The fate of multiple high-stakes California ballot propositions remained undecided Wednesday, as poll workers continued to tally votes from across the state.
Other measures have generated decisive action from voters on such issues as public funding for housing and voter identification.
Six races have been called by the Associated Press, according to The Times tracker. They include four propositions — 1, 2, 3 and 37 — and two failed measures — 39 and 44. Eight remained undecided.
So far, there have been no big surprises, said Mark Baldassare, statewide survey director at the Public Policy Institute of California. The verdicts are “consistent with what we were seeing in the preelection polling.”
Undecided
Among the undecided items is Proposition 4, which would allow state and local governments to use public money to help finance political campaigns — something California largely has prohibited since 1988. The measure would lift that prohibition, subject to restrictions on how the money could be used and who could receive it. As of Wednesday, votes were leaning slightly against the proposition.
Another undecided item, Proposition 5, would change the process for recalling an elected official. It would separate the decision to recall the official from the choice of who replaces them, creating a second election or appointment process to determine the successor. The race was very tight Wednesday, with votes in favor holding a narrow edge.
Proposition 38 is leaning toward a passing vote by a solid margin. The measure would authorize the state to issue $8.4 billion in bonds to fund immunology and immunotherapy research that aims to cure and prevent cancer, heart disease and Alzheimer’s disease. Half the money would go to a single UC-affiliated nonprofit research institute, with the other half distributed through research grants.
One closely watched item, Proposition 40 — the so-called “billionaire tax” — also is leaning toward a likely rejection from voters. The proposition would create a one-time 5% tax on individuals and trusts with wealth of more than $1 billion, with the revenue going toward healthcare, food assistance and education. State officials estimated it would generate tens of billions of dollars for the state, but others, including Gov. Gavin Newsom, warned that it would lead wealthy residents to leave California and lead to future budget problems.
Two separate ballot measures, Proposition 41 and Proposition 42, were crafted to nullify the wealth tax and still remain too close to call.
Proposition 43, meanwhile, would require a two-thirds vote, rather than a simple majority, to approve certain local government taxes. It was leaning toward rejection.
Another big-ticket item, Proposition 45, was opposed by a small margin of voters but still too close to call. It would change the state’s landmark environmental review process, the California Environmental Quality Act, by shortening deadlines and permitting rules for public and private development projects. Supporters say it would cut costly delays and expedite essential housing, transportation, water, health and education projects. But opponents say it would clear the path for more artificial intelligence data centers.
Prop. 45 “has been interesting all along because it fits in with concerns about housing affordability,” Baldassare said. However, it also raised questions about “unintended consequences” for the environment.
“CEQA reform is complicated, let’s face it,” he said. “That has made the voters more split.”
Passed
The passing propositions each won with what were considerable margins Wednesday.
They included Proposition 1, which authorizes $11.25 billion in state bonds to finance affordable housing programs, with $1.25 billion set aside for housing for veterans.
Another passing item, Proposition 2, gives lawmakers the ability to put more money into California’s “rainy day fund,” doubling the reserve from 10% to 20% of the state’s general fund revenues. It also would require the state to save more in years when tax revenues are high, helping to weather economic ups and downs. It passed with a clear majority, according to The Times tracker.
Voters also approved Proposition 3, which permanently extends a high-income tax increase on California’s highest earners. The increase was approved by voters in 2012 and was scheduled to expire in 2031. The money generated by Proposition 3 would flow to education, with 89% going to K-12 schools and 11% to community colleges. It is separate from Proposition 40 — the more controversial tax on California’s wealthiest citizens, which remains undecided.
“We saw a majority of Californians in our poll saying that the wealthy should be taxed,” Baldassare said. And while voters were warned that Proposition 40 could push billionaires out of the state, Proposition 3 seemed a more palatable way to do that.
Proposition 37 passed with a clear majority of the vote. It authorizes up to $25 billion in state-issued bonds to create a loan program to help middle-income Californians buy newly constructed homes. Qualified buyers can borrow up to 17% of the price of the home while contributing 3% of the down payment from their own funds.
“There’s been strong support for the idea of spending more money on housing affordability through bonds, not taxes, and that explains the support that we saw all along for Proposition 1 and Proposition 37, despite the fact that it’s a lot of bond money,” Baldassare said.
Rejected
Californians rejected Proposition 39, which would have required voters to provide government-issued identification when voting in person or provide identifying information on mail-in ballots. It would have changed California’s signature-based voter identification system and was a resounding rejection of the broader fight playing out over onerous voter ID measures at the national level.
This was another measure where voters received a clear message, including from governor-elect Xavier Becerra, who urged Californians to vote no, Baldassare said.
“We saw in our polling before the election that most Californians don’t think that there’s a problem with the way that we go about our elections and casting ballots and counting votes … so that sort of didn’t align with thinking,” he said.
California voters also resoundingly rejected Proposition 44. The act would have required certain nonprofit community health clinics serving low-income and medically underserved populations to spend at least 90% of their annual revenue on health care services. Those that fell short would be penalized. As of Wednesday morning, a whopping 82% of votes were against the proposition, more than any other.
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