On Your November Ballot: Prop 5 Would Make It Easier for Local Gov’ts to Fund Housing, Infrastructure – With Risks

Proposition 5 would amend the California constitution by lowering the required voter approval threshold to 55% for local governments to borrow money to fund affordable housing construction, down payment assistance programs, supportive housing and public infrastructure projects. “Infrastructure,” according to the proposition’s language can include a broad range of development projects, including water management, local hospitals, police stations, broadband networks, parks and other development projects.

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Edward Henderson | California Black Media 

Proposition 5 would amend the California constitution by lowering the required voter approval threshold to 55% for local governments to borrow money to fund affordable housing construction, down payment assistance programs, supportive housing and public infrastructure projects. “Infrastructure,” according to the proposition’s language can include a broad range of development projects, including water management, local hospitals, police stations, broadband networks, parks and other development projects. 

Under current law, it takes a supermajority of 66% of voters to approve those housing and infrastructure bonds. 

If Prop 5 passes, the new approval threshold will apply not just to future bonds, but any that are on the ballot this November. That includes a proposed $20 billion affordable housing bond in the San Francisco Bay area.

Supporters of the proposition believe that lowering the voter approval threshold to 55% would make it easier for cities and towns to borrow money in support of critical projects like creating more affordable housing to address the state’s ongoing housing shortage and homelessness crisis, for example. 

California Black Media (CBM) reached out to the Western States Regional Joint Board Workers United, a labor union that supports a yes vote for Prop 6. They represent Industrial Laundry workers and Starbucks employees. They provided the following statement: 

“As a union that represents low wage workers in communities where affordable housing is virtually non-existent, we join the proponents of Prop 5 in supporting a more streamlined solution to funding the building of more affordable housing by a majority threshold.” 

Jesse Arreguin, the mayor of Berkeley and vice president of the Association of Bay Area Governments is also on record saying: “As Californians, it is our right to tell the government how it should spend our taxpayer funds. If a majority of people believe that general obligation bonds should be issued for critical housing and infrastructure needs, then it should not be blocked by a minority. People may not always agree on everything, but our democratic system allows us to debate the best path forward and collectively implement the will of the people. Prop. 5 will give more control to the voters in how our money is spent, while making it easier to address some of the most critical issues of our time.” 

Opponents believe that decisions which put more debt on the state should be made via a board consensus. They warn, if Prop 5 passes, borrowing for local development projects will be paid with higher taxes. 

Critics also call the measure an attempt to undo the taxpayer protections that California voters embedded into the state constitution with Prop 13. 

CBM spoke with David Kline, Vice President of Communications & Research for CalTax on why a no vote for prop 5 is the best option. 

“The bottom line is, we oppose it because it’s going to increase the cost of living in California,” said Kline. “We think the cost of living here is already too high. By making it easier for local governments to approve more bonds, that leads to property tax increases because that’s how bonds are repaid. 

That means it’s more expensive for people with their own homes, renters, because the taxes will get passed along to the renters for small businesses. It increases the cost of running a business because the property taxes will go up. So, just in general, we don’t think it is necessary to make it even easier to increase property taxes with new bonds.”

Opponents also believe that when it is easier to borrow money, some elected officials are likely to spend existing tax revenues on everything except high-priority needs. They believe the higher threshold is a proper check and balance to make sure funds only go to projects that are imperative. 

“Under the current system local governments still can approve bonds. They need two-thirds vote, which is a reasonable threshold because it means the community really has to come together and agree on something to get to that vote level. Bonds are approved all the time under the current threshold, so the current system is working. It doesn’t need to be changed to make it easier to increase taxes now.”

Supporters of Prop 5 include the California Professional Firefighters; the League of Women Voters of California; and Habitat for Humanity California. Some opponents are the California Taxpayers Association; The California Hispanic Chambers of Commerce; and the Women Veterans Alliance.

A “yes” vote supports lowering the vote threshold from 66.67% to 55% for local bond measures to fund housing projects and public infrastructure.

A “no” vote opposes lowering the vote threshold from 66.67% to 55% for local bond measures to fund housing projects and public infrastructure.