“This measure will blow a massive hole in our state budget”
SACRAMENTO, CA — Top Democrats in the California State Assembly today announced their opposition to Proposition 40 — the reckless wealth tax experiment — detailing how the measure will blow a hole in the state budget, cost California billions, shortchange schools and other priorities, and undermine emergency management.
The Assemblymembers announcing their opposition include: Patrick Ahrens (D-Cupertino), Anamarie Ávila Farías (D-Martinez), Lisa Calderon (D-Whittier), John Harabedian (D-Pasadena), Jacqui Irwin (D-Thousand Oaks), Stephanie Nguyen (D-Elk Grove), Blanca Pacheco (D-Downey), Michelle Rodriguez (D-Ontario), and Catherine Stefani (D-San Francisco).
“As members of the California Legislature, we have a responsibility to protect the state’s fiscal health and stability, so we can continue improving schools, healthcare, public safety, housing, wildfire prevention, and other essential services our communities rely on. That is why we oppose Prop 40,” said the Assemblymembers in an open letter to voters detailing their opposition. “While well-intentioned, this measure will blow a massive hole in our state budget in the years ahead and undermine our ability to sustain investments in the very priorities Prop 40 claims to support.”
These Democrats represent communities across California, including the Bay Area, Los Angeles and Ventura Counties, the Gateway Cities, San Gabriel Valley, Inland Empire, and Sacramento Valley. They join other prominent California Democrats opposed to Proposition 40, including Governor Gavin Newsom, former HHS Secretary and gubernatorial candidate Xavier Becerra, State Treasurer Fiona Ma, San Francisco Mayor Daniel Lurie, San Jose Mayor Matt Mahan, former Stockton Mayor Michael Tubbs, and many others. Additional state legislators are expected to announce their opposition in the weeks ahead.
A growing, bipartisan coalition of teachers, small business owners, blue-collar union workers, law enforcement officials, firefighters, community leaders, healthcare providers, affordable housing advocates, working families, and many others strongly oppose Prop 40. They all warn that this measure is bad for California’s budget, economy, and future.
Today’s announcement builds on recent opposition from labor, education, and public safety leaders, including the California State Council of Laborers, United Domestic Workers (UDW), California-Nevada Conference of Operating Engineers, Association of California School Administrators (ACSA), and California Police Chiefs Association (CPCA).
Other leading organizations that have come out against the measure in recent weeks include: the California Teachers Association (CTA), California Professional Firefighters (CPF), Planned Parenthood Affiliates of California (PPAC), California Medical Association (CMA), California Primary Care Association (CPCA), California Hospital Association (CHA), California School Boards Association (CSBA), and many more. A full list of the growing No on 40 coalition is here.
The complete text of the legislators’ open letter to voters is below:
Dear California Voters:
As members of the California Legislature, we have a responsibility to protect the state’s fiscal health and stability, so we can continue improving schools, healthcare, public safety, housing, wildfire prevention, and other essential services our communities rely on.
That is why we oppose Prop 40.
While well-intentioned, this measure will blow a massive hole in our state budget in the years ahead and undermine our ability to sustain investments in the very priorities Prop 40 claims to support. While this tax would offer a temporary, one-time increase in revenue, the Legislative Analyst’s Office estimates an ongoing loss of hundreds of millions of dollars annually due to a reduction in the state’s income tax base. Stanford economists estimate Prop 40 could cost the state $25 billion.
At the same time, this measure earmarks nearly all of its revenue for just one purpose with nothing going to support housing, childcare, public safety, universities, the environment, infrastructure, and so many other top priorities for Californians. It also intentionally bypasses the Prop 98 constitutional funding guarantee for education, which means students and schools lose out on $3 billion every year that they would have otherwise received.
As our state responds to federal funding reductions and policy changes under the Trump Administration, including those resulting from H.R. 1, now is not the time to do more harm. Prop 40 would leave California with fewer resources and less flexibility to respond to economic downturns, natural disasters, public health emergencies, and other unforeseen challenges.
We all share the goal of expanding opportunity and strengthening our communities, particularly as dangerous federal funding cuts threaten access to care and risk collapsing our safety net.
But we cannot achieve those goals by destroying the very fiscal foundation that makes them possible.
For these reasons, we join firefighters, teachers, Planned Parenthood Affiliates of California, and many others in opposition to Prop 40 and urge Californians to reject this measure.