On the one hand, this measure would result in roughly
Total Gain $ 245 $1,110 to $2,110 b a 20 percent increase in the total amount of income taxes
a Assumes that the suspension of indexing in 1992 only paid by businesses in California, and a 10 percent to 20
applies to the 11 percent and 12 percent personal income percent increase in the amount of property taxes
tax rates, imposed on businesses. Faced with these tax increases,
b This amount would increase by over $1 billion in 1996-97, some businesses may choose to reduce their business
when.the initiative makes permanent two temporary top activities or their investments in new p'lant and
income tax brackets, equipment in California. Businesses may find, for
c Assumes that bank and corporation tax rate changes are example, that they would be more profitabl~ operating
applied to those corporations whose tax returns are due in nearby states that have lower business taxes. To the
after the effective date of this initiative.
extent that this occurs, this measure would reduce the
future growth in tax revenues.
In total, cities, counties, and special districts would lose On the other hand, the measure also could have
. roughly $95 million in 1992-93. Beginning in 1993-94, positive effects on the state's economy. Increases in state
however, they' would gain between $550 million to $1.2 and local government expenditures could encourage
billion annually. ~ both short- and long-term job growth'. For example,
School District Funding. This measure changes the additional spending in such areas as infrastructure,
amount of funding the state must provide to public education, and job training programs could improve the
schools, as required by Proposition 98, the school funding state's attractiveness for business investment.
initiative. Proposition 98 requires the state to provide a It is not possible to. predict how individuals and
certain amount of support to schools according to businesses would react to the changes contained in this
complex formulas. This measure could affect these measure. These reactions, however, could have a
funding requirements in two ways. significant impact on the fiscal effects shown in Table 2.
For text of Proposition 167 see page 84
G92 61
16 7 1 State Taxes. Initiative Statute.
Argument in Favor of Proposition 167
Why are taxes going up while schools and other public services are it improves funding for essential services.
being cut back? Unlike Proposition 163, the revbnues lost by cutting taxes will be
Because we've given away billions of dollars in special interest tax restored to state and local government (including schools).
breaks benefiting the super-rich and multi-national corporations. What 167 TAXES THE SUPER-RICH AND CLOSES LOOPHOLES ·
have we gotten in return? BENEFITING WEALTHY INTERESTS.
Have these .special breaks increased jobs and investment in It restores fairness to our tax system by:
California? No.
Have they lowered prices to California consumers? No. · Taxing the income of Californians earning over $500,000 by 1%
Have benefits for the wealthy "trickled down" to the rest of us? No. more.
What we HAVE gotten is higher taxes, deteriorating services, and a · Closing loopholes benefiting multinational corporations, banks,
declining economy---and a massive UPWARD redistribution of income, insurance companies and oil companies. ,
During the 1980's, the top 1% of Californians saw their after-tax · Limiting corporate write-offs for excessive pay of top corporate
incomes rise by over 75%, while the average income of the bottom 80% executives.
was unchanged. · Rewarding companies that invest and create jobs in California
Tax breaks have benefited the super-rich while leveraged buy-outs, while ending breaks for exporting jobs.
junk bonds, excessive executive pay, and savings and loan deregulation · Closing the change of ownership loophole that allows corporations
have destroyed jobs and threatened our economic security. .. to avoid being reassessed on the same basis as homeowners.
IT'S TIME TO CHANGE DIRECTION. · Adding a corporate profits tax of 1% to match last year's sales tax
Last year billions of dollars in new taxes fell most heavily on ordinary increase on consumers.
Californians. The saleY tax increases of 1991 were 3 times more DON'T BE FOOLED BY THE SCARE TACTICS OF THE
· burdensome for the middle class than the rich. LOOPHOLE LOBBYISTS.
· Meanwhile, the loophole lobbyists made sure tax breaks benefiting They will SAY 'AND SPEND ANYTHING to save their tax breaks.
banks, multi-nationals, insurance companies and oil companies went But it's not tax breaks which stop corporations from seeking low wages
untouched. Corporate tax breaks actually were expanded! abroadtit's a productive, well-educated &ork force and investment in
PROPOSITION 167 WILL PROVIDE OVER $1 BILLION IN TAX California.
HELIEF TO HARD-WORKING CALIFORNIANS EVERY YEAR. It FOB LOWER TAXES ON CONSUMERS, MORE INVESTMENT IN
will: OUR FUTURE, AND FEWER TAX BREAKS FOB THE RICH AND
· Hepeal the new food taxes on snacks, candy and bottled water. POWERFUL...
