BILL ANALYSIS
AB 894
Page 1
Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON ELECTIONS AND REDISTRICTING
Paul Fong, Chair
AB 894 (Furutani) - As Introduced: February 26, 2009
SUBJECT : Ballot measures: fiscal impact statements.
SUMMARY : Requires the fiscal impact statement included in the
title and summary prepared by the Attorney General (AG) for an
initiative measure to be in boldface print. Requires the
Legislative Analyst's Office (LAO) to prepare an analysis of a
state ballot measure's estimated impact on the General Fund (GF)
for every measure that will result in increased costs to the
state. Requires the LAO's estimated numerical figure of revenue
or cost to the state to appear below the designation of a
measure on the ballot. Specifically, this bill :
1)Requires the fiscal impact statement and any estimated amount
of an increase or decrease in revenues or costs to the state
or local government included in the title and summary prepared
by the AG for a state initiative measure to be in boldface
type.
2)Requires the LAO to include in his or her analysis of a state
ballot measure the measure's estimated impact on the GF and an
estimated percentage of the GF that would be expended due to
the measure's passage, if it is estimated that a measure will
result in increased cost to the state. Allows for the use of
visual aids for the estimated impact and the percentage of GF
expended.
3)Provides that if the LAO determines that a state ballot
measure would result in an increase or decrease in revenue or
cost to the state, the following phrases must appear
immediately below the designation of the measure on the
ballot:
a) "Estimated Increase in State Revenue", if the fiscal
impact summary provides an estimated numerical figure
reflecting an increase in revenue to the state followed by
the numerical figure;
b) "Estimated Decrease in State Revenue", if the fiscal
impact summary provides an estimated numerical figure
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reflecting a decrease in revenue to the state followed by
the numerical figure;
c) "Estimated Increase in State Costs", if the fiscal
impact summary provides an estimated numerical figure
reflecting an increase in costs to the state followed by
the numerical figure;
d) "Estimated Decrease in State Costs", if the fiscal
impact summary provides an estimated numerical figure
reflecting a decrease in costs to the state followed by the
numerical figure; or,
e) "See Fiscal Impact Statement Below", if the fiscal
impact summary does not provide an estimated numerical
figure, but concludes that the measure will result in an
increase or decrease in revenue or cost to the state.
EXISTING LAW:
1)Establishes a process for the AG to prepare a summary of the
chief purposes and points of a proposed measure. Requires the
AG to provide a copy of the title and summary to the Secretary
of State within 15 days after receipt of the final version of
a proposed initiative measure, or if a fiscal estimate or
opinion is to be included, within 15 days after receipt of the
fiscal estimate or opinion prepared by the Department of
Finance (DOF) and the Joint Legislative Budget Committee
(JLBC).
2)Specifies that in preparing a title and summary, the AG shall
determine whether the substance thereof, if adopted, would
affect the revenues or expenditures of the state or local
government, and if he or she determines that it would, he or
she shall include in the title either the estimate of the
amount of any increase or decrease in revenues or costs to the
state or local government.
3)Provides that the fiscal impact statement prepared by the LAO
may be used by the DOF and JLBC in preparation of the fiscal
estimate or the opinion.
4)Requires the LAO to prepare an impartial analysis of each
state ballot measure describing the measure and including a
fiscal analysis of the measure showing the amount of any
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increase or decrease in revenue or cost to state or local
government.
5)Requires that the statement of all measures submitted to the
voters be abbreviated on the ballot. Specifies that the
statement contain not more than 75 words of each measure to be
voted on, followed by the words, "Yes" and "No".
FISCAL EFFECT : Unknown
COMMENTS :
1)Purpose of the Bill : According to the author:
The state faces an ongoing budget shortfall of tens of
billions of dollars. This crisis is made far more
difficult to solve with the increasing passage of ballot
measures and initiatives that set aside state resources,
commit future tax revenues, or in some cases do not even
identify a funding source, for various projects. Voters
are not sufficiently aware of the cost pressures certain
ballot measures and initiatives create. Voters need to
understand the fiscal impact of new ballot proposals in the
context of the state's budget and General Fund. This bill
would put the fiscal analysis of ballot measures and
initiatives in context for voters tasked with making
complicated decisions that impact state funds. Assembly
Bill 894:
a) Specifies that the fiscal impact statement
included in the ballot title and summary be in
boldface type;
b) Requires the fiscal analysis of a ballot
measure include an analysis of the measure's estimated
impact on the General Fund, including an estimate of
the percentage of the state General Fund that would be
expended if the measure were to pass;
c) Allows the inclusion of visual aids in the
analysis to illustrate the fiscal impact, when
appropriate;
d) Requires that the costs (numerical value)
associated with a measure appear immediately below the
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title on the ballot, with the corresponding
explanatory description of an estimated increase or
decrease in state revenue or costs.
2)Limited Ballot Space : Requiring additional fiscal
information on a state ballot measure will limit the number of
words used to summarize the measure, since the 75 word limit
applies to the summary and fiscal effect. The committee may
wish to consider if limiting the words used to summarize a
ballot measure will further the bill's intent to provide
voters with information regarding the ballot measure's fiscal
impact to the state.
3)Arguments in Support : According to the bill's sponsor, State
Controller John Chiang:
AB 894 would require that the fiscal impact of implementing
a proposed ballot measure be provided in bold face print in
the title and summary. The bill would enable voters to
better understand the measure's costs by including a visual
presentation of costs in context with the State's budget.
Importantly, AB 894 would not require additional or
redundant analytical work to be completed.
The recent budget crisis demonstrates the need to make more
transparent the costs to taxpayers of establishing new
programs or locking in formulaic spending, especially via
ballot box budgeting. By presenting costs in the manner
proposed by this bill, voters will be better able to assess
and understand the benefits versus the costs of the measure
on which they are deciding.
REGISTERED SUPPORT / OPPOSITION :
Support
State Controller John Chiang (sponsor)
Opposition
None on file.
Analysis Prepared by : Qiana Charles / E. & R. / (916)
319-2094