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Wednesday, Apr 24, 2024

Propositions Have Business Impact

Arnold Schwarzenegger rode into Sacramento after winning the 2003 recall election promising to reform the state, lessen the influence of special interests and impose some fiscal discipline, but his latest efforts may be falling flat. They will face public approval on Tuesday, when voters will be asked to vote on eight different ballot measures that will tackle several issues that will impact the business community. Proposition 75 would require public-worker unions to get permission from their members before spending money on political campaigns. The measure’s supporters and detractors have been airing television and radio ads in the weeks before the election, but recent polling figures show that 51% of voters will vote against it, with only 40% supporting the measure. The Los Angeles Chamber of Commerce issued its support for the measure, arguing that union members who want to opt out of using their dues to pay for political advertising often feel pressured not to do so. The governor has run into trouble with unions before, taking on nurses when he tried to delay the effects of a nurse-to-patient ratio law. The California Nurses Association attacked the governor, and his public persona took a hit. Labor unions have also hounded the governor’s stance on education, after he failed to return $2 billion that was diverted from public school budgets. Schwarzenegger is appealing to voters’ sense of fiscal responsibility with Proposition 76, which would tie the amount that the state is allowed to spend to the amount of revenue it’s generating. The promise to reign in spending helped the governor reach Sacramento, but that measure is finding the support of only one third of voters. The measure has found support with both the California Chamber of Commerce and the League of California Cities, which claim that it would help limit deficit spending. Its detractors point to a review by the legislative analyst’s office that reports that the state’s schools would lose close to $4 billion a year if the measure is enacted. Proposition 77, which would assign to retired judges the job of drawing district maps for legislators , aimed at eliminating so-called “safe seats”, faces the same odds with about two thirds of voters opposing it. Two efforts to bring down the costs of drugs, Propositions 78 and 79, both showed signs of support, but many voters changed their minds about 78 when they were informed that it was supported by the pharmaceutical industry. Proposition 78 would set up voluntary discounts for the industry, while Proposition 79 would put the responsibility for enforcing discounts on the state. Experts across the state have said that it is difficult to estimate what effect either would have on drug costs in California.

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