· Repeal the new "information taxes" on newspapers and magazines. VOTE YES ON 167.
· Repeal 1/4 cent of the sales tax increase. LENNY GOLDBERG
· Repeal the income tax increase on renters by restoring the full Executive Dirtwtor, California Tax Reform Association
renters' credit.
PROPOSITION 167 HESTORES FUNDS CUT FROM EDUCATION, HOWARD OWENS
HEALTH CARE, PUBLIC SAFETY AND OTHER SERVICES. President, Congress of California Seniors
Our future depends on what we invest in our people and DAN TERRY
infrastructure. 167 not only reduces taxes for ordinary Californians, but President, California Professional Firefighters
Rebuttal to ,~rgument in Favor of Proposition 167
Promoters of Proposition 167 make a lot of promises about providing Proposition 167's promoters think they can win your vote by
tax relief and better services, promising to eliminate the snack tax. What they don't tell you is ....
They talk about funding education, health care and other services, · That Proposition 16,3 on this same ballot would repeal the sales tax
but . . . on snacks, bottled water and candy WITHOUT imposing the more
· PROPOSITION 167 DOESN'T GUARANTEE OUR SCHOOLS, than a dozen tax increases included in Proposition 167.
LAW ENFORCEMENT AGENCIES OR. HEALTH CARE PROPOSITION 167'S ALMOST TWENTY CHANGES IN
FACILITIES A SINGLE PENNY! CALIFORNIA:S TAX LAWS ARE JUST TOO MUCH FOR ONtE
They talk about relieving hard-working Californians, but .... PROPOSITION.
· PROPOSITION 167 WOULD HIT MIDDLE AND LOWER
INCOME FAMILIES HARD, INCREASE THEIR INSURANCE READ Proposition 167. We believe you'll join all of us in this growing
PREMIUMS, GASOLINE PRICES AND RENTS, AND COST bipartisan coalition who say...
THEM JOBS. WE NEED JOBS, NOT MORE TAXES
Promoters talk about the few tax cuts in Proposition 167, but they VOTE NO ON PROPOSITION 167!
conveniently forget to mention . . . GENE PENNE
· THE MORE THAN ONE DOZEN TAX INCREASES IN
PROPOSITION 167 THAT DON'T EXACTLY SPELL "TAX Chair, Small Business Committe~ California
RELIEF." Chamber of Commerce
Promoters talk about rewarding Companies that invest and create LARRY McCARTHY'
jobs in California, but . . . President, California Taxpa{ters Association
· PROPOSITION 167 WOULD CAUSE MORE CALIFORNIA PETER D. KELLY III
BUSINESSES, LARGE AND SMALL, TO RELOCATE OUTSIDE Former Chair, California Democratic Part{t
THE STATE. ECONOMIC STUDIES SHOW IT COULD COST US
MORE THAN 100,000 JOBS!
62 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency. G92
? State Taxes. Initiative Statute. 167 I
Argument Against Proposition 167
· PROPOSITION 167 WILL HURT ALL CALIFORNIANS. · PROP. 167 WOULD INCREASE INSURANCE PREMIUMS.
Proposition 167, the so-called "Tax-the-Rich" initiative, would tax the UTILITY BILLS, GASOLINE, RENTS AND OTHER CONSUMER
rich alright, but it wouldn't stop there. It would go right on to PRICES.
INCREASE TAXES for small businesses and RAISE CONSUMER Higher taxes on banks, property owners, insurance, oil and utility
PRICES for ALL Californians~especially hurting middle and lower companies means higher auto and homeowner premiums, higher
income families, residential and office rents, higher prices, at the gas pump. Plain and
The taxpayer groups, small businesses, seniors and many others simpl&.
opposing Proposition 167 have a more appropriate name for it--the The initiative would also open local banks up to a bevy of new
"Job Terminator"--because it would tax jobs right out of the state.
And that's not all it would do-- taxes--even taxes on deposits and loans---and that means higher prices
and less available credit for loans, making it even more di~cult for first
· ' PROP. 167 INCLUDES MORE THAN ONE DOZEN TAX time homebuyerstogetfinancing.
INCREASES~MOBE THAN ANY INITIATIVE IN CALIFORNIA'S
HISTORY. · TOO MANY DIFFERENT PROVISIONS LUMPED IN'FO ONE
INITIATIVE.
It would increase property taxes, personal income taxes and taxes on
small businesses, local banks and insurance premiums. The initiative includes almost twenty changes in California's tax
· PROP. 167 WOULD DRIVE MORE EMPLOYERS OUT OF STATE, laws--affecting everything from personal income taxes to bank
PU'ITING THOUSANDS MORE CALIFORNIANS OUT OF WORK! reserves and insurance premiums. That's just too much for ONE
During the recession, California lost nearly 700,000 jobs. proposition.
Not since the Great Depression has California's economy been in
Surveys show that one in every four businesses already plans to
relocate some or all of its operations outside of California. Now is hardly such dire straits. Now, when we should be doing everything we can to
the time to tax more employers out of the state or force businesses that help businesses create new jobs--along comes Prop. 167 with the
stay to reduce jobs. promise of more than a dozen tax increases and thousands of lost jobs.
· PROP. 167 WOULD HIT SMALL BUSINESSES HARDEST! WE NEED JOBS, NOTMOBE TAXES!
Small businesses are the heart of California's economy and a critical VOTE NO ON PROPOSITION 167!
factor in our efforts to recover from the recession. About 75% of all JANE A. ARMSTRONG
California businesses have 10 or fewer employees. Many couldn't State Vice Chairman
survive Prop. 167's tax increases. Alliance of California Taxpaglers and
· MIDDLE AND LOWER INCOME FAMILIES WOULD BEAR THE Involved Voter~ (ACTIV)
BRUNT OF THE TAX INCREASES. LYNNE CHOY UYEDA
Who did they think would ultimately pick up the tab for a President, Federation of Minority Business Associations
multibillion-doLlar tax increase? Santa Claus?
Prop. 167 promoters claim it forces big corporations and the wealthy LARRY LUTZ
to pay their share, but it would ultimately hit middle and lower income Former Chair, California Commission on_Aging
families the hardest because businesses would be forced to cut jobs or
increase consumer prices.
Rebuttal to Argument Against Proposition 167
How will Proposition 167 affect you? BankS, oil companies, insurance companies and multinational
Are you a bank? Insurance company? Multinational corporation? Oil corporations will do or say anything to keep their tax breaks.
company? If so, you'll lose special tax breaks. For example: They want you to believe that 167 will tax your bank
Do you earn over $500,000 per year? If so, you'll pay 1% more. deposits. It won't, it's false, it's illegal, and they know it.
Are you a .publicly-traded corporation? If so, your property taxes will That's just one example of the opponents' scare tactics.
follow the same rules as small businesses and homeowners. The best way to make sure our taxes will keep going up while our
ABE YOU A SMALL BUSINESSPEBSON, HOMEOWNER OB services are being'cut is to continue giving away special interest tax
RENTER? breaks.
IF SO, YOUR TAXES WILL BE LOWER. YOU'LL PAY NO TAX If you agree that its time to change direction, vote yes on Proposition
INCREASES, DESPITE THE OPPONENTS' FALSE CLAIMS. 167.
The opponents say Proposition 167 will eliminate jobs. But They are JERRY CREMINS
simply using scare tactics to protect their special privileges. President, State Building ~ Construction Trades
Giving tax breaks to the super-rich and big business hasn't produced Council of California
jobs. Trickle-down economies has failed.
Proposition 167 creates jobs and expands our economy by cutting MARY BERGAN
consumer taxes and putting $i billion into our people's hands to spend. President, California Federation of Teachers
It rewards companies investing in California. It restores funds for our HOWARD OWENS
schools and infrastructure. President, California Congress of Seniors
C92 Arguments printed on this page are the opinions of the authors and have not been checked for accuracy by any official agency.
:'[156 'a$$enger l~all and Clean A,r Bond Act of 1992
O££ieial Title and Summary Prepared by the Attorney C,e~eral
PASSENGEll RAII, AND CLEAN AIR BOND ACT OF 1992
· This act provides for a bond issue of one billion dollars ($1,000,000,000) to provide funds for acquisition
of rights-of-way, capital expenditures, and acquisitions of rolling stock for intercity rail, commuter rail,
and rail transit programs.
· Proceeds will fund the second phase of the long-range transportation plan, approved by voters in 1990.
· Appropriates money from state General Fund to pay off bonds.
Final Votes Cast by the Legislature on AB 973 (Proposition 156)
Assembly: Ayes 68 Senate: Ayes 38
Noes 6 Noes 0
12 G92
Analysis by the Legislative Analyst
Background Local funding for rail capital costs comes primarily
The passenger rail transportation system in California from local sales and use tax revenues. The amount of
includes intercity rail, commuter rail, and urban rail state and local funding for these purposes varies from
transit services, year to year.
· lntercity rail primarily serves business and
recreational travelers between cities in California Proposal
and to other parts of the country. Amtrak operates This measure allows the state to sell $1 billion in
most intercity rail service, which includes service general obligation bonds to provide funds for rail capital
between Sacramento and San Jose, San Diego and outlay. General obligation bonds are backed by the state,
Santa Barbara, and Bakersfield and Oakland. meaning that the state is required to pay the principal
· Commuter rail service offers frequent service and interest costs on these bonds. General Fur~d
during peak hours to serve commuters. Limited revenues would be used to pay these costs. General Fund
service is typically available during other periods of revenues come primarily from the state personal and
the day. The Peninsula Commute Rail Service corporate income taxes and the state sales and use tax.
(Caltrain) between San Francisco and San(Jose is an When appropriated by the Legislature, the bond
example of this type of service, money would be available for capital outlay projects for
· Urban rail transit provides regular service all three types of rail services. These projects must be
throughout the day, usually within metropolitan located on routes and corridors specified in the measure,
areas. Examples include the Sacramento Light Rail or as added by the Legislature in the future. The
System, the Los Angeles Metro Blue Line (Long measure requires the use of at least 15 percent--S150
Beach-Los Angeles), the San Diego Trolley, a. nd the million--of the total bond funds for intercity rail
San Francisco Bay Area Rapid Transit (BART)' purposes. These funds must be distributed among
System. projects in five eligible intercity rail corridors based on
the relative populations served by each corridor. The
Operating Costs remaining funds would be distributed to commuter rail
Operating costs for these three types of passenger rail projects in 11 specified corridors and urban transit rail
service in California are paid for, in part, by fare projects in 9 metropolitan areas.
· revenues. The remainder of the operating expenses
comes from various local, state, and federal sources. To Fiscal Effect
receive state funds, state law requires rail operators to ' This measure would result in the following fiscal
recover between 10 percent and 55 percent of operating effects:
costs from fare revenues. The percentage depends on the · Direct Costs of Paying Off the Bonds. For these
type of rail service, types of bonds, the state makes principal and interest
payments from the state's General Fund usually over
Capital Costs a period of about 20 years. If the $1 billion in bonds
Capital costs for California's passenger rail services are were sold at an interest rate of 7 percent, the cost
also funded from various local, state, and federal sources.., would be about $1.7 billion to pay off both the
These costs include buying railroad rights-of-way and principal ($1 billion) and interest ($735 million).
trains, and constructing rail (and related) facilities. Until The average payment for principal and interest
1990, state funding for these capital costs came from would be about $87 million per year.
motor vehicle fuel ("gasoline") taxes, commercial. · Future Rail Operating Costs. Fare revenues
vehicle ("truck") weight fees, and a portion of the state typically cover only a portion of the operating costs
sales and use tax. In 1990, voters approved the use of of passenger rail services. Therefore, where these
general obligation bonds for rail capital outlay. The bond funds are used to expand passenger rail
voters approved two separate bond measures in June services, additional state and local operating funds
1990, the Passenger Rail and Clean Air Bond Act of 1990 will be necessary. These additional costs are
($1 billion) and the Clean Air and Transportation unknown, but could be in the tens of millions of
Improvement Act of 1990 ($1.99 billion), dollars annually.
For text of Proposition 156 see page 66
G92 13
1 b6 I Passenger Bari and (]lean Air Bond Act of 199 .
!
Argument in Favor of Proposition 156
A YES vote on Proposition 156 will: Santa Clara County Light Raft
· Reduce traffic congestion, San Francisco Muni. Metro
· Revive California's economy, Bay Area Rapid Transit (BART) Serves Contra'Costa,
· Reduce air pollution, Alameda, San Francisco & San Mateo Counties
· Provide jobs for California workers, · COMMUTER RAIL PROJECTS:
· Increase rail accessibility for seniors, the disabled and those Southern California Commuter Rail (Metrolink~ Serves Los
who don't drive, Angeles, Orange, Riverside, San Bernardino & Ventura
· Expand rail service throughout California. Counties
Proposition 156 authorizes state bonds to improve and North San Diego County Commuter Rail
expand intercity rail, commuter rail, and other rail transit
systems throughout California. Proceeds will be used to Escondido-Oceanside-San Diego
purchase trains, improve and construct passenger stations and Peninsula Commuter Service (CalTrain) Serves Santa
track, and expand rail service in all regions of the state. Clara, San Mateo & San Francisco Counties
Santa Cruz County Rail Santa Cruz-Watsonville
EACH RAIL CAR REMOVES 75-125 AUTOMOBILES · INTERCITY RAIL SERVICE:.
FROM TRAFFIC EVERY DAY.
Proposition 156 is exactly .the kind of investment we should Amtrak "San Diegan" Serves San .Diego, Orange, Los
be making to re-build California's econoiny. Angeles, and Santa Barbara counties
Rail transit is vital to California's future. Proposition 156 will Amtrak "San Joaquin" Serves Los Angeles, Kern., Kings,
create jobs for tens of thousands of Californians, and help lay Tulare, Fresno, Madera, Merced, Stanislaus, San ]oacluin,
the groundwork for future economic growth. Sacramento, Contra Costa, Alameda and Santa Clara
counties
Proposition 156 will finance rail car manufacturing, Amtrak "Capital" San Jose-Oakland-Richmond-
construction and improvement projects in areas of the state
where they are needed most--providing an effective Martinez-Fairfield-Davis-Sacramento-Roseville-Auburn
alternative to our overcrowded streets and freeways, and San Francisco-Marin-Sonoma-Mendocino-Humboldt
helping people commute to and from work safely and corridor
efficiently. Proposition 156 is supported by a broad bi-partisan coalition,
Better rail transit systems will increase the percentage of including Californians for Better Transportation, one of the
people who use rail. That means fewer ears on the road, less state's leading transportation advocates; business organizations
like the California Chamber of Commerce; and environmental
gridlock and cleaner air. And Proposition 156 will improve
mobility for seniors, the physically handicapped and those who groups like the Planning and Conservation League.
don't drive. REDUCE AIR POLLUTION. REDUCE TRAFFIC ON
The following are urban, commuter and intercity rail CALIFORNIA'S OVERBURDENED STREETS AND
projects that will be extended, improved or constructed with FREEWAYS.
Proposition 156funds: YES ON 156.
· URBAN TRANSIT PROJECTS: JANANNE SHARPLESS
San Diego Trolley Chair, California Air Resources Board
Los Angeles Light Rail (Blue Line & Green Line) LEO TROMBATORE
Los Angeles Metro Rail (Red Line) Former Director, California Department of Transportation
Sacramento Light Rail KIRK WEST
Placer County Light Rail President~ California Chamber of Commerce
Rebuttal to Argument in Favor of Proposition 156
The benefits of the Passenger Rail and Clean Air Act of 1992 that serve people who really need bus service or dial-a-ride
have been overstated. The argument in favor of Proposition 156 services, such as seniors, disabled, and low income people.
cites reduced traffic congestion and air pollution. This assumes It is true that some jobs will be created in constructing rail
the money spent will divert a significant number of new riders cars, but jobs would also be created by Spending money on
to trains from driving alone, more immediate needs such as education, housing, hJalth care,
This $1 billion for rail projects will not go far. From the list of and child care.
rail projects included in this bond act one might gain the When we haven't even issued all the rail bonds previously
impression that these projects will be entirely funded. Either a
small number of these projects will be completed, or each authorized, let's not commit more money to these frivolous rail
project will receive a tiny fraction of what is needed for the lines.
whole line, hardly enough to make a difference. Many more RYAN SNYDER
billions will be needed to complete these projects and taxpayers Urban Planner/Transportation Specialist
will be asked again to fund them. Indeed the legislation that DR. MARTIN WACHS
created this bond act will ask us for another $1 billion in 1994. Professor of Transportation Planning
Few seniors and disabled will be served by these projects. In UCLA Graduate School of Architecture and
fact, the rail lines will drain money from transportation projects Urban Planning
14 Arguments printed on .this page are the opinions of the authors and. have not been checked for accuracy by any official agency. G92
· .- "Argument Against Proposition 156 '
There are four reasons to .vote NO on Proposition 156. First, We can least-afford it. As a general obligation bond, it must be.
rail transit is so expensive to build that this measure will be able paid off with interest before every other item in the state
to finance very few new facilities. Second, there are other ~ budget. It rep?esents, a new $90 million yearly commitment for
transportation programs which Provide far more benefit at far the next 20 years. This is on top of existing rail bond
lower cost. Third, this measure will add to the enormous commitments of about $270 million per year. which we will be
budget deficit facing California taxpayers. Fourth, the paying off until the. year 2010. Other items in the state budget,
transportation bonds passed by the voters 'in 1990 have not yet including education, health care, housing, child care, and
all been issued, and it would be unwise and wasteful to environmental clean up, will receive less funding if we commit
authorize new bonds when the state has not yet used its the state to more rail bonds.
existing authority to issue rail bonds. , 'Finally, voters are asked to approve this additional spending
Based upon average costs of rail projects in California, the even though 'the state has not yet made full use of the bonding
total of $1 billion will build only about 4 milesof urban subway,
or 25 miles of light rail lines. How much will projects of. this authority we approved in the 1990 election. As of July 1992,
magnitude really do to clean Up the air? ~ ' $491 million of the bonding authority approved in 1990 had still
Many other transportation projects will do much more to not been spent. It would be unwise to approve the issuance of
clean up the air and alleviate traffic congestion at lower cost, new bonds and to incur public debt in the midst of a major
but are not provided for by this bond measure. Transportation recession when previous' bonding authority has not been fully
money should be spent on more bus service, lower bus fares, used. It would be like giving public officials a second blank
carpool lanes, ridesharing programs, bicycle, and pedestrian check when they haven't even spent the first one!
facilities, and services for' those who really need and use transit, Our tax money will be more wisely spent by voting .NO <~n
including the elderly and disabled. These projects all use 'this false clean air act!
existing streets and freeways, and are relatively inexpensive. DR. MARTIN WACHS
They would serve many more people and do more to clean the . Professor of Transportation Planning
air than a few expensive rail projects. Bail transportation works .UCLA Graduate School of Architecture and
we/lin cities having dense residential corridors, like New ·York, Urban Planning
Tokyo, and Paris, but not in California, where we have one car
per adult and very low population densities. RYAN SNYDER
Urban Planner/Transportation Specialist
This measure will add to the budget deficit a~ a time when
Rebuttal to Argument Against Proposition 156 ' '·
Proposition i56 does NOT require an increase in taxes, nor Proposition 156 is supported by a broad coalition, including:
· will it take fimding away from other necessary state programs. ·. California Manufacturers Association,
A YES vote for Proposition 156 WILL create jobs for · Planning and Conservation League, .
California workers, and lay the foundation.for renewed ~· California Transit Association,. . ".
economic growth. - · · Californians for Better Transportation,
Proposition 156 will improve and extend rail transit systems · Assemblyman Jim Costa, one of California's leading rail
in areas of the state where they are needed the most.· It will transit advocates. ',.
help finish the rail transit improvement projects approved by Vote YES for: ' ' ' '·.
the voters in 1990.' . . ' --" :
Every day, hundreds, of thousands of people throughout · Jobs for California workers,
California use rail transit to commute to work, school and other · Cleaner air,
destinations. Proposition 156 will extend the benefits of rail · Alternatives to overcrOwded freeways,
· ·. Increased mobility for seniors, the handicapped and those
· trdnsit to an even greater number of Californians. who don't drive.
Carpools and ridesharing programs can't solve all of our ·
transportation problems. We must provide the people·of YES ON 156~ . -
California with all available transportation alternatives. RALPH BLACK "'
RA IL TRANSIT .IS A 'VITA L ELEMENT. IN 0 UR Presiden~ California Assoda, tio. of Persons With Handicaps
TRA NS FOR TA TI O N S }'STEM.: MICHAEL PAPARIAN
Light rail ca n be built for just a fraction'of the cost of new State Director, Sierra Club~Californla , '
.. highways/ . ' TERRY O. COOPER. '
· It is the most economical and cost-effective solution to the
Chair, California Transit Association
ever-increasing problem of traffic' gridlock.
Increased availability and usage of rail transit will also help
reduce California's dangerous smog levels. ~' '
G92 Arguments printed on this page are the opi.nions of the authors and have not been checked for accuracy by any official agency. I5